EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *hb1257* HOUSE BILL 1257 N1 5lr2052 By: Delegates Vogel, Allen, and Stewart Stewart, Behler, Lehman, R. Lewis, Ruth, and Terrasa Introduced and read first time: February 7, 2025 Assigned to: Environment and Transportation Committee Report: Favorable with amendments House action: Adopted Read second time: March 6, 2025 CHAPTER ______ AN ACT concerning 1 Landlord and Tenant – Residential Leases – Fee Disclosures 2 FOR the purpose of prohibiting a certain landlord from advertising the rental rate of a 3 dwelling unit without including information on mandatory fees; requiring a landlord 4 to provide certain information to prospective tenants about fees imposed on tenants 5 and prohibiting a landlord from imposing a mandatory fee that was not disclosed; 6 requiring the Department of Housing and Community Development to provide 7 certain tenant and prospective tenant assistance and authorizing the Department to 8 impose certain penalties authorizing a tenant to file a claim against a landlord for a 9 violation of this Act; authorizing a local jurisdiction to adopt certain local laws; and 10 generally relating to residential leases and fee disclosures for tenants. 11 BY adding to 12 Article – Real Property 13 Section 8–212.5 14 Annotated Code of Maryland 15 (2023 Replacement Volume and 2024 Supplement) 16 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17 That the Laws of Maryland read as follows: 18 Article – Real Property 19 8–212.5. 20 2 HOUSE BILL 1257 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1 INDICATED. 2 (2) “DWELLING UNIT” MEANS THAT PORTION O F A BUILDING THAT IS 3 DESIGNATED, INTENDED, OR ARRANGED FOR USE OR OCCUPANCY AS A RE SIDENCE 4 BY ONE OR MORE PERSO NS, INCLUDING A RENTED ROOM IN A SIN GLE–FAMILY 5 HOUSE. 6 (3) “FEE” MEANS A CHARGE , A COST, OR A MONETARY OBLIGA TION 7 OTHER THAN RENT . 8 (4) “MANDATORY FEE ” MEANS A COMPULSORY F EE IMPOSED ON A 9 TENANT AS A CONDITIO N OF TENANCY. 10 (5) (I) “OPTIONAL FEE” MEANS A VOLUNTARY F EE THAT A TENANT 11 MAY ELECT TO PAY A L ANDLORD FOR BENEFITS OR SERVICES RELATED TO THE 12 TENANCY. 13 (II) “OPTIONAL FEE” INCLUDES A FEE FOR P ARKING, STORAGE, 14 OR PETS. 15 (B) (1) THIS SECTION APPLIES ONLY TO A: 16 (I) A LEASE SIGNED OR RENE WED ON OR AFTER OCTOBER 1, 17 2025; AND 18 (II) A LANDLORD THAT OFFERS FIVE FOUR OR MORE DWELLING 19 UNITS FOR RENT . 20 (2) THIS SECTION DOES NOT APPLY TO: 21 (I) CHARGES IMPOSED ON A TENANT FOR THE PAYME NT OF 22 WATER, SEWER, GAS, GARBAGE COLLECTION , OR ELECTRIC UTILITIE S; 23 (II) COSTS, FINES, OR FEES FOR MINOR VI OLATIONS OF A LEASE 24 AGREEMENT , OR OTHER IRREGULAR C OSTS INCURRED AS A R ESULT OF A TENANT ’S 25 ACTIONS, SUCH AS A CHARGE FOR A REPLACEMENT KEY OR A PENALTY FOR A 26 VIOLATION OF THE BYL AWS OF A COMMON OWNE RSHIP COMMUNITY IF THE 27 DWELLING UNIT IS LOC ATED IN A COMMON OWN ERSHIP COMMUNITY ; OR 28 (III) THE WITHHOLDING OF AN Y PORTION OF A SECUR ITY 29 DEPOSIT AT THE END O F A TENANCY IN ACCOR DANCE WITH § 8–203 OF THIS 30 SUBTITLE. 31 HOUSE BILL 1257 3 (C) (1) A LANDLORD MAY NOT ADV ERTISE, PUBLISH, OR ANNOUNCE, OR 1 CAUSE TO BE ADVERTIS ED, PUBLISHED, OR ANNOUNCED , INCLUDING IN A LISTI NG 2 OR POSTING ON A WEBS ITE THAT ADVERTISES AVAILABLE RESIDENTIA L RENTAL 3 PROPERTIES, THE RENTAL RATE OF A DWELLING UNIT UNLESS ALL MANDATORY 4 FEES ARE INCLUDED IN OR STATED WIT H THE RENTAL RATE . 5 (2) IF A MANDATORY FEE IS DUE AT A TIME DIFFER ENT FROM THE 6 RENT, THE LANDLORD SHALL S EPARATELY STATE THE AMOUNT OF THE FEE AN D 7 THE TIME AT WHICH TH E FEE WILL BE DUE. 8 (D) (C) (1) A LANDLORD SHALL , IN WRITING, PROVIDE A PROSPECTIV E 9 TENANT WITH AN ITEMI ZED LIST THAT CLEARL Y IDENTIFIES ALL FEE S THAT A 10 LANDLORD MAY IMPOSE ON THE PROSPECTIVE T ENANT AND INCLUDES T HE 11 FOLLOWING INFORMATIO N: 12 (I) THE BASIS FOR THE FEE ; 13 (II) THE AMOUNT OF THE FEE ; 14 (III) WHETHER THE FEE IS A MANDATORY FEE OR AN OPTIONAL 15 FEE; AND 16 (IV) WHEN THE FEE IS DUE , INCLUDING WHETHER TH E FEE IS 17 LUMP SUM, MONTHLY, OR PERIODIC IN SOME OTHER WAY. 18 (2) A LANDLORD MAY NOT IMP OSE A MANDATORY FEE ON A TENANT 19 THAT IS NOT DISCLOSE D IN ACCORDANCE WITH THIS SUBSECTION . 20 (3) A LEASE PROVISION FOR WHICH THE REQUIREMEN TS OF THIS 21 SUBSECTION WERE NOT MET SHALL BE UNENFOR CEABLE. 22 (E) (1) THE DEPARTMENT OF HOUSING AND COMMUNITY 23 DEVELOPMENT SHALL ASS IST TENANTS AND PROSPECTIVE TENANTS WITH: 24 (I) UNDERSTANDING THIS SE CTION; AND 25 (II) REPORTING VIOLATIONS OF THIS SECTION. 26 (2) AFTER AN OPPORTUNITY FOR A HEARING , THE DEPARTMENT OF 27 HOUSING AND COMMUNITY DEVELOPMENT MAY IMPOS E AN ADMINISTRATIVE 28 PENALTY FOR EACH V IOLATION OF THIS SEC TION, NOT EXCEEDING : 29 (I) FOR A FIRST OFFENSE , A WARNING; 30 4 HOUSE BILL 1257 (II) FOR A SECOND OFFENSE : 1 1. $500 IF THE LANDLORD IS A N INDIVIDUAL; OR 2 2. $1,000 IF THE LANDLORD IS A N ENTITY; AND 3 (III) FOR A THIRD OR SUBSEQ UENT OFFENSE : 4 1. $1,000 IF THE LANDLORD IS A N INDIVIDUAL; OR 5 2. $2,000 IF THE LANDLORD IS A N ENTITY. 6 (3) THE DEPARTMENT OF HOUSING AND COMMUNITY 7 DEVELOPMENT SHALL ADO PT REGULATIONS TO CA RRY OUT THE PROVISIO NS OF 8 THIS SUBSECTION . 9 (D) (1) A TENANT MAY BRING AN ACTION AGAINST A LANDLORD FOR A 10 VIOLATION OF THIS SE CTION THAT OCCURRED : 11 (I) ON OR AFTER FEBRUARY 1, 2026; AND 12 (II) DURING THE TENANCY OR UP TO 2 YEARS AFTER THE 13 TENANCY EXPIRED . 14 (2) IF A COURT DETERMINES A LANDLORD VIOLATED A PROVISION OF 15 THIS SECTION, THE COURT MAY AWARD DAMAGES EQUAL TO THR EE TIMES THE 16 AMOUNT OF ACTUAL DAM AGES THAT RESULTED F ROM THE VIOLATION AN D 17 REASONABLE ATTORNEY ’S FEES. 18 (F) (E) (1) A COUNTY OR MUNICIPAL CORPORATION MAY ENAC T LOCAL 19 LAWS CONSISTENT WITH THIS SECTION. 20 (2) ANY LOCAL LAW OR ORDI NANCE THAT IS COMPAR ABLE IN 21 SUBJECT MATTER TO TH IS SECTION SHALL SUP ERSEDE THE PROVISION S OF THIS 22 SECTION TO THE EXTEN T THAT THE LOCAL LAW OR ORDINANCE IS MORE STRINGENT 23 OR PROVIDES STRONGER PROTECTION TO A TENA NT OR BROADER APPLICABILITY 24 THAN THIS SECTION . 25 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 26 October 1, 2025. 27