1 | 1 | | |
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2 | 2 | | |
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3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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5 | 5 | | *hb0299* |
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6 | 6 | | |
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7 | 7 | | HOUSE BILL 299 |
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8 | 8 | | N1 5lr1654 |
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9 | 9 | | HB 793/24 – ENT |
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10 | 10 | | By: Delegate Holmes |
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11 | 11 | | Introduced and read first time: January 9, 2025 |
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12 | 12 | | Assigned to: Environment and Transportation |
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13 | 13 | | |
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14 | 14 | | A BILL ENTITLED |
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15 | 15 | | |
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16 | 16 | | AN ACT concerning 1 |
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17 | 17 | | |
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18 | 18 | | Real Property – Governing Bodies of Common Ownership Communities – 2 |
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19 | 19 | | Member Training 3 |
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20 | 20 | | |
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21 | 21 | | FOR the purpose of requiring certain members of a board of directors or certain officers of 4 |
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22 | 22 | | a council of unit owners of certain condominiums and certain members of a governing 5 |
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23 | 23 | | body of a homeowners association to successfully complete a certain training 6 |
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24 | 24 | | curriculum in a certain manner and subject to certain requirements; and generally 7 |
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25 | 25 | | relating to members of governing bodies of condominiums and homeowners 8 |
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26 | 26 | | associations. 9 |
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27 | 27 | | |
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28 | 28 | | BY repealing and reenacting, with amendments, 10 |
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29 | 29 | | Article – Real Property 11 |
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30 | 30 | | Section 11–109 and 11B–106.1(g) 12 |
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31 | 31 | | Annotated Code of Maryland 13 |
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32 | 32 | | (2023 Replacement Volume and 2024 Supplement) 14 |
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33 | 33 | | |
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34 | 34 | | BY repealing and reenacting, without amendments, 15 |
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35 | 35 | | Article – Real Property 16 |
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36 | 36 | | Section 11B–106.1(a) 17 |
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37 | 37 | | Annotated Code of Maryland 18 |
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38 | 38 | | (2023 Replacement Volume and 2024 Supplement) 19 |
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39 | 39 | | |
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40 | 40 | | BY adding to 20 |
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41 | 41 | | Article – Real Property 21 |
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42 | 42 | | Section 11B–106.1(g) 22 |
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43 | 43 | | Annotated Code of Maryland 23 |
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44 | 44 | | (2023 Replacement Volume and 2024 Supplement) 24 |
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45 | 45 | | |
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46 | 46 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25 |
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47 | 47 | | That the Laws of Maryland read as follows: 26 |
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48 | 48 | | 2 HOUSE BILL 299 |
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49 | 49 | | |
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50 | 50 | | |
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51 | 51 | | Article – Real Property 1 |
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52 | 52 | | |
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53 | 53 | | 11–109. 2 |
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54 | 54 | | |
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55 | 55 | | (a) The affairs of the condominium shall be governed by a council of unit owners 3 |
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56 | 56 | | which, even if unincorporated, is constituted a legal entity for all purposes. The council of 4 |
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57 | 57 | | unit owners shall be comprised of all unit owners. 5 |
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58 | 58 | | |
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59 | 59 | | (b) The bylaws may authorize or provide for the delegation of any power of the 6 |
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60 | 60 | | council of unit owners to a board of directors, officers, managing agent, or other person for 7 |
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61 | 61 | | the purpose of carrying out the responsibilities of the council of unit owners. 8 |
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62 | 62 | | |
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63 | 63 | | (C) (1) THIS SUBSECTION APPLI ES ONLY TO A MEMBER OF A BOARD OF 9 |
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64 | 64 | | DIRECTORS OR AN OFFI CER OF A COUNCIL OF UNIT OWNERS FO R A CONDOMINIUM 10 |
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65 | 65 | | THAT IS COMPOSED SOL ELY OF RESIDENTIAL F OR–SALE HOUSING OR CONS UMER 11 |
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66 | 66 | | REALTY WHO SERVES AF TER A MEETING REQUIR ED UNDER SUBSECTION (D)(16) OF 12 |
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67 | 67 | | THIS SECTION. 13 |
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68 | 68 | | |
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69 | 69 | | (2) (I) EACH MEMBER OF A BOAR D OF DIRECTORS OR OF FICER OF 14 |
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70 | 70 | | A COUNCIL OF UNIT OW NERS SHALL SUCCESSFULLY CO MPLETE A TRAINING 15 |
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71 | 71 | | CURRICULUM ON THE RE SPONSIBILITIES OF BE ING A MEMBER OR AN O FFICER 16 |
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72 | 72 | | DEVELOPED BY : 17 |
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73 | 73 | | |
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74 | 74 | | 1. A COMMON OWNERSHIP COM MISSION RECOGNIZED 18 |
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75 | 75 | | BY THE STATE OR A LOCAL GOVE RNMENT; 19 |
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76 | 76 | | |
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77 | 77 | | 2. AN ORGANIZATION APPRO VED TO ADMINISTER TH E 20 |
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78 | 78 | | TRAINING CURRICULUM B Y A RECOGNIZED COMMO N OWNERSHIP COMMISSI ON; 21 |
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79 | 79 | | |
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80 | 80 | | 3. AN INSTITUTION ACCRED ITED BY THE MIDDLE 22 |
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81 | 81 | | STATES COMMISSION ON HIGHER EDUCATION; 23 |
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82 | 82 | | |
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83 | 83 | | 4. A MEMBERSHIP ORGANIZAT ION THAT OFFERS 24 |
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84 | 84 | | NATIONALLY RECOGNIZE D CERTIFICATION CRED ENTIALS FOR COMMUNITY 25 |
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85 | 85 | | MANAGERS; OR 26 |
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86 | 86 | | |
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87 | 87 | | 5. A COUNTY WITH COURSEWO RK ESTABLISHED BY TH E 27 |
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88 | 88 | | COUNTY COMMON OWNERS HIP COMMISSION . 28 |
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89 | 89 | | |
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90 | 90 | | (II) A TRAINING CURRICULUM DEVELOPED UNDER THIS 29 |
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91 | 91 | | PARAGRAPH SHALL INCL UDE TRAINING ON : 30 |
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92 | 92 | | |
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93 | 93 | | 1. THE MARYLAND HOMEOWNERS ASSOCIATION ACT, 31 |
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94 | 94 | | THE MARYLAND CONDOMINIUM ACT, AND THE MARYLAND COOPERATIVE 32 |
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95 | 95 | | HOUSING CORPORATION ACT; 33 HOUSE BILL 299 3 |
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96 | 96 | | |
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97 | 97 | | |
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98 | 98 | | |
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99 | 99 | | 2. ROLES AND RESPONSIBIL ITIES OF COMMON 1 |
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100 | 100 | | OWNERSHIP COMMUNITY GOVERNING BODIES ; 2 |
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101 | 101 | | |
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102 | 102 | | 3. FIDUCIARY DUTY ; 3 |
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103 | 103 | | |
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104 | 104 | | 4. RESPONSIBLE GOVERNANC E POLICIES; 4 |
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105 | 105 | | |
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106 | 106 | | 5. LEGAL STRUCTURES AND GUIDELINES; 5 |
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107 | 107 | | |
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108 | 108 | | 6. RESERVES AND AUDITS ; 6 |
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109 | 109 | | |
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110 | 110 | | 7. MEETING PROCEDURES AN D REQUIREMENTS ; 7 |
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111 | 111 | | |
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112 | 112 | | 8. HANDLING OF DISPUTES ; 8 |
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113 | 113 | | |
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114 | 114 | | 9. INSURANCE AND BONDING ; 9 |
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115 | 115 | | |
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116 | 116 | | 10. COMMUNITY MAINTENANCE ; 10 |
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117 | 117 | | |
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118 | 118 | | 11. RECORD KEEPING ; AND 11 |
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119 | 119 | | |
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120 | 120 | | 12. STATE AND LOCAL RESOU RCES FOR GOVERNING 12 |
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121 | 121 | | BODIES. 13 |
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122 | 122 | | |
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123 | 123 | | (3) EACH MEMBER OF THE BO ARD OF DIRECTORS OR OFFICER OF THE 14 |
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124 | 124 | | COUNCIL OF UNIT OWNE RS SHALL SUCCESSFULL Y COMPLETE THE TRAIN ING 15 |
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125 | 125 | | CURRICULUM REQUIRED UNDER THIS SUBSECTIO N WITHIN 90 DAYS AFTER THE 16 |
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126 | 126 | | INDIVIDUAL: 17 |
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127 | 127 | | |
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128 | 128 | | (I) IS FIRST ELECTED OR A PPOINTED TO THE OFFICE; OR 18 |
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129 | 129 | | |
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130 | 130 | | (II) FOR AN INDIVIDUAL WHO IS IN OFFICE ON OCTOBER 1, 19 |
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131 | 131 | | 2025, BEGINS A SUBSEQUENT TERM AS A MEMBER OF THE BOARD OF DIRECTO RS OR 20 |
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132 | 132 | | AN OFFICER OF THE CO UNCIL OF UNIT OWNERS . 21 |
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133 | 133 | | |
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134 | 134 | | (4) (I) THE BOARD OF DIRECTOR S OR THE OFFICERS OF THE 22 |
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135 | 135 | | COUNCIL OF U NIT OWNERS SHALL : 23 |
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136 | 136 | | |
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137 | 137 | | 1. CERTIFY THAT EACH MEM BER OR OFFICER 24 |
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138 | 138 | | SUCCESSFULLY COMPLET ES THE TRAINING CURR ICULUM REQUIRED UNDE R THIS 25 |
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139 | 139 | | SUBSECTION; 26 |
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140 | 140 | | |
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141 | 141 | | 2. RETAIN A COPY OF THE CERTIFICATE OF 27 |
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142 | 142 | | COMPLETION OF EACH M EMBER OR OFFICER ; AND 28 4 HOUSE BILL 299 |
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143 | 143 | | |
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144 | 144 | | |
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145 | 145 | | |
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146 | 146 | | 3. WITHIN 90 DAYS AFTER THE CERTIFICATION OF THE 1 |
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147 | 147 | | MEMBER OR OFFICER , REPORT TO THE COMMON OWNERSHIP COMMISSION ON THE 2 |
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148 | 148 | | CERTIFICATION . 3 |
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149 | 149 | | |
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150 | 150 | | (II) A CERTIFICATE OF COMPL ETION ISSUED UNDER T HIS 4 |
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151 | 151 | | PARAGRAPH SHALL BE V ALID FOR 3 YEARS. 5 |
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152 | 152 | | |
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153 | 153 | | (III) AN INDIVIDUAL WHO REM AINS A MEMBER OF THE BOARD OF 6 |
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154 | 154 | | DIRECTORS OR AN OFFI CER OF THE COUNCIL O F UNIT OWNERS AT THE TIME THE 7 |
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155 | 155 | | CERTIFICATE EXPIRES SHALL RENEW THE CERT IFICATION BY SUCCESS FULLY 8 |
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156 | 156 | | COMPLETING THE TRAIN ING REQUIRED UNDER T HIS SUBSECTION . 9 |
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157 | 157 | | |
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158 | 158 | | (5) IF A MEMBER OF THE BO ARD OF DIRECTORS OR AN OFFICER OF 10 |
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159 | 159 | | THE COUNCIL OF UNIT OWNERS DOES NOT SUCC ESSFULLY COMPLETE TH E 11 |
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160 | 160 | | TRAINING REQUIRED UN DER THIS SUBSECTION , THE BOARD OF DIRECTO RS OR THE 12 |
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161 | 161 | | COUNCIL OF UNIT OWNE RS MAY: 13 |
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162 | 162 | | |
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163 | 163 | | (I) REMOVE THE INDIVIDUAL FROM THE OFFICE ; OR 14 |
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164 | 164 | | |
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165 | 165 | | (II) INVALIDATE A VOTE OF THE INDIVIDUAL. 15 |
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166 | 166 | | |
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167 | 167 | | [(c)] (D) (1) A meeting of the council of unit owners or board of directors may 16 |
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168 | 168 | | not be held on less notice than required by this section. 17 |
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169 | 169 | | |
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170 | 170 | | (2) The council of unit owners shall maintain a current roster of names and 18 |
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171 | 171 | | addresses of each unit owner to which notice of meetings of the board of directors shall be 19 |
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172 | 172 | | sent at least annually. 20 |
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173 | 173 | | |
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174 | 174 | | (3) Each unit owner shall furnish the council of unit owners with his name 21 |
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175 | 175 | | and current mailing address. A unit owner may not vote at meetings of the council of unit 22 |
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176 | 176 | | owners until this information is furnished. 23 |
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177 | 177 | | |
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178 | 178 | | (4) A regular or special meeting of the council of unit owners may not be 24 |
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179 | 179 | | held on less than 10 nor more than 90 days’: 25 |
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180 | 180 | | |
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181 | 181 | | (i) Written notice delivered or mailed to each unit owner at the 26 |
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182 | 182 | | address shown on the roster on the date of the notice; or 27 |
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183 | 183 | | |
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184 | 184 | | (ii) Notice sent to each unit owner by electronic transmission, if the 28 |
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185 | 185 | | requirements of § 11–139.1 of this title are met. 29 |
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186 | 186 | | |
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187 | 187 | | (5) Notice of special meetings of the board of directors shall be given: 30 |
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188 | 188 | | |
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189 | 189 | | (i) As provided in the bylaws; or 31 |
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190 | 190 | | HOUSE BILL 299 5 |
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191 | 191 | | |
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192 | 192 | | |
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193 | 193 | | (ii) If the requirements of § 11–139.1 of this title are met, by 1 |
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194 | 194 | | electronic transmission. 2 |
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195 | 195 | | |
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196 | 196 | | (6) Except as provided in § 11–109.1 of this title, a meeting of a governing 3 |
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197 | 197 | | body shall be open and held at a time and location as provided in the notice or bylaws. 4 |
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198 | 198 | | |
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199 | 199 | | (7) (i) This paragraph does not apply to any meeting of the governing 5 |
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200 | 200 | | body that occurs at any time before the meeting at which the unit owners elect officers or a 6 |
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201 | 201 | | board of directors in accordance with paragraph (16) of this subsection. 7 |
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202 | 202 | | |
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203 | 203 | | (ii) Subject to subparagraph (iii) of this paragraph and to reasonable 8 |
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204 | 204 | | rules adopted by the governing body under § 11–111 of this title, a governing body shall 9 |
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205 | 205 | | provide a designated period of time during a meeting to allow unit owners an opportunity 10 |
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206 | 206 | | to comment on any matter relating to the condominium. 11 |
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207 | 207 | | |
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208 | 208 | | (iii) During a meeting at which the agenda is limited to specific topics 12 |
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209 | 209 | | or at a special meeting, the unit owners’ comments may be limited to the topics listed on 13 |
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210 | 210 | | the meeting agenda. 14 |
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211 | 211 | | |
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212 | 212 | | (iv) The governing body shall convene at least one meeting each year 15 |
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213 | 213 | | at which the agenda is open to any matter relating to the condominium. 16 |
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214 | 214 | | |
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215 | 215 | | (8) (i) Unless the bylaws provide otherwise, a quorum is deemed 17 |
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216 | 216 | | present throughout any meeting of the council of unit owners if persons entitled to cast 25 18 |
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217 | 217 | | percent of the total number of votes appurtenant to all units are present in person or by 19 |
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218 | 218 | | proxy. 20 |
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219 | 219 | | |
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220 | 220 | | (ii) If the number of persons present in person or by proxy at a 21 |
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221 | 221 | | properly called meeting of the council of unit owners is insufficient to constitute a quorum, 22 |
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222 | 222 | | an additional meeting of the council of unit owners may be called for the same purpose if: 23 |
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223 | 223 | | |
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224 | 224 | | 1. The notice of the initial properly called meeting stated: 24 |
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225 | 225 | | |
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226 | 226 | | A. That the procedure authorized by this paragraph might be 25 |
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227 | 227 | | invoked; and 26 |
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228 | 228 | | |
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229 | 229 | | B. The date, time, and place of the additional meeting; and 27 |
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230 | 230 | | |
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231 | 231 | | 2. A majority of the unit owners present vote in person or by 28 |
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232 | 232 | | proxy to call for the additional meeting. 29 |
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233 | 233 | | |
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234 | 234 | | (iii) 1. An additional meeting called under subparagraph (ii) of 30 |
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235 | 235 | | this paragraph shall occur not less than 15 days after the initial properly called meeting. 31 |
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236 | 236 | | |
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237 | 237 | | 2. Not less than 10 days before the additional meeting, a 32 |
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238 | 238 | | separate and distinct notice of the date, time, place, and purpose of the additional meeting 33 |
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239 | 239 | | called under subparagraph (ii) of this paragraph shall be: 34 6 HOUSE BILL 299 |
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240 | 240 | | |
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241 | 241 | | |
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242 | 242 | | |
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243 | 243 | | A. Delivered, mailed, or sent by electronic transmission if the 1 |
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244 | 244 | | requirements of § 11–139.1 of this title are met, to each unit owner at the address shown 2 |
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245 | 245 | | on the roster maintained under paragraph (2) of this subsection; 3 |
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246 | 246 | | |
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247 | 247 | | B. Advertised in a newspaper published in the county where 4 |
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248 | 248 | | the condominium is located; or 5 |
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249 | 249 | | |
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250 | 250 | | C. If the condominium has a website, posted on the homepage 6 |
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251 | 251 | | of the website. 7 |
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252 | 252 | | |
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253 | 253 | | 3. The notice shall contain the quorum and voting provisions 8 |
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254 | 254 | | of subparagraph (iv) of this paragraph. 9 |
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255 | 255 | | |
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256 | 256 | | (iv) 1. At the additional meeting, the unit owners present in 10 |
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257 | 257 | | person or by proxy constitute a quorum. 11 |
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258 | 258 | | |
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259 | 259 | | 2. Unless the bylaws provide otherwise, a majority of the 12 |
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260 | 260 | | unit owners present in person or by proxy: 13 |
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261 | 261 | | |
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262 | 262 | | A. May approve or authorize the proposed action at the 14 |
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263 | 263 | | additional meeting; and 15 |
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264 | 264 | | |
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265 | 265 | | B. May take any other action that could have been taken at 16 |
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266 | 266 | | the original meeting if a sufficient number of unit owners had been present. 17 |
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267 | 267 | | |
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268 | 268 | | (v) This paragraph may not be construed to affect the percentage of 18 |
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269 | 269 | | votes required to amend the declaration or bylaws or to take any other action required to 19 |
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270 | 270 | | be taken by a specified percentage of votes. 20 |
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271 | 271 | | |
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272 | 272 | | (9) At meetings of the council of unit owners each unit owner shall be 21 |
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273 | 273 | | entitled to cast the number of votes appurtenant to his unit. Unit owners may vote by proxy, 22 |
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274 | 274 | | but the proxy is effective only for a maximum period of 180 days following its issuance, 23 |
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275 | 275 | | unless granted to a lessee or mortgagee. 24 |
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276 | 276 | | |
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277 | 277 | | (10) Any proxy may be revoked at any time at the pleasure of the unit owner 25 |
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278 | 278 | | or unit owners executing the proxy. 26 |
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279 | 279 | | |
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280 | 280 | | (11) A proxy who is not appointed to vote as directed by a unit owner may 27 |
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281 | 281 | | only be appointed for purposes of meeting quorums and to vote for matters of business 28 |
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282 | 282 | | before the council of unit owners, other than an election of officers and members of the 29 |
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283 | 283 | | board of directors. 30 |
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284 | 284 | | |
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285 | 285 | | (12) Only a unit owner voting in person or by electronic transmission if the 31 |
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286 | 286 | | requirements of § 11–139.2 of this title are met or a proxy voting for candidates designated 32 |
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287 | 287 | | by a unit owner may vote for officers and members of the board of directors. 33 |
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288 | 288 | | HOUSE BILL 299 7 |
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289 | 289 | | |
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290 | 290 | | |
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291 | 291 | | (13) Unless otherwise provided in the bylaws, a unit owner may nominate 1 |
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292 | 292 | | himself or any other person to be an officer or member of the board of directors. A call for 2 |
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293 | 293 | | nominations shall be sent to all unit owners not less than 45 days before notice of an election 3 |
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294 | 294 | | is sent. Only nominations made at least 15 days before notice of an election shall be listed 4 |
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295 | 295 | | on the election ballot. Candidates shall be listed on the ballot in alphabetical order, with 5 |
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296 | 296 | | no indicated candidate preference. Nominations may be made from the floor at the meeting 6 |
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297 | 297 | | at which the election to the board is held. 7 |
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298 | 298 | | |
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299 | 299 | | (14) Election materials prepared with funds of the council of unit owners 8 |
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300 | 300 | | shall list candidates in alphabetical order and may not indicate a candidate preference. 9 |
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301 | 301 | | |
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302 | 302 | | (15) Unless otherwise provided in this title, and subject to provisions in the 10 |
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303 | 303 | | bylaws requiring a different majority, decisions of the council of unit owners shall be made 11 |
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304 | 304 | | on a majority of votes of the unit owners listed on the current roster present and voting. 12 |
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305 | 305 | | |
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306 | 306 | | (16) (i) A meeting of the council of unit owners to elect a board of 13 |
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307 | 307 | | directors for the council of unit owners, as provided in the condominium declaration or 14 |
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308 | 308 | | bylaws, shall be held within: 15 |
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309 | 309 | | |
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310 | 310 | | 1. 60 days from the date that units representing 50 percent 16 |
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311 | 311 | | of the votes in the condominium have been conveyed by the developer to members of the 17 |
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312 | 312 | | public for residential purposes; or 18 |
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313 | 313 | | |
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314 | 314 | | 2. If a lesser percentage is specified in the declaration or 19 |
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315 | 315 | | bylaws of the condominium, 60 days from the date the specified lesser percentage of units 20 |
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316 | 316 | | in the condominium are sold to members of the public for residential purposes. 21 |
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317 | 317 | | |
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318 | 318 | | (ii) 1. Before the date of the meeting held under subparagraph 22 |
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319 | 319 | | (i) of this paragraph, the developer shall deliver to each unit owner notice that the 23 |
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320 | 320 | | requirements of subparagraph (i) of this paragraph have been met. 24 |
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321 | 321 | | |
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322 | 322 | | 2. The notice shall include the date, time, and place of the 25 |
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323 | 323 | | meeting to elect the board of directors for the council of unit owners. 26 |
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324 | 324 | | |
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325 | 325 | | (iii) If a replacement board member is elected, the term of each 27 |
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326 | 326 | | member of the board of directors appointed by the developer shall end 10 days after the 28 |
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327 | 327 | | meeting is held as specified in subparagraph (i) of this paragraph. 29 |
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328 | 328 | | |
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329 | 329 | | (iv) Within 30 days from the date of the meeting held under 30 |
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330 | 330 | | subparagraph (i) of this paragraph, the developer shall deliver to the officers or board of 31 |
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331 | 331 | | directors for the council of unit owners, as provided in the condominium declaration or 32 |
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332 | 332 | | bylaws, at the developer’s expense: 33 |
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333 | 333 | | |
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334 | 334 | | 1. The documents specified in § 11–132 of this title; 34 |
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335 | 335 | | |
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336 | 336 | | 2. The condominium funds, including operating funds, 35 |
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337 | 337 | | replacement reserves, investment accounts, and working capital; 36 8 HOUSE BILL 299 |
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338 | 338 | | |
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339 | 339 | | |
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340 | 340 | | |
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341 | 341 | | 3. The tangible property of the condominium; and 1 |
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342 | 342 | | |
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343 | 343 | | 4. A roster of current unit owners, including mailing 2 |
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344 | 344 | | addresses, telephone numbers, and unit numbers, if known. 3 |
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345 | 345 | | |
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346 | 346 | | (v) The replacement reserves delivered under subparagraph (iv)2 of 4 |
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347 | 347 | | this paragraph for a residential condominium shall be equal to at least the reserve funding 5 |
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348 | 348 | | amount recommended in the reserve study completed under § 11–109.4 of this title as of 6 |
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349 | 349 | | the date of the meeting. 7 |
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350 | 350 | | |
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351 | 351 | | (vi) 1. This subparagraph does not apply to a contract entered 8 |
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352 | 352 | | into before October 1, 2009. 9 |
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353 | 353 | | |
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354 | 354 | | 2. A. In this subparagraph, “contract” means an 10 |
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355 | 355 | | agreement with a company or individual to handle financial matters, maintenance, or 11 |
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356 | 356 | | services for the condominium. 12 |
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357 | 357 | | |
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358 | 358 | | B. “Contract” does not include an agreement relating to the 13 |
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359 | 359 | | provision of utility services or communication systems. 14 |
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360 | 360 | | |
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361 | 361 | | 3. Until all members of the board of directors of the 15 |
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362 | 362 | | condominium are elected by the unit owners at a transitional meeting as specified in 16 |
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363 | 363 | | subparagraph (i) of this paragraph, a contract entered into by the officers or board of 17 |
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364 | 364 | | directors of the condominium may be terminated, at the discretion of the board of directors 18 |
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365 | 365 | | and without liability for the termination, not later than 30 days after notice. 19 |
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366 | 366 | | |
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367 | 367 | | (vii) If the developer fails to comply with the requirements of this 20 |
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368 | 368 | | paragraph, an aggrieved unit owner may submit the dispute to the Division of Consumer 21 |
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369 | 369 | | Protection of the Office of the Attorney General under § 11–130(c) of this title. 22 |
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370 | 370 | | |
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371 | 371 | | [(d)] (E) The council of unit owners may be either incorporated as a nonstock 23 |
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372 | 372 | | corporation or unincorporated and it is subject to those provisions of Title 5, Subtitle 2 of 24 |
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373 | 373 | | the Corporations and Associations Article which are not inconsistent with this title. The 25 |
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374 | 374 | | council of unit owners has, subject to any provision of this title, and except as provided in 26 |
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375 | 375 | | item (22) of this subsection, the declaration, and bylaws, the following powers: 27 |
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376 | 376 | | |
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377 | 377 | | (1) To have perpetual existence, subject to the right of the unit owners to 28 |
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378 | 378 | | terminate the condominium regime as provided in § 11–123 of this title; 29 |
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379 | 379 | | |
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380 | 380 | | (2) To adopt and amend reasonable rules and regulations; 30 |
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381 | 381 | | |
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382 | 382 | | (3) To adopt and amend budgets for revenues, expenditures, and reserves 31 |
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383 | 383 | | and collect assessments for common expenses from unit owners; 32 |
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384 | 384 | | HOUSE BILL 299 9 |
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385 | 385 | | |
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386 | 386 | | |
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387 | 387 | | (4) To sue and be sued, complain and defend, or intervene in litigation or 1 |
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388 | 388 | | administrative proceedings in its own name on behalf of itself or two or more unit owners 2 |
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389 | 389 | | on matters affecting the condominium; 3 |
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390 | 390 | | |
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391 | 391 | | (5) To transact its business, carry on its operations and exercise the powers 4 |
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392 | 392 | | provided in this subsection in any state, territory, district, or possession of the United 5 |
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393 | 393 | | States and in any foreign country; 6 |
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394 | 394 | | |
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395 | 395 | | (6) To make contracts and guarantees, incur liabilities and borrow money, 7 |
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396 | 396 | | sell, mortgage, lease, pledge, exchange, convey, transfer, and otherwise dispose of any part 8 |
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397 | 397 | | of its property and assets; 9 |
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398 | 398 | | |
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399 | 399 | | (7) To issue bonds, notes, and other obligations and secure the same by 10 |
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400 | 400 | | mortgage or deed of trust of any part of its property, franchises, and income; 11 |
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401 | 401 | | |
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402 | 402 | | (8) To acquire by purchase or in any other manner, to take, receive, own, 12 |
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403 | 403 | | hold, use, employ, improve, and otherwise deal with any property, real or personal, or any 13 |
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404 | 404 | | interest therein, wherever located; 14 |
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405 | 405 | | |
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406 | 406 | | (9) To hire and terminate managing agents and other employees, agents, 15 |
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407 | 407 | | and independent contractors; 16 |
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408 | 408 | | |
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409 | 409 | | (10) To purchase, take, receive, subscribe for or otherwise acquire, own, 17 |
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410 | 410 | | hold, vote, use, employ, sell, mortgage, loan, pledge or otherwise dispose of, and otherwise 18 |
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411 | 411 | | use and deal in and with, shares or other interests in, or obligation of corporations of the 19 |
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412 | 412 | | State, or foreign corporations, and of associations, partnerships, and individuals; 20 |
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413 | 413 | | |
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414 | 414 | | (11) To invest its funds and to lend money in any manner appropriate to 21 |
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415 | 415 | | enable it to carry on the operations or to fulfill the purposes named in the declaration or 22 |
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416 | 416 | | bylaws, and to take and to hold real and personal property as security for the payment of 23 |
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417 | 417 | | funds so invested or loaned; 24 |
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418 | 418 | | |
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419 | 419 | | (12) To regulate the use, maintenance, repair, replacement, and 25 |
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420 | 420 | | modification of common elements; 26 |
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421 | 421 | | |
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422 | 422 | | (13) To cause additional improvements to be made as a part of the general 27 |
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423 | 423 | | common elements; 28 |
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424 | 424 | | |
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425 | 425 | | (14) To grant easements, rights–of–way, licenses, leases in excess of 1 year, 29 |
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426 | 426 | | or similar interests through or over the common elements in accordance with § 11–125(f) 30 |
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427 | 427 | | of this title; 31 |
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428 | 428 | | |
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429 | 429 | | (15) To impose and receive any payments, fees, or charges for the use, rental, 32 |
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430 | 430 | | or operation of the common elements other than limited common elements; 33 |
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431 | 431 | | 10 HOUSE BILL 299 |
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432 | 432 | | |
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433 | 433 | | |
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434 | 434 | | (16) To impose charges for late payment of assessments and, after notice 1 |
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435 | 435 | | and an opportunity to be heard, levy reasonable fines for violations of the declaration, 2 |
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436 | 436 | | bylaws, and rules and regulations of the council of unit owners, under § 11–113 of this title; 3 |
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437 | 437 | | |
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438 | 438 | | (17) To impose reasonable charges for the preparation and recordation of 4 |
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439 | 439 | | amendments to the declaration, bylaws, rules, regulations, or resolutions, resale 5 |
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440 | 440 | | certificates, or statements of unpaid assessments; 6 |
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441 | 441 | | |
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442 | 442 | | (18) To provide for the indemnification of and maintain liability insurance 7 |
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443 | 443 | | for officers, directors, and any managing agent or other employee charged with the 8 |
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444 | 444 | | operation or maintenance of the condominium; 9 |
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445 | 445 | | |
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446 | 446 | | (19) To enforce the implied warranties made to the council of unit owners by 10 |
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447 | 447 | | the developer under § 11–131 of this title; 11 |
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448 | 448 | | |
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449 | 449 | | (20) To enforce the provisions of this title, the declaration, bylaws, and rules 12 |
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450 | 450 | | and regulations of the council of unit owners against any unit owner or occupant; 13 |
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451 | 451 | | |
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452 | 452 | | (21) Generally, to exercise the powers set forth in this title and the 14 |
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453 | 453 | | declaration or bylaws and to do every other act not inconsistent with law, which may be 15 |
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454 | 454 | | appropriate to promote and attain the purposes set forth in this title, the declaration or 16 |
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455 | 455 | | bylaws; and 17 |
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456 | 456 | | |
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457 | 457 | | (22) To designate parking for individuals with disabilities, notwithstanding 18 |
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458 | 458 | | any provision in the declaration, bylaws, or rules and regulations. 19 |
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459 | 459 | | |
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460 | 460 | | [(e)] (F) A unit owner may not have any right, title, or interest in any property 20 |
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461 | 461 | | owned by the council of unit owners other than as holder of a percentage interest in common 21 |
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462 | 462 | | expenses and common profits appurtenant to his unit. 22 |
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463 | 463 | | |
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464 | 464 | | [(f)] (G) A unit owner’s rights as holder of a percentage interest in common 23 |
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465 | 465 | | expenses and common profits are such that: 24 |
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466 | 466 | | |
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467 | 467 | | (1) A unit owner’s right to possess, use, or enjoy property of the council of 25 |
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468 | 468 | | unit owners shall be as provided in the bylaws; and 26 |
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469 | 469 | | |
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470 | 470 | | (2) A unit owner’s interest in the property is not assignable or attachable 27 |
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471 | 471 | | separate from his unit except as provided in §§ 11–107(d) and 11–112(g) of this title. 28 |
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472 | 472 | | |
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473 | 473 | | 11B–106.1. 29 |
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474 | 474 | | |
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475 | 475 | | (a) A meeting of the members of the homeowners association to elect a governing 30 |
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476 | 476 | | body of the homeowners association shall be held within: 31 |
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477 | 477 | | |
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478 | 478 | | (1) 60 days from the date that at least 75% of the total number of lots that 32 |
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479 | 479 | | may be part of the development after all phases are complete are sold to members of the 33 |
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480 | 480 | | public for residential purposes; or 34 HOUSE BILL 299 11 |
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481 | 481 | | |
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482 | 482 | | |
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483 | 483 | | |
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484 | 484 | | (2) If a lesser percentage is specified in the governing documents of the 1 |
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485 | 485 | | homeowners association, 60 days from the date the specified lesser percentage of the total 2 |
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486 | 486 | | number of lots in the development after all phases are complete are sold to members of the 3 |
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487 | 487 | | public for residential purposes. 4 |
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488 | 488 | | |
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489 | 489 | | (G) (1) THIS SUBSECTION APPLI ES ONLY TO A MEMBER OF THE 5 |
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490 | 490 | | GOVERNING BODY OF A HOMEOWNERS ASSOCIATI ON THAT CONSISTS SOL ELY OF 6 |
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491 | 491 | | RESIDENTIAL FOR –SALE HOUSING WHO SER VES AFTER THE MEETIN G REQUIRED 7 |
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492 | 492 | | UNDER SUBSECTION (A) OF THIS SECTION. 8 |
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493 | 493 | | |
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494 | 494 | | (2) (I) EACH MEMBER OF THE GO VERNING BODY SHALL 9 |
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495 | 495 | | SUCCESSFULLY COMPLET E A TRAINING CURRICU LUM ON THE RESPONSIB ILITIES OF 10 |
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496 | 496 | | A MEMBER OF THE GOVE RNING BODY DEVELOPED BY: 11 |
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497 | 497 | | |
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498 | 498 | | 1. A COMMON OWNERSHIP COM MISSION RECOGNIZED 12 |
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499 | 499 | | BY THE STATE OR A LOCAL GOVE RNMENT; 13 |
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500 | 500 | | |
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501 | 501 | | 2. AN ORGANIZATION APPRO VED TO ADMINISTER TH E 14 |
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502 | 502 | | TRAINING CURRICULUM BY A RECOGNIZED COMM ON OWNERSHIP COMMISS ION; 15 |
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503 | 503 | | |
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504 | 504 | | 3. AN INSTITUTION ACCRED ITED BY THE MIDDLE 16 |
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505 | 505 | | STATES COMMISSION ON HIGHER EDUCATION; 17 |
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506 | 506 | | |
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507 | 507 | | 4. A MEMBERSHIP ORGANIZAT ION THAT OFFERS 18 |
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508 | 508 | | NATIONALLY RECOGNIZE D CERTIFICATION CRED ENTIALS FOR COMMUN ITY 19 |
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509 | 509 | | MANAGERS; OR 20 |
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510 | 510 | | |
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511 | 511 | | 5. A COUNTY WITH COURSEWO RK ESTABLISHED BY TH E 21 |
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512 | 512 | | COUNTY COMMON OWNERS HIP COMMISSION . 22 |
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513 | 513 | | |
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514 | 514 | | (II) A TRAINING CURRICULUM DEVELOPED UNDER THIS 23 |
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515 | 515 | | PARAGRAPH SHALL INCL UDE TRAINING ON : 24 |
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516 | 516 | | |
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517 | 517 | | 1. THE MARYLAND HOMEOWNERS ASSOCIATION ACT, 25 |
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518 | 518 | | THE MARYLAND CONDOMINIUM ACT, AND THE MARYLAND COOPERATIVE 26 |
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519 | 519 | | HOUSING CORPORATION ACT; 27 |
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520 | 520 | | |
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521 | 521 | | 2. ROLES AND RESPONSIBIL ITIES OF COMMON 28 |
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522 | 522 | | OWNERSHIP COMMUNITY GOVERNING BODIES ; 29 |
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523 | 523 | | |
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524 | 524 | | 3. FIDUCIARY DUTY ; 30 |
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525 | 525 | | |
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526 | 526 | | 4. RESPONSIBLE GOVERNANC E POLICIES; 31 |
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527 | 527 | | 12 HOUSE BILL 299 |
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528 | 528 | | |
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529 | 529 | | |
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530 | 530 | | 5. LEGAL STRUCTURES AND GUIDELINES; 1 |
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531 | 531 | | |
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532 | 532 | | 6. RESERVES AND AUDITS ; 2 |
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533 | 533 | | |
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534 | 534 | | 7. MEETING PROCEDURES AN D REQUIREMENTS ; 3 |
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535 | 535 | | |
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536 | 536 | | 8. HANDLING OF DISPUTES ; 4 |
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537 | 537 | | |
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538 | 538 | | 9. INSURANCE AND BONDING ; 5 |
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539 | 539 | | |
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540 | 540 | | 10. COMMUNITY MAINTENANCE ; 6 |
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541 | 541 | | |
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542 | 542 | | 11. RECORD KEEPING ; AND 7 |
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543 | 543 | | |
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544 | 544 | | 12. STATE AND LOCAL RESOU RCES FOR GOVERNING 8 |
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545 | 545 | | BODIES. 9 |
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546 | 546 | | |
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547 | 547 | | (3) EACH MEMBER OF THE GO VERNING BODY SHALL S UCCESSFULLY 10 |
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548 | 548 | | COMPLETE THE TRAININ G CURRICULUM REQUIRE D UNDER THIS SUBSECT ION 11 |
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549 | 549 | | WITHIN 90 DAYS AFTER THE INDIV IDUAL: 12 |
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550 | 550 | | |
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551 | 551 | | (I) IS FIRST ELECTED OR A PPOINTED TO THE GOVE RNING 13 |
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552 | 552 | | BODY; OR 14 |
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553 | 553 | | |
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554 | 554 | | (II) FOR A MEMBER WHO IS I N OFFICE ON OCTOBER 1, 2025, 15 |
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555 | 555 | | BEGINS A SUBSEQUENT TERM AS A MEMBER OF THE GOVERNING BODY . 16 |
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556 | 556 | | |
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557 | 557 | | (4) (I) THE GOVERNING BODY SH ALL: 17 |
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558 | 558 | | |
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559 | 559 | | 1. CERTIFY THAT EACH MEM BER SUCCESSFULLY 18 |
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560 | 560 | | COMPLETES THE TRAINI NG CURRICULUM REQUIR ED UNDER THIS SUBSEC TION; 19 |
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561 | 561 | | |
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562 | 562 | | 2. RETAIN A C OPY OF THE CERTIFICA TE OF 20 |
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563 | 563 | | COMPLETION OF EACH M EMBER; AND 21 |
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564 | 564 | | |
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565 | 565 | | 3. WITHIN 90 DAYS AFTER THE CERTI FICATION OF THE 22 |
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566 | 566 | | MEMBER, REPORT TO THE COMMON OWNERSHIP COMMISSION ON THE 23 |
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567 | 567 | | CERTIFICATION . 24 |
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568 | 568 | | |
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569 | 569 | | (II) A CERTIFICATE OF COMPL ETION ISSUED UNDER T HIS 25 |
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570 | 570 | | PARAGRAPH SHALL BE VALID FOR 3 YEARS. 26 |
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571 | 571 | | |
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572 | 572 | | (III) IF A MEMBER OF THE GO VERNING BODY REMAINS A 27 |
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573 | 573 | | MEMBER OF THE GOVERN ING BODY AT THE TIME THE CERTIFICATE EXPI RES, THE 28 HOUSE BILL 299 13 |
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574 | 574 | | |
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575 | 575 | | |
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576 | 576 | | MEMBER SHALL RENEW T HE CERTIFICATION BY SUCCESSFULLY COMPLET ING THE 1 |
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577 | 577 | | TRAINING REQUIRED UN DER THIS SUBSECTION . 2 |
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578 | 578 | | |
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579 | 579 | | (5) IF A MEMBER OF THE GO VERNING BODY DOES NO T 3 |
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580 | 580 | | SUCCESSFULLY COMPLET E THE TRAINING REQUI RED UNDER THIS SUBSE CTION, 4 |
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581 | 581 | | THE GOVERNING BODY M AY: 5 |
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582 | 582 | | |
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583 | 583 | | (I) REMOVE THE MEMBER FRO M THE GOVERNING BODY ; OR 6 |
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584 | 584 | | |
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585 | 585 | | (II) INVALIDATE A VOTE OF THE MEMBER . 7 |
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586 | 586 | | |
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587 | 587 | | [(g)] (H) If the declarant fails to comply with the requirements of this section, an 8 |
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588 | 588 | | aggrieved lot owner may submit the dispute to the Division of Consumer Protection of the 9 |
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589 | 589 | | Office of the Attorney General under § 11B–115(c) of this title. 10 |
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590 | 590 | | |
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591 | 591 | | SECTION 2. AND BE IT FURTHER ENA CTED, That this Act shall take effect 11 |
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592 | 592 | | October 1, 2025. 12 |
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593 | 593 | | |
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