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.
*hb0687*
HOUSE BILL 687
N1 4lr2768
By: Charles County Delegation
Introduced and read first time: January 25, 2024
Assigned to: Environment and Transportation
Committee Report: Favorable
House action: Adopted
Read second time: March 8, 2024
CHAPTER ______
AN ACT concerning 1
Charles County – Governing Bodies of Common Ownership Communities – 2
Member Training 3
FOR the purpose of requiring each member of a board of directors or officer of a council of 4
unit owners of a condominium in Charles County and each member of a governing 5
body of a homeowners association in Charles County to successfully complete a 6
certain training curriculum in a certain manner and subject to certain requirements; 7
and generally relating to members of governing bodies of condominiums and 8
homeowners associations in Charles County. 9
BY repealing and reenacting, with amendments, 10
Article – Real Property 11
Section 11–109 and 11B–106.1(g) 12
Annotated Code of Maryland 13
(2023 Replacement Volume) 14
BY repealing and reenacting, without amendments, 15
Article – Real Property 16
Section 11B–106.1(a) 17
Annotated Code of Maryland 18
(2023 Replacement Volume) 19
BY adding to 20
Article – Real Property 21
Section 11B–106.1(g) 22 2 HOUSE BILL 687
Annotated Code of Maryland 1
(2023 Replacement Volume) 2
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
That the Laws of Maryland read as follows: 4
Article – Real Property 5
11–109. 6
(a) The affairs of the condominium shall be governed by a council of unit owners 7
which, even if unincorporated, is constituted a legal entity for all purposes. The council of 8
unit owners shall be comprised of all unit owners. 9
(b) The bylaws may authorize or provide for the delegation of any power of the 10
council of unit owners to a board of directors, officers, managing agent, or other person for 11
the purpose of carrying out the responsibilities of the council of unit owners. 12
(C) (1) THIS SUBSECTION APPLI ES ONLY IN CHARLES COUNTY. 13
(2) EACH MEMBER OF A BOAR D OF DIRECTORS OR OF FICER OF A 14
COUNCIL OF UNIT OWNE RS SHALL SUCCESSFULL Y COMPLETE A TRAININ G 15
CURRICULUM ON THE RE SPONSIBILITIES OF BE ING A MEMBER OR AN O FFICER 16
DEVELOPED BY : 17
(I) A COMMON OWNERSHIP COM MISSION RECOGNIZED BY THE 18
STATE OR A LOCAL GOVE RNMENT; OR 19
(II) AN ORGANIZATION APPRO VED TO ADMINISTER TH E 20
TRAINING CURRICULUM BY A RECOGNIZED COMM ON OWNERSHIP COMMISS ION. 21
(3) EACH MEMBER OF THE BO ARD OF DIRECTORS OR OFFICER OF THE 22
COUNCIL OF UNIT OWNE RS SHALL SUCCESSF ULLY COMPLETE THE TR AINING 23
CURRICULUM REQUIRED UNDER THIS SUBSECTIO N WITHIN 90 DAYS AFTER THE 24
INDIVIDUAL: 25
(I) IS FIRST ELECTED OR A PPOINTED TO THE OFFI CE; OR 26
(II) FOR AN INDIVIDUAL WHO IS IN OFFICE ON OCTOBER 1, 27
2024, BEGINS A SUBSEQUENT TERM AS A MEMBER OF THE BOARD OF DIRECTORS OR 28
AN OFFICER OF THE CO UNCIL OF UNIT OWNERS . 29
(4) (I) THE BOARD OF DIRECTOR S OR OFFICERS OF THE COUNCIL 30
OF UNIT OWNERS SHALL : 31
HOUSE BILL 687 3
1. CERTIFY THAT EACH MEM BER O R OFFICER 1
SUCCESSFULLY COMPLET ES THE TRAINING CURR ICULUM REQUIRED UNDE R THIS 2
SUBSECTION; 3
2. RETAIN A COPY OF THE CERTIFICATE OF 4
COMPLETION OF EACH M EMBER OR OFFICER ; AND 5
3. WITHIN 90 DAYS AFTER THE CERTI FICATION OF THE 6
MEMBER OR OFFICER , REPORT TO THE COMMON OWNERSHIP COMMISSION ON THE 7
CERTIFICATION . 8
(II) A CERTIFICATE OF COMPL ETION ISSUED UNDER T HIS 9
PARAGRAPH SHALL BE V ALID FOR 3 YEARS. 10
(III) AN INDIVIDUAL WHO REM AINS A MEMBER OF THE BOARD OF 11
DIRECTORS OR AN OFFI CER OF THE COUNCIL O F UNIT OWNERS AT THE TIME THE 12
CERTIFICATE EXPIRES SHALL RENEW THE CERT IFICATION BY SUCCESS FULLY 13
COMPLETING THE TRAIN ING REQUIRED UNDER T HIS SUBSECTION . 14
(5) IF A MEMBER OF THE BOARD OF DIRE CTORS OR AN OFFICER OF 15
THE COUNCIL OF UNIT OWNERS DOES NOT SUCC ESSFULLY COMPLETE THE 16
TRAINING REQUIRED UN DER THIS SUBSECTION , THE BOARD OF DIRECTO RS OR THE 17
COUNCIL OF UNIT OWNE RS MAY: 18
(I) REMOVE THE INDIVIDUAL FROM THE OFFICE ; OR 19
(II) INVALIDATE A VOTE OF THE INDIVIDUAL . 20
[(c)] (D) (1) A meeting of the council of unit owners or board of directors may 21
not be held on less notice than required by this section. 22
(2) The council of unit owners shall maintain a current roster of names and 23
addresses of each unit owner to which notice of meetings of the board of directors shall be 24
sent at least annually. 25
(3) Each unit owner shall furnish the council of unit owners with his name 26
and current mailing address. A unit owner may not vote at meetings of the council of unit 27
owners until this information is furnished. 28
(4) A regular or special meeting of the council of unit owners may not be 29
held on less than 10 nor more than 90 days’: 30
(i) Written notice delivered or mailed to each unit owner at the 31
address shown on the roster on the date of the notice; or 32
4 HOUSE BILL 687
(ii) Notice sent to each unit owner by electronic transmission, if the 1
requirements of § 11–139.1 of this title are met. 2
(5) Notice of special meetings of the board of directors shall be given: 3
(i) As provided in the bylaws; or 4
(ii) If the requirements of § 11–139.1 of this title are met, by 5
electronic transmission. 6
(6) Except as provided in § 11–109.1 of this title, a meeting of a governing 7
body shall be open and held at a time and location as provided in the notice or bylaws. 8
(7) (i) This paragraph does not apply to any meeting of the governing 9
body that occurs at any time before the meeting at which the unit owners elect officers or a 10
board of directors in accordance with paragraph (16) of this subsection. 11
(ii) Subject to subparagraph (iii) of this paragraph and to reasonable 12
rules adopted by the governing body under § 11–111 of this title, a governing body shall 13
provide a designated period of time during a meeting to allow unit owners an opportunity 14
to comment on any matter relating to the condominium. 15
(iii) During a meeting at which the agenda is limited to specific topics 16
or at a special meeting, the unit owners’ comments may be limited to the topics listed on 17
the meeting agenda. 18
(iv) The governing body shall convene at least one meeting each year 19
at which the agenda is open to any matter relating to the condominium. 20
(8) (i) Unless the bylaws provide otherwise, a quorum is deemed 21
present throughout any meeting of the council of unit owners if persons entitled to cast 25 22
percent of the total number of votes appurtenant to all units are present in person or by 23
proxy. 24
(ii) If the number of persons present in person or by proxy at a 25
properly called meeting of the council of unit owners is insufficient to constitute a quorum, 26
an additional meeting of the council of unit owners may be called for the same purpose if: 27
1. The notice of the initial properly called meeting stated: 28
A. That the procedure authorized by this paragraph might be 29
invoked; and 30
B. The date, time, and place of the additional meeting; and 31
2. A majority of the unit owners present vote in person or by 32
proxy to call for the additional meeting. 33 HOUSE BILL 687 5
(iii) 1. An additional meeting called under subparagraph (ii) of 1
this paragraph shall occur not less than 15 days after the initial properly called meeting. 2
2. Not less than 10 days before the additional meeting, a 3
separate and distinct notice of the date, time, place, and purpose of the additional meeting 4
called under subparagraph (ii) of this paragraph shall be: 5
A. Delivered, mailed, or sent by electronic transmission if the 6
requirements of § 11–139.1 of this title are met, to each unit owner at the address shown 7
on the roster maintained under paragraph (2) of this subsection; 8
B. Advertised in a newspaper published in the county where 9
the condominium is located; or 10
C. If the condominium has a website, posted on the homepage 11
of the website. 12
3. The notice shall contain the quorum and voting provisions 13
of subparagraph (iv) of this paragraph. 14
(iv) 1. At the additional meeting, the unit owners present in 15
person or by proxy constitute a quorum. 16
2. Unless the bylaws provide otherwise, a majority of the 17
unit owners present in person or by proxy: 18
A. May approve or authorize the proposed action at the 19
additional meeting; and 20
B. May take any other action that could have been taken at 21
the original meeting if a sufficient number of unit owners had been present. 22
(v) This paragraph may not be construed to affect the percentage of 23
votes required to amend the declaration or bylaws or to take any other action required to 24
be taken by a specified percentage of votes. 25
(9) At meetings of the council of unit owners each unit owner shall be 26
entitled to cast the number of votes appurtenant to his unit. Unit owners may vote by proxy, 27
but the proxy is effective only for a maximum period of 180 days following its issuance, 28
unless granted to a lessee or mortgagee. 29
(10) Any proxy may be revoked at any time at the pleasure of the unit owner 30
or unit owners executing the proxy. 31
(11) A proxy who is not appointed to vote as directed by a unit owner may 32
only be appointed for purposes of meeting quorums and to vote for matters of business 33 6 HOUSE BILL 687
before the council of unit owners, other than an election of officers and members of the 1
board of directors. 2
(12) Only a unit owner voting in person or by electronic transmission if the 3
requirements of § 11–139.2 of this title are met or a proxy voting for candidates designated 4
by a unit owner may vote for officers and members of the board of directors. 5
(13) Unless otherwise provided in the bylaws, a unit owner may nominate 6
himself or any other person to be an officer or member of the board of directors. A call for 7
nominations shall be sent to all unit owners not less than 45 days before notice of an election 8
is sent. Only nominations made at least 15 days before notice of an election shall be listed 9
on the election ballot. Candidates shall be listed on the ballot in alphabetical order, with 10
no indicated candidate preference. Nominations may be made from the floor at the meeting 11
at which the election to the board is held. 12
(14) Election materials prepared with funds of the council of unit owners 13
shall list candidates in alphabetical order and may not indicate a candidate preference. 14
(15) Unless otherwise provided in this title, and subject to provisions in the 15
bylaws requiring a different majority, decisions of the council of unit owners shall be made 16
on a majority of votes of the unit owners listed on the current roster present and voting. 17
(16) (i) A meeting of the council of unit owners to elect a board of 18
directors for the council of unit owners, as provided in the condominium declaration or 19
bylaws, shall be held within: 20
1. 60 days from the date that units representing 50 percent 21
of the votes in the condominium have been conveyed by the developer to members of the 22
public for residential purposes; or 23
2. If a lesser percentage is specified in the declaration or 24
bylaws of the condominium, 60 days from the date the specified lesser percentage of units 25
in the condominium are sold to members of the public for residential purposes. 26
(ii) 1. Before the date of the meeting held under subparagraph 27
(i) of this paragraph, the developer shall deliver to each unit owner notice that the 28
requirements of subparagraph (i) of this paragraph have been met. 29
2. The notice shall include the date, time, and place of the 30
meeting to elect the board of directors for the council of unit owners. 31
(iii) If a replacement board member is elected, the term of each 32
member of the board of directors appointed by the developer shall end 10 days after the 33
meeting is held as specified in subparagraph (i) of this paragraph. 34
(iv) Within 30 days from the date of the m eeting held under 35
subparagraph (i) of this paragraph, the developer shall deliver to the officers or board of 36 HOUSE BILL 687 7
directors for the council of unit owners, as provided in the condominium declaration or 1
bylaws, at the developer’s expense: 2
1. The documents specified in § 11–132 of this title; 3
2. The condominium funds, including operating funds, 4
replacement reserves, investment accounts, and working capital; 5
3. The tangible property of the condominium; and 6
4. A roster of current unit owners, including mailing 7
addresses, telephone numbers, and unit numbers, if known. 8
(v) The replacement reserves delivered under subparagraph (iv)2 of 9
this paragraph for a residential condominium shall be equal to at least the reserve funding 10
amount recommended in the reserve study completed under § 11–109.4 of this title as of 11
the date of the meeting. 12
(vi) 1. This subparagraph does not apply to a contract entered 13
into before October 1, 2009. 14
2. A. In this subparagraph, “contract” means an 15
agreement with a company or individual to handle financial matters, maintenance, or 16
services for the condominium. 17
B. “Contract” does not include an agreement relating to the 18
provision of utility services or communication systems. 19
3. Until all members of the board of directors of the 20
condominium are elected by the unit owners at a transitional meeting as specified in 21
subparagraph (i) of this paragraph, a contract entered into by the officers or board of 22
directors of the condominium may be terminated, at the discretion of the board of directors 23
and without liability for the termination, not later than 30 days after notice. 24
(vii) If the developer fails to comply with the requirements of this 25
paragraph, an aggrieved unit owner may submit the dispute to the Division of Consumer 26
Protection of the Office of the Attorney General under § 11–130(c) of this title. 27
[(d)] (E) The council of unit owners may be either incorporated as a nonstock 28
corporation or unincorporated and it is subject to those provisions of Title 5, Subtitle 2 of 29
the Corporations and Associations Article which are not inconsistent with this title. The 30
council of unit owners has, subject to any provision of this title, and except as provided in 31
item (22) of this subsection, the declaration, and bylaws, the following powers: 32
(1) To have perpetual existence, subject to the right of the unit owners to 33
terminate the condominium regime as provided in § 11–123 of this title; 34
8 HOUSE BILL 687
(2) To adopt and amend reasonable rules and regulations; 1
(3) To adopt and amend budgets for revenues, expenditures, and reserves 2
and collect assessments for common expenses from unit owners; 3
(4) To sue and be sued, complain and defend, or intervene in litigation or 4
administrative proceedings in its own name on behalf of itself or two or more unit owners 5
on matters affecting the condominium; 6
(5) To transact its business, carry on its operations and exercise the powers 7
provided in this subsection in any state, territory, district, or possession of the United 8
States and in any foreign country; 9
(6) To make contracts and guarantees, incur liabilities and borrow money, 10
sell, mortgage, lease, pledge, exchange, convey, transfer, and otherwise dispose of any part 11
of its property and assets; 12
(7) To issue bonds, notes, and other obligations and secure the same by 13
mortgage or deed of trust of any part of its property, franchises, and income; 14
(8) To acquire by purchase or in any other manner, to take, receive, own, 15
hold, use, employ, improve, and otherwise deal with any property, real or personal, or any 16
interest therein, wherever located; 17
(9) To hire and terminate managing agents and other employees, agents, 18
and independent contractors; 19
(10) To purchase, take, receive, subscribe for or otherwise acquire, own, 20
hold, vote, use, employ, sell, mortgage, loan, pledge or otherwise dispose of, and otherwise 21
use and deal in and with, shares or other interests in, or obligation of corporations of the 22
State, or foreign corporations, and of associations, partnerships, and individuals; 23
(11) To invest its funds and to lend money in any manner appropriate to 24
enable it to carry on the operations or to fulfill the purposes named in the declaration or 25
bylaws, and to take and to hold real and personal property as security for the payment of 26
funds so invested or loaned; 27
(12) To regulate the use, maintenance, repair, replacement, and 28
modification of common elements; 29
(13) To cause additional improvements to be made as a part of the general 30
common elements; 31
(14) To grant easements, rights–of–way, licenses, leases in excess of 1 year, 32
or similar interests through or over the common elements in accordance with § 11–125(f) 33
of this title; 34
HOUSE BILL 687 9
(15) To impose and receive any payments, fees, or charges for the use, rental, 1
or operation of the common elements other than limited common elements; 2
(16) To impose charges for late payment of assessments and, after notice 3
and an opportunity to be heard, levy reasonable fines for violations of the declaration, 4
bylaws, and rules and regulations of the council of unit owners, under § 11–113 of this title; 5
(17) To impose reasonable charges for the preparation and recordation of 6
amendments to the declaration, bylaws, rules, regulations, or resolutions, resale 7
certificates, or statements of unpaid assessments; 8
(18) To provide for the indemnification of and maintain liability insurance 9
for officers, directors, and any managing agent or other employee charged with the 10
operation or maintenance of the condominium; 11
(19) To enforce the implied warranties made to the council of unit owners by 12
the developer under § 11–131 of this title; 13
(20) To enforce the provisions of this title, the declaration, bylaws, and rules 14
and regulations of the council of unit owners against any unit owner or occupant; 15
(21) Generally, to exercise the powers set forth in this title and the 16
declaration or bylaws and to do every other act not inconsistent with law, which may be 17
appropriate to promote and attain the purposes set forth in this title, the declaration or 18
bylaws; and 19
(22) To designate parking for individuals with disabilities, notwithstanding 20
any provision in the declaration, bylaws, or rules and regulations. 21
[(e)] (F) A unit owner may not have any right, title, or interest in any property 22
owned by the council of unit owners other than as holder of a percentage interest in common 23
expenses and common profits appurtenant to his unit. 24
[(f)] (G) A unit owner’s rights as holder of a percentage interest in common 25
expenses and common profits are such that: 26
(1) A unit owner’s right to possess, use, or enjoy property of the council of 27
unit owners shall be as provided in the bylaws; and 28
(2) A unit owner’s interest in the property is not assignable or attachable 29
separate from his unit except as provided in §§ 11–107(d) and 11–112(g) of this title. 30
11B–106.1. 31
(a) A meeting of the members of the homeowners association to elect a governing 32
body of the homeowners association shall be held within: 33
10 HOUSE BILL 687
(1) 60 days from the date that at least 75% of the total number of lots that 1
may be part of the development after all phases are complete are sold to members of the 2
public for residential purposes; or 3
(2) If a lesser percentage is specified in the governing documents of the 4
homeowners association, 60 days from the date the specified lesser percentage of the total 5
number of lots in the development after all phases are complete are sold to members of the 6
public for residential purposes. 7
(G) (1) THIS SUBSECTION APPLI ES ONLY IN CHARLES COUNTY. 8
(2) EACH MEMBER OF THE GO VERNING BODY SHALL S UCCESSFULLY 9
COMPLETE A TRAINING CURRICULUM ON THE RE SPONSIBILITIES OF A MEMBER OF 10
THE GOVERNING BODY D EVELOPED BY: 11
(I) A COMMON OWNERSHIP COM MISSION RECOGNIZED B Y THE 12
STATE OR A LOCAL GOVE RNMENT; OR 13
(II) AN ORGANIZATION APPRO VED TO ADMINISTER THE 14
TRAINING CURRICULUM BY A RECOGNIZED COMM ON OWNERSHIP COMMISS ION. 15
(3) EACH MEMBER OF THE GO VERNING BODY SHALL S UCCESSFULLY 16
COMPLETE THE TRAININ G CURRICULUM REQUIRE D UNDER THIS SUBSECT ION 17
WITHIN 90 DAYS AFTER THE INDIV IDUAL: 18
(I) IS FIRST ELECTED OR APP OINTED TO THE GOVERNING 19
BODY; OR 20
(II) FOR A MEMBER WHO IS IN OFFICE ON OCTOBER 1, 2024, 21
BEGINS A SUBSEQUENT TERM AS A MEMBER OF THE GOVERNING BODY . 22
(4) (I) THE GOVERNING BODY SHALL: 23
1. CERTIFY THAT EACH MEM BER SUCCESSFULLY 24
COMPLETES THE TRAININ G CURRICULUM REQUIRE D UNDER THIS SUBSECT ION; 25
2. RETAIN A COPY OF THE CERTIFICATE OF 26
COMPLETION OF EACH M EMBER; AND 27
3. WITHIN 90 DAYS AFTER THE CERTI FICATION OF THE 28
MEMBER, REPORT TO THE COMMON OWNERSHIP COMMISSION ON THE 29
CERTIFICATION. 30
HOUSE BILL 687 11
(II) A CERTIFICATE OF COMPL ETION ISSUED UNDER T HIS 1
PARAGRAPH SHALL BE V ALID FOR 3 YEARS. 2
(III) IF A MEMBER OF THE GO VERNING BODY REMAINS A 3
MEMBER OF THE GOVERNING BODY AT THE TIME THE CERTIFICATE EXPIRES , THE 4
MEMBER SHALL RENEW THE CERT IFICATION BY SUCCESS FULLY COMPLETING THE 5
TRAINING REQUIRED UN DER THIS SUBSECTION . 6
(5) IF A MEMBER OF THE GOVERNING BODY DOES NOT 7
SUCCESSFULLY COMPLET E THE TRAINING REQUI RED UNDER THIS SUBSE CTION, 8
THE GOVERNING BODY MAY: 9
(I) REMOVE THE MEMBER FROM THE GOVERNING BODY ; OR 10
(II) INVALIDATE A VOTE OF THE MEMBER. 11
[(g)] (H) If the declarant fails to comply with the requirements of this section, an 12
aggrieved lot owner may submit the dispute to the Division of Consumer Protection of the 13
Office of the Attorney General under § 11B–115(c) of this title. 14
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
October 1, 2024. 16
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.