Maryland 2024 Regular Session

Maryland House Bill HB793 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	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	5		hb0793
9	6
10	7		HOUSE BILL 793
11	8		N1 4lr3089
12	9		HB 361/21 – ENT
13		-	By: Delegates Holmes, Harris, Davis, and Turner Turner, Boyce, Healey, Lehman,
14		-	and Terrasa
	10	+	By: Delegates Holmes, Harris, Davis, and Turner
15	11		Introduced and read first time: January 31, 2024
16	12		Assigned to: Environment and Transportation
17		-	Committee Report: Favorable with amendments
18		-	House action: Adopted
19		-	Read second time: March 5, 2024
20	13
21		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
22	15
23	16		AN ACT concerning 1
24	17
25	18		Real Property – Governing Bodies of Common Ownership Communities – 2
26	19		Member Training 3
27	20
28		-	FOR the purpose of requiring each member certain members of a board of directors or 4
29		-	officer certain officers of a council of unit owners of a condominium certain 5
30		-	condominiums and each member certain members of a governing body of a 6
31		-	homeowners association to successfully complete a certain training curriculum in a 7
32		-	certain manner and subject to certain requirements; and generally relating to 8
33		-	members of governing bodies of condominiums and homeowners associations. 9
	21	+	FOR the purpose of requiring each member of a board of directors or officer of a council of 4
	22	+	unit owners of a condominium and each member of a governing body of a 5
	23	+	homeowners association to successfully complete a certain training curriculum in a 6
	24	+	certain manner and subject to certain requirements; and generally relating to 7
	25	+	members of governing bodies of condominiums and homeowners associations. 8
34	26
35		-	BY repealing and reenacting, with amendments, 10
36		-	Article – Real Property 11
37		-	Section 11–109 and 11B–106.1(g) 12
38		-	Annotated Code of Maryland 13
39		-	(2023 Replacement Volume) 14
	27	+	BY repealing and reenacting, with amendments, 9
	28	+	Article – Real Property 10
	29	+	Section 11–109 and 11B–106.1(g) 11
	30	+	Annotated Code of Maryland 12
	31	+	(2023 Replacement Volume) 13
40	32
41		-	BY repealing and reenacting, without amendments, 15
42		-	Article – Real Property 16
43		-	Section 11B–106.1(a) 17
44		-	Annotated Code of Maryland 18
45		-	(2023 Replacement Volume) 19
	33	+	BY repealing and reenacting, without amendments, 14
	34	+	Article – Real Property 15
	35	+	Section 11B–106.1(a) 16
	36	+	Annotated Code of Maryland 17
	37	+	(2023 Replacement Volume) 18
46	38
47		-	BY adding to 20
48		-	Article – Real Property 21 2 HOUSE BILL 793
	39	+	BY adding to 19
	40	+	Article – Real Property 20
	41	+	Section 11B–106.1(g) 21
	42	+	Annotated Code of Maryland 22
	43	+	(2023 Replacement Volume) 23
49	44
	45	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24
	46	+	That the Laws of Maryland read as follows: 25
50	47
51		-	Section 11B–106.1(g) 1
52		-	Annotated Code of Maryland 2
53		-	(2023 Replacement Volume) 3
54		-
55		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
56		-	That the Laws of Maryland read as follows: 5
57		-
58		-	Article – Real Property 6
59		-
60		-	11–109. 7
61		-
62		-	(a) The affairs of the condominium shall be governed by a council of unit owners 8
63		-	which, even if unincorporated, is constituted a legal entity for all purposes. The council of 9
64		-	unit owners shall be comprised of all unit owners. 10
65		-
66		-	(b) The bylaws may authorize or provide for the delegation of any power of the 11
67		-	council of unit owners to a board of directors, officers, managing agent, or other person for 12
68		-	the purpose of carrying out the responsibilities of the council of unit owners. 13
69		-
70		-	(C) (1) THIS SUBSECTION APPLI ES ONLY TO A MEMBER OF A BOARD OF 14
71		-	DIRECTORS OR AN OFFI CER OF A COUNCIL OF UNIT OWNERS FOR A CO NDOMINIUM 15
72		-	THAT IS COMPOSED SOL ELY OF RESIDENTIAL F OR–SALE HOUSING OR CONS UMER 16
73		-	REALTY WHO SERVES AFTER A MEETING REQU IRED UNDER SUBSECTIO N (D)(16) OF 17
74		-	THIS SECTION. 18
75		-
76		-	(2) (I) EACH MEMBER OF A BOAR D OF DIRECTORS OR OF FICER OF 19
77		-	A COUNCIL OF UNIT OW NERS SHALL SUCCESSFU LLY COMPLETE A TRAIN ING 20
78		-	CURRICULUM ON THE RE SPONSIBILITIES OF BE ING A MEMBER OR AN O FFICER 21
79		-	DEVELOPED BY : 22
80		-
81		-	1. A COMMON OWNERSHIP COM MISSION RECOGNIZED 23
82		-	BY THE STATE OR A LOCAL GOVE RNMENT; 24
83		-
84		-	2. AN ORGANIZATION APPRO VED TO ADMINISTER TH E 25
85		-	TRAINING CURRICULUM BY A RECOGNIZED COMM ON OWNERSHIP COMMISS ION; 26
86		-
87		-	3. AN INSTITUTION ACCRED ITED BY THE MIDDLE 27
88		-	STATES COMMISSION ON HIGHER EDUCATION; 28
89		-
90		-	4. A MEMBERSHIP ORGANIZAT ION THAT OFFERS 29
91		-	NATIONALLY RECOGNIZE D CERTIFICATION CRED ENTIALS FOR COMMUNIT Y 30
92		-	MANAGERS; OR 31
93		-
94		-	5. A COUNTY WITH COURSEWO RK ESTABLISHED BY TH E 32
95		-	COUNTY COMMON OWNERS HIP COMMISSIO N. 33 HOUSE BILL 793 3
	48	+	Article – Real Property 26 2 HOUSE BILL 793
96	49
97	50
98	51
99		-	(II) A TRAINING CURRICULUM DEVELOPED UNDER THIS 1
100		-	PARAGRAPH SHALL INCL UDE TRAINING ON : 2
	52	+	11–109. 1
101	53
102		-	1. THE ~~MARYLAND HOMEOWNERS ASSOCIATION ACT,~~ 3
103		-	~~THE MARYLAND CONDOMINIUM ACT~~, ~~AND~~ THE ~~MARYLAND COOPERATIVE 4~~
104		-	~~HOUSING CORPORATION ACT;~~ 5
	54	+	(a) The affairs of the condominium shall be governed by a council of unit owners 2
	55	+	which, even if unincorporated, is constituted a legal entity for all purposes. The council of 3
	56	+	unit owners shall be comprised of all unit owners. 4
105	57
106		-	2. ROLES AND RESPONSIBILITIES OF COMMON 6
107		-	OWNERSHIP COMMUNITY GOVERNING BODIES ; 7
	58	+	(b) The bylaws may authorize or provide for the delegation of any power of the 5
	59	+	council of unit owners to a board of directors, officers, managing agent, or other person for 6
	60	+	the purpose of carrying out the responsibilities of the council of unit owners. 7
108	61
109		-	3. FIDUCIARY DUTY ; 8
	62	+	(C) (1) (I) EACH MEMBER OF A BOAR D OF DIRECTORS OR OF FICER OF 8
	63	+	A COUNCIL OF UNIT OW NERS SHALL SUCCESSFU LLY COMPLETE A TRAINING 9
	64	+	CURRICULUM ON THE RE SPONSIBILITIES OF BE ING A MEMBER OR AN O FFICER 10
	65	+	DEVELOPED BY : 11
110	66
111		-	4. RESPONSIBLE GOVERNANC E POLICIES; 9
	67	+	1. A COMMON OWNERSHIP COM MISSION RECOGNIZED 12
	68	+	BY THE STATE OR A LOCAL GOVE RNMENT; 13
112	69
113		-	5. LEGAL STRUCTURES AND GUIDELINES; 10
	70	+	2. AN ORGANIZATION APPRO VED TO ADMINISTER TH E 14
	71	+	TRAINING CURRICULU M BY A RECOGNIZED CO MMON OWNERSHIP COMMI SSION; 15
114	72
115		-	6. RESERVES AND AUDITS ; 11
	73	+	3. AN INSTITUTION ACCREDITED BY THE MIDDLE 16
	74	+	STATES COMMISSION ON HIGHER EDUCATION; 17
116	75
117		-	7. MEETING PROCEDURES AN D REQUIREMENTS ; 12
	76	+	4. A MEMBERSHIP ORGANIZAT ION THAT OFFERS 18
	77	+	NATIONALLY RECOGNIZE D CERTIFICATION CRED ENTIALS FOR COMMUNIT Y 19
	78	+	MANAGERS; OR 20
118	79
119		-	8. HANDLING OF DISPUTES ; 13
	80	+	5. A COUNTY WITH COURSEWO RK ESTABLISHED BY THE 21
	81	+	COUNTY COMMON OWNERSHIP COM MISSION. 22
120	82
121		-	9. INSURANCE AND BONDING ; 14
	83	+	(II) A TRAINING CURRICULUM DEVELOPED UNDER THIS 23
	84	+	PARAGRAPH SHALL INCL UDE TRAINING ON : 24
122	85
123		-	10. COMMUNITY MAINTENANCE ; 15
	86	+	1. THE MARYLAND HOMEOWNERS ASSOCIATION ACT, 25
	87	+	THE MARYLAND CONDOMINIUM ACT, AND THE MARYLAND COOPERATIVE 26
	88	+	HOUSING CORPORATION ACT; 27
124	89
125		-	11. RECORD KEEPING ; AND 16
	90	+	2. ROLES AND RESPONSIBIL ITIES OF COMMON 28
	91	+	OWNERSHIP COMMUNITY GOVERNING BODIES ; 29
126	92
127		-	12. STATE AND LOCAL RESOU RCES FOR GOVERNING 17
128		-	BODIES. 18
129		-
130		-	(2) (3) EACH MEMBER OF THE BO ARD OF DIRECTORS OR OFFICER 19
131		-	OF THE COUNCIL OF UN IT OWNERS SHALL SUCCESS FULLY COMPLETE THE T RAINING 20
132		-	CURRICULUM REQUIRED UNDER THIS SUBSECTIO N WITHIN 90 DAYS AFTER THE 21
133		-	INDIVIDUAL: 22
134		-
135		-	(I) IS FIRST ELECTED OR A PPOINTED TO THE OFFI CE; OR 23
136		-
137		-	(II) FOR AN INDIVIDUAL WHO IS IN OFFICE ON OCTOBER 1, 24
138		-	2024, BEGINS A SUBSEQUENT TERM AS A MEMBER OF THE BOARD OF DIRECTORS OR 25
139		-	AN OFFICER OF THE CO UNCIL OF UNIT OWNERS . 26
140		-
141		-	(3) (4) (I) THE BOARD OF DIRECTOR S OR THE OFFICERS OF THE 27
142		-	COUNCIL OF UNIT OWNE RS SHALL: 28 4 HOUSE BILL 793
	93	+	3. FIDUCIARY DUTY ; 30
	94	+	HOUSE BILL 793 3
143	95
144	96
	97	+	4. RESPONSIBLE GOVE RNANCE POLICIES ; 1
145	98
146		-	1. CERTIFY THAT EACH MEM BER OR OFFICER 1
147		-	SUCCESSFULLY COMPLET ES THE TRAINING CURRICU LUM REQUIRED UNDER T HIS 2
148		-	SUBSECTION; 3
	99	+	5. LEGAL STRUCTURES AND GUIDELINES; 2
149	100
150		-	2. RETAIN A COPY OF THE CERTIFICATE OF 4
151		-	COMPLETION OF EACH M EMBER OR OFFICER ; AND 5
	101	+	6. RESERVES AND AUDITS ; 3
152	102
153		-	3. WITHIN 90 DAYS AFTER THE CERTI FICATION OF THE 6
154		-	MEMBER OR OFFICER , REPORT TO THE COMMON OWNERSHIP COMMISSIO N ON THE 7
155		-	CERTIFICATION . 8
	103	+	7. MEETING PROCEDURES AN D REQUIREMENTS ; 4
156	104
157		-	(II) A CERTIFICATE OF COMPL ETION ISSUED UNDER T HIS 9
158		-	PARAGRAPH SHALL BE V ALID FOR 3 YEARS. 10
	105	+	8. HANDLING OF DISPUTES ; 5
159	106
160		-	(III) AN INDIVIDUAL WHO REM AINS A MEMBER OF THE BOARD OF 11
161		-	DIRECTORS OR AN OFFI CER OF THE COUNCIL O F UNIT OWNERS AT THE TIME THE 12
162		-	CERTIFICATE EXPIRES SHALL RE NEW THE CERTIFICATIO N BY SUCCESSFULLY 13
163		-	COMPLETING THE TRAIN ING REQUIRED UNDER T HIS SUBSECTION . 14
	107	+	9. INSURANCE AND BONDING ; 6
164	108
165		-	(4) (5) IF A MEMBER OF THE BO ARD OF DIRECTORS OR AN OFFICER 15
166		-	OF THE COUNCIL OF UN IT OWNERS DOES NOT S UCCESSFULLY COMPLETE THE 16
167		-	TRAINING REQUI RED UNDER THIS SUBSE CTION, THE BOARD OF DIRECTO RS OR THE 17
168		-	COUNCIL OF UNIT OWNE RS MAY: 18
	109	+	10. COMMUNITY MAINTENANCE ; 7
169	110
170		-	~~(I) REMOVE THE INDIVIDUAL FROM THE OFFICE~~ ; ~~OR 19~~
	111	+	11. RECORD KEEPING; AND 8
171	112
172		-	(II) INVALIDATE A VOTE OF THE INDIVIDUAL . 20
	113	+	12. STATE AND LOCAL RESOU RCES FOR GOVERNING 9
	114	+	BODIES. 10
173	115
174		-	[(c)] (D) (1) A meeting of the council of unit owners or board of directors may 21
175		-	not be held on less notice than required by this section. 22
	116	+	(2) EACH MEMBER OF THE BO ARD OF DIRECTORS OR OFFICER OF THE 11
	117	+	COUNCIL OF UNIT OWNE RS SHALL SUCCESSFULL Y COMPLETE THE TRAIN ING 12
	118	+	CURRICULUM REQUIRED UNDER THIS SUBSECTIO N WITHIN 90 DAYS AFTER THE 13
	119	+	INDIVIDUAL: 14
176	120
177		-	(2) The council of unit owners shall maintain a current roster of names and 23
178		-	addresses of each unit owner to which notice of meetings of the board of directors shall be 24
179		-	sent at least annually. 25
	121	+	(I) IS FIRST ELECTED OR A PPOINTED TO THE OFFI CE; OR 15
180	122
181		-	(3) ~~Each unit owner shall furnish the council of unit owners with his name 26~~
182		-	~~and current mailing address.~~ A ~~unit owner may not vote at meetings~~ of the ~~council~~ of ~~unit 27~~
183		-	owners ~~until this information is furnished~~. 28
	123	+	(II) FOR AN INDIVIDUAL WHO IS IN OFFICE ON OCTOBER 1, 16
	124	+	2024, BEGINS A SUBSEQUENT TERM AS A MEMBER OF THE BOARD OF DIRECTO RS OR 17
	125	+	AN OFFICER OF THE CO UNCIL OF UNIT OWNERS . 18
184	126
185		-	(4) ~~A regular~~ or ~~special meeting~~ of the ~~council of unit owners may not be 29~~
186		-	~~held on less than 10 nor more than 90 days’~~: 30
	127	+	(3) (I) THE BOARD OF DIRECTORS OR THE OFFICERS OF THE 19
	128	+	COUNCIL OF UNIT OWNE RS SHALL: 20
187	129
188		-	(i) Written notice delivered or mailed to each unit owner at the 31
189		-	address shown on the roster on the date of the notice; or 32 HOUSE BILL 793 5
190		-
191		-
192		-
193		-	(ii) Notice sent to each unit owner by electronic transmission, if the 1
194		-	requirements of § 11–139.1 of this title are met. 2
195		-
196		-	(5) Notice of special meetings of the board of directors shall be given: 3
197		-
198		-	(i) As provided in the bylaws; or 4
199		-
200		-	(ii) If the requirements of § 11–139.1 of this title are met, by 5
201		-	electronic transmission. 6
202		-
203		-	(6) Except as provided in § 11–109.1 of this title, a meeting of a governing 7
204		-	body shall be open and held at a time and location as provided in the notice or bylaws. 8
205		-
206		-	(7) (i) This paragraph does not apply to any meeting of the governing 9
207		-	body that occurs at any time before the meeting at which the unit owners elect officers or a 10
208		-	board of directors in accordance with paragraph (16) of this subsection. 11
209		-
210		-	(ii) Subject to subparagraph (iii) of this paragraph and to reasonable 12
211		-	rules adopted by the governing body under § 11–111 of this title, a governing body shall 13
212		-	provide a designated period of time during a meeting to allow unit owners an opportunity 14
213		-	to comment on any matter relating to the condominium. 15
214		-
215		-	(iii) During a meeting at which the agenda is limited to specific topics 16
216		-	or at a special meeting, the unit owners’ comments may be limited to the topics listed on 17
217		-	the meeting agenda. 18
218		-
219		-	(iv) The governing body shall convene at least one meeting each year 19
220		-	at which the agenda is open to any matter relating to the condominium. 20
221		-
222		-	(8) (i) Unless the bylaws provide otherwise, a quorum is deemed 21
223		-	present throughout any meeting of the council of unit owners if persons entitled to cast 25 22
224		-	percent of the total number of votes appurtenant to all units are present in person or by 23
225		-	proxy. 24
226		-
227		-	(ii) If the number of persons present in person or by proxy at a 25
228		-	properly called meeting of the council of unit owners is insufficient to constitute a quorum, 26
229		-	an additional meeting of the council of unit owners may be called for the same purpose if: 27
230		-
231		-	1. The notice of the initial properly called meeting stated: 28
232		-
233		-	A. That the procedure authorized by this paragraph might be 29
234		-	invoked; and 30
235		-
236		-	B. The date, time, and place of the additional meeting; and 31
237		-	6 HOUSE BILL 793
238		-
239		-
240		-	2. A majority of the unit owners present vote in person or by 1
241		-	proxy to call for the additional meeting. 2
242		-
243		-	(iii) 1. An additional meeting called under subparagraph (ii) of 3
244		-	this paragraph shall occur not less than 15 days after the initial properly called meeting. 4
245		-
246		-	2. Not less than 10 days before the additional meeting, a 5
247		-	separate and distinct notice of the date, time, place, and purpose of the additional meeting 6
248		-	called under subparagraph (ii) of this paragraph shall be: 7
249		-
250		-	A. Delivered, mailed, or sent by electronic transmission if the 8
251		-	requirements of § 11–139.1 of this title are met, to each unit owner at the address shown 9
252		-	on the roster maintained under paragraph (2) of this subsection; 10
253		-
254		-	B. Advertised in a newspaper published in the county where 11
255		-	the condominium is located; or 12
256		-
257		-	C. If the condominium has a website, posted on the homepage 13
258		-	of the website. 14
259		-
260		-	3. The notice shall contain the quorum and voting provisions 15
261		-	of subparagraph (iv) of this paragraph. 16
262		-
263		-	(iv) 1. At the additional meeting, the unit owners present in 17
264		-	person or by proxy constitute a quorum. 18
265		-
266		-	2. Unless the bylaws provide otherwise, a majority of the 19
267		-	unit owners present in person or by proxy: 20
268		-
269		-	A. May approve or authorize the proposed action at the 21
270		-	additional meeting; and 22
271		-
272		-	B. May take any other action that could have been taken at 23
273		-	the original meeting if a sufficient number of unit owners had been present. 24
274		-
275		-	(v) This paragraph may not be construed to affect the percentage of 25
276		-	votes required to amend the declaration or bylaws or to take any other action required to 26
277		-	be taken by a specified percentage of votes. 27
278		-
279		-	(9) At meetings of the council of unit owners each unit owner shall be 28
280		-	entitled to cast the number of votes appurtenant to his unit. Unit owners may vote by proxy, 29
281		-	but the proxy is effective only for a maximum period of 180 days following its issuance, 30
282		-	unless granted to a lessee or mortgagee. 31
283		-
284		-	(10) Any proxy may be revoked at any time at the pleasure of the unit owner 32
285		-	or unit owners executing the proxy. 33
286		-	HOUSE BILL 793 7
287		-
288		-
289		-	(11) A proxy who is not appointed to vote as directed by a unit owner may 1
290		-	only be appointed for purposes of meeting quorums and to vote for matters of business 2
291		-	before the council of unit owners, other than an election of officers and members of the 3
292		-	board of directors. 4
293		-
294		-	(12) Only a unit owner voting in person or by electronic transmission if the 5
295		-	requirements of § 11–139.2 of this title are met or a proxy voting for candidates designated 6
296		-	by a unit owner may vote for officers and members of the board of directors. 7
297		-
298		-	(13) Unless otherwise provided in the bylaws, a unit owner may nominate 8
299		-	himself or any other person to be an officer or member of the board of directors. A call for 9
300		-	nominations shall be sent to all unit owners not less than 45 days before notice of an election 10
301		-	is sent. Only nominations made at least 15 days before notice of an election shall be listed 11
302		-	on the election ballot. Candidates shall be listed on the ballot in alphabetical order, with 12
303		-	no indicated candidate preference. Nominations may be made from the floor at the meeting 13
304		-	at which the election to the board is held. 14
305		-
306		-	(14) Election materials prepared with funds of the council of unit owners 15
307		-	shall list candidates in alphabetical order and may not indicate a candidate preference. 16
308		-
309		-	(15) Unless otherwise provided in this title, and subject to provisions in the 17
310		-	bylaws requiring a different majority, decisions of the council of unit owners shall be made 18
311		-	on a majority of votes of the unit owners listed on the current roster present and voting. 19
312		-
313		-	(16) (i) A meeting of the council of unit owners to elect a board of 20
314		-	directors for the council of unit owners, as provided in the condominium declaration or 21
315		-	bylaws, shall be held within: 22
316		-
317		-	1. 60 days from the date that units representing 50 percent 23
318		-	of the votes in the condominium have been conveyed by the developer to members of the 24
319		-	public for residential purposes; or 25
320		-
321		-	2. If a lesser percentage is specified in the declaration or 26
322		-	bylaws of the condominium, 60 days from the date the specified lesser percentage of units 27
323		-	in the condominium are sold to members of the public for residential purposes. 28
324		-
325		-	(ii) 1. Before the date of the meeting held under subparagraph 29
326		-	(i) of this paragraph, the developer shall deliver to each unit owner notice that the 30
327		-	requirements of subparagraph (i) of this paragraph have been met. 31
328		-
329		-	2. The notice shall include the date, time, and place of the 32
330		-	meeting to elect the board of directors for the council of unit owners. 33
331		-
332		-	(iii) If a replacement board member is elected, the term of each 34
333		-	member of the board of directors appointed by the developer shall end 10 days after the 35
334		-	meeting is held as specified in subparagraph (i) of this paragraph. 36
335		-	8 HOUSE BILL 793
336		-
337		-
338		-	(iv) Within 30 days from the date of the meeting held und er 1
339		-	subparagraph (i) of this paragraph, the developer shall deliver to the officers or board of 2
340		-	directors for the council of unit owners, as provided in the condominium declaration or 3
341		-	bylaws, at the developer’s expense: 4
342		-
343		-	1. The documents specified in § 11–132 of this title; 5
344		-
345		-	2. The condominium funds, including operating funds, 6
346		-	replacement reserves, investment accounts, and working capital; 7
347		-
348		-	3. The tangible property of the condominium; and 8
349		-
350		-	4. A roster of current unit owners, including mailing 9
351		-	addresses, telephone numbers, and unit numbers, if known. 10
352		-
353		-	(v) The replacement reserves delivered under subparagraph (iv)2 of 11
354		-	this paragraph for a residential condominium shall be equal to at least the reserve funding 12
355		-	amount recommended in the reserve study completed under § 11–109.4 of this title as of 13
356		-	the date of the meeting. 14
357		-
358		-	(vi) 1. This subparagraph does not apply to a contract entered 15
359		-	into before October 1, 2009. 16
360		-
361		-	2. A. In this subparagraph, “contract” means an 17
362		-	agreement with a company or individual to handle financial matters, maintenance, or 18
363		-	services for the condominium. 19
364		-
365		-	B. “Contract” does not include an agreement relating to the 20
366		-	provision of utility services or communication systems. 21
367		-
368		-	3. Until all members of the board of directors of the 22
369		-	condominium are elected by the unit owners at a transitional meeting as specified in 23
370		-	subparagraph (i) of this paragraph, a contract entered into by the officers or board of 24
371		-	directors of the condominium may be terminated, at the discretion of the board of directors 25
372		-	and without liability for the termination, not later than 30 days after notice. 26
373		-
374		-	(vii) If the developer fails to comply with the requirements of this 27
375		-	paragraph, an aggrieved unit owner may submit the dispute to the Division of Consumer 28
376		-	Protection of the Office of the Attorney General under § 11–130(c) of this title. 29
377		-
378		-	[(d)] (E) The council of unit owners may be either incorporated as a nonstock 30
379		-	corporation or unincorporated and it is subject to those provisions of Title 5, Subtitle 2 of 31
380		-	the Corporations and Associations Article which are not inconsistent with this title. The 32
381		-	council of unit owners has, subject to any provision of this title, and except as provided in 33
382		-	item (22) of this subsection, the declaration, and bylaws, the following powers: 34
383		-	HOUSE BILL 793 9
384		-
385		-
386		-	(1) To have perpetual existence, subject to the right of the unit owners to 1
387		-	terminate the condominium regime as provided in § 11–123 of this title; 2
388		-
389		-	(2) To adopt and amend reasonable rules and regulations; 3
390		-
391		-	(3) To adopt and amend budgets for revenues, expenditures, and reserves 4
392		-	and collect assessments for common expenses from unit owners; 5
393		-
394		-	(4) To sue and be sued, complain and defend, or intervene in litigation or 6
395		-	administrative proceedings in its own name on behalf of itself or two or more unit owners 7
396		-	on matters affecting the condominium; 8
397		-
398		-	(5) To transact its business, carry on its operations and exercise the powers 9
399		-	provided in this subsection in any state, territory, district, or possession of the United 10
400		-	States and in any foreign country; 11
401		-
402		-	(6) To make contracts and guarantees, incur liabilities and borrow money, 12
403		-	sell, mortgage, lease, pledge, exchange, convey, transfer, and otherwise dispose of any part 13
404		-	of its property and assets; 14
405		-
406		-	(7) To issue bonds, notes, and other obligations and secure the same by 15
407		-	mortgage or deed of trust of any part of its property, franchises, and income; 16
408		-
409		-	(8) To acquire by purchase or in any other manner, to take, receive, own, 17
410		-	hold, use, employ, improve, and otherwise deal with any property, real or personal, or any 18
411		-	interest therein, wherever located; 19
412		-
413		-	(9) To hire and terminate managing agents and other employees, agents, 20
414		-	and independent contractors; 21
415		-
416		-	(10) To purchase, take, receive, subscribe for or otherwise acquire, own, 22
417		-	hold, vote, use, employ, sell, mortgage, loan, pledge or otherwise dispose of, and otherwise 23
418		-	use and deal in and with, shares or other interests in, or obligation of corporations of the 24
419		-	State, or foreign corporations, and of associations, partnerships, and individuals; 25
420		-
421		-	(11) To invest its funds and to lend money in any manner appropriate to 26
422		-	enable it to carry on the operations or to fulfill the purposes named in the declaration or 27
423		-	bylaws, and to take and to hold real and personal property as security for the payment of 28
424		-	funds so invested or loaned; 29
425		-
426		-	(12) To regulate the use, maintenance, repair, replacement, and 30
427		-	modification of common elements; 31
428		-
429		-	(13) To cause additional improvements to be made as a part of the general 32
430		-	common elements; 33
431		-	10 HOUSE BILL 793
432		-
433		-
434		-	(14) To grant easements, rights–of–way, licenses, leases in excess of 1 year, 1
435		-	or similar interests through or over the common elements in accordance with § 11–125(f) 2
436		-	of this title; 3
437		-
438		-	(15) To impose and receive any payments, fees, or charges for the use, rental, 4
439		-	or operation of the common elements other than limited common elements; 5
440		-
441		-	(16) To impose charges for late payment of assessments and, after notice 6
442		-	and an opportunity to be heard, levy reasonable fines for violations of the declaration, 7
443		-	bylaws, and rules and regulations of the council of unit owners, under § 11–113 of this title; 8
444		-
445		-	(17) To impose reasonable charges for the preparation and recordation of 9
446		-	amendments to the declaration, bylaws, rules, regulations, or resolutions, resale 10
447		-	certificates, or statements of unpaid assessments; 11
448		-
449		-	(18) To provide for the indemnification of and maintain liability insurance 12
450		-	for officers, directors, and any managing agent or other employee charged with the 13
451		-	operation or maintenance of the condominium; 14
452		-
453		-	(19) To enforce the implied warranties made to the council of unit owners by 15
454		-	the developer under § 11–131 of this title; 16
455		-
456		-	(20) To enforce the provisions of this title, the declaration, bylaws, and rules 17
457		-	and regulations of the council of unit owners against any unit owner or occupant; 18
458		-
459		-	(21) Generally, to exercise the powers set forth in this title and the 19
460		-	declaration or bylaws and to do every other act not inconsistent with law, which may be 20
461		-	appropriate to promote and attain the purposes set forth in this title, the declaration or 21
462		-	bylaws; and 22
463		-
464		-	(22) To designate parking for individuals with disabilities, notwithstanding 23
465		-	any provision in the declaration, bylaws, or rules and regulations. 24
466		-
467		-	[(e)] (F) A unit owner may not have any right, title, or interest in any property 25
468		-	owned by the council of unit owners other than as holder of a percentage interest in common 26
469		-	expenses and common profits appurtenant to his unit. 27
470		-
471		-	[(f)] (G) A unit owner’s rights as holder of a percentage interest in common 28
472		-	expenses and common profits are such that: 29
473		-
474		-	(1) A unit owner’s right to possess, use, or enjoy property of the council of 30
475		-	unit owners shall be as provided in the bylaws; and 31
476		-
477		-	(2) A unit owner’s interest in the property is not assignable or attachable 32
478		-	separate from his unit except as provided in §§ 11–107(d) and 11–112(g) of this title. 33
479		-
480		-	11B–106.1. 34 HOUSE BILL 793 11
481		-
482		-
483		-
484		-	(a) A meeting of the members of the homeowners association to elect a governing 1
485		-	body of the homeowners association shall be held within: 2
486		-
487		-	(1) 60 days from the date that at least 75% of the total number of lots that 3
488		-	may be part of the development after all phases are complete are sold to members of the 4
489		-	public for residential purposes; or 5
490		-
491		-	(2) If a lesser percentage is specified in the governing documents of the 6
492		-	homeowners association, 60 days from the date the specified lesser percentage of the total 7
493		-	number of lots in the development after all phases are complete are sold to members of the 8
494		-	public for residential purposes. 9
495		-
496		-	(G) (1) THIS SUBSECTION APPLI ES ONLY TO A MEMBER OF THE 10
497		-	GOVERNING BODY OF A HOMEOWNERS ASSOCIATION THAT CON SISTS SOLELY OF 11
498		-	RESIDENTIAL FOR –SALE HOUSING WHO SER VES AFTER THE MEETIN G REQUIRED 12
499		-	UNDER SUBSECTION (A) OF THIS SECTION. 13
500		-
501		-	(2) (I) EACH MEMBER OF THE GO VERNING BODY SHALL 14
502		-	SUCCESSFULLY COMPLET E A TRAINING CURRICU LUM ON THE RESPONSIB ILITIES OF 15
503		-	A MEMBER OF THE GOVE RNING BODY DEVELOPED BY: 16
504		-
505		-	1. A COMMON OWNERSHIP COM MISSION RECOGNIZED 17
506		-	BY THE STATE OR A LOCAL GOVE RNMENT; 18
507		-
508		-	2. AN ORGANIZATION APPRO VED TO ADMINISTER TH E 19
509		-	TRAINING CURRICULUM BY A RECOGNIZED COMM ON OWNERSHIP COMMISS ION; 20
510		-
511		-	3. AN INSTITUTION ACCRED ITED BY THE MIDDLE 21
512		-	STATES COMMISSION ON HIGHER EDUCATION; 22
513		-
514		-	4. A MEMBERSHIP ORGANIZAT ION THAT OFFERS 23
515		-	NATIONALLY RECOGNIZE D CERTIFICATION CRED ENTIALS FOR COMMUNIT Y 24
516		-	MANAGERS; OR 25
517		-
518		-	5. A COUNTY WITH COURSEWO RK ESTABLISHED BY TH E 26
519		-	COUNTY COMMON OWNERS HIP COMMISSION . 27
520		-
521		-	(II) A TRAINING CURRICULUM DEVELOPED UNDER THIS 28
522		-	PARAGRAPH SHALL INCL UDE TRAINING ON : 29
523		-
524		-	1. THE MARYLAND HOMEOWNERS ASSOCIATION ACT, 30
525		-	THE MARYLAND CONDOMINIUM ACT, AND THE MARYLAND COOPERATIVE 31
526		-	HOUSING CORPORATION ACT; 32
527		-	12 HOUSE BILL 793
528		-
529		-
530		-	2. ROLES AND RESPONSIBIL ITIES OF COMMON 1
531		-	OWNERSHIP COMMUNITY GOVERNING BODIES ; 2
532		-
533		-	3. FIDUCIARY DUTY ; 3
534		-
535		-	4. RESPONSIBLE GOVERNANC E POLICIES; 4
536		-
537		-	5. LEGAL STRUCTURES AND GUIDELINES; 5
538		-
539		-	6. RESERVES AND AUDITS ; 6
540		-
541		-	7. MEETING PROCEDURES AN D REQUIREMENTS ; 7
542		-
543		-	8. HANDLING OF DISPUTES ; 8
544		-
545		-	9. INSURANCE AND BONDING ; 9
546		-
547		-	10. COMMUNITY MAINTENANCE ; 10
548		-
549		-	11. RECORD KEEPING ; AND 11
550		-
551		-	12. STATE AND LOCAL RESOU RCES FOR GOVERNING 12
552		-	BODIES. 13
553		-
554		-	(2) (3) EACH MEMBER OF THE GO VERNING BODY SHALL 14
555		-	SUCCESSFULLY COMPLETE THE TRAININ G CURRICULUM REQUIRE D UNDER THIS 15
556		-	SUBSECTION WITHIN 90 DAYS AFTER THE INDIV IDUAL: 16
557		-
558		-	(I) IS FIRST ELECTED OR A PPOINTED TO THE GOVE RNING 17
559		-	BODY; OR 18
560		-
561		-	(II) FOR A MEMBER WHO IS I N OFFICE ON OCTOBER 1, 2024, 19
562		-	BEGINS A SUBSEQUENT TERM AS A MEMBER OF THE GOVERN ING BODY. 20
563		-
564		-	(3) (4) (I) THE GOVERNING BODY SH ALL: 21
565		-
566		-	1. CERTIFY THAT EACH MEM BER SUCCESSFULLY 22
567		-	COMPLETES THE TRAINI NG CURRICULUM REQUIR ED UNDER THIS SUBSEC TION; 23
	130	+	1. CERTIFY THAT EACH MEM BER OR OFFICER 21
	131	+	SUCCESSFULLY COMPLET ES THE TRAINING CURR ICULUM REQUIRED UNDE R THIS 22
	132	+	SUBSECTION; 23
568	133
569	134		2. RETAIN A COPY OF THE CERTIFICATE OF 24
570		-	COMPLETION OF EACH M EMBER; AND 25
	135	+	COMPLETION OF EACH M EMBER OR OFFICER; AND 25
571	136
572	137		3. WITHIN 90 DAYS AFTER THE CERTI FICATION OF THE 26
573		-	MEMBER, REPORT TO THE COMMON OWNERSHIP COMMISSION ON THE 27
574		-	CERTIFICATION . 28 HOUSE BILL 793 13
	138	+	MEMBER OR OFFICER , REPORT TO THE COMMON OWNERSHIP COMMISSION ON THE 27
	139	+	CERTIFICATION . 28 4 HOUSE BILL 793
575	140
576	141
577	142
578	143		(II) A CERTIFICATE OF COMPL ETION ISSUED UNDER T HIS 1
579	144		PARAGRAPH SHALL BE V ALID FOR 3 YEARS. 2
580	145
581		-	(III) IF A MEMBER OF THE ~~GO VERNING BODY REMAINS A~~ 3
582		-	~~MEMBER~~ OF THE ~~GOVERN ING BODY~~ AT THE TIME THE ~~CERTIFICATE EXPI RES, THE~~ 4
583		-	~~MEMBER~~ SHALL RENEW ~~T HE CERTIFICATION~~ BY ~~SUCCESSFULLY COMPLET ING THE~~ 5
584		-	~~TRAINING~~ REQUIRED ~~UN DER THIS~~ SUBSECTION . 6
	146	+	(III) AN INDIVIDUAL WHO REM AINS A MEMBER OF THE BOARD OF 3
	147	+	DIRECTORS OR AN OFFI CER OF THE COUNCIL O F UNIT OWNERS AT THE TIME THE 4
	148	+	CERTIFICATE EXPIRES SHALL RENEW THE CERT IFICATION BY SUCCESS FULLY 5
	149	+	COMPLETING THE TRAIN ING REQUIRED UNDER T HIS SUBSECTION . 6
585	150
586		-	(4) (5) IF A MEMBER OF THE GO VERNING BODY DOES NO T 7
587		-	SUCCESSFULLY COMPLETE TH E TRAINING REQUIRED UNDER THIS SUBSECTIO N, 8
588		-	THE GOVERNING BODY M AY: 9
	151	+	(4) IF A MEMBER OF THE BOARD OF DIRECTORS OR AN O FFICER OF 7
	152	+	THE COUNCIL OF UNIT OWNERS DOES NOT SUCC ESSFULLY COMPLETE TH E 8
	153	+	TRAINING REQUIRED UN DER THIS SUBSECTION , THE BOARD OF DIRECTO RS OR THE 9
	154	+	COUNCIL OF UNIT OWNE RS MAY: 10
589	155
590		-	(I) REMOVE THE ~~MEMBER FRO M~~ THE ~~GOVERNING BODY~~ ; OR 10
	156	+	(I) REMOVE THE INDIVIDUAL FROM THE OFFICE ; OR 11
591	157
592		-	(II) INVALIDATE A VOTE OF THE ~~MEMBER~~ . 11
	158	+	(II) INVALIDATE A VOTE OF THE INDIVIDUAL . 12
593	159
594		-	[(g)] (H) If the declarant fails to comply with the requirements of this section, an 12
595		-	aggrieved lot owner may submit the dispute to the Division of Consumer Protection of the 13
596		-	Office of the Attorney General under § 11B–115(c) of this title. 14
	160	+	[(c)] (D) (1) A meeting of the council of unit owners or board of directors may 13
	161	+	not be held on less notice than required by this section. 14
597	162
598		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
599		-	October 1, 2024. 16
	163	+	(2) The council of unit owners shall maintain a current roster of names and 15
	164	+	addresses of each unit owner to which notice of meetings of the board of directors shall be 16
	165	+	sent at least annually. 17
	166	+
	167	+	(3) Each unit owner shall furnish the council of unit owners with his name 18
	168	+	and current mailing address. A unit owner may not vote at meetings of the council of unit 19
	169	+	owners until this information is furnished. 20
	170	+
	171	+	(4) A regular or special meeting of the council of unit owners may not be 21
	172	+	held on less than 10 nor more than 90 days’: 22
	173	+
	174	+	(i) Written notice delivered or mailed to each unit owner at the 23
	175	+	address shown on the roster on the date of the notice; or 24
	176	+
	177	+	(ii) Notice sent to each unit owner by electronic transmission, if the 25
	178	+	requirements of § 11–139.1 of this title are met. 26
	179	+
	180	+	(5) Notice of special meetings of the board of directors shall be given: 27
	181	+
	182	+	(i) As provided in the bylaws; or 28
	183	+
	184	+	(ii) If the requirements of § 11–139.1 of this title are met, by 29
	185	+	electronic transmission. 30
	186	+	HOUSE BILL 793 5
	187	+
	188	+
	189	+	(6) Except as provided in § 11–109.1 of this title, a meeting of a governing 1
	190	+	body shall be open and held at a time and location as provided in the notice or bylaws. 2
	191	+
	192	+	(7) (i) This paragraph does not apply to any meeting of the governing 3
	193	+	body that occurs at any time before the meeting at which the unit owners elect officers or a 4
	194	+	board of directors in accordance with paragraph (16) of this subsection. 5
	195	+
	196	+	(ii) Subject to subparagraph (iii) of this paragraph and to reasonable 6
	197	+	rules adopted by the governing body under § 11–111 of this title, a governing body shall 7
	198	+	provide a designated period of time during a meeting to allow unit owners an opportunity 8
	199	+	to comment on any matter relating to the condominium. 9
	200	+
	201	+	(iii) During a meeting at which the agenda is limited to specific topics 10
	202	+	or at a special meeting, the unit owners’ comments may be limited to the topics listed on 11
	203	+	the meeting agenda. 12
	204	+
	205	+	(iv) The governing body shall convene at least one meeting each year 13
	206	+	at which the agenda is open to any matter relating to the condominium. 14
	207	+
	208	+	(8) (i) Unless the bylaws provide otherwise, a quorum is deemed 15
	209	+	present throughout any meeting of the council of unit owners if persons entitled to cast 25 16
	210	+	percent of the total number of votes appurtenant to all units are present in person or by 17
	211	+	proxy. 18
	212	+
	213	+	(ii) If the number of persons present in person or by proxy at a 19
	214	+	properly called meeting of the council of unit owners is insufficient to constitute a quorum, 20
	215	+	an additional meeting of the council of unit owners may be called for the same purpose if: 21
	216	+
	217	+	1. The notice of the initial properly called meeting stated: 22
	218	+
	219	+	A. That the procedure authorized by this paragraph might be 23
	220	+	invoked; and 24
	221	+
	222	+	B. The date, time, and place of the additional meeting; and 25
	223	+
	224	+	2. A majority of the unit owners present vote in person or by 26
	225	+	proxy to call for the additional meeting. 27
	226	+
	227	+	(iii) 1. An additional meeting called under subparagraph (ii) of 28
	228	+	this paragraph shall occur not less than 15 days after the initial properly called meeting. 29
	229	+
	230	+	2. Not less than 10 days before the additional meeting, a 30
	231	+	separate and distinct notice of the date, time, place, and purpose of the additional meeting 31
	232	+	called under subparagraph (ii) of this paragraph shall be: 32
	233	+	6 HOUSE BILL 793
	234	+
	235	+
	236	+	A. Delivered, mailed, or sent by electronic transmission if the 1
	237	+	requirements of § 11–139.1 of this title are met, to each unit owner at the address shown 2
	238	+	on the roster maintained under paragraph (2) of this subsection; 3
	239	+
	240	+	B. Advertised in a newspaper published in the county where 4
	241	+	the condominium is located; or 5
	242	+
	243	+	C. If the condominium has a website, posted on the homepage 6
	244	+	of the website. 7
	245	+
	246	+	3. The notice shall contain the quorum and voting provisions 8
	247	+	of subparagraph (iv) of this paragraph. 9
	248	+
	249	+	(iv) 1. At the additional meeting, the unit owners present in 10
	250	+	person or by proxy constitute a quorum. 11
	251	+
	252	+	2. Unless the bylaws provide otherwise, a majority of the 12
	253	+	unit owners present in person or by proxy: 13
	254	+
	255	+	A. May approve or authorize the proposed action at the 14
	256	+	additional meeting; and 15
	257	+
	258	+	B. May take any other action that could have been taken at 16
	259	+	the original meeting if a sufficient number of unit owners had been present. 17
	260	+
	261	+	(v) This paragraph may not be construed to affect the percentage of 18
	262	+	votes required to amend the declaration or bylaws or to take any other action required to 19
	263	+	be taken by a specified percentage of votes. 20
	264	+
	265	+	(9) At meetings of the council of unit owners each unit owner shall be 21
	266	+	entitled to cast the number of votes appurtenant to his unit. Unit owners may vote by proxy, 22
	267	+	but the proxy is effective only for a maximum period of 180 days following its issuance, 23
	268	+	unless granted to a lessee or mortgagee. 24
	269	+
	270	+	(10) Any proxy may be revoked at any time at the pleasure of the unit owner 25
	271	+	or unit owners executing the proxy. 26
	272	+
	273	+	(11) A proxy who is not appointed to vote as directed by a unit owner may 27
	274	+	only be appointed for purposes of meeting quorums and to vote for matters of business 28
	275	+	before the council of unit owners, other than an election of officers and members of the 29
	276	+	board of directors. 30
	277	+
	278	+	(12) Only a unit owner voting in person or by electronic transmission if the 31
	279	+	requirements of § 11–139.2 of this title are met or a proxy voting for candidates designated 32
	280	+	by a unit owner may vote for officers and members of the board of directors. 33
	281	+	HOUSE BILL 793 7
	282	+
	283	+
	284	+	(13) Unless otherwise provided in the bylaws, a unit owner may nominate 1
	285	+	himself or any other person to be an officer or member of the board of directors. A call for 2
	286	+	nominations shall be sent to all unit owners not less than 45 days before notice of an election 3
	287	+	is sent. Only nominations made at least 15 days before notice of an election shall be listed 4
	288	+	on the election ballot. Candidates shall be listed on the ballot in alphabetical order, with 5
	289	+	no indicated candidate preference. Nominations may be made from the floor at the meeting 6
	290	+	at which the election to the board is held. 7
	291	+
	292	+	(14) Election materials prepared with funds of the council of unit owners 8
	293	+	shall list candidates in alphabetical order and may not indicate a candidate preference. 9
	294	+
	295	+	(15) Unless otherwise provided in this title, and subject to provisions in the 10
	296	+	bylaws requiring a different majority, decisions of the council of unit owners shall be made 11
	297	+	on a majority of votes of the unit owners listed on the current roster present and voting. 12
	298	+
	299	+	(16) (i) A meeting of the council of unit owners to elect a board of 13
	300	+	directors for the council of unit owners, as provided in the condominium declaration or 14
	301	+	bylaws, shall be held within: 15
	302	+
	303	+	1. 60 days from the date that units representing 50 percent 16
	304	+	of the votes in the condominium have been conveyed by the developer to members of the 17
	305	+	public for residential purposes; or 18
	306	+
	307	+	2. If a lesser percentage is specified in the declaration or 19
	308	+	bylaws of the condominium, 60 days from the date the specified lesser percentage of units 20
	309	+	in the condominium are sold to members of the public for residential purposes. 21
	310	+
	311	+	(ii) 1. Before the date of the meeting held under subparagraph 22
	312	+	(i) of this paragraph, the developer shall deliver to each unit owner notice that the 23
	313	+	requirements of subparagraph (i) of this paragraph have been met. 24
	314	+
	315	+	2. The notice shall include the date, time, and place of the 25
	316	+	meeting to elect the board of directors for the council of unit owners. 26
	317	+
	318	+	(iii) If a replacement board member is elected, the term of each 27
	319	+	member of the board of directors appointed by the developer shall end 10 days after the 28
	320	+	meeting is held as specified in subparagraph (i) of this paragraph. 29
	321	+
	322	+	(iv) Within 30 days from the date of the meeting held under 30
	323	+	subparagraph (i) of this paragraph, the developer shall deliver to the officers or board of 31
	324	+	directors for the council of unit owners, as provided in the condominium declaration or 32
	325	+	bylaws, at the developer’s expense: 33
	326	+
	327	+	1. The documents specified in § 11–132 of this title; 34
	328	+
	329	+	2. The condominium funds, including operating funds, 35
	330	+	replacement reserves, investment accounts, and working capital; 36 8 HOUSE BILL 793
600	331
601	332
602	333
	334	+	3. The tangible property of the condominium; and 1
603	335
604		-	Approved:
605		-	________________________________________________________________________________
606		-	Governor.
607		-	________________________________________________________________________________
608		-	Speaker of the House of Delegates.
609		-	________________________________________________________________________________
610		-	President of the Senate.
	336	+	4. A roster of current unit owners, including mailing 2
	337	+	addresses, telephone numbers, and unit numbers, if known. 3
	338	+
	339	+	(v) The replacement reserves delivered under subparagraph (iv)2 of 4
	340	+	this paragraph for a residential condominium shall be equal to at least the reserve funding 5
	341	+	amount recommended in the reserve study completed under § 11–109.4 of this title as of 6
	342	+	the date of the meeting. 7
	343	+
	344	+	(vi) 1. This subparagraph does not apply to a contract entered 8
	345	+	into before October 1, 2009. 9
	346	+
	347	+	2. A. In this subparagraph, “contract” means an 10
	348	+	agreement with a company or individual to handle financial matters, maintenance, or 11
	349	+	services for the condominium. 12
	350	+
	351	+	B. “Contract” does not include an agreement relating to the 13
	352	+	provision of utility services or communication systems. 14
	353	+
	354	+	3. Until all members of the board of directors of the 15
	355	+	condominium are elected by the unit owners at a transitional meeting as specified in 16
	356	+	subparagraph (i) of this paragraph, a contract entered into by the officers or board of 17
	357	+	directors of the condominium may be terminated, at the discretion of the board of directors 18
	358	+	and without liability for the termination, not later than 30 days after notice. 19
	359	+
	360	+	(vii) If the developer fails to comply with the requirements of this 20
	361	+	paragraph, an aggrieved unit owner may submit the dispute to the Division of Consumer 21
	362	+	Protection of the Office of the Attorney General under § 11–130(c) of this title. 22
	363	+
	364	+	[(d)] (E) The council of unit owners may be either incorporated as a nonstock 23
	365	+	corporation or unincorporated and it is subject to those provisions of Title 5, Subtitle 2 of 24
	366	+	the Corporations and Associations Article which are not inconsistent with this title. The 25
	367	+	council of unit owners has, subject to any provision of this title, and except as provided in 26
	368	+	item (22) of this subsection, the declaration, and bylaws, the following powers: 27
	369	+
	370	+	(1) To have perpetual existence, subject to the right of the unit owners to 28
	371	+	terminate the condominium regime as provided in § 11–123 of this title; 29
	372	+
	373	+	(2) To adopt and amend reasonable rules and regulations; 30
	374	+
	375	+	(3) To adopt and amend budgets for revenues, expenditures, and reserves 31
	376	+	and collect assessments for common expenses from unit owners; 32
	377	+	HOUSE BILL 793 9
	378	+
	379	+
	380	+	(4) To sue and be sued, complain and defend, or intervene in litigation or 1
	381	+	administrative proceedings in its own name on behalf of itself or two or more unit owners 2
	382	+	on matters affecting the condominium; 3
	383	+
	384	+	(5) To transact its business, carry on its operations and exercise the powers 4
	385	+	provided in this subsection in any state, territory, district, or possession of the United 5
	386	+	States and in any foreign country; 6
	387	+
	388	+	(6) To make contracts and guarantees, incur liabilities and borrow money, 7
	389	+	sell, mortgage, lease, pledge, exchange, convey, transfer, and otherwise dispose of any part 8
	390	+	of its property and assets; 9
	391	+
	392	+	(7) To issue bonds, notes, and other obligations and secure the same by 10
	393	+	mortgage or deed of trust of any part of its property, franchises, and income; 11
	394	+
	395	+	(8) To acquire by purchase or in any other manner, to take, receive, own, 12
	396	+	hold, use, employ, improve, and otherwise deal with any property, real or personal, or any 13
	397	+	interest therein, wherever located; 14
	398	+
	399	+	(9) To hire and terminate managing agents and other employees, agents, 15
	400	+	and independent contractors; 16
	401	+
	402	+	(10) To purchase, take, receive, subscribe for or otherwise acquire, own, 17
	403	+	hold, vote, use, employ, sell, mortgage, loan, pledge or otherwise dispose of, and otherwise 18
	404	+	use and deal in and with, shares or other interests in, or obligation of corporations of the 19
	405	+	State, or foreign corporations, and of associations, partnerships, and individuals; 20
	406	+
	407	+	(11) To invest its funds and to lend money in any manner appropriate to 21
	408	+	enable it to carry on the operations or to fulfill the purposes named in the declaration or 22
	409	+	bylaws, and to take and to hold real and personal property as security for the payment of 23
	410	+	funds so invested or loaned; 24
	411	+
	412	+	(12) To regulate the use, maintenance, repair, replacement, and 25
	413	+	modification of common elements; 26
	414	+
	415	+	(13) To cause additional improvements to be made as a part of the general 27
	416	+	common elements; 28
	417	+
	418	+	(14) To grant easements, rights–of–way, licenses, leases in excess of 1 year, 29
	419	+	or similar interests through or over the common elements in accordance with § 11–125(f) 30
	420	+	of this title; 31
	421	+
	422	+	(15) To impose and receive any payments, fees, or charges for the use, rental, 32
	423	+	or operation of the common elements other than limited common elements; 33
	424	+	10 HOUSE BILL 793
	425	+
	426	+
	427	+	(16) To impose charges for late payment of assessments and, after notice 1
	428	+	and an opportunity to be heard, levy reasonable fines for violations of the declaration, 2
	429	+	bylaws, and rules and regulations of the council of unit owners, under § 11–113 of this title; 3
	430	+
	431	+	(17) To impose reasonable charges for the preparation and recordation of 4
	432	+	amendments to the declaration, bylaws, rules, regulations, or resolutions, resale 5
	433	+	certificates, or statements of unpaid assessments; 6
	434	+
	435	+	(18) To provide for the indemnification of and maintain liability insurance 7
	436	+	for officers, directors, and any managing agent or other employee charged with the 8
	437	+	operation or maintenance of the condominium; 9
	438	+
	439	+	(19) To enforce the implied warranties made to the council of unit owners by 10
	440	+	the developer under § 11–131 of this title; 11
	441	+
	442	+	(20) To enforce the provisions of this title, the declaration, bylaws, and rules 12
	443	+	and regulations of the council of unit owners against any unit owner or occupant; 13
	444	+
	445	+	(21) Generally, to exercise the powers set forth in this title and the 14
	446	+	declaration or bylaws and to do every other act not inconsistent with law, which may be 15
	447	+	appropriate to promote and attain the purposes set forth in this title, the declaration or 16
	448	+	bylaws; and 17
	449	+
	450	+	(22) To designate parking for individuals with disabilities, notwithstanding 18
	451	+	any provision in the declaration, bylaws, or rules and regulations. 19
	452	+
	453	+	[(e)] (F) A unit owner may not have any right, title, or interest in any property 20
	454	+	owned by the council of unit owners other than as holder of a percentage interest in common 21
	455	+	expenses and common profits appurtenant to his unit. 22
	456	+
	457	+	[(f)] (G) A unit owner’s rights as holder of a percentage interest in common 23
	458	+	expenses and common profits are such that: 24
	459	+
	460	+	(1) A unit owner’s right to possess, use, or enjoy property of the council of 25
	461	+	unit owners shall be as provided in the bylaws; and 26
	462	+
	463	+	(2) A unit owner’s interest in the property is not assignable or attachable 27
	464	+	separate from his unit except as provided in §§ 11–107(d) and 11–112(g) of this title. 28
	465	+
	466	+	11B–106.1. 29
	467	+
	468	+	(a) A meeting of the members of the homeowners association to elect a governing 30
	469	+	body of the homeowners association shall be held within: 31
	470	+
	471	+	(1) 60 days from the date that at least 75% of the total number of lots that 32
	472	+	may be part of the development after all phases are complete are sold to members of the 33
	473	+	public for residential purposes; or 34 HOUSE BILL 793 11
	474	+
	475	+
	476	+
	477	+	(2) If a lesser percentage is specified in the governing documents of the 1
	478	+	homeowners association, 60 days from the date the specified lesser percentage of the total 2
	479	+	number of lots in the development after all phases are complete are sold to members of the 3
	480	+	public for residential purposes. 4
	481	+
	482	+	(G) (1) (I) EACH MEMBER OF THE GO VERNING BODY SHALL 5
	483	+	SUCCESSFULLY COMPLET E A TRAINING CURRICU LUM ON THE RESPONSIB ILITIES OF 6
	484	+	A MEMBER OF THE GOVE RNING BODY DEVELOPED BY: 7
	485	+
	486	+	1. A COMMON OWNERSHIP COM MISSION RECOGNIZED 8
	487	+	BY THE STATE OR A LOCAL G OVERNMENT ; 9
	488	+
	489	+	2. AN ORGANIZATION APPRO VED TO ADMINISTER TH E 10
	490	+	TRAINING CURRICULUM BY A RECOGNIZED COMM ON OWNERSHIP COMMISS ION; 11
	491	+
	492	+	3. AN INSTITUTION ACCRED ITED BY THE MIDDLE 12
	493	+	STATES COMMISSION ON HIGHER EDUCATION; 13
	494	+
	495	+	4. A MEMBERSHIP ORGANIZAT ION THAT OFFERS 14
	496	+	NATIONALLY RECOGNIZE D CERTIFICATION CRED ENTIALS FOR COMMUNIT Y 15
	497	+	MANAGERS; OR 16
	498	+
	499	+	5. A COUNTY WITH COURSEWO RK ESTABLISHED BY TH E 17
	500	+	COUNTY COMMON OWNERS HIP COMMISSION . 18
	501	+
	502	+	(II) A TRAINING CURRICULUM DEVELOPED UNDER THIS 19
	503	+	PARAGRAPH SHALL INCL UDE TRAINING ON: 20
	504	+
	505	+	1. THE MARYLAND HOMEOWNERS ASSOCIATION ACT, 21
	506	+	THE MARYLAND CONDOMINIUM ACT, AND THE MARYLAND COOPERATIVE 22
	507	+	HOUSING CORPORATION ACT; 23
	508	+
	509	+	2. ROLES AND RESPONSIBIL ITIES OF COMMON 24
	510	+	OWNERSHIP COMMUNITY GOVERNING BODIES ; 25
	511	+
	512	+	3. FIDUCIARY DUTY ; 26
	513	+
	514	+	4. RESPONSIBLE GOVERNANCE P OLICIES; 27
	515	+
	516	+	5. LEGAL STRUCTURES AND GUIDELINES; 28
	517	+
	518	+	6. RESERVES AND AUDITS ; 29
	519	+	12 HOUSE BILL 793
	520	+
	521	+
	522	+	7. MEETING PROCEDURES AN D REQUIREMENTS ; 1
	523	+
	524	+	8. HANDLING OF DISPUTES ; 2
	525	+
	526	+	9. INSURANCE AND BONDING ; 3
	527	+
	528	+	10. COMMUNITY MAINTENANCE ; 4
	529	+
	530	+	11. RECORD KEEPING; AND 5
	531	+
	532	+	12. STATE AND LOCAL RESOU RCES FOR GOVERNING 6
	533	+	BODIES. 7
	534	+
	535	+	(2) EACH MEMBER OF THE GO VERNING BODY SHALL S UCCESSFULLY 8
	536	+	COMPLETE THE TRAININ G CURRICULUM REQUIRE D UNDER THIS SUBSECT ION 9
	537	+	WITHIN 90 DAYS AFTER THE INDIV IDUAL: 10
	538	+
	539	+	(I) IS FIRST ELECTED OR APPOINTED TO THE GOVERNING 11
	540	+	BODY; OR 12
	541	+
	542	+	(II) FOR A MEMBER WHO IS I N OFFICE ON OCTOBER 1, 2024, 13
	543	+	BEGINS A SUBSEQUENT TERM AS A MEMBER OF THE GOVERNING BODY . 14
	544	+
	545	+	(3) (I) THE GOVERNING BODY SH ALL: 15
	546	+
	547	+	1. CERTIFY THAT EACH MEM BER SUCCESSFULLY 16
	548	+	COMPLETES THE T RAINING CURRICULUM R EQUIRED UNDER THIS S UBSECTION; 17
	549	+
	550	+	2. RETAIN A COPY OF THE CERTIFICATE OF 18
	551	+	COMPLETION OF EACH M EMBER; AND 19
	552	+
	553	+	3. WITHIN 90 DAYS AFTER THE CERTI FICATION OF THE 20
	554	+	MEMBER, REPORT TO THE COMMON OWNERSHIP COMMISSION ON THE 21
	555	+	CERTIFICATION . 22
	556	+
	557	+	(II) A CERTIFICATE OF COMPL ETION ISSUED UNDER T HIS 23
	558	+	PARAGRAPH SHALL BE V ALID FOR 3 YEARS. 24
	559	+
	560	+	(III) IF A MEMBER OF THE GO VERNING BODY REMAINS A 25
	561	+	MEMBER OF THE GOVERN ING BODY AT THE TIME THE CERTIFICATE EXPI RES, THE 26
	562	+	MEMBER SHALL RENEW T HE CERTIFICATION BY SUCCESSFULLY COMPLETING THE 27
	563	+	TRAINING REQUIRED UN DER THIS SUBSECTION . 28
	564	+	HOUSE BILL 793 13
	565	+
	566	+
	567	+	(4) IF A MEMBER OF THE GO VERNING BODY DOES NO T 1
	568	+	SUCCESSFULLY COMPLET E THE TRAINING REQUI RED UNDER THIS SUBSE CTION, 2
	569	+	THE GOVERNING BODY M AY: 3
	570	+
	571	+	(I) REMOVE THE MEMBER FRO M THE GOVERNING BODY ; OR 4
	572	+
	573	+	(II) INVALIDATE A VOTE OF THE MEMBER . 5
	574	+
	575	+	[(g)] (H) If the declarant fails to comply with the requirements of this section, an 6
	576	+	aggrieved lot owner may submit the dispute to the Division of Consumer Protection of the 7
	577	+	Office of the Attorney General under § 11B–115(c) of this title. 8
	578	+
	579	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 9
	580	+	October 1, 2024. 10