EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0295*
HOUSE BILL 295
N1 5lr1646
HB 105/23 – ENT
By: Delegate Holmes
Introduced and read first time: January 9, 2025
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Real Property – Condominiums and Homeowners Associations – Governing 2
Bodies and Annual Meetings 3
FOR the purpose of requiring that unit owners or lot owners have an opportunity to 4
comment during certain meetings convened by the board of directors, the developer, 5
or the declarant of a condominium or a homeowners association; requiring the 6
developer of a condominium to appoint certain persons to the board of directors for 7
the council of unit owners and to establish a board of directors if no board of directors 8
has been established; requiring a declarant to appoint certain persons to the 9
governing body of a homeowners association and to establish a governing body of the 10
homeowners association if no governing body has been established; requiring a 11
developer or a declarant to deliver certain notices regarding a certain bond; requiring 12
a council of unit owners and a homeowners association to maintain certain books and 13
records; making certain provisions of law applicable to the accounts of a 14
condominium or a homeowners association; and generally relating to the governing 15
bodies of condominium councils of unit owners and homeowners associations. 16
BY repealing and reenacting, with amendments, 17
Article – Real Property 18
Section 11–108(c)(1), 11–109(a) and (c), 11–109.4(c)(2), 11–116, 11B–106.1, 11B–111, 19
11B–111.6(d), and 11B–112(a) 20
Annotated Code of Maryland 21
(2023 Replacement Volume and 2024 Supplement) 22
BY repealing and reenacting, without amendments, 23
Article – Real Property 24
Section 11–109(b), 11–114.1(d), 11–132, and 11B–101(a), (c), and (d) 25
Annotated Code of Maryland 26
(2023 Replacement Volume and 2024 Supplement) 27
2 HOUSE BILL 295
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Real Property 3
11–108. 4
(c) (1) This subsection does not apply to any meetings of unit owners occurring 5
at any time before the unit owners elect officers or a board of directors in accordance with 6
[§ 11–109(c)(16)] § 11–109(C)(18) of this title. 7
11–109. 8
(a) (1) The affairs of the condominium shall be governed by a council of unit 9
owners which, even if unincorporated, is constituted a legal entity for all purposes. 10
(2) The council of unit owners shall [be comprised of] COMPRISE all unit 11
owners. 12
(b) The bylaws may authorize or provide for the delegation of any power of the 13
council of unit owners to a board of directors, officers, managing agent, or other person for 14
the purpose of carrying out the responsibilities of the council of unit owners. 15
(c) (1) A meeting of the council of unit owners or board of directors may not be 16
held on less notice than required by this section. 17
(2) The council of unit owners shall maintain a current roster of names and 18
addresses of each unit owner to which notice of meetings of the board of directors shall be 19
sent at least annually. 20
(3) Each unit owner shall furnish the council of unit owners with his name 21
and current mailing address. A unit owner may not vote at meetings of the council of unit 22
owners until this information is furnished. 23
(4) A regular or special meeting of the council of unit owners may not be 24
held on less than 10 nor more than 90 days’: 25
(i) Written notice delivered or mailed to each unit owner at the 26
address shown on the roster on the date of the notice; or 27
(ii) Notice sent to each unit owner by electronic transmission, if the 28
requirements of § 11–139.1 of this title are met. 29
(5) Notice of special meetings of the board of directors shall be given: 30
(i) As provided in the bylaws; or 31
HOUSE BILL 295 3
(ii) If the requirements of § 11–139.1 of this title are met, by 1
electronic transmission. 2
(6) Except as provided in § 11–109.1 of this title, a meeting of a governing 3
body shall be open and held at a time and location as provided in the notice or bylaws. 4
(7) (i) This paragraph does not apply to any meeting of the governing 5
body that occurs at any time before the meeting at which the unit owners elect officers or a 6
board of directors in accordance with paragraph [(16)] (18) of this subsection. 7
(ii) Subject to subparagraph (iii) of this paragraph and to reasonable 8
rules adopted by the governing body under § 11–111 of this title, a governing body shall 9
provide a designated period of time during [a] EACH meeting to allow unit owners an 10
opportunity to comment on any matter relating to the condominium. 11
(iii) During a meeting at which the agenda is limited to specific topics 12
or at a special meeting, the unit owners’ comments may be limited to the topics listed on 13
the meeting agenda. 14
(iv) The governing body shall convene at least one meeting each year 15
at which [the]: 16
1. THE agenda is open to any matter relating to the 17
condominium; AND 18
2. THE UNIT OWNERS HAVE AN OPPORTUNITY TO 19
PROVIDE COMMENT . 20
(8) UNTIL A MEETING IS HE LD IN ACCORDANCE WIT H PARAGRAPH 21
(18) OF THIS SUBSECTION A T WHICH THE UNIT OWN ERS ELECT OFFICERS O R A 22
BOARD OF DIRECTORS , THE BOARD OF DIRECTO RS OR THE DEVELOPER SHALL 23
CONVENE AT LEAST ONE MEETING EACH YEAR AT WHICH: 24
(I) THE AGENDA IS OPEN TO AN Y MATTER RELATING TO THE 25
CONDOMINIUM ; AND 26
(II) THE UNIT OWNERS HAVE AN OPPORTUNITY TO PR OVIDE 27
COMMENT. 28
[(8)] (9) (i) Unless the bylaws provide otherwise, a quorum is deemed 29
present throughout any meeting of the council of unit owners if persons entitled to cast 25 30
percent of the total number of votes appurtenant to all units are present in person or by 31
proxy. 32
4 HOUSE BILL 295
(ii) If the number of persons present in person or by proxy at a 1
properly called meeting of the council of unit owners is insufficient to constitute a quorum, 2
an additional meeting of the council of unit owners may be called for the same purpose if: 3
1. The notice of the initial properly called meeting stated: 4
A. That the procedure authorized by this paragraph might be 5
invoked; and 6
B. The date, time, and place of the additional meeting; and 7
2. A majority of the unit owners present vote in person or by 8
proxy to call for the additional meeting. 9
(iii) 1. An additional meeting called under subparagraph (ii) of 10
this paragraph shall occur not less than 15 days after the initial properly called meeting. 11
2. Not less than 10 days before the additional meeting, a 12
separate and distinct notice of the date, time, place, and purpose of the additional meeting 13
called under subparagraph (ii) of this paragraph shall be: 14
A. Delivered, mailed, or sent by electronic transmission if the 15
requirements of § 11–139.1 of this title are met, to each unit owner at the address shown 16
on the roster maintained under paragraph (2) of this subsection; 17
B. Advertised in a newspaper published in the county where 18
the condominium is located; or 19
C. If the condominium has a website, posted on the homepage 20
of the website. 21
3. The notice shall contain the quorum and voting provisions 22
of subparagraph (iv) of this paragraph. 23
(iv) 1. At the additional meeting, the unit owners present in 24
person or by proxy constitute a quorum. 25
2. Unless the bylaws provide otherwise, a majority of the 26
unit owners present in person or by proxy: 27
A. May approve or authorize the proposed action at the 28
additional meeting; and 29
B. May take any other action that could have been taken at 30
the original meeting if a sufficient number of unit owners had been present. 31
HOUSE BILL 295 5
(v) This paragraph may not be construed to affect the percentage of 1
votes required to amend the declaration or bylaws or to take any other action required to 2
be taken by a specified percentage of votes. 3
[(9)] (10) At meetings of the council of unit owners each unit owner shall 4
be entitled to cast the number of votes appurtenant to his unit. Unit owners may vote by 5
proxy, but the proxy is effective only for a maximum period of 180 days following its 6
issuance, unless granted to a lessee or mortgagee. 7
[(10)] (11) Any proxy may be revoked at any time at the pleasure of the unit 8
owner or unit owners executing the proxy. 9
[(11)] (12) A proxy who is not appointed to vote as directed by a unit owner 10
may only be appointed for purposes of meeting quorums and to vote for matters of business 11
before the council of unit owners, other than an election of officers and members of the 12
board of directors. 13
[(12)] (13) Only a unit owner voting in person or by electronic transmission 14
if the requirements of § 11–139.2 of this title are met or a proxy voting for candidates 15
designated by a unit owner may vote for officers and members of the board of directors. 16
[(13)] (14) Unless otherwise provided in the bylaws, a unit owner may 17
nominate himself or any other person to be an officer or member of the board of directors. 18
A call for nominations shall be sent to all unit owners not less than 45 days before notice of 19
an election is sent. Only nominations made at least 15 days before notice of an election shall 20
be listed on the election ballot. Candidates shall be listed on the ballot in alphabetical order, 21
with no indicated candidate preference. Nominations may be made from the floor at the 22
meeting at which the election to the board is held. 23
[(14)] (15) Election materials prepared with funds of the council of unit 24
owners shall list candidates in alphabetical order and may not indicate a candidate 25
preference. 26
[(15)] (16) Unless otherwise provided in this title, and subject to provisions 27
in the bylaws requiring a different majority, decisions of the council of unit owners shall be 28
made on a majority of votes of the unit owners listed on the current roster present and 29
voting. 30
(17) (I) IF THERE IS A BOARD O F DIRECTORS FOR THE COUNCIL OF 31
UNIT OWNERS ALREADY ESTABLISHED BY THE D EVELOPER, WITHIN 30 DAYS AFTER 32
THE DATE ON WHICH UN ITS REPRESENTING 25 PERCENT OF THE VOTES IN THE 33
CONDOMINIUM HAVE BEEN CONVEYED B Y THE DEVELOPER TO M EMBERS OF THE 34
PUBLIC FOR RESIDENTI AL PURPOSES, THE DEVELOPER SHALL APPOINT AT LEAST 35
ONE MEMBER TO THAT B OARD OF DIRECTORS WHO IS : 36
1. A UNIT OWNER; AND 37 6 HOUSE BILL 295
2. NOT OTHERWISE AFFILIA TED WITH THE DEVELOP ER. 1
(II) IF NO BOARD OF DIRECT ORS FOR THE COUNCIL OF UNIT 2
OWNERS HAS BEEN ESTA BLISHED BY THE DEVEL OPER WITHIN 30 DAYS AFTER THE 3
DATE ON WHICH UNITS REPRESENTI NG 25 PERCENT OF THE VOTES IN THE 4
CONDOMINIUM HAVE BEEN CONVEYED B Y THE DEVELOPER TO M EMBERS OF THE 5
PUBLIC FOR RESIDENTI AL PURPOSES, THE DEVELOPER SHALL ESTABLISH A BOARD 6
OF DIRECTORS FOR THE COUNCIL OF UNIT OWNE RS AND SHALL APPOINT AT LEAST 7
ONE MEMBER TO THAT BOARD OF DIRECT ORS WHO IS: 8
1. A UNIT OWNER; AND 9
2. NOT OTHERWISE AFFILIA TED WITH THE DEVELOP ER. 10
(III) THE DETERMINATION OF WHEN UNITS REPRESENT ING 25 11
PERCENT OF THE VOTES IN AN E XPANDABLE CONDOMINIU M SUBJECT TO § 11–120 12
OF THIS TITLE HAV E BEEN CONVEYED BY T HE DEVELOPER TO MEMB ERS OF THE 13
PUBLIC FOR RESIDENTI AL PURPOSES SHALL BE BASED ON THE TOTAL N UMBER OF 14
UNITS THAT MAY BE SU BJECT TO THE DECLARA TION UPON FULL EXPAN SION OF THE 15
CONDOMINIUM , AS IDENTIFIED IN THE DECLARATION . 16
[(16)] (18) (i) A meeting of the council of unit owners to elect a board of 17
directors for the council of unit owners, as provided in the condominium declaration or 18
bylaws, shall be held within: 19
1. 60 days from the date that units representing 50 percent 20
of the votes in the condominium have been conveyed by the developer to members of the 21
public for residential purposes; or 22
2. If a lesser percentage is specified in the declaration or 23
bylaws of the condominium, 60 days from the date the specified lesser percentage of units 24
in the condominium are sold to members of the public for residential purposes. 25
(ii) 1. Before the date of the meeting held under subparagraph 26
(i) of this paragraph, the developer shall deliver to each unit owner notice that the 27
requirements of subparagraph (i) of this paragraph have been met. 28
2. The notice shall include the date, time, and place of the 29
meeting to elect the board of directors for the council of unit owners. 30
(iii) If a replacement board member is elected, the term of each 31
member of the board of directors appointed by the developer shall end 10 days after the 32
meeting is held as specified in subparagraph (i) of this paragraph. 33
HOUSE BILL 295 7
(IV) 1. WITHIN 15 DAYS AFTER THE DATE OF THE MEETING 1
HELD UNDER SUBPARAGR APH (I) OF THIS PARAGRAPH , THE DEVELOPER SHALL 2
DELIVER BY FIRST –CLASS MAIL TO EACH MEMBER OF TH E BOARD OF DIRECTORS 3
FOR THE COUNCIL OF U NIT OWNERS WHO IS A UNIT OWNER AND WHO I S NOT 4
AFFILIATED WITH THE DEVELOPER NOTICE OF: 5
A. ANY BOND PROVIDED BY THE DEVELO PER TO A 6
GOVERNMENTAL UNIT IN CONNECTION WITH THE DEVELOPMENT ; AND 7
B. THE NAME, ADDRESS, AND PHONE NUMBER OF THE 8
GOVERNMENTAL UNIT TH AT SERVES AS THE BON D HOLDER. 9
2. AT LEAST 30 DAYS BEFORE A DEVELO PER REQUESTS 10
TO BE RELEASED FROM A BOND PROVIDED BY THE DEVELOPER TO A 11
GOVERNMENTAL UNIT , THE DEVELOPER SHALL DELIVER BY FIRST –CLASS MAIL TO 12
EACH MEMBER OF THE B OARD OF DIRECTORS FO R THE COUNCIL OF UNI T OWNERS 13
WHO IS A UNIT OWNER AND WHO IS NOT AFFILIATED WITH THE DEVELOPER NOTICE 14
OF: 15
A. THE INTENTION TO BE RELEASED F ROM THE BOND ; 16
AND 17
B. THE NAME, ADDRESS, AND PHONE NUMBER OF THE 18
GOVERNMENTAL UNIT TH AT SERVES AS THE BON D HOLDER. 19
[(iv)] (V) Within 30 days from the date of the meeting held under 20
subparagraph (i) of this paragraph, the developer shall deliver to the officers or board of 21
directors for the council of unit owners, as provided in the condominium declaration or 22
bylaws, at the developer’s expense: 23
1. The documents specified in § 11–132 of this title; 24
2. The condominium funds, including operating funds, 25
replacement reserves, investment accounts, and working capital; 26
3. The tangible property of the condominium; and 27
4. A roster of current unit owners, including mailing 28
addresses, telephone numbers, and unit numbers, if known. 29
[(v)] (VI) The replacement reserves delivered under subparagraph 30
[(iv)2] (V)2 of this paragraph for a residential condominium shall be equal to at least the 31
reserve funding amount recommended in the reserve study completed under § 11–109.4 of 32
this title as of the date of the meeting. 33
8 HOUSE BILL 295
[(vi)] (VII) 1. This subparagraph does not apply to a contract 1
entered into before October 1, 2009. 2
2. A. In this subparagraph, “contract” means an 3
agreement with a company or individual to handle financial matters, maintenance, or 4
services for the condominium. 5
B. “Contract” does not include an agreement relating to the 6
provision of utility services or communication systems. 7
3. Until all members of the board of directors of the 8
condominium are elected by the unit owners at a transitional meeting as specified in 9
subparagraph (i) of this paragraph, a contract entered into by the officers or board of 10
directors of the condominium may be terminated, at the discretion of the board of directors 11
and without liability for the termination, not later than 30 days after notice. 12
[(vii)] (VIII) If the developer fails to comply with the requirements of 13
this paragraph, an aggrieved unit owner may submit the dispute to the Division of 14
Consumer Protection of the Office of the Attorney General under § 11–130(c) of this title. 15
11–109.4. 16
(c) (2) The governing body of the condominium shall have an independent 17
reserve study completed not less than 30 calendar days before the meeting of the council of 18
unit owners required under [§ 11–109(c)(16)] § 11–109(C)(18) of this title. 19
11–114.1. 20
(d) A copy of the fidelity insurance policy or fidelity bond shall be included in the 21
books and records kept and made available by the council of unit owners under § 11–116 of 22
this title. 23
11–116. 24
(a) The council of unit owners shall keep books and records BEGINNING ON THE 25
DATE THE COUNCIL OF UNIT OWNERS IS ESTAB LISHED in accordance with good 26
accounting practices on a consistent basis. 27
(b) On the request of the unit owners of at least 5 percent of the units, the council 28
of unit owners shall cause an audit of the books and records to be made by an independent 29
certified public accountant, provided an audit shall be made not more than once in any 30
consecutive 12–month period. The cost of the audit shall be a common expense. 31
(c) (1) (i) 1. Except as provided in paragraph (3) of this subsection, all 32
books and records, including insurance policies, kept by the council of unit owners shall be 33
maintained in Maryland or within 50 miles of its borders and shall be available at some 34 HOUSE BILL 295 9
place designated by the council of unit owners for examination or copying, or both, by any 1
unit owner, a unit owner’s mortgagee, or their respective duly authorized agents or 2
attorneys, during normal business hours, and after reasonable notice. 3
2. ALL BOOKS AND RECO RDS KEPT BY THE COUNCIL OF 4
UNIT OWNERS SHALL BE MAINTAINED SEPARATE AND APART FROM THE B OOKS AND 5
RECORDS OF THE DEVELOPER OR OF ANY OTHER PERSON . 6
(ii) If a unit owner requests in writing a copy of financial statements 7
of the condominium or the minutes of a meeting of the board of directors or other governing 8
body of the condominium to be delivered, the board of directors or other governing body of 9
the condominium shall compile and send the requested information by mail, electronic 10
transmission, or personal delivery: 11
1. Within 21 days after receipt of the written request, if the 12
financial statements or minutes were prepared within the 3 years immediately preceding 13
receipt of the request; or 14
2. Within 45 days after receipt of the written request, if the 15
financial statements or minutes were prepared more than 3 years before receipt of the 16
request. 17
(2) Books and records required to be made available under paragraph (1) 18
of this subsection shall first be made available to a unit owner not later than 15 business 19
days after a unit is conveyed from a developer and the unit owner requests to examine or 20
copy the books and records. 21
(3) Books and records kept by or on behalf of a council of unit owners may 22
be withheld from public inspection, except for inspection by the person who is the subject 23
of the record or the person’s designee or guardian, to the extent that they concern: 24
(i) Personnel records, not including information on individual 25
salaries, wages, bonuses, and other compensation paid to employees; 26
(ii) An individual’s medical records; 27
(iii) An individual’s personal financial records, including assets, 28
income, liabilities, net worth, bank balances, financial history or activities, and 29
creditworthiness; 30
(iv) Records relating to business transactions that are currently in 31
negotiation; 32
(v) The written advice of legal counsel; or 33
(vi) Minutes of a closed meeting of the board of directors or other 34
governing body of the council of unit owners, unless a majority of a quorum of the board of 35 10 HOUSE BILL 295
directors or governing body that held the meeting approves unsealing the minutes or a 1
recording of the minutes for public inspection. 2
(d) (1) Except for a reasonable charge imposed on a person desiring to review 3
or copy the books and records or who requests delivery of information, the council of unit 4
owners may not impose any charges under this section. 5
(2) A charge imposed under paragraph (1) of this subsection for copying 6
books and records may not exceed the limits authorized under Title 7, Subtitle 2 of the 7
Courts Article. 8
11–132. 9
On transfer of control by the developer to the council of unit owners, the developer 10
shall turn over documents including: 11
(1) Copies of the condominium’s filed articles of incorporation, recorded 12
declaration, and all recorded covenants, bylaws, plats, and restrictions of the condominium; 13
(2) Subject to the restrictions of § 11–116 of this title, all books and records 14
of the condominium, including financial statements, minutes of any meeting of the 15
governing body, and completed business transactions; 16
(3) Any policies, rules, and regulations adopted by the governing body; 17
(4) The financial records of the condominium from the date of creation to 18
the date of transfer of control, including budget information regarding estimated and actual 19
expenditures by the condominium and any report relating to the reserves required for major 20
repairs and replacement of the common elements of the condominium; 21
(5) A copy of all contracts to which the condominium is a party; 22
(6) The name, address, and telephone number of any contractor or 23
subcontractor employed by the condominium; 24
(7) Any insurance policies in effect and all prior insurance policies; 25
(8) Any permit or notice of code violation issued to the condominium by the 26
county, local, State, or federal government; 27
(9) Any warranty in effect; 28
(10) Drawings, architectural plans, or other suitable documents setting 29
forth the necessary information for location, maintenance, and repair of all condominium 30
facilities; and 31
HOUSE BILL 295 11
(11) Individual owner files and records, including assessment account 1
records, correspondence, and notices of any violations. 2
11B–101. 3
(a) In this title the following words have the meanings indicated, unless the 4
context requires otherwise. 5
(c) “Declarant” means any person who subjects property to a declaration. 6
(d) (1) “Declaration” means an instrument, however denominated, recorded 7
among the land records of the county in which the property of the declarant is located, that 8
creates the authority for a homeowners association to impose on lots, or on the owners or 9
occupants of lots, or on another homeowners association, condominium, or cooperative 10
housing corporation any mandatory fee in connection with the provision of services or 11
otherwise for the benefit of some or all of the lots, the owners or occupants of lots, or the 12
common areas. 13
(2) “Declaration” includes any amendment or supplement to the 14
instruments described in paragraph (1) of this subsection. 15
(3) “Declaration” does not include a private right–of–way or similar 16
agreement unless it requires a mandatory fee payable annually or at more frequent 17
intervals. 18
11B–106.1. 19
(A) (1) THE PROVISIONS OF THI S SUBSECTION APPLY T O A 20
DEVELOPMENT THAT CON TAINS MORE THAN 12 LOTS. 21
(2) IF THERE IS A BOARD O F DIRECTORS FOR THE HOMEOWNERS 22
ASSOCIATION ALREADY ESTABLISHED BY THE D ECLARANT, WITHIN 30 DAYS AFTER 23
THE DATE THAT 25% OF THE MAXIMUM NUMBE R OF LOTS CURRENTLY PLANNED OR 24
PERMITTED TO BE CONT AINED WITHIN THE DEV ELOPMENT HAVE BEEN CONVEYED 25
TO MEMBERS OF THE PU BLIC FOR RESIDENTIAL PURPOSES, THE DECLARANT SHALL 26
APPOINT AT LEAST ONE MEMBER TO THAT BOARD OF DIRECTORS WHO IS: 27
(I) A LOT OWNER; AND 28
(II) NOT OTHERWISE AFFILIA TED WITH THE DECLARA NT OR A 29
VENDOR OF LOTS IN TH E DEVELOPMENT . 30
(3) IF NO BOARD OF DIRECT ORS FOR THE HOMEOWNE RS 31
ASSOCIATION HAS BEEN ESTABLISHED BY THE D ECLARANT WHEN 25% OF THE 32
MAXIMUM NUMBER OF LO TS CURRENTLY PLANNED OR PERMITTED TO BE 33
CONTAINED WITHIN THE DEVELOPMENT HAVE BEEN CONVEYED T O MEMBERS OF 34 12 HOUSE BILL 295
THE PUBLIC FOR RESIDEN TIAL PURPOSES , THE DECLARANT SHALL ESTABLISH A 1
BOARD OF DIRECTORS A ND SHALL APPOINT AT LEAST ONE MEMBER TO THAT BOARD 2
OF DIRECTORS WHO IS : 3
(I) A LOT OWNER; AND 4
(II) NOT OTHERWISE AFFILIA TED WITH THE DECLARA NT OR A 5
VENDOR OF LOTS IN THE DEVELOPMENT . 6
(4) THE DETERMINATION OF WHEN 25% OF THE MAXIMUM NUMBE R 7
OF LOTS CURRENTLY PL ANNED OR PERMITTED T O BE CONTAINED WITHI N THE 8
DEVELOPMENT HAVE BEE N CONVEYED TO MEMBER S OF THE PUBLIC FOR 9
RESIDENTIAL PURPOSES SHALL BE BASED ON TH E INFORMATION SUPPLIED BY THE 10
VENDOR UNDER § 11B–105(B)(3)(I) OF THIS TITLE. 11
[(a)] (B) A meeting of the members of the homeowners association to elect a 12
governing body of the homeowners association shall be held within: 13
(1) 60 days from the date that at least 75% of the total number of lots that 14
may be part of the development after all phases are complete are sold to members of the 15
public for residential purposes; or 16
(2) If a lesser percentage is specified in the governing documents of the 17
homeowners association, 60 days from the date the specified lesser percentage of the total 18
number of lots in the development after all phases are complete are sold to members of the 19
public for residential purposes. 20
[(b)] (C) (1) Before the date of the meeting held under subsection [(a)] (B) of 21
this section, the declarant shall deliver to each lot owner notice that the requirements of 22
subsection [(a)] (B) of this section have been met. 23
(2) The notice shall include the date, time, and place of the meeting to elect 24
the governing body of the homeowners association. 25
[(c)] (D) The term of each member of the governing body of the homeowners 26
association appointed by the declarant shall end 10 days after the meeting under subsection 27
[(a)] (B) of this section is held, if a replacement board member is elected. 28
[(d)] (E) Within 30 days from the date of the meeting held under subsection [(a)] 29
(B) of this section, the declarant shall deliver the following items to the governing body at 30
the declarant’s expense: 31
(1) The deeds to the common areas; 32
HOUSE BILL 295 13
(2) Copies of the homeowners association’s filed articles of incorporation, 1
declaration, and all recorded covenants, plats, restrictions, and any other records of the 2
primary development and of related developments; 3
(3) A copy of the bylaws and rules of the primary development and of other 4
related developments as filed in the depository of the county in which the development is 5
located; 6
(4) The minute books, including all minutes; 7
(5) Subject to the restrictions of § 11B–112 of this title, all books and 8
records of the homeowners association, including financial statements, minutes of any 9
meeting of the governing body, and completed business transactions; 10
(6) Any policies, rules, and regulations adopted by the governing body; 11
(7) The financial records of the homeowners association from the date of 12
creation to the date of transfer of control, including budget information regarding estimated 13
and actual expenditures by the homeowners association and any report relating to the 14
reserves required for major repairs and replacement of the common areas of the 15
homeowners association; 16
(8) A copy of all contracts to which the homeowners association is a party; 17
(9) The name, address, and telephone number of any contractor or 18
subcontractor employed by the homeowners association; 19
(10) Any insurance policies in effect; 20
(11) Any permit or notice of code violations issued to the homeowners 21
association by the county, local, State, or federal government; 22
(12) Any warranty in effect and all prior insurance policies; 23
(13) The homeowners association funds, including operating funds, 24
replacement reserves, investment accounts, and working capital; 25
(14) The tangible property of the homeowners association; 26
(15) A roster of current lot owners, including their mailing addresses, 27
telephone numbers, and lot numbers, if known; 28
(16) Individual member files and records, including assessment account 29
records, correspondence, and notices of any violations; and 30
(17) Drawings, architectural plans, or other suitable documents setting 31
forth the necessary information for location, maintenance, and repairs of all common areas. 32 14 HOUSE BILL 295
[(e)] (F) The replacement reserves delivered under subsection [(d)(13)] (E)(13) 1
of this section shall be equal to at least the reserve funding amount recommended in the 2
reserve study completed under § 11B–112.3 of this title as of the date of the meeting. 3
[(f)] (G) (1) This subsection does not apply to a contract entered into before 4
October 1, 2009. 5
(2) (i) In this subsection, “contract” means an agreement with a 6
company or individual to handle financial matters, maintenance, or services for the 7
homeowners association. 8
(ii) “Contract” does not include an agreement relating to the 9
provision of utility services or communication systems. 10
(3) Until all members of the governing body are elected by the lot owners 11
at a transitional meeting under subsection [(a)] (B) of this section, a contract entered into 12
by the governing body may be terminated, at the discretion of the governing body and 13
without liability for the termination, not later than 30 days after notice. 14
(H) (1) WITHIN 15 DAYS AFTER THE DATE OF THE MEETING HELD UNDER 15
SUBSECTION (B) OF THIS SECTION , THE DECLARANT SH ALL DELIVER BY 16
FIRST–CLASS MAIL TO EACH MEMBER OF TH E BOARD OF DIRECTORS WHO IS A LOT 17
OWNER AND WHO IS NOT AFFILIATED WITH THE DECLARANT NOTICE OF: 18
(I) ANY BOND PROVIDED BY THE DECLARANT TO A 19
GOVERNMENTAL UNIT IN CONNECTION WITH THE DEVELOPMENT ; AND 20
(II) THE NAME, ADDRESS, AND PHONE NUMBER OF THE 21
GOVERNMENTAL UNIT TH AT SERVES AS THE BON D HOLDER. 22
(2) AT LEAST 30 DAYS BEFORE A DECLAR ANT REQUESTS TO BE 23
RELEASED FROM A BOND PROVIDED BY THE DECL ARANT TO A GOVERNMEN TAL 24
UNIT, THE DECLARANT SHALL DELIVER BY FIRST–CLASS MAIL TO EACH MEMBER OF 25
THE BOARD OF DIRECTO RS WHO IS A LOT OWNE R AND WHO IS NOT AFF ILIATED WITH 26
THE DECLARANT NOTICE OF: 27
(I) THE INTENTION TO BE R ELEASED FROM THE BON D; AND 28
(II) THE NAME, ADDRESS, AND PHONE NUMBER OF THE 29
GOVERNMENTAL UNIT TH AT SERVES AS THE BON D HOLDER. 30
[(g)] (I) If the declarant fails to comply with the requirements of this section, an 31
aggrieved lot owner may submit the dispute to the Division of Consumer Protection of the 32
Office of the Attorney General under § 11B–115(c) of this title. 33 HOUSE BILL 295 15
11B–111. 1
Except as provided in this title, and notwithstanding anything contained in any of 2
the documents of the homeowners association: 3
(1) Subject to the provisions of item [(4)] (5) of this section, all meetings of 4
the homeowners association, including meetings of the board of directors or other governing 5
body of the homeowners association or a committee of the homeowners association, shall 6
be open to all members of the homeowners association or their agents; 7
(2) All members of the homeowners association shall be given reasonable 8
notice of all regularly scheduled open meetings of the homeowners association; 9
(3) (i) This item does not apply to any meeting of a governing body that 10
occurs at any time before the lot owners, other than the developer, have a majority of votes 11
in the homeowners association, as provided in the declaration; 12
(ii) Subject to item (iii) of this item and to reasonable rules adopted 13
by [a] THE governing body, [a] THE governing body shall provide a designated period of 14
time during [a] EACH meeting to allow lot owners an opportunity to comment on any 15
matter relating to the homeowners association; 16
(iii) During a meeting at which the agenda is limited to specific topics 17
or at a special meeting, the lot owners’ comments may be limited to the topics listed on the 18
meeting agenda; and 19
(iv) The governing body shall convene at least one meeting each year 20
at which [the]: 21
1. THE agenda is open to any matter relating to the 22
homeowners association; AND 23
2. THE LOT OWNERS HAVE A N OPPORTUNITY TO 24
PROVIDE COMMENT ; 25
(4) UNTIL THE LOT OWNERS , OTHER THAN THE DEVEL OPER, HAVE A 26
MAJORITY OF VOTES IN THE HOMEOWNERS ASSOC IATION, AS PROVIDED IN THE 27
DECLARATION , THE BOARD OF DIRECTO RS OR THE DECLARANT SHALL CONVENE AT 28
LEAST ONE MEETING EA CH YEAR AT WHICH : 29
(I) THE AGENDA IS OPEN TO ANY MATTER RELATING TO THE 30
HOMEOWNERS ASSOCIATI ON; AND 31
(II) THE LOT OWNERS HAVE A N OPPORTUNITY TO PRO VIDE 32
COMMENT; 33 16 HOUSE BILL 295
[(4)] (5) A meeting of the board of directors or other governing body of the 1
homeowners association or a committee of the homeowners association may be held in 2
closed session only for the following purposes: 3
(i) Discussion of matters pertaining to employees and personnel; 4
(ii) Protection of the privacy or reputation of individuals in matters 5
not related to the homeowners association’s business; 6
(iii) Consultation with legal counsel on legal matters; 7
(iv) Consultation with staff personnel, consultants, attorneys, board 8
members, or other persons in connection with pending or potential litigation or other legal 9
matters; 10
(v) Investigative proceedings concerning possible or actual criminal 11
misconduct; 12
(vi) Consideration of the terms or conditions of a business 13
transaction in the negotiation stage if the disclosure could adversely affect the economic 14
interests of the homeowners association; 15
(vii) Compliance with a specific constitutional, statutory, or judicially 16
imposed requirement protecting particular proceedings or matters from public disclosure; 17
or 18
(viii) Discussion of individual owner assessment accounts; 19
[(5)] (6) If a meeting is held in closed session under item [(4)] (5) of this 20
section: 21
(i) An action may not be taken and a matter may not be discussed if 22
it is not permitted by item [(4)] (5) of this section; and 23
(ii) A statement of the time, place, and purpose of a closed meeting, 24
the record of the vote of each board or committee member by which the meeting was closed, 25
and the authority under this section for closing a meeting shall be included in the minutes 26
of the next meeting of the board of directors or the committee of the homeowners 27
association; and 28
[(6)] (7) (i) If the number of lot owners present in person or by proxy 29
at a properly called meeting is insufficient to constitute a quorum, an additional meeting 30
of the lot owners may be called for the same purpose if: 31
1. The notice of the initial properly called meeting stated: 32
HOUSE BILL 295 17
A. That the procedure authorized by this item [(6)] (7) might 1
be invoked; and 2
B. The date, time, and place of the additional meeting; and 3
2. A majority of the lot owners present vote in person or by 4
proxy to call for the additional meeting; 5
(ii) An additional meeting called under item (i) of this item shall 6
occur not less than 15 days after the initial properly called meeting; 7
(iii) 1. Not less than 10 days before the additional meeting, a 8
separate and distinct notice of the date, time, place, and purpose of the additional meeting 9
called under item (i) of this item shall be: 10
A. Delivered, mailed, or sent by electronic transmission, if 11
the requirements of § 11B–113.1 of this title are met, to each lot owner at the address shown 12
on the roster maintained by the homeowners association; 13
B. Advertised in a newspaper published in the county where 14
the homeowners association is located; or 15
C. If the homeowners association has a website, posted on the 16
homepage of the website; and 17
2. The notice shall contain the quorum and voting provisions 18
of item (iv) of this item; 19
(iv) 1. At the additional meeting, the lot owners present in 20
person or by proxy constitute a quorum; and 21
2. Unless the bylaws provide otherwise, a majority of the lot 22
owners present in person or by proxy: 23
A. May approve or authorize the proposed action at the 24
additional meeting; and 25
B. May take any other action that could have been taken at 26
the original meeting if a sufficient number of lot owners had been present; and 27
(v) This item [(6)] (7) may not be construed to affect the percentage 28
of votes required to amend the declaration or bylaws or to take any other action required 29
to be taken by a specified percentage of votes. 30
11B–111.6. 31
18 HOUSE BILL 295
(d) A copy of the fidelity insurance policy or fidelity bond shall be included in the 1
books [and], records, AND ACCOUNTS kept and made available by or on behalf of the 2
homeowners association under § 11B–112 of this title. 3
11B–112. 4
(a) (1) (I) THE HOMEOWNERS ASSOCIATION SHALL MA INTAIN BOOKS 5
AND RECORDS BEGINNING ON THE DAT E THE HOMEOWNERS ASS OCIATION IS 6
ESTABLISHED. 7
(II) ALL BOOKS AND RECORDS KEPT BY THE HOMEOWNE RS 8
ASSOCIATION SHALL BE MAINTAINED SEPARATE AND APART FROM THE B OOKS AND 9
RECORDS OF THE DECLARA NT OR OF ANY OTHER P ERSON. 10
[(1)] (2) (i) Subject to the provisions of paragraph [(2)] (3) of this 11
subsection, all books and records kept by or on behalf of the homeowners association shall 12
be made available for examination or copying, or both, by a lot owner, a lot owner’s 13
mortgagee, or their respective duly authorized agents or attorneys, during normal business 14
hours, and after reasonable notice. 15
(ii) Books and records required to be made available under 16
subparagraph (i) of this paragraph shall first be made available to a lot owner no later than 17
15 business days after a lot is conveyed by the declarant and the lot owner requests to 18
examine or copy the books and records. 19
(iii) If a lot owner requests in writing a copy of financial statements 20
of the homeowners association or the minutes of a meeting of the governing body of the 21
homeowners association to be delivered, the governing body of the homeowners association 22
shall compile and send the requested information by mail, electronic transmission, or 23
personal delivery: 24
1. Within 21 days after receipt of the written request, if the 25
financial statements or minutes were prepared within the 3 years immediately preceding 26
receipt of the request; or 27
2. Within 45 days after receipt of the written request, if the 28
financial statements or minutes were prepared more than 3 years before receipt of the 29
request. 30
[(2)] (3) Books and records kept by or on behalf of a homeowners 31
association may be withheld from public inspection, except for inspection by the person who 32
is the subject of the record or the person’s designee or guardian, to the extent that they 33
concern: 34
(i) Personnel records, not including information on individual 35
salaries, wages, bonuses, and other compensation paid to employees; 36 HOUSE BILL 295 19
(ii) An individual’s medical records; 1
(iii) An individual’s personal financial records, including assets, 2
income, liabilities, net worth, bank balances, financial history or activities, and 3
creditworthiness; 4
(iv) Records relating to business transactions that are currently in 5
negotiation; 6
(v) The written advice of legal counsel; or 7
(vi) Minutes of a closed meeting of the governing body of the 8
homeowners association, unless a majority of a quorum of the governing body of the 9
homeowners association that held the meeting approves unsealing the minutes or a 10
recording of the minutes for public inspection. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 12
October 1, 2025. 13