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