EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0946* SENATE BILL 946 N1 4lr1965 CF 4lr1054 By: Senator Kelly Introduced and read first time: February 2, 2024 Assigned to: Judicial Proceedings A BILL ENTITLED AN ACT concerning 1 Landlord and Tenant – Failure to Repair Serious and Dangerous Defects – 2 Tenant Remedies 3 (Tenant Safety Act of 2024) 4 FOR the purpose of establishing that a landlord that offers a dwelling for rent is deemed to 5 warrant the dwelling fit for human habitation; clarifying that certain mold hazards 6 constitute dangerous conditions and defects for which a tenant may obtain relief; 7 authorizing multiple tenants to join as plaintiffs in the same civil action against a 8 landlord; establishing that, prior to a certain court order, there is a rebuttable 9 presumption that a tenant is entitled to have a court adjudicate a request for rent 10 abatement; establishing a rebuttable presumption related to the abatement of 11 prospective rent and the requirements for rent escrow; establishing a rebuttable 12 presumption that limits rent escrow payments to rent that is due and unpaid 13 subsequent to a court order; authorizing the award of attorney’s fees, costs, and 14 expenses related to litigation and a tenant who prevails in certain actions; 15 establishing that certain local laws preempt certain provisions of this Act; 16 authorizing certain remedies for a tenant if a landlord breaches the warranty of 17 habitability; providing that a landlord may raise certain defenses in a civil action 18 related to the breach of the warranty of habitability; providing that a court may order 19 certain relief in civil actions related to the breach of the warranty of habitability, 20 including actual damages, abatement of rent due and unpaid, and the termination 21 of a lease; and generally relating to remedies for a landlord’s failure to repair serious 22 and dangerous defects. 23 BY repealing and reenacting, with amendments, 24 Article – Real Property 25 Section 8–211 26 Annotated Code of Maryland 27 (2023 Replacement Volume) 28 BY adding to 29 2 SENATE BILL 946 Article – Real Property 1 Section 8–212 2 Annotated Code of Maryland 3 (2023 Replacement Volume) 4 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5 That the Laws of Maryland read as follows: 6 Article – Real Property 7 8–211. 8 (a) (1) The purpose of this section is to provide tenants with a mechanism for 9 encouraging the repair of serious and dangerous defects which exist within or as part of 10 any residential dwelling unit, or [upon the] ON property used in common of which the 11 dwelling unit forms a part. 12 (2) The defects sought to be reached by this section are those which present 13 a substantial and serious threat of danger to the life, health, and safety of the occupants of 14 the dwelling unit, and not those which merely impair the aesthetic value of the premises, 15 or which are, in those locations governed by such codes, housing code violations of a 16 nondangerous nature. 17 (3) The intent of this section is not to provide a remedy for dangerous 18 conditions in the community at large which exists apart from the leased premises or the 19 property in common of which the leased premises forms a part. 20 (b) It is the public policy of [Maryland] THE STATE that meaningful sanctions be 21 imposed [upon those who allow] ON A LANDLORD THAT A LLOWS dangerous conditions 22 and defects to exist in leased premises, and that an effective mechanism be established for 23 repairing these conditions and halting their creation. 24 (c) (1) [This] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 25 SUBSECTION, THIS section applies to ALL residential dwelling units leased for the purpose 26 of human habitation within the State [of Maryland. This section does not apply to farm 27 tenancies. 28 (d) This section applies to all applicable dwelling units] whether they are [(1) 29 publicly]: 30 (I) PUBLICLY or privately owned; or [(2) single] 31 (II) SINGLE or multiple units. 32 (2) THIS SECTION DOES NOT APPLY TO FARM TENANC IES. 33 SENATE BILL 946 3 [(e)] (D) [This section provides a remedy and imposes an obligation upon 1 landlords] A LANDLORD THAT OFFERS A RESIDENTIAL DWELLI NG UNIT FOR RENT , 2 WHETHER BY WRITTEN O R ORAL LEASE OR AGRE EMENT, SHALL BE DEEMED TO 3 WARRANT THAT THE RES IDENTIAL DWELLING UN IT IS FIT FOR HUMAN HABITATION 4 AND THAT THE LANDLORD IS OBLI GATED to repair and eliminate conditions and defects 5 which constitute, or if not promptly corrected will constitute, a fire hazard or a serious and 6 substantial threat to the life, health, or safety of occupants, including[, but not limited to]: 7 (1) Lack of heat, light, electricity, or hot or cold running water, except 8 where the tenant is responsible for the payment of the utilities and the lack thereof is the 9 direct result of the tenant’s failure to pay the charges; 10 (2) Lack of adequate sewage disposal facilities; 11 (3) Infestation of rodents in two or more dwelling units; 12 (4) The existence of any structural defect which presents a serious and 13 substantial threat to the physical safety of the occupants; [or] 14 (5) The existence of any condition which presents a health or fire hazard to 15 the dwelling unit; OR 16 (6) THE EXISTENCE OF MOLD IN A DWELLING UNIT T HAT PRESENTS A 17 SERIOUS AND SUBSTANT IAL THREAT TO THE HE ALTH OF THE OCCUPANT S. 18 [(f)] (E) (1) This section does not [provide a remedy for the] APPLY TO A 19 landlord’s failure to repair and eliminate minor defects or, in those locations governed by 20 such codes, housing code violations of a nondangerous nature. 21 (2) There is a rebuttable presumption that the following conditions, when 22 they do not present a serious and substantial threat to the life, health, and safety of the 23 occupants, are not covered by this section: 24 [(1)] (I) Any defect which merely reduces the aesthetic value of the leased 25 premises, such as the lack of fresh paint, rugs, carpets, paneling, or other decorative 26 amenities; 27 [(2)] (II) Small cracks in the walls, floors, or ceilings; 28 [(3)] (III) The absence of linoleum or tile [upon] ON the floors, provided 29 that they are otherwise safe and structurally sound; or 30 [(4)] (IV) The absence of air conditioning. 31 4 SENATE BILL 946 [(g)] (F) (1) In order to employ the remedies provided by this section, the 1 tenant shall notify the landlord of the existence of the defects or conditions. 2 (2) Notice shall be given by [(1) a]: 3 (I) A written communication sent by certified mail listing the 4 asserted conditions or defects[, or (2) actual]; 5 (II) ACTUAL notice of the defects or conditions[,]; or [(3) a] 6 (III) A written violation, condemnation or other notice from an 7 appropriate State, county, municipal, or local government agency stating the asserted 8 conditions or defects. 9 [(h)] (G) (1) The landlord has a reasonable time after receipt of notice in 10 which to make the repairs or correct the conditions. 11 (2) The length of time deemed to be reasonable is a question of fact for the 12 court, taking into account the severity of the defects or conditions and the danger which 13 they present to the occupants. 14 (3) There is a rebuttable presumption that a period in excess of 30 days 15 from receipt of notice is unreasonable. 16 [(i)] (H) (1) If the landlord refuses to make the repairs or correct the 17 conditions, or if after a reasonable time the landlord has failed to do so, the tenant may 18 [bring] TAKE ONE OR BOTH OF THE FOLLOWING ACTION S: 19 (I) BRING an action of rent escrow to pay rent into court because of 20 the asserted defects or conditions[, or the tenant may refuse]; AND 21 (II) REFUSE to pay rent and raise the existence of the asserted 22 defects or conditions as an affirmative defense, IN ADDITION TO ANY O THER DEFENSE , 23 to an action for distress for rent or to any complaint proceeding brought by the landlord to 24 recover rent or the possession of the leased premises. 25 (2) MULTIPLE TENANTS MAY JOIN AS PLAINTIFFS I N AN ACTION 26 UNDER THIS SECTION I N ACCORDANCE WITH TH E MARYLAND RULES ON JOINDER . 27 (I) THERE IS A REBUTTABLE PRESUMPTION THAT : 28 (1) A TENANT IS ENTITLED T O THE ADJUDICATION O F A REQUEST FOR 29 RENT ABATEMENT ; 30 SENATE BILL 946 5 (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH AN D 1 SUBSECTION (M) OF THIS SECTION, THERE IS A REBUTTABL E PRESUMPTION THAT A 2 TENANT: 3 1. IS ENTITLED TO AN ABA TEMENT OF PROSPECTIV E 4 RENT; AND 5 2. MAY NOT BE RE QUIRED TO PAY INTO E SCROW MORE 6 THAN 50% OF THE AMOUNT OF REN T REQUIRED BY THE LE ASE. 7 (II) A DETERMINATION UNDER THIS PARAGRAPH IS WI THOUT 8 PREJUDICE TO A FINAL DISPOSITION OF RENT THAT IS DUE AND UNPA ID TO THE 9 LANDLORD. 10 (3) THERE IS A REBUTTABLE PRESUMPTION THAT A C OURT ORDER 11 REQUIRING RENT ESCRO W IS LIMITED TO THE PAYMENT OF RENT THAT IS DUE AND 12 UNPAID SUBSEQUENT TO THE COURT ORDER . 13 (4) A PARTY MAY REQUEST TH AT THE COURT ADJUST THE AMOUNT 14 OF RENT THAT A TENAN T PAYS INTO COURT AT ANY TIME. 15 (j) (1) Whether the issue of rent escrow is raised affirmatively or defensively, 16 the tenant may request one or more of the forms of relief set forth in this section. 17 (2) In addition to any other relief sought, if within 90 days after the court 18 finds that the conditions complained of by the tenant exist AND the landlord has not made 19 the repairs or corrected the conditions complained of, the tenant may file a petition of 20 injunction in the District Court requesting the court to order the landlord to make the 21 repairs or correct the conditions. 22 (k) Relief under this section is conditioned on: 23 (1) Giving proper notice, and where appropriate, the opportunity to correct, 24 as described [by] IN subsection [(h)] (G) of this section; 25 (2) Payment by the tenant[, into court,] of the amount of rent required by 26 the lease INTO THE COURT , unless this amount is modified by the court as provided in 27 subsection (I) OR (m) of this section; 28 (3) In the case of tenancies measured by a period of [one] 1 month or more, 29 the court having not entered against the tenant three prior judgments of possession for rent 30 due and unpaid in the 12–month period immediately prior to the initiation of the action by 31 the tenant or by the landlord; and 32 6 SENATE BILL 946 (4) In the case of periodic tenancies measured by the weekly payment of 1 rent, the court having not entered against the tenant more than five judgments of 2 possession for rent due and unpaid in the 12–month period immediately prior to the 3 initiation of the action by the tenant or by the landlord, or, if the tenant has lived on the 4 premises [six] 6 months or less, the court having not entered against the tenant three 5 judgments of possession for rent due and unpaid. 6 (l) It is a sufficient defense to the allegations of the tenant that the tenant, the 7 tenant’s family, agent, employees, or assignees or social guests have caused the asserted 8 defects or conditions, or that the landlord or the landlord’s agents were denied reasonable 9 and appropriate entry for the purpose of correcting or repairing the asserted conditions or 10 defects. 11 (m) The court shall make appropriate findings of fact and make any order that the 12 justice of the case may require, including any one or a combination of the following: 13 (1) Order the termination of the lease and return of the leased premises to 14 the landlord, subject to the tenant’s right of redemption; 15 (2) Order that the action for rent escrow be dismissed; 16 (3) Order that the amount of rent required by the lease, whether paid into 17 court or to the landlord, be abated and reduced in an amount determined by the court to be 18 fair and equitable to represent the existence of the conditions or defects found by the court 19 to exist; or 20 (4) Order the landlord to make the repairs or correct the conditions 21 complained of by the tenant and found by the court to exist. 22 (n) (1) After rent escrow has been established, the court: 23 [(1)] (I) Shall, after a hearing, if so ordered by the court or one is 24 requested by the landlord, order that the money in the escrow account be disbursed to the 25 landlord after the necessary repairs have been made; 26 [(2)] (II) May, after an appropriate hearing, order that some or all money 27 in the escrow account be paid to the landlord or the landlord’s agent, the tenant or the 28 tenant’s agent, or any other appropriate person or agency for the purpose of making the 29 necessary repairs of the dangerous conditions or defects; 30 [(3)] (III) May, after a hearing if one is requested by the landlord, appoint 31 a special administrator who shall cause the repairs to be made, and who shall apply to the 32 court to pay for them out of the money in the escrow account; 33 SENATE BILL 946 7 [(4)] (IV) May, after an appropriate hearing, order that some or all money 1 in the escrow account be disbursed to pay any mortgage or deed of trust on the property in 2 order to stay a foreclosure; 3 [(5)] (V) May, after a hearing, if one is requested by the tenant, order, if 4 no repairs are made or if no good faith effort to repair is made within [six] 6 months of the 5 initial decision to place money in the escrow account, that the money in the escrow account 6 be disbursed to the tenant THAT HAVE PAID INTO ESCROW[. Such an order will not 7 discharge the right on the part of the tenant to pay rent into court and an appeal will stay 8 the forfeiture]; or 9 [(6)] (VI) May, after an appropriate hearing, order that the money in the 10 escrow account be disbursed to the landlord if the tenant does not regularly pay, into that 11 account, the rent owed. 12 (2) AN ORDER ISSUED UNDER PARAGRAPH (1)(V) OF THIS 13 SUBSECTION: 14 (I) DOES NOT AFFECT THE RIGHT OF A TENANT TO PAY R ENT 15 INTO COURT; AND 16 (II) MAY BE STAYED ON APPE AL BY THE LANDLORD . 17 (O) IF A COURT ORDERS ANY RELIEF TO A TENANT U NDER THIS SECTION , 18 THE TENANT MAY RECOV ER: 19 (1) REASONABLE ATTORNEY ’S FEES AND COSTS ; AND 20 (2) REASONABLE EXPENSES R ELATED TO LITIGATION , SUCH AS 21 EXPENSES FOR A MOLD ASSESSMENT AT THE RE SIDENCE OF THE TENAN T. 22 [(o)] (P) Except as provided in § 8–211.1(e) of this subtitle, [in the event any 23 county or Baltimore City is subject to a public local law or has enacted an ordinance or 24 ordinances comparable in subject matter to this section, commonly referred to as a “Rent 25 Escrow Law”, any such ordinance or ordinances shall supersede the provisions of this 26 section] THIS SECTION SHALL SUPERS EDE ANY LOCAL LAW OR ORDINANCE 27 COMPARABLE IN SUBJEC T MATTER TO THIS SEC TION EXCEPT TO THE EXTENT THAT 28 THE LOCAL LAW OR ORD INANCE PROVIDES BROA DER APPLICABILITY OR MORE 29 PROTECTIONS FOR TENA NTS THAN THIS SECTIO N. 30 8–212. 31 (A) IN THIS SECTION , “WARRANTY OF HABITABI LITY” MEANS THE 32 WARRANTY BY A LANDLO RD DESCRIBED UNDER § 8–211 OF THIS SUBTITLE. 33 8 SENATE BILL 946 (B) THIS SECTION APPLIES TO LANDLORDS , TENANTS, AND RESIDENTIAL 1 DWELLING UNITS THAT ARE SUBJECT TO § 8–211 OF THIS SUBTITLE . 2 (C) RELIEF FOR BREACH OF THE WARRANTY OF HABITABILITY UNDER T HIS 3 SECTION MAY NOT BE C ONDITIONED ON PAYMEN T BY THE TENANT OF R ENT INTO 4 ESCROW WITH THE COUR T. 5 (D) (1) IN ORDER TO EMPLOY TH E REMEDIES PROVIDED BY THIS 6 SECTION, A TENANT SHALL NOTIF Y THE LANDLORD OF TH E EXISTENCE OF THE 7 DEFECTS OR CO NDITIONS IN ACCORDAN CE WITH § 8–211 OF THIS SUBTITLE. 8 (2) WITHIN A REASONABLE P ERIOD OF TIME AFTER RECEIPT OF 9 NOTICE UNDER PARAGRA PH (1) OF THIS SUBSECTION , THE LANDLORD SHALL M AKE 10 THE REPAIRS OR CORRE CT THE CONDITIONS IN ACCORDANCE WITH § 8–211(G) OF 11 THIS SUBTITLE. 12 (E) (1) IF A LANDLORD BREACHE S THE WARRANTY OF HA BITABILITY 13 UNDER § 8–211 OF THIS SUBTITLE AND REFUSES TO MAKE THE REPAIRS OR 14 CORRECT THE CONDITIO NS, OR IF AFTER A REASON ABLE TIME THE LANDLO RD HAS 15 FAILED TO DO SO, THE TENANT MAY : 16 (I) BRING AN ACTION FOR DA MAGES AND THE ABATEM ENT OF 17 RENT AGAINST THE LAN DLORD; AND 18 (II) REFUSE TO PAY RENT AN D RAISE THE EXISTENC E OF THE 19 ASSERTED DEFECTS OR CONDITIONS AS AN AFF IRMATIVE DEFENSE TO AN ACTION 20 OF DISTRESS FOR RENT OR TO ANY OTHER ACTI ON BROUG HT BY THE LANDLORD T O 21 RECOVER RENT OR THE POSSESSION OF THE LE ASED PREMISES . 22 (2) MULTIPLE TENANTS MAY JOIN AS PLAINTIFFS I N AN ACTION 23 UNDER THIS SUBSECTIO N IN ACCORDANCE WITH THE MARYLAND RULES ON 24 JOINDER. 25 (3) THE REMEDIES UNDER TH IS SUBSECTION ARE I N ADDITION TO 26 ANY OTHER REMEDIES P ROVIDED BY LAW . 27 (F) IT IS A DEFENSE TO A CLAIM UNDER THIS SEC TION THAT: 28 (1) THE TENANT , THE TENANT ’S FAMILY, AGENT, EMPLOYEES, 29 ASSIGNEES, OR SOCIAL GUESTS CAU SED THE ASSERTED DEF ECTS OR CONDITIONS ; 30 OR 31 SENATE BILL 946 9 (2) THE LANDLORD OR THE LANDLOR D’S AGENTS WERE DENIED 1 REASONABLE AND APPRO PRIATE ENTRY FOR THE PURPOSE OF CORRECTIN G OR 2 REPAIRING THE ASSERT ED CONDITIONS OR DEF ECTS. 3 (G) THE COURT SHALL MAKE APPROPRIATE FINDINGS OF FACT AND ISSUE 4 ANY ORDER THAT THE J USTICE OF THE CASE MAY REQUIRE , INCLUDING ORDERING 5 ANY OF THE FOLLOWING : 6 (1) AN AWARD OF ACTUAL DA MAGES; 7 (2) AN ABATEMENT OF RENT DUE AND UNPAID ; OR 8 (3) THE TERMINATION OF TH E LEASE, RETURN OF ANY UNUSED 9 PORTION OF A SECURIT Y DEPOSIT TO THE TEN ANT, AND RELOCATION EXPENSES 10 FOR A TENANT. 11 (H) IF A COURT ORDERS ANY RELIEF TO A TENANT U NDER THIS SECTION , 12 THE TENANT MAY RECOV ER REASONABLE : 13 (1) ATTORNEY’S FEES AND COSTS ; AND 14 (2) EXPENSES RELATED TO L ITIGATION, SUCH AS EXPENSES FOR A 15 MOLD ASSESSMENT AT THE RESIDENCE OF THE TENANT. 16 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 17 October 1, 2024. 18