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.
*hb0216*
HOUSE BILL 216
N1, M5 (4lr0542)
ENROLLED BILL
— Environment and Transportation/Judicial Proceedings —
Introduced by Delegate Charkoudian
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
Condominiums – Common Elements – Clean Energy Equipment 2
FOR the purpose of authorizing certain governing bodies the board of directors of a 3
condominium to grant certain interests affecting the common elements of the 4
condominium for the installation and use of leased clean energy equipment; and 5
generally relating to the common elements of a condominium and leased clean 6
energy equipment. 7
BY repealing and reenacting, with amendments, 8
Article – Real Property 9
Section 11–125 10
Annotated Code of Maryland 11
(2023 Replacement Volume) 12
2 HOUSE BILL 216
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Real Property 3
11–125. 4
(a) The existing physical boundaries of any unit or common element constructed 5
or reconstructed in substantial conformity with the condominium plat shall be conclusively 6
presumed to be its boundaries, regardless of the shifting, settlement, or lateral movement 7
of any building and regardless of minor variations between the physical boundaries as 8
described in the declaration or shown on the condominium plat and the existing physical 9
boundaries of any such unit or common element. This presumption applies only to 10
encroachments within the condominium. 11
(b) If any portion of any common element encroaches on any unit or if any portion 12
of a unit encroaches on any common element or any other unit, as a result of the duly 13
authorized construction or repair of a building, a valid easement for the encroachment and 14
for the maintenance of the encroachment exists so long as the building stands. 15
(c) An easement for mutual support shall exist in the units and common 16
elements. 17
(d) The grant or other disposition of a condominium unit shall include and grant, 18
and be subject to, any easement arising under the provisions of this section without specific 19
or particular reference to the easement. 20
(e) (1) The council of unit owners or its authorized designee shall have an 21
irrevocable right and an easement to enter units to investigate damage or make repairs 22
when the investigation or repairs reasonably appear necessary for public safety or to 23
prevent damage to other portions of the condominium. 24
(2) Except in cases involving manifest danger to public safety or property, 25
the council of unit owners shall make a reasonable effort to give notice to the owner of any 26
unit to be entered for the purpose of investigation or repair. 27
(3) If damage is inflicted on the common elements or any unit through 28
which access is taken, the council of unit owners is liable for the prompt repair. 29
(4) An entry by the council of unit owners for the purposes specified in this 30
subsection may not be considered a trespass. 31
(f) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 32
SUBSECTION, THE declaration or bylaws may give the council of unit owners authority to 33
grant easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 34
affecting the common elements of the condominium if the grant is approved by the 35 HOUSE BILL 216 3
affirmative vote of unit owners having [66 2/3 percent] TWO–THIRDS or more of the votes, 1
and with the express written consent of the mortgagees holding an interest in those units 2
as to which unit owners vote affirmatively. Any easement, right–of–way, license, or similar 3
interest granted by the council of unit owners under this subsection shall state that the 4
grant was approved by unit owners having at least [66 2/3 percent] TWO–THIRDS of the 5
votes, and by the corresponding mortgagees. 6
(2) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 7
SUBSECTION, THE board of directors may, by majority vote, grant easements, 8
rights–of–way, licenses, leases in excess of 1 year, or similar interests for the provision of 9
utility services or communication systems for the exclusive benefit of units within the 10
condominium regime. These actions by the board of directors are subject to the following 11
requirements: 12
(i) The action shall be taken at a meeting of the board held after at 13
least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 14
(ii) At the meeting, the board may not act until all unit owners and 15
mortgagees shall be afforded a reasonable opportunity to present their views on the 16
proposed easement, right–of–way, license, lease, or similar interest; AND 17
(iii) The easement, right–of–way, license, lease, or similar interest 18
shall contain the following provisions: 19
1. The service or system shall be installed or affixed to the 20
premises at no cost to the individual unit owners or the council of unit owners other than 21
charges normally paid for like services by residents of similar or comparable dwelling units 22
within the same area; 23
2. The unit owners and council of unit owners shall be 24
indemnified for any damage arising out of the installation of the service or system; and 25
3. The board of directors shall be provided the right to 26
approve of the design for installation of the service or system in order to insure that the 27
installation conforms to any conditions which are reasonable to protect the safety, 28
functioning, and appearance of the premises. 29
(3) By majority vote, the board of directors may grant to the State 30
perpetual easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 31
affecting the common elements of the condominium for bulkhead construction, dune 32
construction or restoration, beach replenishment, or periodic maintenance and replacement 33
construction, on Maryland’s ocean beaches, including rights in the State to restrict access 34
to dune areas. These actions by the board of directors are subject to the following 35
requirements: 36
4 HOUSE BILL 216
(i) The action shall be taken at a meeting of the board held after at 1
least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 2
and 3
(ii) At the meeting, the board may not act until all unit owners and 4
mortgagees shall be afforded a reasonable opportunity to present their views on the 5
proposed easement, right–of–way, license, lease, or similar interest. 6
(4) By majority vote, the board of directors may settle an eminent domain 7
proceeding or grant to the State or any county, municipality, or agency or instrumentality 8
thereof with condemnation authority, perpetual easements, rights–of–way, licenses, leases 9
in excess of 1 year, or similar interests affecting the common elements of the condominium 10
for road, highway, sidewalk, bikeway, storm drain, sewer, water, utility, and similar public 11
purposes. These actions by the board of directors are subject to the following requirements: 12
(i) The action shall be taken at a meeting of the board held after at 13
least 60–days’ notice to all unit owners and all first mortgagees listed with the 14
condominium; 15
(ii) The notice shall include information provided by the 16
condemnation authority that describes the purpose and the extent of the property being 17
acquired for public use; and 18
(iii) At the meeting, the board may not act until all unit owners and 19
mortgagees in attendance have been afforded a reasonable opportunity to present their 20
views on the proposed easement, right–of–way, license, lease, or similar interest. 21
(5) (I) IN THIS PARAGRAPH , “CLEAN ENERGY EQUIPME NT” MEANS 22
ELECTRIC VEHICLE REC HARGING EQUIPMENT , SOLAR ENERGY EQUIPME NT, AND 23
ENERGY STORAGE SYSTE MS. 24
(II) SUBJECT TO SUBPARAGRA PH (III) OF THIS PARAGRAPH , 25
THE BOARD OF DIRECTO RS, BY A MAJORITY VOTE , OR THE COUNCIL OF UN IT 26
OWNERS, BY THE AFFIRMATIVE V OTE OF UNIT OWNERS H AVING AT LEAST 51% OF 27
THE VOTES IN THE COU NCIL, MAY GRANT LEASES IN EXCESS OF 1 YEAR OR SIMILAR 28
INTERESTS AFFECTING THE COMMON ELEMENTS OF THE CONDOMINIUM F OR THE 29
INSTALLATION AND USE OF LEASED CLEAN ENER GY EQUIPMENT . 30
(III) THE BOARD OF DIRECTOR S MAY GRANT AN INTER EST 31
UNDER THIS PARAGRAPH ONLY AT A MEETING OF THE BOARD HELD AFTER AT LEAST 32
30–DAYS’ NOTICE TO ALL UNIT O WNERS OF RECORD . 33
(IV) A MORTGAGEE OR GROUP O F MORTGAGEES MAY NOT 34
OVERRULE A VOTE TO G RANT AN INTEREST UND ER THIS PARAGRAPH . 35
HOUSE BILL 216 5
[(5)] (6) The action of the board of directors granting any easement, 1
right–of–way, license, lease, or similar interest under paragraphs (2), (3), or (4) of this 2
subsection shall not be final until the following have occurred: 3
(i) Within 15 days after the vote by the board to grant an easement, 4
right–of–way, license, lease, or similar interest, a petition may be filed with the board of 5
directors signed by the unit owners having at least [15 percent] 15% of the votes calling 6
for a special meeting of unit owners to vote on the question of a disapproval of the action of 7
the board of directors granting such easement, right–of–way, license, lease, or similar 8
interest. If no such petition is received within 15 days, the decision of the board shall be 9
final; 10
(ii) If a qualifying petition is filed, a special meeting shall be held no 11
less than 15 days or more than 30 days from receipt of the petition. At the special meeting, 12
if a quorum is not present, the decision of the board of directors shall be final; 13
(iii) 1. If a special meeting is held and [50 percent] 50% of the 14
unit owners present and voting disapprove the grant, and the unit owners voting to 15
disapprove the grant are more than [33 percent] 33% of the total votes in the condominium, 16
then the grant shall be void; or 17
2. If the vote of the unit owners is not more than [33 percent] 18
33% of the total votes in the condominium, the decision of the board or council to make the 19
grant shall be final; 20
(iv) Mortgagees shall receive notice of and be entitled to attend and 21
speak at such special meeting; and 22
(v) Any easement, right–of–way, license, lease, or similar interest 23
granted by the board of directors under the provisions of this subsection shall state that 24
the grant was approved in accordance with the provisions of this subsection. 25
[(6)] (7) The provisions of this subsection are applicable to all 26
condominiums, regardless of the date they were established. 27
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
October 1, 2024. 29