EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0557*
HOUSE BILL 557
N1 5lr2684
HB 266/24 – ENT
By: Delegate Holmes
Introduced and read first time: January 23, 2025
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Residential Owners in Common Ownership Communities – Bill of Rights 2
FOR the purpose of establishing a bill of rights for unit owners of a condominium, members 3
of a cooperative housing corporation, and lot owners of a homeowners association; 4
and generally relating to residential owners in common ownership communities. 5
BY adding to 6
Article – Real Property 7
Section 1–105 8
Annotated Code of Maryland 9
(2023 Replacement Volume and 2024 Supplement) 10
Preamble 11
WHEREAS, The General Assembly authorized a Task Force on Common Ownership 12
Communities, or Task Force, under Chapter 469 of the Acts of 2005 and directed that Task 13
Force to study and prepare proposals for improving Maryland laws that relate to 14
communities that are governed as a common ownership community, including a 15
condominium, a cooperative housing corporation, or a homeowners association; and 16
WHEREAS, The Task Force concluded in 2006 that there was a marked increase in 17
interest nationwide in addressing issues between unit owners in a condominium, members 18
in a cooperative housing corporation, and lot owners in a homeowners association 19
(hereinafter, collectively, “residential owners”) and the governing bodies of such 20
communities, and that identifying and establishing a bill of rights for those residential 21
owners is an important objective; and 22
WHEREAS, The Uniform Law Commission recognized the need for a bill of rights 23
for residential owners and first approved a model bill of rights in 2008 for consideration by 24
the states; and 25
2 HOUSE BILL 557
WHEREAS, The Task Force completed its work in 2006, before the Uniform Law 1
Commission approved its first model bill of rights, and therefore the Task Force concluded 2
in its Final Report of December 31, 2006, that it would be prudent to wait on a final proposal 3
for a Maryland Bill of Rights until the model Uniform Law Commission Bill of Rights was 4
made available to the states; and 5
WHEREAS, The Task Force was informally reestablished during 2021 and diligently 6
drafted an updated bill of rights from the Uniform Law Commission, the Montgomery 7
County Commission on Common Ownership Communities, the Maryland Homeowners 8
Association, and other relevant sources; now, therefore, 9
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That the Laws of Maryland read as follows: 11
Article – Real Property 12
1–105. 13
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 14
INDICATED. 15
(2) “COMMON OWNERSHIP COMM UNITY” MEANS: 16
(I) A COOPERATIVE HOUSING CORPORATION AS DEFIN ED IN § 17
5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; 18
(II) A CONDOMINIUM AS DEFIN ED IN § 11–101 OF THIS ARTICLE; 19
OR 20
(III) A HOMEOWNERS ASSOCIATI ON AS DEFINED IN § 11B–101 OF 21
THIS ARTICLE. 22
(3) “GOVERNING DOCUMENTS ” MEANS ANY BYLAWS , COVENANTS, 23
DECLARATIONS, OR RULES OF A COMMON OWNERSHIP COMMUNITY . 24
(4) “LOT” HAS THE MEANING STAT ED IN § 11B–101 OF THIS ARTICLE. 25
(5) “RESIDENTIAL OWNER ” MEANS: 26
(I) A MEMBER AS DEFINED IN § 5–6B–01 OF THE 27
CORPORATIONS AND ASSOCIATIONS ARTICLE; 28
(II) A UNIT OWNER AS DEFINED IN § 11–101 OF THIS ARTICLE; 29
OR 30
HOUSE BILL 557 3
(III) A LOT OWNER. 1
(B) SUBJECT TO THE PROVIS IONS OF ALL APPLICAB LE LAWS GOVERNING 2
COMMON OWNERSHIP COM MUNITIES ESTABLISHED IN THE STATE, A RESIDENTIAL 3
OWNER IN A COMMON OW NERSHIP COMMUNITY HA S THE FOLLOWING RIGHTS : 4
(1) THE RIGHT: 5
(I) TO BE DESIGNATED AS A MEMBER OF A COMMON 6
OWNERSHIP COMMUNITY WHEN THE COMMUNITY M AKES THAT RESIDENTIA L 7
OWNER SUBJECT TO A L IEN AND TO A MANDATO RY ASSESSMENT ; AND 8
(II) TO PARTICIPATE IN MEE TINGS ON COMMUNITY ISSUES 9
WITH OTHER MEMBERS ; 10
(2) THE RIGHT TO BE REPRE SENTED BY THE GOVERN ING BODY OF 11
THE COMMON OWNERSHIP COMMUNITY AND TO HAV E THE GOVERNING BODY 12
CONSIDER THE PRIORIT IES OF ALL RESIDENTI AL OWNERS WHEN APPRO VING A 13
BUDGET AND MANAGING THE COMMUNITY ’S FACILITIES AND OPEN SPAC E; 14
(3) THE RIGHT TO AN ANNUA L BUDGET FOR THE COM MON 15
OWNERSHIP COMMUNITY , TO BE DELIVERED TO T HE RESIDENTIAL OWNER WITH THE 16
RESIDENTIAL OWNER ’S ANNUAL NOTICE OF A SSESSMENT FEES OWED TO THE 17
COMMON OWNERSHIP COM MUNITY, THAT PRIORITIZES SUPPORT FOR THE 18
FACILITIES AND SERVI CES AVAILABLE TO THE RESIDENTIAL OWNER IN THE 19
COMMON OWNERSHIP COM MUNITY; 20
(4) THE RIGHT TO USE ALL FACILITIES AND SERVI CES OF THE 21
COMMON OWNERSHIP COM MUNITY AT A REASONAB LE COST THAT DOES NO T EXCEED 22
HALF THE COST CHAR GED TO ELIGIBLE USER S WHO ARE NOT RESIDE NTIAL OWNERS 23
IN THE COMMON OWNERS HIP COMMUNITY ; 24
(5) THE RIGHT TO BE A MEM BER OF THE CLASS OF SOLE OR PRIMARY 25
USERS OF THE COMMON OWNERSHIP COMMUNITY ’S FACILITIES AND SER VICES IF 26
THERE IS SCARCE AVAI LABLE CAPACITY OF THESE FACILITIES AND SERVICES AND 27
TO BE PROVIDED WITH ADDITIONAL CAPACITY , TO THE EXTENT POSSIB LE, SO THAT 28
THE CLASS IS NOT DEN IED THE OPPORTUNITY TO USE THOSE FACILIT IES AND 29
SERVICES; 30
(6) THE RIGHT TO FAIR TRE ATMENT IN THE REPAYM ENT OF ANY 31
DEBT INCURRED BY THE COMMON O WNERSHIP COMMUNITY F OR MAJOR CAPITAL 32
PROJECTS OR OPERATIN G EXPENSES SO THAT P RESENT AND FUTURE RE SIDENTIAL 33
OWNERS HAVE A RELATI VELY EQUAL SHARE IN THE RESPONSIBILITY T O REPAY 34 4 HOUSE BILL 557
SUCH DEBT; 1
(7) THE RIGHT TO VOTE : 2
(I) BY SECRET BALLOT TO ELECT THE MEMBERS HIP OF THE 3
GOVERNING BODY FOR T HE COMMON OWNERSHIP COMMUNITY AND TO BE A 4
CANDIDATE IN FAIR EL ECTIONS ADMINISTERED BY NEUTRAL PARTIES , WITH 5
RESULTS THAT CAN BE VERIFIED BY AN AUDIT ON REQUEST; 6
(II) TO RECALL AN INCUMBEN T MEMBER OF T HE GOVERNING 7
BODY; 8
(III) ON CERTAIN FINANCIAL MATTERS, IF PERMITTED IN THE 9
GOVERNING DOCUMENTS OF THE COMMON OWNERS HIP COMMUNITY ; AND 10
(IV) ON NEW CAPITAL PROJEC TS PROPOSED BY THE G OVERNING 11
BODY, IF PERMITTED IN THE GOVERNING DOCUMENTS OF THE COMMON OWNERSHIP 12
COMMUNITY AND BY REF ERENDUM; 13
(8) THE RIGHT, WITH REGARD TO MEETI NGS AND ACTIVITIES O F THE 14
GOVERNING BODY FOR T HE COMMON OWNERSHIP COMMUNITY OR A COMMI TTEE OF 15
THE GOVERNING BODY : 16
(I) TO RECEIVE REASONABLE ADVANCE NOTICE OF AN Y OPEN 17
AND CLOSED MEETING S, INCLUDING ANY AGENDA FOR A MEETING AND AN Y 18
SUPPORTING INFORMATI ON; 19
(II) TO PARTICIPATE, EITHER IN PERSON OR THROUGH REMOTE 20
ACCESS, IN OPEN MEETINGS THA T ARE EASILY ACCESSI BLE TO THE RESIDENTI AL 21
OWNERS; AND 22
(III) TO A REASONABLE OPPORTUNITY TO SPEAK DURING A 23
TIMELY PERIOD WHEN M ATTERS ARE DISCUSSED OR VOTED ON BY THE G OVERNING 24
BODY OR COMMITTEE ; 25
(9) THE RIGHT TO HAVE A C OMMON OWNERSHIP COMM UNITY 26
GOVERNING BODY AND C OMMUNITY MANAGER THA T: 27
(I) ARE PROPERLY TRAINED AND INDEMNI FIED; 28
(II) ARE STEWARDS OF THE C OMMUNITY’S COMMON 29
INTERESTS; 30
HOUSE BILL 557 5
(III) ARE PROTECTIVE OF THE RIGHTS OF RESIDENTIA L OWNERS 1
IN THE COMMUNITY ; 2
(IV) PROVIDE RESIDENTIAL O WNERS DUE PROCESS AN D EQUAL 3
PROTECTION ; AND 4
(V) COMPLY AND FUNCTION I N ACCORDA NCE WITH STATE LAW 5
AND THE GOVERNING DO CUMENTS; 6
(10) THE RIGHT TO RECEIVE TIMELY ACCESS TO DOC UMENTS OF THE 7
COMMON OWNERSHIP COM MUNITY, INCLUDING THE ABILIT Y TO INSPECT AND COP Y 8
SUCH DOCUMENTS ; 9
(11) THE RIGHT TO RECEIVE PROMPT AND NONDISCRI MINATORY 10
SERVICE FROM THE STA FF AND GOVERNING BOD Y OF THE COMMON OWNE RSHIP 11
COMMUNITY ; 12
(12) THE RIGHT TO INDIVIDU AL PRIVACY BY THE GO VERNANCE AND 13
MANAGEMENT OF THE CO MMON OWNERSHIP COMMU NITY; 14
(13) THE RIGHT TO FAIR TRE ATMENT IF CHARGED WI TH A VIOLATION 15
OF THE GOVERNING DOCUMENTS , INCLUDING THE OPPORT UNITY: 16
(I) TO BE NOTIFIED IN WRI TING ABOUT THE NATUR E OF THE 17
VIOLATION; 18
(II) TO PRESENT EVIDENCE A ND CROSS–EXAMINE WITNESSES 19
AT A PROPER HEARING ; AND 20
(III) TO ABATE THE VIOLATIO N WITHIN A REASONABL E AMOUNT 21
OF TIME; 22
(14) THE RIGHT: 23
(I) TO BE INFORMED BY THE GOVERNING BODY OF TH E 24
COMMON OWNERSHIP COM MUNITY OF PROPOSED C HANGES TO EXISTING 25
GOVERNING DOCUMENTS OR POLICIES; AND 26
(II) TO VOTE TO APPROVE AN Y CHANGES OF THE TYP E 27
IDENTIFIED IN ITEM (I) OF THIS ITEM AND HAV E THOSE CHANGES PROP ERLY 28
ADOPTED AND PUBLISHE D; AND 29
(15) THE RIGHT TO HAVE THE CONSUMER PROTECTION DIVISION OF 30 6 HOUSE BILL 557
THE MARYLAND OFFICE OF THE ATTORNEY GENERAL: 1
(I) REVIEW ALLEGED VIOLAT IONS OF STATE LAWS THAT 2
GOVERN COMMON OWNERS HIP COMMUNITIES ; AND 3
(II) TAKE DIRECT ENFORCEME NT ACTIONS ON BEHALF OF A 4
RESIDENTIAL OWNER , INCLUDING BY ACTING TO RECEIVE AN ADJUDI CATION OF 5
THE MATTER BEFORE A COURT OR THE IMPOSIT ION OF PENALTIES BY THE 6
MARYLAND OFFICE OF THE ATTORNEY GENERAL. 7
(C) THE LISTING OF RIGHTS IN SUBSECTION (B) OF THIS SECTION MAY NOT 8
BE CONSTRUED TO DENY OR DETRACT FROM OTHE R RIGHTS THAT MAY BE RETAINED 9
BY RESIDENTIAL OWNER S IN A COMMON OWNERS HIP COMMUNITY . 10
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take e ffect 11
October 1, 2025. 12