| 1 | 1 | | |
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| 2 | 2 | | |
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| 3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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| 4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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| 5 | 5 | | *hb1215* |
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| 6 | 6 | | |
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| 7 | 7 | | HOUSE BILL 1215 |
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| 8 | 8 | | N1, C1 5lr2530 |
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| 9 | 9 | | |
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| 10 | 10 | | By: Delegates Hartman, Arentz, Baker, Griffith, Hornberger, Hutchinson, Jacobs, |
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| 11 | 11 | | Miller, M. Morgan, T. Morgan, Nawrocki, Otto, Pippy, Rose, Schmidt, and |
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| 12 | 12 | | Wivell |
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| 13 | 13 | | Introduced and read first time: February 6, 2025 |
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| 14 | 14 | | Assigned to: Environment and Transportation |
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| 15 | 15 | | |
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| 16 | 16 | | A BILL ENTITLED |
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| 17 | 17 | | |
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| 18 | 18 | | AN ACT concerning 1 |
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| 19 | 19 | | |
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| 20 | 20 | | Common Ownership Communities – Time to Attain Reserve Funding Level – 2 |
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| 21 | 21 | | Extension 3 |
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| 22 | 22 | | |
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| 23 | 23 | | FOR the purpose of extending the time in which the governing body of a cooperative housing 4 |
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| 24 | 24 | | corporation, condominium, or homeowners association is required to attain a certain 5 |
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| 25 | 25 | | recommended annual reserve funding level following an initial reserve study; and 6 |
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| 26 | 26 | | generally relating to reserve studies for cooperative housing corporations, 7 |
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| 27 | 27 | | condominiums, and homeowners associations. 8 |
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| 28 | 28 | | |
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| 29 | 29 | | BY repealing and reenacting, with amendments, 9 |
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| 30 | 30 | | Article – Corporations and Associations 10 |
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| 31 | 31 | | Section 5–6B–26.1(f) 11 |
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| 32 | 32 | | Annotated Code of Maryland 12 |
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| 33 | 33 | | (2014 Replacement Volume and 2024 Supplement) 13 |
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| 34 | 34 | | |
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| 35 | 35 | | BY repealing and reenacting, with amendments, 14 |
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| 36 | 36 | | Article – Real Property 15 |
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| 37 | 37 | | Section 11–109.2(c) and 11B–112.2(d) 16 |
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| 38 | 38 | | Annotated Code of Maryland 17 |
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| 39 | 39 | | (2023 Replacement Volume and 2024 Supplement) 18 |
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| 40 | 40 | | |
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| 41 | 41 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19 |
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| 42 | 42 | | That the Laws of Maryland read as follows: 20 |
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| 43 | 43 | | |
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| 44 | 44 | | Article – Corporations and Associations 21 |
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| 45 | 45 | | |
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| 46 | 46 | | 5–6B–26.1. 22 |
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| 47 | 47 | | |
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| 48 | 48 | | (f) (1) (i) Subject to subparagraph (ii) of this paragraph, the governing 23 2 HOUSE BILL 1215 |
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| 49 | 49 | | |
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| 50 | 50 | | |
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| 51 | 51 | | body of a cooperative housing corporation shall provide funds to the reserve in accordance 1 |
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| 52 | 52 | | with the most recent reserve study and shall review the reserve study annually for 2 |
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| 53 | 53 | | accuracy. 3 |
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| 54 | 54 | | |
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| 55 | 55 | | (ii) If the most recent reserve study was an initial reserve study, the 4 |
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| 56 | 56 | | governing body shall, within [3] 5 fiscal years following the fiscal year in which the initial 5 |
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| 57 | 57 | | reserve study was completed, attain the annual reserve funding level recommended in the 6 |
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| 58 | 58 | | initial reserve study. 7 |
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| 59 | 59 | | |
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| 60 | 60 | | (2) The governing body of a cooperative housing corporation has the 8 |
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| 61 | 61 | | authority to increase an assessment levied to cover the reserve funding amount required 9 |
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| 62 | 62 | | under this section, notwithstanding any provision of the articles of incorporation, bylaws, 10 |
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| 63 | 63 | | or proprietary lease restricting assessment increases or capping the assessment that may 11 |
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| 64 | 64 | | be levied in a fiscal year. 12 |
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| 65 | 65 | | |
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| 66 | 66 | | Article – Real Property 13 |
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| 67 | 67 | | |
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| 68 | 68 | | 11–109.2. 14 |
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| 69 | 69 | | |
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| 70 | 70 | | (c) (1) Subject to paragraph (2) of this subsection, the reserves provided for in 15 |
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| 71 | 71 | | the annual budget under subsection (b) of this section for a residential condominium shall 16 |
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| 72 | 72 | | be the funding amount recommended in the most recent reserve study completed under § 17 |
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| 73 | 73 | | 11–109.4 of this title. 18 |
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| 74 | 74 | | |
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| 75 | 75 | | (2) If the most recent reserve study was an initial reserve study, the 19 |
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| 76 | 76 | | governing body shall, within [3] 5 fiscal years following the fiscal year in which the initial 20 |
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| 77 | 77 | | reserve study was completed, attain the annual reserve funding level recommended in the 21 |
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| 78 | 78 | | initial reserve study. 22 |
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| 79 | 79 | | |
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| 80 | 80 | | 11B–112.2. 23 |
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| 81 | 81 | | |
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| 82 | 82 | | (d) (1) Subject to paragraph (2) of this subsection, reserves provided for in the 24 |
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| 83 | 83 | | annual budget under subsection (c) of this section shall be the funding amount 25 |
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| 84 | 84 | | recommended in the most recent reserve study completed under § 11B–112.3 of this title. 26 |
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| 85 | 85 | | |
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| 86 | 86 | | (2) If the most recent reserve study was an initial reserve study, the 27 |
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| 87 | 87 | | governing body shall, within [3] 5 fiscal years following the fiscal year in which the initial 28 |
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| 88 | 88 | | reserve study was completed, attain the annual reserve funding level recommended in the 29 |
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| 89 | 89 | | initial reserve study. 30 |
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| 90 | 90 | | |
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| 91 | 91 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 31 |
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| 92 | 92 | | October 1, 2025. 32 |
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| 93 | 93 | | |
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