Maryland 2024 Regular Session

Maryland House Bill HB216 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	WES MOORE, Governor Ch. 253
2	1
3		-	– 1 –
4		-	Chapter 253
5		-	(House Bill 216)
6	2
7		-	AN ACT concerning
	3	+	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
	4	+	[Brackets] indicate matter deleted from existing law.
	5	+	Underlining indicates amendments to bill.
	6	+	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
	7	+	amendment.
	8	+	Italics indicate opposite chamber/conference committee amendments.
	9	+	hb0216
8	10
9		-	Condominiums – Common Elements – Clean Energy Equipment
	11	+	HOUSE BILL 216
	12	+	N1, M5 (4lr0542)
	13	+	ENROLLED BILL
	14	+	— Environment and Transportation/Judicial Proceedings —
	15	+	Introduced by Delegate Charkoudian
10	16
11		-	FOR the purpose of authorizing certain governing bodies the board of directors of a
12		-	condominium to grant certain interests affecting the common elements of the
13		-	condominium for the installation and use of leased clean energy equipment; and
14		-	generally relating to the common elements of a condominium and leased clean
15		-	energy equipment.
	17	+	Read and Examined by Proofreaders:
16	18
17		-	BY repealing and reenacting, with amendments,
18		-	Article – Real Property
19		-	Section 11–125
20		-	Annotated Code of Maryland
21		-	(2023 Replacement Volume)
	19	+	_______________________________________________
	20	+	Proofreader.
	21	+	_______________________________________________
	22	+	Proofreader.
22	23
23		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
24		-	That the Laws of Maryland read as follows:
	24	+	Sealed with the Great Seal and presented to the Governor, for his approval this
25	25
26		-	~~Article – Real Property~~
	26	+	_______ day of _______________ at __ ______________________ o’clock, ________M.
27	27
28		-	11–125.
	28	+	______________________________________________
	29	+	Speaker.
29	30
30		-	(a) The existing physical boundaries of any unit or common element constructed
31		-	or reconstructed in substantial conformity with the condominium plat shall be conclusively
32		-	presumed to be its boundaries, regardless of the shifting, settlement, or lateral movement
33		-	of any building and regardless of minor variations between the physical boundaries as
34		-	described in the declaration or shown on the condominium plat and the existing physical
35		-	boundaries of any such unit or common element. This presumption applies only to
36		-	encroachments within the condominium.
	31	+	CHAPTER ______
37	32
38		-	(b) If any portion of any common element encroaches on any unit or if any portion
39		-	of a unit encroaches on any common element or any other unit, as a result of the duly
40		-	authorized construction or repair of a building, a valid easement for the encroachment and
41		-	for the maintenance of the encroachment exists so long as the building stands.
	33	+	AN ACT concerning 1
42	34
43		-	(c) An easement for mutual support shall exist in the units and common
44		-	elements.
	35	+	Condominiums – Common Elements – Clean Energy Equipment 2
45	36
46		-	(d) The grant or other disposition of a condominium unit shall include and grant,
47		-	and be subject to, any easement arising under the provisions of this section without specific
48		-	or particular reference to the easement.
49		-	Ch. 253 2024 LAWS OF MARYLAND
	37	+	FOR the purpose of authorizing certain governing bodies the board of directors of a 3
	38	+	condominium to grant certain interests affecting the common elements of the 4
	39	+	condominium for the installation and use of leased clean energy equipment; and 5
	40	+	generally relating to the common elements of a condominium and leased clean 6
	41	+	energy equipment. 7
50	42
51		-	– 2 –
52		-	(e) (1) The council of unit owners or its authorized designee shall have an
53		-	irrevocable right and an easement to enter units to investigate damage or make repairs
54		-	when the investigation or repairs reasonably appear necessary for public safety or to
55		-	prevent damage to other portions of the condominium.
	43	+	BY repealing and reenacting, with amendments, 8
	44	+	Article – Real Property 9
	45	+	Section 11–125 10
	46	+	Annotated Code of Maryland 11
	47	+	(2023 Replacement Volume) 12
	48	+	2 HOUSE BILL 216
56	49
57		-	(2) Except in cases involving manifest danger to public safety or property,
58		-	the council of unit owners shall make a reasonable effort to give notice to the owner of any
59		-	unit to be entered for the purpose of investigation or repair.
60	50
61		-	~~(3) If damage is inflicted on~~ the ~~common elements or any unit through~~
62		-	~~which access is taken,~~ the ~~council~~ of ~~unit owners is liable for the prompt repair.~~
	51	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
	52	+	That the Laws of Maryland read as follows: 2
63	53
64		-	(4) An entry by the council of unit owners for the purposes specified in this
65		-	subsection may not be considered a trespass.
	54	+	Article – Real Property 3
66	55
67		-	(f) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS
68		-	SUBSECTION, THE declaration or bylaws may give the council of unit owners authority to
69		-	grant easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests
70		-	affecting the common elements of the condominium if the grant is approved by the
71		-	affirmative vote of unit owners having [66 2/3 percent] TWO–THIRDS or more of the votes,
72		-	and with the express written consent of the mortgagees holding an interest in those units
73		-	as to which unit owners vote affirmatively. Any easement, right–of–way, license, or similar
74		-	interest granted by the council of unit owners under this subsection shall state that the
75		-	grant was approved by unit owners having at least [66 2/3 percent] TWO–THIRDS of the
76		-	votes, and by the corresponding mortgagees.
	56	+	11–125. 4
77	57
78		-	(2) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS
79		-	SUBSECTION, THE board of directors may, by majority vote, grant easements,
80		-	rights–of–way, licenses, leases in excess of 1 year, or similar interests for the provision of
81		-	utility services or communication systems for the exclusive benefit of units within the
82		-	condominium regime. These actions by the board of directors are subject to the following
83		-	requirements:
	58	+	(a) The existing physical boundaries of any unit or common element constructed 5
	59	+	or reconstructed in substantial conformity with the condominium plat shall be conclusively 6
	60	+	presumed to be its boundaries, regardless of the shifting, settlement, or lateral movement 7
	61	+	of any building and regardless of minor variations between the physical boundaries as 8
	62	+	described in the declaration or shown on the condominium plat and the existing physical 9
	63	+	boundaries of any such unit or common element. This presumption applies only to 10
	64	+	encroachments within the condominium. 11
84	65
85		-	(i) The action shall be taken at a meeting of the board held after at
86		-	least 30–days’ notice to all unit owners and mortgagees of record with the condominium;
	66	+	(b) If any portion of any common element encroaches on any unit or if any portion 12
	67	+	of a unit encroaches on any common element or any other unit, as a result of the duly 13
	68	+	authorized construction or repair of a building, a valid easement for the encroachment and 14
	69	+	for the maintenance of the encroachment exists so long as the building stands. 15
87	70
88		-	(ii) At the meeting, the board may not act until all unit owners and
89		-	mortgagees shall be afforded a reasonable opportunity to present their views on the
90		-	proposed easement, right–of–way, license, lease, or similar interest; AND
	71	+	(c) An easement for mutual support shall exist in the units and common 16
	72	+	elements. 17
91	73
92		-	(iii) The easement, right–of–way, license, lease, or similar interest
93		-	shall contain the following provisions:
	74	+	(d) The grant or other disposition of a condominium unit shall include and grant, 18
	75	+	and be subject to, any easement arising under the provisions of this section without specific 19
	76	+	or particular reference to the easement. 20
94	77
95		-	1. The service or system shall be installed or affixed to the
96		-	premises at no cost to the individual unit owners or the council of unit owners other than WES MOORE, Governor Ch. 253
	78	+	(e) (1) The council of unit owners or its authorized designee shall have an 21
	79	+	irrevocable right and an easement to enter units to investigate damage or make repairs 22
	80	+	when the investigation or repairs reasonably appear necessary for public safety or to 23
	81	+	prevent damage to other portions of the condominium. 24
97	82
98		-	~~– 3 –~~
99		-	~~charges normally paid for like services by residents~~ of ~~similar or comparable dwelling units~~
100		-	~~within~~ the ~~same area;~~
	83	+	(2) Except in cases involving manifest danger to public safety or property, 25
	84	+	the council of unit owners shall make a reasonable effort to give notice to the owner of any 26
	85	+	unit to be entered for the purpose of investigation or repair. 27
101	86
102		-	2. The ~~unit owners and council of~~ unit ~~owners shall be~~
103		-	~~indemnified~~ for ~~any damage arising out of~~ the ~~installation of the service or system; and~~
	87	+	(3) If damage is inflicted on the common elements or any unit through 28
	88	+	which access is taken, the council of unit owners is liable for the prompt repair. 29
104	89
105		-	3. The board of directors shall be provided the right to
106		-	approve of the design for installation of the service or system in order to insure that the
107		-	installation conforms to any conditions which are reasonable to protect the safety,
108		-	functioning, and appearance of the premises.
	90	+	(4) An entry by the council of unit owners for the purposes specified in this 30
	91	+	subsection may not be considered a trespass. 31
109	92
110		-	(3) By majority vote, the board of directors may grant to the State
111		-	perpetual easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests
112		-	affecting the common elements of the condominium for bulkhead construction, dune
113		-	construction or restoration, beach replenishment, or periodic maintenance and replacement
114		-	construction, on Maryland’s ocean beaches, including rights in the State to restrict access
115		-	to dune areas. These actions by the board of directors are subject to the following
116		-	requirements:
	93	+	(f) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 32
	94	+	SUBSECTION, THE declaration or bylaws may give the council of unit owners authority to 33
	95	+	grant easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 34
	96	+	affecting the common elements of the condominium if the grant is approved by the 35 HOUSE BILL 216 3
117	97
118		-	(i) The action shall be taken at a meeting of the board held after at
119		-	least 30–days’ notice to all unit owners and mortgagees of record with the condominium;
120		-	and
121	98
122		-	(ii) At the meeting, the board may not act until all unit owners and
123		-	mortgagees shall be afforded a reasonable opportunity to present their views on the
124		-	proposed easement, right–of–way, license, lease, or similar interest.
	99	+	affirmative vote of unit owners having [66 2/3 percent] TWO–THIRDS or more of the votes, 1
	100	+	and with the express written consent of the mortgagees holding an interest in those units 2
	101	+	as to which unit owners vote affirmatively. Any easement, right–of–way, license, or similar 3
	102	+	interest granted by the council of unit owners under this subsection shall state that the 4
	103	+	grant was approved by unit owners having at least [66 2/3 percent] TWO–THIRDS of the 5
	104	+	votes, and by the corresponding mortgagees. 6
125	105
126		-	(4) ~~By majority vote,~~ ~~the board~~ of ~~directors may settle an eminent domain~~
127		-	~~proceeding or~~ grant ~~to the State or any county~~, ~~municipality, or agency or instrumentality~~
128		-	~~thereof with condemnation authority, perpetual easements,~~ rights–of–way, licenses, leases
129		-	~~in excess~~ of ~~1 year, or similar interests affecting~~ the ~~common elements of the condominium~~
130		-	~~for road,~~ ~~highway, sidewalk,~~ ~~bikeway, storm drain,~~ ~~sewer, water,~~ ~~utility, and similar public~~
131		-	~~purposes. These actions by the board of directors are subject to the following~~ requirements:
	106	+	(2) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 7
	107	+	SUBSECTION, THE board of directors may, by majority vote, grant easements, 8
	108	+	rights–of–way, licenses, leases in excess of 1 year, or similar interests for the provision of 9
	109	+	utility services or communication systems for the exclusive benefit of units within the 10
	110	+	condominium regime. These actions by the board of directors are subject to the following 11
	111	+	requirements: 12
132	112
133		-	(i) The action shall be taken at a meeting of the board held after at
134		-	least 60–days’ notice to all unit owners and all first mortgagees listed with the
135		-	condominium;
	113	+	(i) The action shall be taken at a meeting of the board held after at 13
	114	+	least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 14
136	115
137		-	(ii) ~~The notice shall include information provided by~~ the
138		-	~~condemnation authority that describes~~ the ~~purpose and the extent of the property being~~
139		-	~~acquired for public use~~; and
	116	+	(ii) At the meeting, the board may not act until all unit owners and 15
	117	+	mortgagees shall be afforded a reasonable opportunity to present their views on the 16
	118	+	proposed easement, right–of–way, license, lease, or similar interest; AND 17
140	119
141		-	(iii) At the meeting, the board may not act until all unit owners and
142		-	mortgagees in attendance have been afforded a reasonable opportunity to present their
143		-	views on the proposed easement, right–of–way, license, lease, or similar interest.
144		-	Ch. 253 2024 LAWS OF MARYLAND
	120	+	(iii) The easement, right–of–way, license, lease, or similar interest 18
	121	+	shall contain the following provisions: 19
145	122
146		-	~~– 4 –~~
147		-	~~(5) (I) IN THIS PARAGRAPH , “CLEAN~~ ~~ENERGY EQUIPME NT”~~ ~~MEANS~~
148		-	~~ELECTRIC VEHICLE REC HARGING EQUIPMENT , SOLAR ENERGY EQUIPME NT,~~ ~~AND~~
149		-	~~ENERGY STORAGE SYSTE MS.~~
	123	+	1. The service or system shall be installed or affixed to the 20
	124	+	premises at no cost to the individual unit owners or the council of unit owners other than 21
	125	+	charges normally paid for like services by residents of similar or comparable dwelling units 22
	126	+	within the same area; 23
150	127
151		-	(II) SUBJECT TO SUBPARAGRA PH (III) OF THIS PARAGRAPH ,
152		-	THE BOARD OF DIRECTO RS, BY A MAJORITY VOTE , OR THE COUNCIL OF UN IT
153		-	OWNERS, BY THE AFFIRMATIVE V OTE OF UNIT OWNERS H AVING AT LEAST 51% OF
154		-	THE VOTES IN THE COU NCIL, MAY GRANT LEASES IN EXCESS OF 1 YEAR OR SIMILAR
155		-	INTERESTS AFFECTING THE COMMON ELEMENTS OF THE CONDOMINIUM F OR THE
156		-	INSTALLATION AND USE OF LEASED CLEAN ENER GY EQUIPMENT .
	128	+	2. The unit owners and council of unit owners shall be 24
	129	+	indemnified for any damage arising out of the installation of the service or system; and 25
157	130
158		-	(III) THE BOARD OF DIRECTOR S MAY GRANT AN INTER EST
159		-	UNDER THIS PARAGRAPH ONLY AT A MEETING OF THE BOARD HELD AFTER AT LEAST
160		-	30–DAYS’ NOTICE TO ALL UNIT O WNERS OF RECORD .
	131	+	3. The board of directors shall be provided the right to 26
	132	+	approve of the design for installation of the service or system in order to insure that the 27
	133	+	installation conforms to any conditions which are reasonable to protect the safety, 28
	134	+	functioning, and appearance of the premises. 29
161	135
162		-	(IV) A MORTGAGEE OR GROUP O F MORTGAGEES MAY NOT
163		-	OVERRULE A VOTE TO G RANT AN INTEREST UND ER THIS PARAGRAPH .
	136	+	(3) By majority vote, the board of directors may grant to the State 30
	137	+	perpetual easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 31
	138	+	affecting the common elements of the condominium for bulkhead construction, dune 32
	139	+	construction or restoration, beach replenishment, or periodic maintenance and replacement 33
	140	+	construction, on Maryland’s ocean beaches, including rights in the State to restrict access 34
	141	+	to dune areas. These actions by the board of directors are subject to the following 35
	142	+	requirements: 36
	143	+	4 HOUSE BILL 216
164	144
165		-	[(5)] (6) The action of the board of directors granting any easement,
166		-	right–of–way, license, lease, or similar interest under paragraphs (2), (3), or (4) of this
167		-	subsection shall not be final until the following have occurred:
168	145
169		-	(i) Within 15 days after the vote by the board to grant an easement,
170		-	right–of–way, license, lease, or similar interest, a petition may be filed with the board of
171		-	directors signed by the unit owners having at least [15 percent] 15% of the votes calling
172		-	for a special meeting of unit owners to vote on the question of a disapproval of the action of
173		-	the board of directors granting such easement, right–of–way, license, lease, or similar
174		-	interest. If no such petition is received within 15 days, the decision of the board shall be
175		-	final;
	146	+	(i) The action shall be taken at a meeting of the board held after at 1
	147	+	least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 2
	148	+	and 3
176	149
177		-	(ii) ~~If a qualifying petition is filed~~, ~~a special meeting shall be held no~~
178		-	~~less than 15 days or more than 30 days from receipt of~~ the ~~petition. At the special meeting,~~
179		-	~~if a quorum is not present~~, ~~the decision of the board of directors shall be final;~~
	150	+	(ii) At the meeting, the board may not act until all unit owners and 4
	151	+	mortgagees shall be afforded a reasonable opportunity to present their views on the 5
	152	+	proposed easement, right–of–way, license, lease, or similar interest. 6
180	153
181		-	(iii) 1. If a special meeting is held and [50 percent] 50% of the
182		-	unit owners present and voting disapprove the grant, and the unit owners voting to
183		-	disapprove the grant are more than [33 percent] 33% of the total votes in the condominium,
184		-	then the grant shall be void; or
	154	+	(4) By majority vote, the board of directors may settle an eminent domain 7
	155	+	proceeding or grant to the State or any county, municipality, or agency or instrumentality 8
	156	+	thereof with condemnation authority, perpetual easements, rights–of–way, licenses, leases 9
	157	+	in excess of 1 year, or similar interests affecting the common elements of the condominium 10
	158	+	for road, highway, sidewalk, bikeway, storm drain, sewer, water, utility, and similar public 11
	159	+	purposes. These actions by the board of directors are subject to the following requirements: 12
185	160
186		-	2. If the vote of the unit owners is not more than [33 percent]
187		-	33% of the total votes in the condominium, the decision of the board or council to make the
188		-	grant shall be final;
189		-	WES MOORE, Governor Ch. 253
	161	+	(i) The action shall be taken at a meeting of the board held after at 13
	162	+	least 60–days’ notice to all unit owners and all first mortgagees listed with the 14
	163	+	condominium; 15
190	164
191		-	~~– 5 –~~
192		-	~~(iv) Mortgagees shall receive notice~~ of ~~and be entitled to attend and~~
193		-	~~speak at such special meeting~~; and
	165	+	(ii) The notice shall include information provided by the 16
	166	+	condemnation authority that describes the purpose and the extent of the property being 17
	167	+	acquired for public use; and 18
194	168
195		-	(v) ~~Any easement~~, ~~right–of–way, license,~~ ~~lease, or similar interest~~
196		-	~~granted by the board of directors under the provisions of this subsection shall state that~~
197		-	~~the grant was approved in accordance with~~ the ~~provisions~~ of ~~this subsection~~.
	169	+	(iii) At the meeting, the board may not act until all unit owners and 19
	170	+	mortgagees in attendance have been afforded a reasonable opportunity to present their 20
	171	+	views on the proposed easement, right–of–way, license, lease, or similar interest. 21
198	172
199		-	[(6)] (7) The provisions of this subsection are applicable to all
200		-	condominiums, regardless of the date they were established.
	173	+	(5) (I) IN THIS PARAGRAPH , “CLEAN ENERGY EQUIPME NT” MEANS 22
	174	+	ELECTRIC VEHICLE REC HARGING EQUIPMENT , SOLAR ENERGY EQUIPME NT, AND 23
	175	+	ENERGY STORAGE SYSTE MS. 24
201	176
202		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
203		-	October 1, 2024.
	177	+	(II) SUBJECT TO SUBPARAGRA PH (III) OF THIS PARAGRAPH , 25
	178	+	THE BOARD OF DIRECTO RS, BY A MAJORITY VOTE , OR THE COUNCIL OF UN IT 26
	179	+	OWNERS, BY THE AFFIRMATIVE V OTE OF UNIT OWNERS H AVING AT LEAST 51% OF 27
	180	+	THE VOTES IN THE COU NCIL, MAY GRANT LEASES IN EXCESS OF 1 YEAR OR SIMILAR 28
	181	+	INTERESTS AFFECTING THE COMMON ELEMENTS OF THE CONDOMINIUM F OR THE 29
	182	+	INSTALLATION AND USE OF LEASED CLEAN ENER GY EQUIPMENT . 30
204	183
205		-	Approved by the Governor, April 25, 2024.
	184	+	(III) THE BOARD OF DIRECTOR S MAY GRANT AN INTER EST 31
	185	+	UNDER THIS PARAGRAPH ONLY AT A MEETING OF THE BOARD HELD AFTER AT LEAST 32
	186	+	30–DAYS’ NOTICE TO ALL UNIT O WNERS OF RECORD . 33
	187	+
	188	+	(IV) A MORTGAGEE OR GROUP O F MORTGAGEES MAY NOT 34
	189	+	OVERRULE A VOTE TO G RANT AN INTEREST UND ER THIS PARAGRAPH . 35
	190	+	HOUSE BILL 216 5
	191	+
	192	+
	193	+	[(5)] (6) The action of the board of directors granting any easement, 1
	194	+	right–of–way, license, lease, or similar interest under paragraphs (2), (3), or (4) of this 2
	195	+	subsection shall not be final until the following have occurred: 3
	196	+
	197	+	(i) Within 15 days after the vote by the board to grant an easement, 4
	198	+	right–of–way, license, lease, or similar interest, a petition may be filed with the board of 5
	199	+	directors signed by the unit owners having at least [15 percent] 15% of the votes calling 6
	200	+	for a special meeting of unit owners to vote on the question of a disapproval of the action of 7
	201	+	the board of directors granting such easement, right–of–way, license, lease, or similar 8
	202	+	interest. If no such petition is received within 15 days, the decision of the board shall be 9
	203	+	final; 10
	204	+
	205	+	(ii) If a qualifying petition is filed, a special meeting shall be held no 11
	206	+	less than 15 days or more than 30 days from receipt of the petition. At the special meeting, 12
	207	+	if a quorum is not present, the decision of the board of directors shall be final; 13
	208	+
	209	+	(iii) 1. If a special meeting is held and [50 percent] 50% of the 14
	210	+	unit owners present and voting disapprove the grant, and the unit owners voting to 15
	211	+	disapprove the grant are more than [33 percent] 33% of the total votes in the condominium, 16
	212	+	then the grant shall be void; or 17
	213	+
	214	+	2. If the vote of the unit owners is not more than [33 percent] 18
	215	+	33% of the total votes in the condominium, the decision of the board or council to make the 19
	216	+	grant shall be final; 20
	217	+
	218	+	(iv) Mortgagees shall receive notice of and be entitled to attend and 21
	219	+	speak at such special meeting; and 22
	220	+
	221	+	(v) Any easement, right–of–way, license, lease, or similar interest 23
	222	+	granted by the board of directors under the provisions of this subsection shall state that 24
	223	+	the grant was approved in accordance with the provisions of this subsection. 25
	224	+
	225	+	[(6)] (7) The provisions of this subsection are applicable to all 26
	226	+	condominiums, regardless of the date they were established. 27
	227	+
	228	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
	229	+	October 1, 2024. 29