Maryland 2023 Regular Session

Maryland House Bill HB29 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0029
6	6
7	7	HOUSE BILL 29
8	8	N1 3lr0427
9	9	HB 1060/22 – ENT (PRE–FILED)
10	10	By: Delegate Holmes
11	11	Requested: September 20, 2022
12	12	Introduced and read first time: January 11, 2023
13	13	Assigned to: Environment and Transportation
14	14
15	15	A BILL ENTITLED
16	16
17	17	AN ACT concerning 1
18	18
19	19	Residential Owners in Common Ownership Communities Bill of Rights 2
20	20
21	21	FOR the purpose of establishing a bill of rights for unit owners of a condominium, members 3
22	22	of a cooperative housing corporation, and lot owners of a homeowners association; 4
23	23	and generally relating to residential owners in common ownership communities. 5
24	24
25	25	BY adding to 6
26	26	Article – Real Property 7
27	27	Section 1–105 8
28	28	Annotated Code of Maryland 9
29	29	(2015 Replacement Volume and 2022 Supplement) 10
30	30
31	31	Preamble 11
32	32
33	33	WHEREAS, The General Assembly authorized a Task Force on Common Ownership 12
34	34	Communities, or Task Force, under Chapter 469 of the Acts of 2005 and directed that Task 13
35	35	Force to study and prepare proposals for improving Maryland laws that relate to 14
36	36	communities that are governed as a common ownership community, including a 15
37	37	condominium, a cooperative housing corporation, or a homeowners association; and 16
38	38
39	39	WHEREAS, The Task Force concluded in 2006 that there was a marked increase in 17
40	40	interest nationwide in addressing issues between unit owners in a condominium, members 18
41	41	in a cooperative housing corporation, and lot owners in a homeowners association 19
42	42	(hereinafter, collectively, “residential owners”) and the governing bodies of such 20
43	43	communities, and that identifying and establishing a bill of rights for those residential 21
44	44	owners is an important objective; and 22
45	45
46	46	WHEREAS, The Uniform Law Commission recognized the need for a bill of rights 23
47	47	for residential owners and first approved a model bill of rights in 2008 for consideration by 24
48	48	the states; and 25 2 HOUSE BILL 29
49	49
50	50
51	51
52	52	WHEREAS, The Task Force completed its work in 2006, before the Uniform Law 1
53	53	Commission approved its first model bill of rights, and therefore the Task Force concluded 2
54	54	in its Final Report of December 31, 2006, that it would be prudent to wait on a final proposal 3
55	55	for a Maryland Bill of Rights until the model Uniform Law Commission Bill of Rights was 4
56	56	made available to the states; and 5
57	57
58	58	WHEREAS, The Task Force was informally reestablished during 2021 and diligently 6
59	59	drafted an updated bill of rights from the Uniform Law Commission, the Montgomery 7
60	60	County Commission on Common Ownership Communities, the Maryland Homeowners 8
61	61	Association, and other relevant sources; now, therefore, 9
62	62
63	63	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
64	64	That the Laws of Maryland read as follows: 11
65	65
66	66	Article – Real Property 12
67	67
68	68	1–105. 13
69	69
70	70	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 14
71	71	INDICATED. 15
72	72
73	73	(2) “COMMON OWNERSHIP COMM UNITY” MEANS: 16
74	74
75	75	(I) A COOPERATIVE HOUSING CORPORATION AS DEFIN ED IN § 17
76	76	5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; 18
77	77
78	78	(II) A CONDOMINIUM AS DEFIN ED IN § 11–101 OF THIS ARTICLE; 19
79	79	OR 20
80	80
81	81	(III) A HOMEOWNERS ASSOCIATI ON AS DEFINED IN § 11B–101 OF 21
82	82	THIS ARTICLE. 22
83	83
84	84	(3) “GOVERNING DOCUMENTS ” MEANS ANY BYLAWS , COVENANTS, 23
85	85	DECLARATIONS , OR RULES OF A COMMON OWNERSHIP COMMUNITY . 24
86	86
87	87	(4) “LOT” HAS THE MEANING INDI CATED IN § 11B–101 OF THIS 25
88	88	ARTICLE. 26
89	89
90	90	(5) “RESIDENTIAL OWNER ” MEANS: 27
91	91
92	92	(I) A MEMBER AS DEFINED IN § 5–6B–01 OF THE 28
93	93	CORPORATIONS AND ASSOCIATIONS ARTICLE; 29
94	94	HOUSE BILL 29 3
95	95
96	96
97	97	(II) A UNIT OWNER AS DEFINE D IN § 11–101 OF THIS ARTICLE; 1
98	98	OR 2
99	99
100	100	(III) A LOT OWNER. 3
101	101
102	102	(B) SUBJECT TO THE PROVIS IONS OF ALL APPLICAB LE LAWS GOVERNING 4
103	103	COMMON OWNERSHIP COM MUNITIES ESTABLISHED IN THE STATE, A RESIDENTIAL 5
104	104	OWNER IN A COMMON OW NERSHIP COMMUNITY HA S THE FOLLOWING RIGH TS: 6
105	105
106	106	(1) THE RIGHT: 7
107	107
108	108	(I) TO BE DESIGNATED AS A ME MBER OF A COMMON 8
109	109	OWNERSHIP COMMUNITY WHEN THE COMMUNITY M AKES THAT RESIDENTIA L 9
110	110	OWNER SUBJECT TO A L IEN AND TO A MANDATO RY ASSESSMENT ; AND 10
111	111
112	112	(II) TO PARTICIPATE IN MEETIN GS ON COMMUNITY ISSU ES 11
113	113	WITH OTHER MEMBERS ; 12
114	114
115	115	(2) THE RIGHT TO BE REPRE SENTED BY THE GOVERN ING BODY OF 13
116	116	THE COMMON OWNERSHIP COMMUNITY AND TO HAV E THE GOVERNING BODY 14
117	117	CONSIDER THE PRIORIT IES OF ALL RESIDENTI AL OWNERS WHEN APPROVING A 15
118	118	BUDGET AND MANAGING THE COMMUNITY ’S FACILITIES AND OPE N SPACE; 16
119	119
120	120	(3) THE RIGHT TO AN ANNUA L BUDGET FOR THE COM MON 17
121	121	OWNERSHIP COMMUNITY , TO BE DELIVERED TO T HE RESIDENTIAL OWNER WITH THE 18
122	122	RESIDENTIAL OWNER ’S ANNUAL NOTICE OF ASS ESSMENT FEES OWED TO THE 19
123	123	COMMON OWNERSHIP COM MUNITY, THAT PRIORITIZES SUP PORT FOR THE 20
124	124	FACILITIES AND SERVI CES AVAILABLE TO THE RESIDENTIAL OWNER IN THE 21
125	125	COMMON OWNERSHIP COM MUNITY; 22
126	126
127	127	(4) THE RIGHT TO USE ALL FACILITIES AND SERVI CES OF THE 23
128	128	COMMON OWNERSHIP COM MUNITY AT A REASONABLE COST TH AT DOES NOT EXCEED 24
129	129	HALF THE COST CHARGE D TO ELIGIBLE USERS WHO ARE NOT RESIDENT IAL OWNERS 25
130	130	IN THE COMMON OWNERS HIP COMMUNITY ; 26
131	131
132	132	(5) THE RIGHT TO BE A MEM BER OF THE CLASS OF SOLE OR PRIMARY 27
133	133	USERS OF THE COMMON OWNERSHIP COMMUNITY ’S FACILITIES AND SERVICES I F 28
134	134	THERE IS SCARCE AVAI LABLE CAPACITY OF TH ESE FACILITIES AND S ERVICES AND 29
135	135	TO BE PROVIDED WITH ADDITIONAL CAPACITY , TO THE EXTENT POSSIB LE, SO THAT 30
136	136	THE CLASS IS NOT DEN IED THE OPPORTUNITY TO USE THOSE FACILIT IES AND 31
137	137	SERVICES; 32
138	138	4 HOUSE BILL 29
139	139
140	140
141	141	(6) THE RIGHT TO FAIR TREATM ENT IN THE REPAYMENT OF ANY 1
142	142	DEBT INCURRED BY THE COMMON OWNERSHIP COM MUNITY FOR MAJOR CAP ITAL 2
143	143	PROJECTS OR OPERATIN G EXPENSES SO THAT P RESENT AND FUTURE RE SIDENTIAL 3
144	144	OWNERS HAVE A RELATI VELY EQUAL SHARE IN THE RESPONSIBILITY T O REPAY 4
145	145	SUCH DEBT; 5
146	146
147	147	(7) THE RIGHT TO VOTE : 6
148	148
149	149	(I) BY SECRET BALLOT TO E LECT THE MEMBERSHIP OF THE 7
150	150	GOVERNING BODY FOR T HE COMMON OWNERSHIP COMMUNITY AND TO BE A 8
151	151	CANDIDATE IN FAIR EL ECTIONS ADMINISTERED BY NEUTRAL PARTIES , WITH 9
152	152	RESULTS THAT CAN BE VERIFIED BY AN AUDI T ON REQUEST; 10
153	153
154	154	(II) TO RECALL AN INCUMBEN T MEMBER OF THE GOVE RNING 11
155	155	BODY; 12
156	156
157	157	(III) ON CERTAIN FINANCIAL MATTERS, IF PERMITTED IN THE 13
158	158	GOVERNING DOCUMENTS OF THE COMMON OWNERS HIP COMMUNITY ; AND 14
159	159
160	160	(IV) ON NEW CAPITAL PROJEC TS PROPOSED BY THE G OVERNING 15
161	161	BODY, IF PERMITTED IN THE GOVERNING DOCUMENTS OF THE COMMON OWNERS HIP 16
162	162	COMMUNITY AND BY REF ERENDUM; 17
163	163
164	164	(8) THE RIGHT, WITH REGARD TO MEETI NGS AND ACTIVITIES O F THE 18
165	165	GOVERNING BODY FOR T HE COMMON OWNERSHIP COMMUNITY OR A COMMI TTEE OF 19
166	166	THE GOVERNING BODY : 20
167	167
168	168	(I) TO RECEIVE REASONABLE ADVANCE NOTICE OF AN Y OPEN 21
169	169	AND CLOSED MEETING , INCLUDING ANY AGENDA FOR A MEETING AND AN Y 22
170	170	SUPPORTING INFORMATI ON; 23
171	171
172	172	(II) TO PARTICIPATE, EITHER IN PERSON OR THROUGH REMOTE 24
173	173	ACCESS, IN OPEN MEETINGS THA T ARE EASILY ACCESSI BLE TO THE RESIDENTIAL 25
174	174	OWNERS; AND 26
175	175
176	176	(III) TO A REASONABLE OPPOR TUNITY TO SPEAK DURI NG A 27
177	177	TIMELY PERIOD WHEN M ATTERS ARE DISCUSSED OR VOTED ON BY THE G OVERNING 28
178	178	BODY OR COMMITTEE ; 29
179	179
180	180	(9) THE RIGHT TO HAVE A C OMMON OWNERSHIP COMM UNITY 30
181	181	GOVERNING BODY AND C OMMUNITY MANAGER THAT : 31
182	182
183	183	(I) ARE PROPERLY TRAINED AND INDEMNIFIED ; 32 HOUSE BILL 29 5
184	184
185	185
186	186
187	187	(II) ARE STEWARDS OF THE C OMMUNITY’S COMMON 1
188	188	INTERESTS; 2
189	189
190	190	(III) ARE PROTECTIVE OF THE RIGHTS OF RESIDENTIA L OWNERS 3
191	191	IN THE COMMUNITY ; 4
192	192
193	193	(IV) PROVIDE RESIDENTIAL O WNERS DUE PROCESS AN D EQUAL 5
194	194	PROTECTION ; AND 6
195	195
196	196	(V) COMPLY AND FUNCTION I N ACCORDANCE WITH STATE LAW 7
197	197	AND THE GOVERNING DO CUMENTS; 8
198	198
199	199	(10) THE RIGHT TO RECEIVE TIMELY ACCESS TO DOC UMENTS OF THE 9
200	200	COMMON OWNERSHIP COM MUNITY, INCLUDING THE ABILIT Y TO INSPECT AND COP Y 10
201	201	SUCH DOCUMENTS ; 11
202	202
203	203	(11) THE RIGHT TO RECEIVE PROMPT AND NONDISCRI MINATORY 12
204	204	SERVICE FROM THE STA FF AND GOVERNING BOD Y OF THE COMMON OWNE RSHIP 13
205	205	COMMUNITY ; 14
206	206
207	207	(12) THE RIGHT TO INDIVIDU AL PRIVACY BY THE GO VERNANCE AND 15
208	208	MANAGEMENT OF THE CO MMON OWNERSHIP COMMU NITY; 16
209	209
210	210	(13) THE RIGHT TO FAIR TREATMENT IF CHARGED WITH A VIOLA TION 17
211	211	OF THE GOVERNING DOC UMENTS, INCLUDING THE OPPORT UNITY: 18
212	212
213	213	(I) TO BE NOTIFIED IN WRITIN G ABOUT THE NATURE O F THE 19
214	214	VIOLATION; 20
215	215
216	216	(II) TO PRESENT EVIDENCE AND CROSS–EXAMINE WITNESSES 21
217	217	AT A PROPER HEARING ; AND 22
218	218
219	219	(III) TO ABATE THE VIOLATION W ITHIN A REASONABLE A MOUNT 23
220	220	OF TIME; 24
221	221
222	222	(14) THE RIGHT: 25
223	223
224	224	(I) TO BE INFORMED BY THE GO VERNING BODY OF THE 26
225	225	COMMON OWNERSHIP COM MUNITY OF PROPOSED C HANGES TO EXISTING 27
226	226	GOVERNING DOCUMENTS OR POLICIES; AND 28
227	227	6 HOUSE BILL 29
228	228
229	229
230	230	(II) TO VOTE TO APPR OVE ANY CHANGES OF T HE TYPE 1
231	231	IDENTIFIED IN ITEM (I) OF THIS ITEM AND HAVE THOSE CHANG ES PROPERLY 2
232	232	ADOPTED AND PUBLISHE D; AND 3
233	233
234	234	(15) THE RIGHT TO HAVE THE CONSUMER PROTECTION DIVISION OF 4
235	235	THE MARYLAND OFFICE OF THE ATTORNEY GENERAL: 5
236	236
237	237	(I) REVIEW ALLEGED VIO LATIONS OF STATE LAWS THAT 6
238	238	GOVERN COMMON OWNERS HIP COMMUNITIES ; AND 7
239	239
240	240	(II) TAKE DIRECT ENFORCEME NT ACTIONS ON BEHALF OF A 8
241	241	RESIDENTIAL OWNER , INCLUDING BY ACTING TO RECEIVE AN ADJUDI CATION OF 9
242	242	THE MATTER BEFORE A COURT OR THE IMPOSIT ION OF PENALTIES BY THE 10
243	243	MARYLAND OFFICE OF THE ATTORNEY GENERAL. 11
244	244
245	245	(C) THE LISTING OF RIGHTS IN SUBSECTION (B) OF THIS SECTION MAY NOT 12
246	246	BE CONSTRUED TO DENY OR DETRACT FROM OTHE R RIGHTS THAT MAY BE RETAINED 13
247	247	BY RESIDENTIAL OWNER S IN A COMMON OWNERS HIP COMMUNITY . 14
248	248
249	249	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
250	250	October 1, 2023. 16
251	251