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.
*hb1534*
HOUSE BILL 1534
N1 5lr2033
CF SB 758
By: Delegate Holmes
Introduced and read first time: February 24, 2025
Assigned to: Rules and Executive Nominations
Re–referred to: Environment and Transportation, February 25, 2025
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 21, 2025
CHAPTER ______
AN ACT concerning 1
Condominiums and Homeowners Associations – Elections, Financial 2
Statements, and Enforcement 3
FOR the purpose of establishing certain requirements for elections of the governing body 4
of a condominium or homeowners association; requiring the governing body of a 5
condominium to accommodate unit owner organizing activities relating to the 6
governance of the condominium; prohibiting a condominium or homeowners 7
association from charging a unit or lot owner for examining certain records of the 8
condominium or homeowners association in a certain manner; authorizing a 9
condominium or homeowners association to charge a reasonable fee for copying 10
certain documents; expanding the authority of the Division of Consumer Protection 11
of the Office of the Attorney General to enforce certain provisions of law relating to 12
condominiums and homeowners associations; and generally relating to 13
condominiums and homeowners associations. 14
BY renumbering 15
Article – Real Property 16
Section 11B–118 17
to be Section 11B–119 18
Annotated Code of Maryland 19
(2023 Replacement Volume and 2024 Supplement) 20
BY adding to 21
Article – Real Property 22 2 HOUSE BILL 1534
Section 11–109(c)(17) through (22) and 11B–118 1
Annotated Code of Maryland 2
(2023 Replacement Volume and 2024 Supplement) 3
BY repealing and reenacting, with amendments, 4
Article – Real Property 5
Section 11–116, 11–130, 11B–112, and 11B–115 6
Annotated Code of Maryland 7
(2023 Replacement Volume and 2024 Supplement) 8
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That Section(s) 11B–118 of Article – Real Property of the Annotated Code of Maryland be 10
renumbered to be Section(s) 11B–119. 11
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 12
as follows: 13
Article – Real Property 14
11–109. 15
(c) (17) (I) ELECTIONS, INCLUDING THE COLLEC TION AND COUNTING 16
OF BALLOTS AND THE C ERTIFYING OF RESULTS , FOR OFFICERS OR MEMB ERS OF 17
THE GOVERNING BODY O THER THAN THE FULL M EMBERSHIP OF THE COU NCIL OF 18
UNIT OWNERS SHALL BE CONDUCTED BY INDEPEN DENT PARTIES WHO : 19
1. ARE NOT CANDIDATES IN THE ELECTION; AND 20
2. DO NOT HAVE A CONFLIC T OF INTEREST REGARD ING 21
ANY CANDIDATE IN THE ELECTION. 22
(II) A UNIT OWNER IS AN IND EPENDENT PARTY IF TH E UNIT 23
OWNER: 24
1. COMPLIES WITH THE REQ UIREMENTS OF THIS 25
SECTION; 26
2. DOES NOT ELECTIONEER FOR ANY CANDIDATE ; AND 27
3. IS NOT SUBJECT TO AN OBJECTION BY MORE TH AN 25 28
PERCENT OF THE ELIGI BLE VOTING MEMBERS O F THE COUNCIL OF UNI T OWNERS. 29
(III) REPRESENTATIVES UNLESS PROPERTY MANAG EMENT FOR 30
A CONDOMINIUM IS OWN ED BY THE CONDOMINIU M, OR A PARENT ASSOCIAT ION OF 31 HOUSE BILL 1534 3
THE CONDOMINIUM , REPRESENTATIVES OF THE CONDOMINIUM ’S PROPERTY 1
MANAGEMENT ARE NOT I NDEPENDENT PARTIES . 2
(18) THE GOVERNING BODY MA Y RETAIN A THIRD–PARTY VENDOR OR 3
EMPLOY A COMMERCIAL TECHNOLOGY PLATFORM TO CONDUCT AN ELECTI ON. 4
(19) INDIVIDUALS CONDUCTIN G AN ELECTION SHALL MAKE 5
REASONABLE EFFORTS T O ENSURE THAT THE EL ECTION IS FAIR AND T HAT THERE 6
IS ACCOUNTABILITY FO R THE PROCESS AND TH E RESULTS OF THE E LECTION. 7
(20) A UNIT OWNER DESIGNATE D TO CONDUCT AN ELEC TION WHO 8
ACTS IN GOOD FAITH I S NOT PERSONALLY LIA BLE IN CONNECTION WI TH THE 9
CONDUCT OF THE ELECT ION. 10
(21) (I) THE GOVERNING BODY SH ALL MAKE REASONABLE 11
ACCOMMODATIONS , INCLUDING REASONABLE USE OF ANY PORTION OF COMMO N 12
AREAS, FOR UNIT OWNERS TO E NGAGE IN ORGANIZING ACTIVITIES RELATING TO 13
GOVERNANCE OF THE CO NDOMINIUM . 14
(II) THE GOVERNING BODY MA Y NOT PREVENT UNIT O WNERS 15
FROM OR RETALIATE AG AINST UNIT OWNERS FO R EXERCISING RIGHTS 16
GUARANTEED UNDER LAW OR UNDER THE GOV ERNING DOCUMENTS OF THE 17
CONDOMINIUM . 18
(22) PROVISIONS OF THE GOV ERNING DOCUMENTS , RULES, OR 19
REGULATIONS OF A CON DOMINIUM RELATING TO THE CONDUCT OF ELECT IONS 20
THAT ARE INCONSISTEN T WITH THE REQUIREME NTS OF THIS SECTION ARE 21
UNENFORCEAB LE AND VOID. 22
11–116. 23
(a) The council of unit owners shall keep books and records in accordance with 24
good accounting practices on a consistent basis. 25
(b) On the request of the unit owners of at least 5 percent of the units, the council 26
of unit owners shall cause an audit of the books and records to be made by an independent 27
certified public accountant, provided an audit shall be made not more than once in any 28
consecutive 12–month period. The cost of the audit shall be a common expense. 29
(c) (1) (i) Except as provided in paragraph (3) of this subsection, all books 30
and records, including insurance policies, kept by the council of unit owners shall be 31
maintained in Maryland or within 50 miles of its borders and shall be available at some 32
place designated by the council of unit owners for examination or copying, or both, by any 33
unit owner, a unit owner’s mortgagee, or their respective duly authorized agents or 34
attorneys, during normal business hours, and after reasonable notice. 35 4 HOUSE BILL 1534
(ii) If a unit owner requests in writing a copy of financial statements 1
of the condominium or the minutes of a meeting of the board of directors or other governing 2
body of the condominium to be delivered, the board of directors or other governing body of 3
the condominium shall compile and send the requested information by mail, electronic 4
transmission, or personal delivery: 5
1. Within 21 days after receipt of the written request, if the 6
financial statements or minutes were prepared within the 3 years immediately preceding 7
receipt of the request; or 8
2. Within 45 days after receipt of the written request, if the 9
financial statements or minutes were prepared more than 3 years before receipt of the 10
request. 11
(2) Books and records required to be made available under paragraph (1) 12
of this subsection shall first be made available to a unit owner not later than 15 business 13
days after a unit is conveyed from a developer and the unit owner requests to examine or 14
copy the books and records. 15
(3) Books and records kept by or on behalf of a council of unit owners may 16
be withheld from public inspection, except for inspection by the person who is the subject 17
of the record or the person’s designee or guardian, to the extent that they concern: 18
(i) Personnel records, not including information on individual 19
salaries, wages, bonuses, and other compensation paid to employees; 20
(ii) An individual’s medical records; 21
(iii) An individual’s personal financial records, including assets, 22
income, liabilities, net worth, bank balances, financial history or activities, and 23
creditworthiness; 24
(iv) Records relating to business transactions that are currently in 25
negotiation; 26
(v) The written advice of legal counsel; or 27
(vi) Minutes of a closed meeting of the board of directors or other 28
governing body of the council of unit owners, unless a majority of a quorum of the board of 29
directors or governing body that held the meeting approves unsealing the minutes or a 30
recording of the minutes for public inspection. 31
(d) (1) [Except for a reasonable charge imposed on a person desiring to review 32
or copy the books and records or who requests delivery of information, the council of unit 33
owners may not impose any charges under this section.] 34
HOUSE BILL 1534 5
(I) EXCEPT AS OTHERWISE P ROVIDED IN THIS SUBS ECTION, 1
THE COUNCIL OF UNIT OWNERS MAY IMPOSE A REASONABLE CHARGE ON A PERSON 2
DESIRING TO REVIEW O R COPY THE BOOKS AND RECORDS OF THE CONDO MINIUM OR 3
WHO REQUESTS DELIVER Y OF INFORMATION . 4
(II) THE COUNCIL OF UNIT O WNERS MAY NOT IMPOSE ANY 5
CHARGES UNDER THIS S ECTION OTHER THAN TH OSE AUTHORIZED UNDER 6
SUBPARAGRAPH (I) OF THIS PARAGRAPH . 7
(2) A UNIT OWNER MAY NOT B E CHARGED FOR : 8
(I) EXAMINING THE FINANCI AL STATEMENTS OF THE 9
CONDOMINIUM IN PERSO N WHERE THE FINANCIA L STATEMENTS ARE MAI NTAINED 10
IN ACCORDANCE WITH S UBSECTION (C)(1)(I) OF THIS SECTION; OR 11
(II) RECEIVING THE FINANCI AL STATEMENTS OF THE 12
CONDOMINIUM THROUGH ELECTRONIC TRA NSMISSION IN ACCORDA NCE WITH 13
SUBSECTION (C)(1)(II) OF THIS SECTION. 14
[(2)] (3) A charge imposed under paragraph (1) of this subsection for 15
copying books and records may not exceed the limits authorized under Title 7, Subtitle 2 of 16
the Courts Article. 17
11–130. 18
(a) This section is intended to provide minimum standards for the protection of 19
consumers in the State. 20
(b) (1) [For purposes of] IN this section, “consumer” means an actual or 21
prospective purchaser, lessee, assignee or recipient of a condominium unit OR A UNIT 22
OWNER. 23
(2) “Consumer” includes a co–obligor or surety for a consumer. 24
(c) [(1) To the extent that a violation of any provision of this title affects a 25
consumer, that] A violation OF THIS TITLE shall be within the scope of the enforcement 26
duties and powers of the Division of Consumer Protection of the Office of the Attorney 27
General, as described in Title 13 of the Commercial Law Article. 28
[(2) The provisions of this title shall otherwise be enforced by each agency 29
of the State within the scope of its authority.] 30
(d) THE DIVISION OF CONSUMER PROTECTION OF THE OFFICE OF THE 31
ATTORNEY GENERAL MAY ADOPT REG ULATIONS TO CARRY OU T THIS TITLE. 32
6 HOUSE BILL 1534
(E) A county or incorporated municipality, or an agency of any of those 1
jurisdictions, may adopt laws or ordinances for the protection of a consumer to the extent 2
and in the manner provided for under § 13–103 of the Commercial Law Article. 3
[(e)] (F) Within 30 days of the effective date of a law, ordinance, or regulation 4
enacted under this section which is expressly applicable to condominiums, the local 5
jurisdiction shall forward a copy of the law, ordinance, or regulation to the Secretary of 6
State. 7
11B–112. 8
(a) (1) (i) Subject to the provisions of paragraph (2) of this subsection, all 9
books and records kept by or on behalf of the homeowners association shall be made 10
available for examination or copying, or both, by a lot owner, a lot owner’s mortgagee, or 11
their respective duly authorized agents or attorneys, during normal business hours, and 12
after reasonable notice. 13
(ii) Books and records required to be made available under 14
subparagraph (i) of this paragraph shall first be made available to a lot owner no later than 15
15 business days after a lot is conveyed by the declarant and the lot owner requests to 16
examine or copy the books and records. 17
(iii) If a lot owner requests in writing a copy of financial statements 18
of the homeowners association or the minutes of a meeting of the governing body of the 19
homeowners association to be delivered, the governing body of the homeowners association 20
shall compile and send the requested information by mail, electronic transmission, or 21
personal delivery: 22
1. Within 21 days after receipt of the written request, if the 23
financial statements or minutes were prepared within the 3 years immediately preceding 24
receipt of the request; or 25
2. Within 45 days after receipt of the written request, if the 26
financial statements or minutes were prepared more than 3 years before receipt of the 27
request. 28
(2) Books and records kept by or on behalf of a homeowners association 29
may be withheld from public inspection, except for inspection by the person who is the 30
subject of the record or the person’s designee or guardian, to the extent that they concern: 31
(i) Personnel records, not including information on individual 32
salaries, wages, bonuses, and other compensation paid to employees; 33
(ii) An individual’s medical records; 34
HOUSE BILL 1534 7
(iii) An individual’s personal financial records, including assets, 1
income, liabilities, net worth, bank balances, financial history or activities, and 2
creditworthiness; 3
(iv) Records relating to business transactions that are currently in 4
negotiation; 5
(v) The written advice of legal counsel; or 6
(vi) Minutes of a closed meeting of the governing body of the 7
homeowners association, unless a majority of a quorum of the governing body of the 8
homeowners association that held the meeting approves unsealing the minutes or a 9
recording of the minutes for public inspection. 10
(b) (1) [Except for a reasonable charge imposed on a person desiring to review 11
or copy the books and records or who requests delivery of information, the homeowners 12
association may not impose any charges under this section.] 13
(I) EXCEPT AS OTHERWISE PROVIDE D IN THIS SUBSECTION , 14
THE HOMEOWNERS ASSOC IATION MAY IMPOSE A REASONABLE CHARGE ON A 15
PERSON DESIRING TO R EVIEW OR COPY THE BO OKS AND RECORDS OR W HO 16
REQUESTS DELIVERY OF INFORMATION . 17
(II) THE HOMEOWNERS ASSOCI ATION MAY NOT IMPOSE ANY 18
CHARGES UNDER THIS S ECTION OTHER THAN TH OSE AUTHORIZED UNDER 19
SUBPARAGRAPH (I) OF THIS PARAGRAPH . 20
(2) A LOT OWNER MAY NOT BE CHARGED FOR : 21
(I) EXAMINING THE FINANCI AL STATEMENTS OF THE 22
HOMEOWNERS ASSOCIATI ON IN PERSON WHERE T HE FINANCIAL STATEME NTS ARE 23
MAINTAINED IN ACCORD ANCE WITH SUBSECTION (A)(1)(I) OF THIS SECTION , 24
UNLESS THE FINANCIAL STATEMENTS ARE LOCAT ED IN A DEPOSITORY ; OR 25
(II) RECEIVING THE FINANCI AL STATEMENTS OF THE 26
HOMEOWNERS ASSOCIATI ON THROUGH ELECTRONI C TRANSMISSION IN 27
ACCORDANCE WITH SUBSECTION (A)(1)(III) OF THIS SECTION. 28
[(2)] (3) A charge imposed under paragraph (1) of this subsection for 29
copying books and records may not exceed the limits authorized under Title 7, Subtitle 2 of 30
the Courts Article. 31
(c) (1) Each homeowners association that was in existence on June 30, 1987 32
shall deposit in the depository by December 31, 1988, and each homeowners association 33
established subsequent to June 30, 1987 shall deposit in the depository by the later of the 34 8 HOUSE BILL 1534
date 30 days following its establishment, or December 31, 1988, all disclosures, current to 1
the date of deposit, specified: 2
(i) By § 11B–105(b) of this title except for those disclosures required 3
by paragraphs (6)(i), (8), (9), and (12); 4
(ii) By § 11B–106(b) of this title except for those disclosures required 5
by paragraphs (1), (2), (4), and (5)(i); and 6
(iii) By § 11B–107(b) of this title. 7
(2) Beginning January 1, 1989, within 30 days of the adoption of or 8
amendment to any of the disclosures required by this title to be deposited in the depository, 9
a homeowners association shall deposit the adopted or amended disclosures in the 10
depository. 11
(3) If a homeowners association fails to deposit in the depository any of the 12
disclosures required to be deposited by this section, or by § 11B–105(b)(6)(ii) or § 13
11B–106(b)(5)(ii) of this title, then those disclosures which were not deposited shall be 14
unenforceable until the time they are deposited. 15
11B–115. 16
(a) (1) In this section, “consumer” means an actual or prospective purchaser, 17
lessee, assignee, or recipient of a lot in a development, OR A LOT OWNER . 18
(2) “Consumer” includes a co–obligor or surety for a consumer. 19
(b) This section is intended to provide minimum standards for protection of 20
consumers in the State. 21
(c) [(1) To the extent that a violation of any provision of this title affects a 22
consumer, that] A violation OF THIS TITLE shall be within the scope of the enforcement 23
duties and powers of the Division of Consumer Protection of the Office of the Attorney 24
General, as described in Title 13 of the Commercial Law Article. 25
[(2) The provisions of this title shall otherwise be enforced by each unit of 26
State government within the scope of the authority of the unit.] 27
(d) THE DIVISION OF CONSUMER PROTECTION OF THE OFFICE OF THE 28
ATTORNEY GENERAL MAY ADOPT REG ULATIONS TO CARRY OU T THIS TITLE. 29
(E) (1) A county or municipal corporation may adopt a law, ordinance, or 30
regulation for the protection of a consumer to the extent and in the manner provided for 31
under § 13–103 of the Commercial Law Article. 32
HOUSE BILL 1534 9
(2) Within 30 days of the effective date of a law, ordinance, or regulation 1
adopted under this subsection that is expressly applicable to a development, the county or 2
municipal corporation shall forward a copy of the law, ordinance, or regulation to the 3
homeowners association depository in the office of the clerk of the court in the county where 4
the development is located. 5
11B–118. 6
(A) (1) ELECTIONS FOR THE GOV ERNING BODY OF A HOM EOWNERS 7
ASSOCIATION, INCLUDING THE C OLLECTION AND COUNTI NG OF BALLOTS AND TH E 8
CERTIFYING OF RESULT S, SHALL BE CONDUCTED B Y INDEPENDENT PARTIE S WHO: 9
(I) ARE NOT CANDIDATES FO R POSITIONS ON THE G OVERNING 10
BODY OF THE HOMEOWNE RS ASSOCIATION IN TH AT ELECTION; AND 11
(II) DO NOT HAVE A CONFLI CT OF INTEREST REGAR DING ANY 12
CANDIDATE IN THE ELE CTION. 13
(2) (I) REPRESENTATIVES UNLESS PROPERTY MANAG EMENT FOR 14
A HOMEOWNERS ASSOCIA TION, OR A PARENT ASSOCIAT ION OF THE HOMEOWNER S 15
ASSOCIATION, IS OWNED BY THE HOME OWNERS ASSOCIATION , REPRESENTATIVES 16
OF THE HOMEOWNERS ASSOCI ATION’S PROPERTY MANAGEMEN T ARE NOT 17
INDEPENDENT PARTIES . 18
(II) A LOT OWNER IS AN INDE PENDENT PARTY IF THE LOT 19
OWNER: 20
1. COMPLIES WITH THE REQ UIREMENTS OF THIS 21
SUBSECTION; 22
2. DOES NOT ELECTIONEER FOR ANY CANDIDATE ; AND 23
3. IS NOT SUBJECT TO AN OBJECTION BY MORE TH AN 25 24
PERCENT OF THE ELIGI BLE VOTING MEMBERS O F THE HOMEOWNERS ASS OCIATION. 25
(III) THE HOMEOWNERS ASSOCI ATION MAY RETAIN A 26
THIRD–PARTY VENDOR OR EMPL OY A COMMERCIAL TECH NOLOGY PLATFORM TO 27
CONDUCT THE ELECTI ON. 28
(B) INDIVIDUALS CONDUCTIN G AN ELECTION SHALL MAKE REASONABLE 29
EFFORTS TO ENSURE TH AT THE ELECTION IS F AIR AND THAT THERE I S 30
ACCOUNTABILITY FOR T HE PROCESS AND THE R ESULTS OF THE ELECTI ON. 31
10 HOUSE BILL 1534
(C) A LOT OWNER DESIGNATED TO CONDUCT AN ELECTI ON WHO ACTS I N 1
GOOD FAITH HAS NO PE RSONAL LIABILITY IN CONNECTION WITH THE CONDUCT OF 2
AN ELECTION. 3
(D) PROVISIONS OF THE GOV ERNING DOCUMENTS , RULES, OR 4
REGULATIONS OF A HOM EOWNERS ASSOCIATION RELATING TO THE COND UCT OF 5
ELECTIONS THAT ARE I NCONSISTENT WITH THE REQUIREMENTS OF THIS SECTI ON 6
ARE VOID AND UNENFOR CEABLE. 7
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
October 1, 2025. 9
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.