Maryland 2024 Regular Session

Maryland House Bill HB687 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [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.
85 *hb0687*
96
107 HOUSE BILL 687
118 N1 4lr2768
129
1310 By: Charles County Delegation
1411 Introduced and read first time: January 25, 2024
1512 Assigned to: Environment and Transportation
16-Committee Report: Favorable
17-House action: Adopted
18-Read second time: March 8, 2024
1913
20-CHAPTER ______
14+A BILL ENTITLED
2115
2216 AN ACT concerning 1
2317
2418 Charles County – Governing Bodies of Common Ownership Communities – 2
2519 Member Training 3
2620
2721 FOR the purpose of requiring each member of a board of directors or officer of a council of 4
2822 unit owners of a condominium in Charles County and each member of a governing 5
2923 body of a homeowners association in Charles County to successfully complete a 6
3024 certain training curriculum in a certain manner and subject to certain requirements; 7
3125 and generally relating to members of governing bodies of condominiums and 8
3226 homeowners associations in Charles County. 9
3327
3428 BY repealing and reenacting, with amendments, 10
3529 Article – Real Property 11
3630 Section 11–109 and 11B–106.1(g) 12
3731 Annotated Code of Maryland 13
3832 (2023 Replacement Volume) 14
3933
4034 BY repealing and reenacting, without amendments, 15
4135 Article – Real Property 16
4236 Section 11B–106.1(a) 17
4337 Annotated Code of Maryland 18
4438 (2023 Replacement Volume) 19
4539
4640 BY adding to 20
4741 Article – Real Property 21
48-Section 11B–106.1(g) 22 2 HOUSE BILL 687
42+Section 11B–106.1(g) 22
43+ Annotated Code of Maryland 23
44+ (2023 Replacement Volume) 24
45+
46+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
47+That the Laws of Maryland read as follows: 26
48+ 2 HOUSE BILL 687
4949
5050
51- Annotated Code of Maryland 1
52- (2023 Replacement Volume) 2
51+Article – Real Property 1
5352
54- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
55-That the Laws of Maryland read as follows: 4
53+11–109. 2
5654
57-Article – Real Property 5
55+ (a) The affairs of the condominium shall be governed by a council of unit owners 3
56+which, even if unincorporated, is constituted a legal entity for all purposes. The council of 4
57+unit owners shall be comprised of all unit owners. 5
5858
59-11–109. 6
59+ (b) The bylaws may authorize or provide for the delegation of any power of the 6
60+council of unit owners to a board of directors, officers, managing agent, or other person for 7
61+the purpose of carrying out the responsibilities of the council of unit owners. 8
6062
61- (a) The affairs of the condominium shall be governed by a council of unit owners 7
62-which, even if unincorporated, is constituted a legal entity for all purposes. The council of 8
63-unit owners shall be comprised of all unit owners. 9
63+ (C) (1) THIS SUBSECTION APPLI ES ONLY IN CHARLES COUNTY. 9
6464
65- (b) The bylaws may authorize or provide for the delegation of any power of the 10
66-council of unit owners to a board of directors, officers, managing agent, or other person for 11
67-the purpose of carrying out the responsibilities of the council of unit owners. 12
65+ (2) EACH MEMBER OF A BOAR D OF DIRECTORS OR OF FICER OF A 10
66+COUNCIL OF UNIT OWNE RS SHALL SUCCESSFULL Y COMPLETE A TRAINING 11
67+CURRICULUM ON THE RE SPONSIBILITIES OF BE ING A MEMBER OR AN O FFICER 12
68+DEVELOPED BY : 13
6869
69- (C) (1) THIS SUBSECTION APPLI ES ONLY IN CHARLES COUNTY. 13
70+ (I) A COMMON OWNERSHIP COM MISSION RECOGNIZED B Y THE 14
71+STATE OR A LOCAL GOVE RNMENT; OR 15
7072
71- (2) EACH MEMBER OF A BOAR D OF DIRECTORS OR OF FICER OF A 14
72-COUNCIL OF UNIT OWNE RS SHALL SUCCESSFULL Y COMPLETE A TRAININ G 15
73-CURRICULUM ON THE RE SPONSIBILITIES OF BE ING A MEMBER OR AN O FFICER 16
74-DEVELOPED BY : 17
73+ (II) AN ORGANIZATION APPRO VED TO ADMINISTER TH E 16
74+TRAINING CURRIC ULUM BY A RECOGNIZED COMM ON OWNERSHIP COMMISS ION. 17
7575
76- (I) A COMMON OWNERSHIP COM MISSION RECOGNIZED BY THE 18
77-STATE OR A LOCAL GOVE RNMENT; OR 19
76+ (3) EACH MEMBER OF THE BO ARD OF DIRECTORS OR OFFICER OF THE 18
77+COUNCIL OF UNIT OWNE RS SHALL SUCCESSFULL Y COMPLETE THE TRAIN ING 19
78+CURRICULUM REQUIRED UNDER THIS SUBSECTIO N WITHIN 90 DAYS AFTER THE 20
79+INDIVIDUAL: 21
7880
79- (II) AN ORGANIZATION APPRO VED TO ADMINISTER TH E 20
80-TRAINING CURRICULUM BY A RECOGNIZED COMM ON OWNERSHIP COMMISS ION. 21
81+ (I) IS FIRST ELECTED OR A PPOINTED TO THE OFFI CE; OR 22
8182
82- (3) EACH MEMBER OF THE BO ARD OF DIRECTORS OR OFFICER OF THE 22
83-COUNCIL OF UNIT OWNE RS SHALL SUCCESSF ULLY COMPLETE THE TR AINING 23
84-CURRICULUM REQUIRED UNDER THIS SUBSECTIO N WITHIN 90 DAYS AFTER THE 24
85-INDIVIDUAL: 25
83+ (II) FOR AN INDIVIDUAL WHO IS IN OFFICE ON OCTOBER 1, 23
84+2024, BEGINS A SUBSEQUENT TERM AS A MEMBER OF THE BOARD OF DIRECTO RS OR 24
85+AN OFFICER OF THE CO UNCIL OF UNIT OWNERS . 25
8686
87- (I) IS FIRST ELECTED OR A PPOINTED TO THE OFFI CE; OR 26
87+ (4) (I) THE BOARD OF DIRE CTORS OR OFFICERS OF THE COUNCIL 26
88+OF UNIT OWNERS SHALL : 27
8889
89- (II) FOR AN INDIVIDUAL WHO IS IN OFFICE ON OCTOBER 1, 27
90-2024, BEGINS A SUBSEQUENT TERM AS A MEMBER OF THE BOARD OF DIRECTORS OR 28
91-AN OFFICER OF THE CO UNCIL OF UNIT OWNERS . 29
92-
93- (4) (I) THE BOARD OF DIRECTOR S OR OFFICERS OF THE COUNCIL 30
94-OF UNIT OWNERS SHALL : 31
90+ 1. CERTIFY THAT EACH MEM BER O R OFFICER 28
91+SUCCESSFULLY COMPLET ES THE TRAINING CURR ICULUM REQUIRED UNDE R THIS 29
92+SUBSECTION; 30
9593 HOUSE BILL 687 3
9694
9795
98- 1. CERTIFY THAT EACH MEM BER O R OFFICER 1
99-SUCCESSFULLY COMPLET ES THE TRAINING CURR ICULUM REQUIRED UNDE R THIS 2
100-SUBSECTION; 3
96+ 2. RETAIN A COPY OF THE CERTIFICATE OF 1
97+COMPLETION OF EACH M EMBER OR OFFIC ER; AND 2
10198
102- 2. RETAIN A COPY OF THE CERTIFICATE OF 4
103-COMPLETION OF EACH M EMBER OR OFFICER ; AND 5
99+ 3. WITHIN 90 DAYS AFTER THE CERTI FICATION OF THE 3
100+MEMBER OR OFFICER , REPORT TO THE COMMON OWNERSHIP COMMISSION ON THE 4
101+CERTIFICATION . 5
104102
105- 3. WITHIN 90 DAYS AFTER THE CERTI FICATION OF THE 6
106-MEMBER OR OFFICER , REPORT TO THE COMMON OWNERSHIP COMMISSION ON THE 7
107-CERTIFICATION . 8
103+ (II) A CERTIFICATE OF COMPL ETION ISSUED UNDER T HIS 6
104+PARAGRAPH SHALL BE V ALID FOR 3 YEARS. 7
108105
109- (II) A CERTIFICATE OF COMPL ETION ISSUED UNDER T HIS 9
110-PARAGRAPH SHALL BE V ALID FOR 3 YEARS. 10
106+ (III) AN INDIVIDUAL WHO REMAI NS A MEMBER OF THE B OARD OF 8
107+DIRECTORS OR AN OFFI CER OF THE COUNCIL O F UNIT OWNERS AT THE TIME THE 9
108+CERTIFICATE EXPIRES SHALL RENEW THE CERT IFICATION BY SUCCESS FULLY 10
109+COMPLETING THE TRAIN ING REQUIRED UNDER T HIS SUBSECTION . 11
111110
112- (III) AN INDIVIDUAL WHO REM AINS A MEMBER OF THE BOARD OF 11
113-DIRECTORS OR AN OFFI CER OF THE COUNCIL O F UNIT OWNERS AT THE TIME THE 12
114-CERTIFICATE EXPIRES SHALL RENEW THE CERT IFICATION BY SUCCESS FULLY 13
115-COMPLETING THE TRAIN ING REQUIRED UNDER T HIS SUBSECTION . 14
111+ (5) IF A MEMBER OF THE BOARD OF DIRE CTORS OR AN OFFICER OF 12
112+THE COUNCIL OF UNIT OWNERS DOES NOT SUCC ESSFULLY COMPLETE TH E 13
113+TRAINING REQUIRED UN DER THIS SUBSECTION , THE BOARD OF DIRECTO RS OR THE 14
114+COUNCIL OF UNIT OWNE RS MAY: 15
116115
117- (5) IF A MEMBER OF THE BOARD OF DIRE CTORS OR AN OFFICER OF 15
118-THE COUNCIL OF UNIT OWNERS DOES NOT SUCC ESSFULLY COMPLETE THE 16
119-TRAINING REQUIRED UN DER THIS SUBSECTION , THE BOARD OF DIRECTO RS OR THE 17
120-COUNCIL OF UNIT OWNE RS MAY: 18
116+ (I) REMOVE THE INDIVIDUAL FROM THE OFFICE ; OR 16
121117
122- (I) REMOVE THE INDIVIDUAL FROM THE OFFICE ; OR 19
118+ (II) INVALIDATE A VOTE OF THE INDIVIDUAL . 17
123119
124- (II) INVALIDATE A VOTE OF THE INDIVIDUAL . 20
120+ [(c)] (D) (1) A meeting of the council of unit owners or board of directors may 18
121+not be held on less notice than required by this section. 19
125122
126- [(c)] (D) (1) A meeting of the council of unit owners or board of directors may 21
127-not be held on less notice than required by this section. 22
123+ (2) The council of unit owners shall maintain a current roster of names and 20
124+addresses of each unit owner to which notice of meetings of the board of directors shall be 21
125+sent at least annually. 22
128126
129- (2) The council of unit owners shall maintain a current roster of names and 23
130-addresses of each unit owner to which notice of meetings of the board of directors shall be 24
131-sent at least annually. 25
127+ (3) Each unit owner shall furnish the council of unit owners with his name 23
128+and current mailing address. A unit owner may not vote at meetings of the council of unit 24
129+owners until this information is furnished. 25
132130
133- (3) Each unit owner shall furnish the council of unit owners with his name 26
134-and current mailing address. A unit owner may not vote at meetings of the council of unit 27
135-owners until this information is furnished. 28
131+ (4) A regular or special meeting of the council of unit owners may not be 26
132+held on less than 10 nor more than 90 days’: 27
136133
137- (4) A regular or special meeting of the council of unit owners may not be 29
138-held on less than 10 nor more than 90 days’: 30
134+ (i) Written notice delivered or mailed to each unit owner at the 28
135+address shown on the roster on the date of the notice; or 29
139136
140- (i) Written notice delivered or mailed to each unit owner at the 31
141-address shown on the roster on the date of the notice; or 32
142- 4 HOUSE BILL 687
137+ (ii) Notice sent to each unit owner by electronic transmission, if the 30
138+requirements of § 11–139.1 of this title are met. 31
143139
144-
145- (ii) Notice sent to each unit owner by electronic transmission, if the 1
146-requirements of § 11–139.1 of this title are met. 2
147-
148- (5) Notice of special meetings of the board of directors shall be given: 3
149-
150- (i) As provided in the bylaws; or 4
151-
152- (ii) If the requirements of § 11–139.1 of this title are met, by 5
153-electronic transmission. 6
154-
155- (6) Except as provided in § 11–109.1 of this title, a meeting of a governing 7
156-body shall be open and held at a time and location as provided in the notice or bylaws. 8
157-
158- (7) (i) This paragraph does not apply to any meeting of the governing 9
159-body that occurs at any time before the meeting at which the unit owners elect officers or a 10
160-board of directors in accordance with paragraph (16) of this subsection. 11
161-
162- (ii) Subject to subparagraph (iii) of this paragraph and to reasonable 12
163-rules adopted by the governing body under § 11–111 of this title, a governing body shall 13
164-provide a designated period of time during a meeting to allow unit owners an opportunity 14
165-to comment on any matter relating to the condominium. 15
166-
167- (iii) During a meeting at which the agenda is limited to specific topics 16
168-or at a special meeting, the unit owners’ comments may be limited to the topics listed on 17
169-the meeting agenda. 18
170-
171- (iv) The governing body shall convene at least one meeting each year 19
172-at which the agenda is open to any matter relating to the condominium. 20
173-
174- (8) (i) Unless the bylaws provide otherwise, a quorum is deemed 21
175-present throughout any meeting of the council of unit owners if persons entitled to cast 25 22
176-percent of the total number of votes appurtenant to all units are present in person or by 23
177-proxy. 24
178-
179- (ii) If the number of persons present in person or by proxy at a 25
180-properly called meeting of the council of unit owners is insufficient to constitute a quorum, 26
181-an additional meeting of the council of unit owners may be called for the same purpose if: 27
182-
183- 1. The notice of the initial properly called meeting stated: 28
184-
185- A. That the procedure authorized by this paragraph might be 29
186-invoked; and 30
187-
188- B. The date, time, and place of the additional meeting; and 31
189-
190- 2. A majority of the unit owners present vote in person or by 32
191-proxy to call for the additional meeting. 33 HOUSE BILL 687 5
140+ (5) Notice of special meetings of the board of directors shall be given: 32 4 HOUSE BILL 687
192141
193142
194143
195- (iii) 1. An additional meeting called under subparagraph (ii) of 1
196-this paragraph shall occur not less than 15 days after the initial properly called meeting. 2
144+ (i) As provided in the bylaws; or 1
197145
198- 2. Not less than 10 days before the additional meeting, a 3
199-separate and distinct notice of the date, time, place, and purpose of the additional meeting 4
200-called under subparagraph (ii) of this paragraph shall be: 5
146+ (ii) If the requirements of § 11–139.1 of this title are met, by 2
147+electronic transmission. 3
201148
202- A. Delivered, mailed, or sent by electronic transmission if the 6
203-requirements of § 11–139.1 of this title are met, to each unit owner at the address shown 7
204-on the roster maintained under paragraph (2) of this subsection; 8
149+ (6) Except as provided in § 11–109.1 of this title, a meeting of a governing 4
150+body shall be open and held at a time and location as provided in the notice or bylaws. 5
205151
206- B. Advertised in a newspaper published in the county where 9
207-the condominium is located; or 10
152+ (7) (i) This paragraph does not apply to any meeting of the governing 6
153+body that occurs at any time before the meeting at which the unit owners elect officers or a 7
154+board of directors in accordance with paragraph (16) of this subsection. 8
208155
209- C. If the condominium has a website, posted on the homepage 11
210-of the website. 12
156+ (ii) Subject to subparagraph (iii) of this paragraph and to reasonable 9
157+rules adopted by the governing body under § 11–111 of this title, a governing body shall 10
158+provide a designated period of time during a meeting to allow unit owners an opportunity 11
159+to comment on any matter relating to the condominium. 12
211160
212- 3. The notice shall contain the quorum and voting provisions 13
213-of subparagraph (iv) of this paragraph. 14
161+ (iii) During a meeting at which the agenda is limited to specific topics 13
162+or at a special meeting, the unit owners’ comments may be limited to the topics listed on 14
163+the meeting agenda. 15
214164
215- (iv) 1. At the additional meeting, the unit owners present in 15
216-person or by proxy constitute a quorum. 16
165+ (iv) The governing body shall convene at least one meeting each year 16
166+at which the agenda is open to any matter relating to the condominium. 17
217167
218- 2. Unless the bylaws provide otherwise, a majority of the 17
219-unit owners present in person or by proxy: 18
168+ (8) (i) Unless the bylaws provide otherwise, a quorum is deemed 18
169+present throughout any meeting of the council of unit owners if persons entitled to cast 25 19
170+percent of the total number of votes appurtenant to all units are present in person or by 20
171+proxy. 21
220172
221- A. May approve or authorize the proposed action at the 19
222-additional meeting; and 20
173+ (ii) If the number of persons present in person or by proxy at a 22
174+properly called meeting of the council of unit owners is insufficient to constitute a quorum, 23
175+an additional meeting of the council of unit owners may be called for the same purpose if: 24
223176
224- B. May take any other action that could have been taken at 21
225-the original meeting if a sufficient number of unit owners had been present. 22
177+ 1. The notice of the initial properly called meeting stated: 25
226178
227- (v) This paragraph may not be construed to affect the percentage of 23
228-votes required to amend the declaration or bylaws or to take any other action required to 24
229-be taken by a specified percentage of votes. 25
179+ A. That the procedure authorized by this paragraph might be 26
180+invoked; and 27
230181
231- (9) At meetings of the council of unit owners each unit owner shall be 26
232-entitled to cast the number of votes appurtenant to his unit. Unit owners may vote by proxy, 27
233-but the proxy is effective only for a maximum period of 180 days following its issuance, 28
234-unless granted to a lessee or mortgagee. 29
182+ B. The date, time, and place of the additional meeting; and 28
235183
236- (10) Any proxy may be revoked at any time at the pleasure of the unit owner 30
237-or unit owners executing the proxy. 31
184+ 2. A majority of the unit owners present vote in person or by 29
185+proxy to call for the additional meeting. 30
238186
239- (11) A proxy who is not appointed to vote as directed by a unit owner may 32
240-only be appointed for purposes of meeting quorums and to vote for matters of business 33 6 HOUSE BILL 687
187+ (iii) 1. An additional meeting called under subparagraph (ii) of 31
188+this paragraph shall occur not less than 15 days after the initial properly called meeting. 32
189+ HOUSE BILL 687 5
241190
242191
243-before the council of unit owners, other than an election of officers and members of the 1
244-board of directors. 2
192+ 2. Not less than 10 days before the additional meeting, a 1
193+separate and distinct notice of the date, time, place, and purpose of the additional meeting 2
194+called under subparagraph (ii) of this paragraph shall be: 3
245195
246- (12) Only a unit owner voting in person or by electronic transmission if the 3
247-requirements of § 11–139.2 of this title are met or a proxy voting for candidates designated 4
248-by a unit owner may vote for officers and members of the board of directors. 5
196+ A. Delivered, mailed, or sent by electronic transmission if the 4
197+requirements of § 11–139.1 of this title are met, to each unit owner at the address shown 5
198+on the roster maintained under paragraph (2) of this subsection; 6
249199
250- (13) Unless otherwise provided in the bylaws, a unit owner may nominate 6
251-himself or any other person to be an officer or member of the board of directors. A call for 7
252-nominations shall be sent to all unit owners not less than 45 days before notice of an election 8
253-is sent. Only nominations made at least 15 days before notice of an election shall be listed 9
254-on the election ballot. Candidates shall be listed on the ballot in alphabetical order, with 10
255-no indicated candidate preference. Nominations may be made from the floor at the meeting 11
256-at which the election to the board is held. 12
200+ B. Advertised in a newspaper published in the county where 7
201+the condominium is located; or 8
257202
258- (14) Election materials prepared with funds of the council of unit owners 13
259-shall list candidates in alphabetical order and may not indicate a candidate preference. 14
203+ C. If the condominium has a website, posted on the homepage 9
204+of the website. 10
260205
261- (15) Unless otherwise provided in this title, and subject to provisions in the 15
262-bylaws requiring a different majority, decisions of the council of unit owners shall be made 16
263-on a majority of votes of the unit owners listed on the current roster present and voting. 17
206+ 3. The notice shall contain the quorum and voting provisions 11
207+of subparagraph (iv) of this paragraph. 12
264208
265- (16) (i) A meeting of the council of unit owners to elect a board of 18
266-directors for the council of unit owners, as provided in the condominium declaration or 19
267-bylaws, shall be held within: 20
209+ (iv) 1. At the additional meeting, the unit owners present in 13
210+person or by proxy constitute a quorum. 14
268211
269- 1. 60 days from the date that units representing 50 percent 21
270-of the votes in the condominium have been conveyed by the developer to members of the 22
271-public for residential purposes; or 23
212+ 2. Unless the bylaws provide otherwise, a majority of the 15
213+unit owners present in person or by proxy: 16
272214
273- 2. If a lesser percentage is specified in the declaration or 24
274-bylaws of the condominium, 60 days from the date the specified lesser percentage of units 25
275-in the condominium are sold to members of the public for residential purposes. 26
215+ A. May approve or authorize the proposed action at the 17
216+additional meeting; and 18
276217
277- (ii) 1. Before the date of the meeting held under subparagraph 27
278-(i) of this paragraph, the developer shall deliver to each unit owner notice that the 28
279-requirements of subparagraph (i) of this paragraph have been met. 29
218+ B. May take any other action that could have been taken at 19
219+the original meeting if a sufficient number of unit owners had been present. 20
280220
281- 2. The notice shall include the date, time, and place of the 30
282-meeting to elect the board of directors for the council of unit owners. 31
221+ (v) This paragraph may not be construed to affect the percentage of 21
222+votes required to amend the declaration or bylaws or to take any other action required to 22
223+be taken by a specified percentage of votes. 23
283224
284- (iii) If a replacement board member is elected, the term of each 32
285-member of the board of directors appointed by the developer shall end 10 days after the 33
286-meeting is held as specified in subparagraph (i) of this paragraph. 34
225+ (9) At meetings of the council of unit owners each unit owner shall be 24
226+entitled to cast the number of votes appurtenant to his unit. Unit owners may vote by proxy, 25
227+but the proxy is effective only for a maximum period of 180 days following its issuance, 26
228+unless granted to a lessee or mortgagee. 27
287229
288- (iv) Within 30 days from the date of the m eeting held under 35
289-subparagraph (i) of this paragraph, the developer shall deliver to the officers or board of 36 HOUSE BILL 687 7
230+ (10) Any proxy may be revoked at any time at the pleasure of the unit owner 28
231+or unit owners executing the proxy. 29
232+
233+ (11) A proxy who is not appointed to vote as directed by a unit owner may 30
234+only be appointed for purposes of meeting quorums and to vote for matters of business 31
235+before the council of unit owners, other than an election of officers and members of the 32
236+board of directors. 33
237+ 6 HOUSE BILL 687
290238
291239
292-directors for the council of unit owners, as provided in the condominium declaration or 1
293-bylaws, at the developer’s expense: 2
240+ (12) Only a unit owner voting in person or by electronic transmission if the 1
241+requirements of § 11–139.2 of this title are met or a proxy voting for candidates designated 2
242+by a unit owner may vote for officers and members of the board of directors. 3
294243
295- 1. The documents specified in § 11–132 of this title; 3
244+ (13) Unless otherwise provided in the bylaws, a unit owner may nominate 4
245+himself or any other person to be an officer or member of the board of directors. A call for 5
246+nominations shall be sent to all unit owners not less than 45 days before notice of an election 6
247+is sent. Only nominations made at least 15 days before notice of an election shall be listed 7
248+on the election ballot. Candidates shall be listed on the ballot in alphabetical order, with 8
249+no indicated candidate preference. Nominations may be made from the floor at the meeting 9
250+at which the election to the board is held. 10
296251
297- 2. The condominium funds, including operating funds, 4
298-replacement reserves, investment accounts, and working capital; 5
252+ (14) Election materials prepared with funds of the council of unit owners 11
253+shall list candidates in alphabetical order and may not indicate a candidate preference. 12
299254
300- 3. The tangible property of the condominium; and 6
255+ (15) Unless otherwise provided in this title, and subject to provisions in the 13
256+bylaws requiring a different majority, decisions of the council of unit owners shall be made 14
257+on a majority of votes of the unit owners listed on the current roster present and voting. 15
301258
302- 4. A roster of current unit owners, including mailing 7
303-addresses, telephone numbers, and unit numbers, if known. 8
259+ (16) (i) A meeting of the council of unit owners to elect a board of 16
260+directors for the council of unit owners, as provided in the condominium declaration or 17
261+bylaws, shall be held within: 18
304262
305- (v) The replacement reserves delivered under subparagraph (iv)2 of 9
306-this paragraph for a residential condominium shall be equal to at least the reserve funding 10
307-amount recommended in the reserve study completed under § 11–109.4 of this title as of 11
308-the date of the meeting. 12
263+ 1. 60 days from the date that units representing 50 percent 19
264+of the votes in the condominium have been conveyed by the developer to members of the 20
265+public for residential purposes; or 21
309266
310- (vi) 1. This subparagraph does not apply to a contract entered 13
311-into before October 1, 2009. 14
267+ 2. If a lesser percentage is specified in the declaration or 22
268+bylaws of the condominium, 60 days from the date the specified lesser percentage of units 23
269+in the condominium are sold to members of the public for residential purposes. 24
312270
313- 2. A. In this subparagraph, “contract” means an 15
314-agreement with a company or individual to handle financial matters, maintenance, or 16
315-services for the condominium. 17
271+ (ii) 1. Before the date of the meeting held under subparagraph 25
272+(i) of this paragraph, the developer shall deliver to each unit owner notice that the 26
273+requirements of subparagraph (i) of this paragraph have been met. 27
316274
317- B. “Contract” does not include an agreement relating to the 18
318-provision of utility services or communication systems. 19
275+ 2. The notice shall include the date, time, and place of the 28
276+meeting to elect the board of directors for the council of unit owners. 29
319277
320- 3. Until all members of the board of directors of the 20
321-condominium are elected by the unit owners at a transitional meeting as specified in 21
322-subparagraph (i) of this paragraph, a contract entered into by the officers or board of 22
323-directors of the condominium may be terminated, at the discretion of the board of directors 23
324-and without liability for the termination, not later than 30 days after notice. 24
278+ (iii) If a replacement board member is elected, the term of each 30
279+member of the board of directors appointed by the developer shall end 10 days after the 31
280+meeting is held as specified in subparagraph (i) of this paragraph. 32
325281
326- (vii) If the developer fails to comply with the requirements of this 25
327-paragraph, an aggrieved unit owner may submit the dispute to the Division of Consumer 26
328-Protection of the Office of the Attorney General under § 11–130(c) of this title. 27
282+ (iv) Within 30 days from the date of the meeting held under 33
283+subparagraph (i) of this paragraph, the developer shall deliver to the officers or board of 34
284+directors for the council of unit owners, as provided in the condominium declaration or 35
285+bylaws, at the developer’s expense: 36
286+ HOUSE BILL 687 7
329287
330- [(d)] (E) The council of unit owners may be either incorporated as a nonstock 28
331-corporation or unincorporated and it is subject to those provisions of Title 5, Subtitle 2 of 29
332-the Corporations and Associations Article which are not inconsistent with this title. The 30
333-council of unit owners has, subject to any provision of this title, and except as provided in 31
334-item (22) of this subsection, the declaration, and bylaws, the following powers: 32
335288
336- (1) To have perpetual existence, subject to the right of the unit owners to 33
337-terminate the condominium regime as provided in § 11–123 of this title; 34
289+ 1. The documents specified in § 11–132 of this title; 1
290+
291+ 2. The condominium funds, including operating funds, 2
292+replacement reserves, investment accounts, and working capital; 3
293+
294+ 3. The tangible property of the condominium; and 4
295+
296+ 4. A roster of current unit owners, including mailing 5
297+addresses, telephone numbers, and unit numbers, if known. 6
298+
299+ (v) The replacement reserves delivered under subparagraph (iv)2 of 7
300+this paragraph for a residential condominium shall be equal to at least the reserve funding 8
301+amount recommended in the reserve study completed under § 11–109.4 of this title as of 9
302+the date of the meeting. 10
303+
304+ (vi) 1. This subparagraph does not apply to a contract entered 11
305+into before October 1, 2009. 12
306+
307+ 2. A. In this subparagraph, “contract” means an 13
308+agreement with a company or individual to handle financial matters, maintenance, or 14
309+services for the condominium. 15
310+
311+ B. “Contract” does not include an agreement relating to the 16
312+provision of utility services or communication systems. 17
313+
314+ 3. Until all members of the board of directors of the 18
315+condominium are elected by the unit owners at a transitional meeting as specified in 19
316+subparagraph (i) of this paragraph, a contract entered into by the officers or board of 20
317+directors of the condominium may be terminated, at the discretion of the board of directors 21
318+and without liability for the termination, not later than 30 days after notice. 22
319+
320+ (vii) If the developer fails to comply with the requirements of this 23
321+paragraph, an aggrieved unit owner may submit the dispute to the Division of Consumer 24
322+Protection of the Office of the Attorney General under § 11–130(c) of this title. 25
323+
324+ [(d)] (E) The council of unit owners may be either incorporated as a nonstock 26
325+corporation or unincorporated and it is subject to those provisions of Title 5, Subtitle 2 of 27
326+the Corporations and Associations Article which are not inconsistent with this title. The 28
327+council of unit owners has, subject to any provision of this title, and except as provided in 29
328+item (22) of this subsection, the declaration, and bylaws, the following powers: 30
329+
330+ (1) To have perpetual existence, subject to the right of the unit owners to 31
331+terminate the condominium regime as provided in § 11–123 of this title; 32
332+
333+ (2) To adopt and amend reasonable rules and regulations; 33
338334 8 HOUSE BILL 687
339335
340336
341- (2) To adopt and amend reasonable rules and regulations; 1
337+ (3) To adopt and amend budgets for revenues, expenditures, and reserves 1
338+and collect assessments for common expenses from unit owners; 2
342339
343- (3) To adopt and amend budgets for revenues, expenditures, and reserves 2
344-and collect assessments for common expenses from unit owners; 3
340+ (4) To sue and be sued, complain and defend, or intervene in litigation or 3
341+administrative proceedings in its own name on behalf of itself or two or more unit owners 4
342+on matters affecting the condominium; 5
345343
346- (4) To sue and be sued, complain and defend, or intervene in litigation or 4
347-administrative proceedings in its own name on behalf of itself or two or more unit owners 5
348-on matters affecting the condominium; 6
344+ (5) To transact its business, carry on its operations and exercise the powers 6
345+provided in this subsection in any state, territory, district, or possession of the United 7
346+States and in any foreign country; 8
349347
350- (5) To transact its business, carry on its operations and exercise the powers 7
351-provided in this subsection in any state, territory, district, or possession of the United 8
352-States and in any foreign country; 9
348+ (6) To make contracts and guarantees, incur liabilities and borrow money, 9
349+sell, mortgage, lease, pledge, exchange, convey, transfer, and otherwise dispose of any part 10
350+of its property and assets; 11
353351
354- (6) To make contracts and guarantees, incur liabilities and borrow money, 10
355-sell, mortgage, lease, pledge, exchange, convey, transfer, and otherwise dispose of any part 11
356-of its property and assets; 12
352+ (7) To issue bonds, notes, and other obligations and secure the same by 12
353+mortgage or deed of trust of any part of its property, franchises, and income; 13
357354
358- (7) To issue bonds, notes, and other obligations and secure the same by 13
359-mortgage or deed of trust of any part of its property, franchises, and income; 14
355+ (8) To acquire by purchase or in any other manner, to take, receive, own, 14
356+hold, use, employ, improve, and otherwise deal with any property, real or personal, or any 15
357+interest therein, wherever located; 16
360358
361- (8) To acquire by purchase or in any other manner, to take, receive, own, 15
362-hold, use, employ, improve, and otherwise deal with any property, real or personal, or any 16
363-interest therein, wherever located; 17
359+ (9) To hire and terminate managing agents and other employees, agents, 17
360+and independent contractors; 18
364361
365- (9) To hire and terminate managing agents and other employees, agents, 18
366-and independent contractors; 19
362+ (10) To purchase, take, receive, subscribe for or otherwise acquire, own, 19
363+hold, vote, use, employ, sell, mortgage, loan, pledge or otherwise dispose of, and otherwise 20
364+use and deal in and with, shares or other interests in, or obligation of corporations of the 21
365+State, or foreign corporations, and of associations, partnerships, and individuals; 22
367366
368- (10) To purchase, take, receive, subscribe for or otherwise acquire, own, 20
369-hold, vote, use, employ, sell, mortgage, loan, pledge or otherwise dispose of, and otherwise 21
370-use and deal in and with, shares or other interests in, or obligation of corporations of the 22
371-State, or foreign corporations, and of associations, partnerships, and individuals; 23
367+ (11) To invest its funds and to lend money in any manner appropriate to 23
368+enable it to carry on the operations or to fulfill the purposes named in the declaration or 24
369+bylaws, and to take and to hold real and personal property as security for the payment of 25
370+funds so invested or loaned; 26
372371
373- (11) To invest its funds and to lend money in any manner appropriate to 24
374-enable it to carry on the operations or to fulfill the purposes named in the declaration or 25
375-bylaws, and to take and to hold real and personal property as security for the payment of 26
376-funds so invested or loaned; 27
372+ (12) To regulate the use, maintenance, repair, replacement, and 27
373+modification of common elements; 28
377374
378- (12) To regulate the use, maintenance, repair, replacement, and 28
379-modification of common elements; 29
375+ (13) To cause additional improvements to be made as a part of the general 29
376+common elements; 30
380377
381- (13) To cause additional improvements to be made as a part of the general 30
382-common elements; 31
378+ (14) To grant easements, rights–of–way, licenses, leases in excess of 1 year, 31
379+or similar interests through or over the common elements in accordance with § 11–125(f) 32
380+of this title; 33
383381
384- (14) To grant easements, rights–of–way, licenses, leases in excess of 1 year, 32
385-or similar interests through or over the common elements in accordance with § 11–125(f) 33
386-of this title; 34
387- HOUSE BILL 687 9
382+ (15) To impose and receive any payments, fees, or charges for the use, rental, 34
383+or operation of the common elements other than limited common elements; 35 HOUSE BILL 687 9
388384
389385
390- (15) To impose and receive any payments, fees, or charges for the use, rental, 1
391-or operation of the common elements other than limited common elements; 2
392386
393- (16) To impose charges for late payment of assessments and, after notice 3
394-and an opportunity to be heard, levy reasonable fines for violations of the declaration, 4
395-bylaws, and rules and regulations of the council of unit owners, under § 11–113 of this title; 5
387+ (16) To impose charges for late payment of assessments and, after notice 1
388+and an opportunity to be heard, levy reasonable fines for violations of the declaration, 2
389+bylaws, and rules and regulations of the council of unit owners, under § 11–113 of this title; 3
396390
397- (17) To impose reasonable charges for the preparation and recordation of 6
398-amendments to the declaration, bylaws, rules, regulations, or resolutions, resale 7
399-certificates, or statements of unpaid assessments; 8
391+ (17) To impose reasonable charges for the preparation and recordation of 4
392+amendments to the declaration, bylaws, rules, regulations, or resolutions, resale 5
393+certificates, or statements of unpaid assessments; 6
400394
401- (18) To provide for the indemnification of and maintain liability insurance 9
402-for officers, directors, and any managing agent or other employee charged with the 10
403-operation or maintenance of the condominium; 11
395+ (18) To provide for the indemnification of and maintain liability insurance 7
396+for officers, directors, and any managing agent or other employee charged with the 8
397+operation or maintenance of the condominium; 9
404398
405- (19) To enforce the implied warranties made to the council of unit owners by 12
406-the developer under § 11–131 of this title; 13
399+ (19) To enforce the implied warranties made to the council of unit owners by 10
400+the developer under § 11–131 of this title; 11
407401
408- (20) To enforce the provisions of this title, the declaration, bylaws, and rules 14
409-and regulations of the council of unit owners against any unit owner or occupant; 15
402+ (20) To enforce the provisions of this title, the declaration, bylaws, and rules 12
403+and regulations of the council of unit owners against any unit owner or occupant; 13
410404
411- (21) Generally, to exercise the powers set forth in this title and the 16
412-declaration or bylaws and to do every other act not inconsistent with law, which may be 17
413-appropriate to promote and attain the purposes set forth in this title, the declaration or 18
414-bylaws; and 19
405+ (21) Generally, to exercise the powers set forth in this title and the 14
406+declaration or bylaws and to do every other act not inconsistent with law, which may be 15
407+appropriate to promote and attain the purposes set forth in this title, the declaration or 16
408+bylaws; and 17
415409
416- (22) To designate parking for individuals with disabilities, notwithstanding 20
417-any provision in the declaration, bylaws, or rules and regulations. 21
410+ (22) To designate parking for individuals with disabilities, notwithstanding 18
411+any provision in the declaration, bylaws, or rules and regulations. 19
418412
419- [(e)] (F) A unit owner may not have any right, title, or interest in any property 22
420-owned by the council of unit owners other than as holder of a percentage interest in common 23
421-expenses and common profits appurtenant to his unit. 24
413+ [(e)] (F) A unit owner may not have any right, title, or interest in any property 20
414+owned by the council of unit owners other than as holder of a percentage interest in common 21
415+expenses and common profits appurtenant to his unit. 22
422416
423- [(f)] (G) A unit owner’s rights as holder of a percentage interest in common 25
424-expenses and common profits are such that: 26
417+ [(f)] (G) A unit owner’s rights as holder of a percentage interest in common 23
418+expenses and common profits are such that: 24
425419
426- (1) A unit owner’s right to possess, use, or enjoy property of the council of 27
427-unit owners shall be as provided in the bylaws; and 28
420+ (1) A unit owner’s right to possess, use, or enjoy property of the council of 25
421+unit owners shall be as provided in the bylaws; and 26
428422
429- (2) A unit owner’s interest in the property is not assignable or attachable 29
430-separate from his unit except as provided in §§ 11–107(d) and 11–112(g) of this title. 30
423+ (2) A unit owner’s interest in the property is not assignable or attachable 27
424+separate from his unit except as provided in §§ 11–107(d) and 11–112(g) of this title. 28
431425
432-11B–106.1. 31
426+11B–106.1. 29
433427
434- (a) A meeting of the members of the homeowners association to elect a governing 32
435-body of the homeowners association shall be held within: 33
428+ (a) A meeting of the members of the homeowners association to elect a governing 30
429+body of the homeowners association shall be held within: 31
436430 10 HOUSE BILL 687
437431
438432
439433 (1) 60 days from the date that at least 75% of the total number of lots that 1
440434 may be part of the development after all phases are complete are sold to members of the 2
441435 public for residential purposes; or 3
442436
443437 (2) If a lesser percentage is specified in the governing documents of the 4
444438 homeowners association, 60 days from the date the specified lesser percentage of the total 5
445439 number of lots in the development after all phases are complete are sold to members of the 6
446440 public for residential purposes. 7
447441
448442 (G) (1) THIS SUBSECTION APPLI ES ONLY IN CHARLES COUNTY. 8
449443
450444 (2) EACH MEMBER OF THE GO VERNING BODY SHALL S UCCESSFULLY 9
451445 COMPLETE A TRAINING CURRICULUM ON THE RE SPONSIBILITIES OF A MEMBER OF 10
452446 THE GOVERNING BODY D EVELOPED BY: 11
453447
454448 (I) A COMMON OWNERSHIP COMMISSION RECOGNIZE D BY THE 12
455449 STATE OR A LOCAL GOVE RNMENT; OR 13
456450
457451 (II) AN ORGANIZATION APPRO VED TO ADMINISTER TH E 14
458452 TRAINING CURRICULUM BY A RECOGNIZED COMM ON OWNERSHIP COMMISS ION. 15
459453
460454 (3) EACH MEMBER OF THE GO VERNING BODY SHALL S UCCESSFULLY 16
461455 COMPLETE THE TRAIN ING CURRICULUM REQUI RED UNDER THIS SUBSE CTION 17
462456 WITHIN 90 DAYS AFTER THE INDIV IDUAL: 18
463457
464458 (I) IS FIRST ELECTED OR A PPOINTED TO THE GOVERNING 19
465459 BODY; OR 20
466460
467461 (II) FOR A MEMBER WHO IS IN OFFICE ON OCTOBER 1, 2024, 21
468462 BEGINS A SUBSEQUENT TERM AS A MEMBER OF THE GOVERNING BODY . 22
469463
470464 (4) (I) THE GOVERNING BODY SHALL: 23
471465
472466 1. CERTIFY THAT EACH MEM BER SUCCESSFULLY 24
473467 COMPLETES THE TRAINI NG CURRICULUM REQUIR ED UNDER THIS SUBSEC TION; 25
474468
475469 2. RETAIN A COPY OF THE CERTIFICATE OF 26
476470 COMPLETION OF EACH M EMBER; AND 27
477471
478472 3. WITHIN 90 DAYS AFTER THE CERTI FICATION OF THE 28
479473 MEMBER, REPORT TO THE COMMON OWNERSHIP COMMISSION ON THE 29
480474 CERTIFICATION . 30
481475 HOUSE BILL 687 11
482476
483477
484478 (II) A CERTIFICATE OF COMPL ETION ISSUED UNDER T HIS 1
485479 PARAGRAPH SHALL BE V ALID FOR 3 YEARS. 2
486480
487481 (III) IF A MEMBER OF THE GO VERNING BODY REMAINS A 3
488482 MEMBER OF THE GOVERNING BODY AT THE TIME THE CERTIFICATE EXPIRES , THE 4
489483 MEMBER SHALL RENEW THE CERT IFICATION BY SUCCESS FULLY COMPLETING THE 5
490484 TRAINING REQUIRED UN DER THIS SUBSECTION . 6
491485
492486 (5) IF A MEMBER OF THE GOVERNING BODY DOES NOT 7
493487 SUCCESSFULLY COMPLET E THE TRAINING REQUIRED UN DER THIS SUBSECTION , 8
494488 THE GOVERNING BODY MAY: 9
495489
496490 (I) REMOVE THE MEMBER FROM THE GOVERNING BODY ; OR 10
497491
498492 (II) INVALIDATE A VOTE OF THE MEMBER. 11
499493
500494 [(g)] (H) If the declarant fails to comply with the requirements of this section, an 12
501495 aggrieved lot owner may submit the dispute to the Division of Consumer Protection of the 13
502496 Office of the Attorney General under § 11B–115(c) of this title. 14
503497
504498 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
505499 October 1, 2024. 16
506-
507-
508-
509-Approved:
510-________________________________________________________________________________
511- Governor.
512-________________________________________________________________________________
513- Speaker of the House of Delegates.
514-________________________________________________________________________________
515- President of the Senate.