EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. Italics indicate opposite chamber/conference committee amendments. *hb1117* HOUSE BILL 1117 N1 (4lr1054) ENROLLED BILL — Environment and Transportation/Judicial Proceedings — Introduced by Delegate Stewart Delegates Stewart, Addison, Allen, Boyce, Foley, Healey, Lehman, J. Long, Love, Ruth, and Terrasa Read and Examined by Proofreaders: _______________________________________________ Proofreader. _______________________________________________ Proofreader. Sealed with the Great Seal and presented to the Governor, for his approval this _______ day of _______________ at ________________________ o’clock, ________M. ______________________________________________ Speaker. CHAPTER ______ AN ACT concerning 1 Landlord and Tenant – Failure to Repair Serious and Dangerous Defects – 2 Tenant Remedies 3 (Tenant Safety Act of 2024) 4 FOR the purpose of establishing that a landlord that offers a dwelling for rent is deemed to 5 warrant the dwelling fit for human habitation; clarifying that certain mold hazards 6 constitute dangerous conditions and defects for which a tenant may obtain relief; 7 authorizing multiple tenants to join as plaintiffs in the same civil action against a 8 landlord and authorizing a court to issue an order for separate trials or any other 9 orders necessary to prevent delay or avoid prejudice; establishing that, prior to a 10 certain court order, there is a rebuttable presumption that a tenant is entitled to 11 have a court adjudicate a request for rent abatement; establishing a rebuttable 12 presumption related to the abatement of prospective rent and the requirements for 13 rent escrow; establishing a rebuttable presumption that limits rent escrow payments 14 2 HOUSE BILL 1117 to rent that is due and unpaid subsequent to a court order; authorizing the award of 1 attorney’s fees, costs, and expenses related to litigation and a to a certain tenant who 2 prevails in certain actions; authorizing a court to enter a certain judgment in favor of 3 a landlord for attorney’s fees, costs, and expenses related to litigation under certain 4 circumstances; establishing that certain local laws preempt certain provisions of this 5 Act; authorizing certain remedies for a tenant if a landlord breaches the warranty of 6 habitability; providing that a landlord may raise certain defenses in a civil action 7 related to the breach of the warranty of habitability; providing that a court may order 8 certain relief in civil actions related to the breach of the warranty of habitability, 9 including actual damages, abatement of rent due and unpaid, and the termination 10 of a lease; and generally relating to remedies for a landlord’s failure to repair serious 11 and dangerous defects. 12 BY repealing and reenacting, with amendments, 13 Article – Real Property 14 Section 8–211 15 Annotated Code of Maryland 16 (2023 Replacement Volume) 17 BY adding to 18 Article – Real Property 19 Section 8–212 20 Annotated Code of Maryland 21 (2023 Replacement Volume) 22 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23 That the Laws of Maryland read as follows: 24 Article – Real Property 25 8–211. 26 (a) (1) The purpose of this section is to provide tenants with a mechanism for 27 encouraging the repair of serious and dangerous defects which exist within or as part of 28 any residential dwelling unit, or [upon the] ON property used in common of which the 29 dwelling unit forms a part. 30 (2) The defects sought to be reached by this section are those which present 31 a substantial and serious threat of danger to the life, health, and safety of the occupants of 32 the dwelling unit, and not those which merely impair the aesthetic value of the premises, 33 or which are, in those locations governed by such codes, housing code violations of a 34 nondangerous nature. 35 (3) The intent of this section is not to provide a remedy for dangerous 36 conditions in the community at large which exists apart from the leased premises or the 37 property in common of which the leased premises forms a part. 38 HOUSE BILL 1117 3 (b) It is the public policy of [Maryland] THE STATE that meaningful sanctions be 1 imposed [upon those who allow] ON A LANDLORD THAT A LLOWS dangerous conditions 2 and defects to exist in leased premises, and that an effective mechanism be established for 3 repairing these conditions and halting their creation. 4 (c) (1) [This] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 5 SUBSECTION, THIS section applies to ALL residential dwelling units leased for the purpose 6 of human habitation within the State [of Maryland. This section does not apply to farm 7 tenancies. 8 (d) This section applies to all applicable dwelling units] whether they are [(1) 9 publicly]: 10 (I) PUBLICLY or privately owned; or [(2) single] 11 (II) SINGLE or multiple units. 12 (2) THIS SECTION DOES NOT APPLY TO FARM TENANC IES. 13 [(e)] (D) [This section provides a remedy and imposes an obligation upon ON 14 landlords] A LANDLORD THAT OFFERS A RESIDENTIAL DWELLI NG UNIT FOR RENT , 15 WHETHER BY WRITTEN O R ORAL LEASE OR AGRE EMENT, SHALL BE DEEMED TO 16 WARRANT THAT THE RES IDENTIAL DWELLING UN IT IS FIT FOR HUMAN HABITATION 17 AND THAT THE LANDLOR D IS OBLIGATED to repair and eliminate conditions and defects 18 which constitute, or if not promptly corrected will constitute, a fire hazard or a serious and 19 substantial threat to the life, health, or safety of occupants, including[, but not limited to]: 20 (1) Lack of heat, light, electricity, or hot or cold running water, except 21 where the tenant is responsible for the payment of the utilities and the lack thereof is the 22 direct result of the tenant’s failure to pay the charges; 23 (2) Lack of adequate sewage disposal facilities; 24 (3) Infestation of rodents in two or more dwelling units; 25 (4) The existence of any structural defect which presents a serious and 26 substantial threat to the physical safety of the occupants; [or] 27 (5) The existence of any condition which presents a health or fire hazard to 28 the dwelling unit; OR 29 (6) THE EXISTENCE OF MOLD IN A DWELLING UNIT T HAT PRESENTS A 30 SERIOUS AND SUBSTANT IAL THREAT TO THE HE ALTH OF THE OCCUPANT S. 31 4 HOUSE BILL 1117 [(f)] (E) (1) This section does not [provide a remedy for the] APPLY TO A 1 landlord’s failure to repair and eliminate minor defects or, in those locations governed by 2 such codes, housing code violations of a nondangerous nature. 3 (2) There is a rebuttable presumption that the following conditions, when 4 they do not present a serious and substantial threat to the life, health, and safety of the 5 occupants, are not covered by this section: 6 [(1)] (I) Any defect which merely reduces the aesthetic value of the leased 7 premises, such as the lack of fresh paint, rugs, carpets, paneling, or other decorative 8 amenities; 9 [(2)] (II) Small cracks in the walls, floors, or ceilings; 10 [(3)] (III) The absence of linoleum or tile [upon] ON the floors, provided 11 that they are otherwise safe and structurally sound; or 12 [(4)] (IV) The absence of air conditioning. 13 [(g)] (F) (1) In order to employ the remedies provided by this section, the 14 tenant shall notify the landlord of the existence of the defects or conditions. 15 (2) Notice shall be given by [(1) a]: 16 (I) A written communication sent by certified mail listing the 17 asserted conditions or defects[, or (2) actual]; 18 (II) ACTUAL notice of the defects or conditions[,]; or [(3) a] 19 (III) A written violation, condemnation or other notice from an 20 appropriate State, county, municipal, or local government agency stating the asserted 21 conditions or defects. 22 [(h)] (G) (1) The landlord has a reasonable time after receipt of notice in 23 which to make the repairs or correct the conditions. 24 (2) The length of time deemed to be reasonable is a question of fact for the 25 court, taking into account the severity of the defects or conditions and the danger which 26 they present to the occupants. 27 (3) There is a rebuttable presumption that a period in excess of 30 days 28 from receipt of notice is unreasonable. 29 HOUSE BILL 1117 5 [(i)] (H) (1) If the landlord refuses to make the repairs or correct the 1 conditions, or if after a reasonable time the landlord has failed to do so, the tenant may 2 [bring] TAKE ONE OR BOTH OF THE FOLLOWING ACTION S: 3 (I) BRING an action of rent escrow to pay rent into court because of 4 the asserted defects or conditions[, or the tenant may refuse]; AND 5 (II) REFUSE to pay rent and raise the existence of the asserted 6 defects or conditions as an affirmative defense, IN ADDITION TO ANY OTHER DEFENSE, 7 to an action for distress for rent or to any complaint proceeding brought by the landlord to 8 recover rent or the possession of the leased premises. 9 (2) (I) MULTIPLE TENANTS MAY JOIN AS PLAINTIFFS I N AN ACTION 10 UNDER THIS SECTION IN ACCORDANC E WITH THE MARYLAND RULES ON JOINDER . 11 (II) THE COURT MAY ORDER S EPARATE TRIALS OR IS SUE ANY 12 OTHER ORDER NECESSAR Y TO PREVENT DELAY O R AVOID PREJUDICE . 13 (I) (1) THERE IS A REBUTTABLE PRESUMPTION THAT : 14 (1) A A TENANT IS ENTITLED TO THE ADJUDICATION OF A REQUEST 15 FOR RENT ABATEMENT ;. 16 (2) (I) SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH AN D 17 SUBSECTION (M) OF THIS SECTION, THERE IS A REBUTTABL E PRESUMPTION THAT A 18 TENANT: 19 1. IS IS ENTITLED TO AN ABATE MENT OF PROSPECTIVE 20 RENT; AND 21 2. MAY NOT BE REQUIRED T O PAY INTO ESCROW MO RE 22 THAN 50% OF THE AMOUNT OF REN T REQUIRED BY THE LE ASE IN AN AMOUNT TO BE 23 DETERMINED BY THE CO URT. 24 (II) A DETERMINATION UNDER THIS PARAGRAPH IS WI THOUT 25 PREJUDICE TO A FINAL DISPOSITION OF RENT THAT IS DUE AND UNPAID TO THE 26 LANDLORD. 27 (3) THERE IS A REBUTTABLE PRESUMPTION THAT A C OURT ORDER 28 REQUIRING RENT ESCRO W IS LIMITED TO THE PAYMENT OF RENT THAT IS DUE AND 29 UNPAID SUBSEQUENT TO THE COURT ORDER . 30 (4) A PARTY MAY REQUEST TH AT THE COURT ADJUST THE AMOUNT 31 OF RENT THAT A TENAN T PAYS INTO COURT AT ANY TIME. 32 6 HOUSE BILL 1117 (5) IF A TENANT ALLEGES T HAT A DEFECT OR COND ITION EXISTS AT 1 THE LEASED PREMISES AT A TRIAL FOR FAILU RE TO PAY RENT , THE COURT MAY 2 GRANT A POSTPONEMENT ON REQUEST OF EITHER PARTY IN O RDER FOR THE 3 PARTIES TO PROVIDE E VIDENCE AND ADDITION AL INFORMATION REGAR DING THE 4 ALLEGED DEFECT OR CO NDITION. 5 (j) (1) Whether the issue of rent escrow is raised affirmatively or defensively, 6 the tenant may request one or more of the forms of relief set forth in this section. 7 (2) In addition to any other relief sought, if within 90 days after the court 8 finds that the conditions complained of by the tenant exist AND the landlord has not made 9 the repairs or corrected the conditions complained of, the tenant may file a petition of 10 injunction in the District Court requesting the court to order the landlord to make the 11 repairs or correct the conditions. 12 (k) Relief under this section is conditioned on: 13 (1) Giving proper notice, and where appropriate, the opportunity to correct, 14 as described [by] IN subsection [(h)] (G) of this section; 15 (2) Payment by the tenant[, into court,] of the amount of rent required by 16 the lease INTO THE COURT , unless this amount is modified by the court as provided in 17 subsection (I) OR (m) of this section; 18 (3) In the case of tenancies measured by a period of [one] 1 month or more, 19 the court having not entered against the tenant three prior judgments of possession for rent 20 due and unpaid in the 12–month period immediately prior to the initiation of the action by 21 the tenant or by the landlord; and 22 (4) In the case of periodic tenancies measured by the weekly payment of 23 rent, the court having not entered against the tenant more than five judgments of 24 possession for rent due and unpaid in the 12–month period immediately prior to the 25 initiation of the action by the tenant or by the landlord, or, if the tenant has lived on the 26 premises [six] 6 months or less, the court having not entered against the tenant three 27 judgments of possession for rent due and unpaid. 28 (l) It is a sufficient defense to the allegations of the tenant that the tenant, the 29 tenant’s family, agent, employees, or assignees or social guests have caused the asserted 30 defects or conditions, or that the landlord or the landlord’s agents were denied reasonable 31 and appropriate entry for the purpose of correcting or repairing the asserted conditions or 32 defects. 33 (m) The court shall make appropriate findings of fact and make any order that the 34 justice of the case may require, including any one or a combination of the following: 35 HOUSE BILL 1117 7 (1) Order the termination of the lease and return of the leased premises to 1 the landlord, subject to the tenant’s right of redemption; 2 (2) Order that the action for rent escrow be dismissed; 3 (3) Order that the amount of rent required by the lease, whether paid into 4 court or to the landlord, be abated and reduced in an amount determined by the court to be 5 fair and equitable to represent the existence of the conditions or defects found by the court 6 to exist; or 7 (4) Order the landlord to make the repairs or correct the conditions 8 complained of by the tenant and found by the court to exist. 9 (n) (1) After rent escrow has been established, the court: 10 [(1)] (I) Shall, after a hearing, if so ordered by the court or one is 11 requested by the landlord, order that the money in the escrow account be disbursed to the 12 landlord after the necessary repairs have been made; 13 [(2)] (II) May, after an appropriate hearing, order that some or all money 14 in the escrow account be paid to the landlord or the landlord’s agent, the tenant or the 15 tenant’s agent, or any other appropriate person or agency for the purpose of making the 16 necessary repairs of the dangerous conditions or defects; 17 [(3)] (III) May, after a hearing if one is requested by the landlord, appoint 18 a special administrator who shall cause the repairs to be made, and who shall apply to the 19 court to pay for them out of the money in the escrow account; 20 [(4)] (IV) May, after an appropriate hearing, order that some or all money 21 in the escrow account be disbursed to pay any mortgage or deed of trust on the property in 22 order to stay a foreclosure; 23 [(5)] (V) May, after a hearing, if one is requested by the tenant, order, if 24 no repairs are made or if no good faith effort to repair is made within [six] 6 months of the 25 initial decision to place money in the escrow account, that the money in the escrow account 26 be disbursed to the tenant THAT HAVE PAID INTO ESCROW[. Such an order will not 27 discharge the right on the part of the tenant to pay rent into court and an appeal will stay 28 the forfeiture]; or 29 [(6)] (VI) May, after an appropriate hearing, order that the money in the 30 escrow account be disbursed to the landlord if the tenant does not regularly pay, into that 31 account, the rent owed. 32 (2) AN ORDER ISSUED UNDER PARAGRAPH (1)(V) OF THIS 33 SUBSECTION: 34 8 HOUSE BILL 1117 (I) DOES NOT AFFECT THE R IGHT OF A TENANT TO PAY RENT 1 INTO COURT; AND 2 (II) MAY BE STAYED ON APPE AL BY THE LANDLORD . 3 (O) IF A COURT ORDERS ANY RELIEF TO A TENANT WHO BRINGS AN ACTION 4 UNDER THIS SECTION, THE TENANT MAY RECOV ER: 5 (1) REASONABLE ATTORNEY ’S FEES AND COSTS ; AND 6 (2) REASONABLE EXPENSES R ELATED TO LITIGATION , SUCH AS 7 EXPENSES FOR A MOLD ASSESSMENT AT THE RE SIDENCE OF THE TENAN T. 8 (P) IF A COURT FINDS THAT A COMPLAINT FILED BY A TENANT UN DER THIS 9 SECTION IS IN BAD FA ITH OR WITHOUT SUBST ANTIAL JUSTIFICATION , THE COURT 10 MAY ENTER A JUDGMENT IN FAVOR OF THE LAND LORD FOR: 11 (1) REASONABLE ATTORNEY ’S FEES AND COSTS ; AND 12 (2) EXPENSES RELATED TO L ITIGATION. 13 [(o)] (P) (Q) Except as provided in § 8–211.1(e) of this subtitle, [in the event any 14 county or Baltimore City is subject to a public local law or has enacted an ordinance or 15 ordinances comparable in subject matter to this section, commonly referred to as a “Rent 16 Escrow Law”, any such ordinance or ordinances shall supersede the provisions of this 17 section] THIS SECTION SHALL SUPERS EDE ANY LOCAL LAW OR ORDINANCE 18 COMPARABLE IN SUBJEC T MATTER TO THIS SEC TION EXCEPT TO THE EXTENT THAT 19 THE LOCAL LAW OR ORD INANCE PROVIDES BROA DER APPLICABILITY OR MORE 20 PROTECTIONS FOR TENA NTS THAN THIS SECTIO N. 21 8–212. 22 (A) IN THIS SECTION , “WARRANTY OF HABITABI LITY” MEANS THE 23 WARRANTY BY A LANDLO RD DESCRIBED UNDER § 8–211 OF THIS SUBTITLE. 24 (A) IN THIS SECTION , “FIT FOR HUMAN HABITA TION” MEANS THAT A 25 DWELLING UNIT AND PR OPERTY OF WHICH THE DWELLING UNIT IS A P ART ARE FREE 26 FROM SERIOUS DEFECTS OR CONDITIONS THAT C ONSTITUTE, OR WILL CONSTITUTE 27 IF NOT PROMPTLY CORR ECTED, A FIRE HAZARD OR OTH ER SERIOUS AND 28 SUBSTANTIAL THREAT T O THE LIFE, HEALTH, OR SAFETY OF OCCUPANTS OF THE 29 DWELLING UNIT . 30 (B) THIS SECTION APPLIES TO LANDLORDS , TENANTS, AND RESIDENTIAL 31 DWELLING UNITS THAT ARE SUBJECT TO § 8–211 OF THIS SUBTITLE . 32 HOUSE BILL 1117 9 (C) A LANDLORD THAT OFFERS A RESIDENTIAL DWELLI NG UNIT FOR RENT , 1 WHETHER BY WRITTEN OR ORAL LEASE AGREEM ENT, SHALL BE DEEMED TO 2 WARRANT THAT THE DWE LLING UNIT IS FIT FO R HUMAN HABITATION . 3 (D) THE WARRANTY OF HABIT ABILITY UNDER THIS S ECTION EXISTS AT THE 4 BEGINNING OF THE TEN ANCY AND CONTINUES T HROUGHOUT THE TERM O F THE 5 TENANCY. 6 (E) RELIEF FOR BREACH OF THE WARRANTY OF HABI TABILITY UNDER THIS 7 SECTION MAY NOT BE C ONDITIONED ON PAYMEN T BY THE TENANT OF R ENT INTO 8 ESCROW WITH THE COUR T. 9 (D) (1) IN ORDER TO EMPLOY TH E REMEDIES PROVIDED BY THIS 10 SECTION, A TENANT SHALL NOTIF Y THE LANDLORD OF THE EXISTENCE OF THE 11 DEFECTS OR CONDITION S IN ACCORDANCE WITH § 8–211 OF THIS SUBTITLE. 12 (F) (1) (I) IN ORDER TO EMPLOY TH E REMEDIES PROVIDED BY THIS 13 SECTION, THE TENANT SHALL NOT IFY THE LANDLORD OF THE EXISTENCE OF 14 DEFECTS OR CONDITION S. 15 (II) NOTICE SHALL BE GIVEN BY : 16 1. A WRITTEN COMMUNICATIO N SENT BY CERTIFIED 17 MAIL LISTING THE ASS ERTED DEFECTS OR CON DITIONS; 18 2. ACTUAL NOTICE OF THE DEFECTS OR CONDITION S; 19 OR 20 3. A WRITTEN VIOLATION , CONDEMNATION , OR OTHER 21 NOTICE FROM AN APPRO PRIATE STATE, COUNTY, MUNICIPAL, OR LOCAL 22 GOVERNMENT AGENCY ST ATING THE ASSERTED D EFECTS OR CONDITIONS . 23 (2) WITHIN A REASONABLE P ERIOD OF TIME AFTER RECEIPT OF 24 NOTICE UNDER PARAGRA PH (1) OF THIS SUBSECTION , THE LANDLORD SHALL M AKE 25 THE REPAIRS OR CORRE CT THE CONDITIONS IN ACCORDA NCE WITH § 8–211(G) OF 26 THIS SUBTITLE. 27 (E) (G) (1) IF A LANDLORD BREACHE S THE WARRANTY OF 28 HABITABILITY UNDER § 8–211 OF THIS SUBTITLE THIS SECTION AND REFUSES TO 29 MAKE THE REPAIRS OR CORRECT THE CONDITIO NS, OR IF AFTER A REASON ABLE 30 TIME THE LANDLORD HAS FAI LED TO DO SO, THE TENANT MAY : 31 10 HOUSE BILL 1117 (I) BRING AN ACTION FOR D AMAGES AND THE ABATE MENT OF 1 RENT AGAINST THE LAN DLORD; AND 2 (II) REFUSE TO PAY RENT AN D RAISE THE EXISTENC E OF THE 3 ASSERTED DEFECTS OR CONDITIONS AS AN AFF IRMATIVE DEFENSE TO AN ACTION 4 OF DISTRESS FOR RENT OR TO ANY OTHER ACTI ON BROUGHT BY THE LA NDLORD TO 5 RECOVER RENT OR THE POSSESSION OF THE LE ASED PREMISES . 6 (2) MULTIPLE TENANTS MAY JOIN AS PLAINTIFFS I N AN ACTION 7 UNDER THIS SUBSECTIO N IN ACCORDANCE WITH THE MARYLAND RULES ON 8 JOINDER. 9 (3) THE REMEDIES UNDER TH IS SUBSECTION ARE IN ADDITION TO 10 ANY OTHER REMEDIES P ROVIDED BY LAW . 11 (F) (H) IT IS A DEFENSE TO A CLAIM UNDER THIS SEC TION THAT: 12 (1) THE TENANT , THE TENANT ’S FAMILY, AGENT, EMPLOYEES, 13 ASSIGNEES, OR SOCIAL GU ESTS CAUSED THE ASSE RTED DEFECTS OR COND ITIONS; 14 OR 15 (2) THE LANDLORD OR THE L ANDLORD’S AGENTS WERE DENIED 16 REASONABLE AND APPRO PRIATE ENTRY FOR THE PURPOSE OF CORRECTIN G OR 17 REPAIRING THE ASSERT ED CONDITIONS OR DEF ECTS. 18 (G) (I) THE COURT SHALL MAKE APPROPRIATE FINDINGS OF FACT AND 19 ISSUE ANY ORDER THAT THE JUSTICE OF THE C ASE MAY REQUIRE , INCLUDING 20 ORDERING ANY OF THE FOLLOWING: 21 (1) AN AWARD OF ACTUAL DA MAGES; 22 (2) AN ABATEMENT OF RENT DUE AND UNPAID ; OR 23 (3) THE TERMINATION OF TH E LEASE, RETURN OF ANY UNUSED 24 PORTION OF A SECURIT Y DEPOSIT TO THE TEN ANT, AND RELOCATION EXPEN SES 25 FOR A TENANT. 26 (H) (J) IF A COURT ORDERS ANY RELIEF TO A TENANT WHO BRINGS AN 27 ACTION UNDER THIS SECTION , THE TENANT MAY RECOV ER REASONABLE : 28 (1) ATTORNEY’S FEES AND COSTS ; AND 29 (2) EXPENSES RELATED TO L ITIGATION, SUCH AS EXPENSES FOR A 30 MOLD ASSESSMENT AT T HE RESIDENCE OF THE TENANT. 31 HOUSE BILL 1117 11 (K) IF A COURT FINDS THAT AN ACTION BROUGHT BY A TENANT UNDER THIS 1 SECTION IS IN BAD FA ITH OR WITHOUT SUBST ANTIAL JUSTIFICATION , THE COURT 2 MAY ENTER A JUDGMENT IN FAVOR OF A LANDLO RD FOR: 3 (1) REASONABLE ATTORNEY ’S FEES AND COSTS ; AND 4 (2) EXPENSES RELATED TO L ITIGATION. 5 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 6 October 1, 2024. 7 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.