Maryland 2025 Regular Session

Maryland House Bill HB557 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0557
6	6
7	7	HOUSE BILL 557
8	8	N1 5lr2684
9	9	HB 266/24 – ENT
10	10	By: Delegate Holmes
11	11	Introduced and read first time: January 23, 2025
12	12	Assigned to: Environment and Transportation
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Residential Owners in Common Ownership Communities – Bill of Rights 2
19	19
20	20	FOR the purpose of establishing a bill of rights for unit owners of a condominium, members 3
21	21	of a cooperative housing corporation, and lot owners of a homeowners association; 4
22	22	and generally relating to residential owners in common ownership communities. 5
23	23
24	24	BY adding to 6
25	25	Article – Real Property 7
26	26	Section 1–105 8
27	27	Annotated Code of Maryland 9
28	28	(2023 Replacement Volume and 2024 Supplement) 10
29	29
30	30	Preamble 11
31	31
32	32	WHEREAS, The General Assembly authorized a Task Force on Common Ownership 12
33	33	Communities, or Task Force, under Chapter 469 of the Acts of 2005 and directed that Task 13
34	34	Force to study and prepare proposals for improving Maryland laws that relate to 14
35	35	communities that are governed as a common ownership community, including a 15
36	36	condominium, a cooperative housing corporation, or a homeowners association; and 16
37	37
38	38	WHEREAS, The Task Force concluded in 2006 that there was a marked increase in 17
39	39	interest nationwide in addressing issues between unit owners in a condominium, members 18
40	40	in a cooperative housing corporation, and lot owners in a homeowners association 19
41	41	(hereinafter, collectively, “residential owners”) and the governing bodies of such 20
42	42	communities, and that identifying and establishing a bill of rights for those residential 21
43	43	owners is an important objective; and 22
44	44
45	45	WHEREAS, The Uniform Law Commission recognized the need for a bill of rights 23
46	46	for residential owners and first approved a model bill of rights in 2008 for consideration by 24
47	47	the states; and 25
48	48	2 HOUSE BILL 557
49	49
50	50
51	51	WHEREAS, The Task Force completed its work in 2006, before the Uniform Law 1
52	52	Commission approved its first model bill of rights, and therefore the Task Force concluded 2
53	53	in its Final Report of December 31, 2006, that it would be prudent to wait on a final proposal 3
54	54	for a Maryland Bill of Rights until the model Uniform Law Commission Bill of Rights was 4
55	55	made available to the states; and 5
56	56
57	57	WHEREAS, The Task Force was informally reestablished during 2021 and diligently 6
58	58	drafted an updated bill of rights from the Uniform Law Commission, the Montgomery 7
59	59	County Commission on Common Ownership Communities, the Maryland Homeowners 8
60	60	Association, and other relevant sources; now, therefore, 9
61	61
62	62	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
63	63	That the Laws of Maryland read as follows: 11
64	64
65	65	Article – Real Property 12
66	66
67	67	1–105. 13
68	68
69	69	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 14
70	70	INDICATED. 15
71	71
72	72	(2) “COMMON OWNERSHIP COMM UNITY” MEANS: 16
73	73
74	74	(I) A COOPERATIVE HOUSING CORPORATION AS DEFIN ED IN § 17
75	75	5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; 18
76	76
77	77	(II) A CONDOMINIUM AS DEFIN ED IN § 11–101 OF THIS ARTICLE; 19
78	78	OR 20
79	79
80	80	(III) A HOMEOWNERS ASSOCIATI ON AS DEFINED IN § 11B–101 OF 21
81	81	THIS ARTICLE. 22
82	82
83	83	(3) “GOVERNING DOCUMENTS ” MEANS ANY BYLAWS , COVENANTS, 23
84	84	DECLARATIONS, OR RULES OF A COMMON OWNERSHIP COMMUNITY . 24
85	85
86	86	(4) “LOT” HAS THE MEANING STAT ED IN § 11B–101 OF THIS ARTICLE. 25
87	87
88	88	(5) “RESIDENTIAL OWNER ” MEANS: 26
89	89
90	90	(I) A MEMBER AS DEFINED IN § 5–6B–01 OF THE 27
91	91	CORPORATIONS AND ASSOCIATIONS ARTICLE; 28
92	92
93	93	(II) A UNIT OWNER AS DEFINED IN § 11–101 OF THIS ARTICLE; 29
94	94	OR 30
95	95	HOUSE BILL 557 3
96	96
97	97
98	98	(III) A LOT OWNER. 1
99	99
100	100	(B) SUBJECT TO THE PROVIS IONS OF ALL APPLICAB LE LAWS GOVERNING 2
101	101	COMMON OWNERSHIP COM MUNITIES ESTABLISHED IN THE STATE, A RESIDENTIAL 3
102	102	OWNER IN A COMMON OW NERSHIP COMMUNITY HA S THE FOLLOWING RIGHTS : 4
103	103
104	104	(1) THE RIGHT: 5
105	105
106	106	(I) TO BE DESIGNATED AS A MEMBER OF A COMMON 6
107	107	OWNERSHIP COMMUNITY WHEN THE COMMUNITY M AKES THAT RESIDENTIA L 7
108	108	OWNER SUBJECT TO A L IEN AND TO A MANDATO RY ASSESSMENT ; AND 8
109	109
110	110	(II) TO PARTICIPATE IN MEE TINGS ON COMMUNITY ISSUES 9
111	111	WITH OTHER MEMBERS ; 10
112	112
113	113	(2) THE RIGHT TO BE REPRE SENTED BY THE GOVERN ING BODY OF 11
114	114	THE COMMON OWNERSHIP COMMUNITY AND TO HAV E THE GOVERNING BODY 12
115	115	CONSIDER THE PRIORIT IES OF ALL RESIDENTI AL OWNERS WHEN APPRO VING A 13
116	116	BUDGET AND MANAGING THE COMMUNITY ’S FACILITIES AND OPEN SPAC E; 14
117	117
118	118	(3) THE RIGHT TO AN ANNUA L BUDGET FOR THE COM MON 15
119	119	OWNERSHIP COMMUNITY , TO BE DELIVERED TO T HE RESIDENTIAL OWNER WITH THE 16
120	120	RESIDENTIAL OWNER ’S ANNUAL NOTICE OF A SSESSMENT FEES OWED TO THE 17
121	121	COMMON OWNERSHIP COM MUNITY, THAT PRIORITIZES SUPPORT FOR THE 18
122	122	FACILITIES AND SERVI CES AVAILABLE TO THE RESIDENTIAL OWNER IN THE 19
123	123	COMMON OWNERSHIP COM MUNITY; 20
124	124
125	125	(4) THE RIGHT TO USE ALL FACILITIES AND SERVI CES OF THE 21
126	126	COMMON OWNERSHIP COM MUNITY AT A REASONAB LE COST THAT DOES NO T EXCEED 22
127	127	HALF THE COST CHAR GED TO ELIGIBLE USER S WHO ARE NOT RESIDE NTIAL OWNERS 23
128	128	IN THE COMMON OWNERS HIP COMMUNITY ; 24
129	129
130	130	(5) THE RIGHT TO BE A MEM BER OF THE CLASS OF SOLE OR PRIMARY 25
131	131	USERS OF THE COMMON OWNERSHIP COMMUNITY ’S FACILITIES AND SER VICES IF 26
132	132	THERE IS SCARCE AVAI LABLE CAPACITY OF THESE FACILITIES AND SERVICES AND 27
133	133	TO BE PROVIDED WITH ADDITIONAL CAPACITY , TO THE EXTENT POSSIB LE, SO THAT 28
134	134	THE CLASS IS NOT DEN IED THE OPPORTUNITY TO USE THOSE FACILIT IES AND 29
135	135	SERVICES; 30
136	136
137	137	(6) THE RIGHT TO FAIR TRE ATMENT IN THE REPAYM ENT OF ANY 31
138	138	DEBT INCURRED BY THE COMMON O WNERSHIP COMMUNITY F OR MAJOR CAPITAL 32
139	139	PROJECTS OR OPERATIN G EXPENSES SO THAT P RESENT AND FUTURE RE SIDENTIAL 33
140	140	OWNERS HAVE A RELATI VELY EQUAL SHARE IN THE RESPONSIBILITY T O REPAY 34 4 HOUSE BILL 557
141	141
142	142
143	143	SUCH DEBT; 1
144	144
145	145	(7) THE RIGHT TO VOTE : 2
146	146
147	147	(I) BY SECRET BALLOT TO ELECT THE MEMBERS HIP OF THE 3
148	148	GOVERNING BODY FOR T HE COMMON OWNERSHIP COMMUNITY AND TO BE A 4
149	149	CANDIDATE IN FAIR EL ECTIONS ADMINISTERED BY NEUTRAL PARTIES , WITH 5
150	150	RESULTS THAT CAN BE VERIFIED BY AN AUDIT ON REQUEST; 6
151	151
152	152	(II) TO RECALL AN INCUMBEN T MEMBER OF T HE GOVERNING 7
153	153	BODY; 8
154	154
155	155	(III) ON CERTAIN FINANCIAL MATTERS, IF PERMITTED IN THE 9
156	156	GOVERNING DOCUMENTS OF THE COMMON OWNERS HIP COMMUNITY ; AND 10
157	157
158	158	(IV) ON NEW CAPITAL PROJEC TS PROPOSED BY THE G OVERNING 11
159	159	BODY, IF PERMITTED IN THE GOVERNING DOCUMENTS OF THE COMMON OWNERSHIP 12
160	160	COMMUNITY AND BY REF ERENDUM; 13
161	161
162	162	(8) THE RIGHT, WITH REGARD TO MEETI NGS AND ACTIVITIES O F THE 14
163	163	GOVERNING BODY FOR T HE COMMON OWNERSHIP COMMUNITY OR A COMMI TTEE OF 15
164	164	THE GOVERNING BODY : 16
165	165
166	166	(I) TO RECEIVE REASONABLE ADVANCE NOTICE OF AN Y OPEN 17
167	167	AND CLOSED MEETING S, INCLUDING ANY AGENDA FOR A MEETING AND AN Y 18
168	168	SUPPORTING INFORMATI ON; 19
169	169
170	170	(II) TO PARTICIPATE, EITHER IN PERSON OR THROUGH REMOTE 20
171	171	ACCESS, IN OPEN MEETINGS THA T ARE EASILY ACCESSI BLE TO THE RESIDENTI AL 21
172	172	OWNERS; AND 22
173	173
174	174	(III) TO A REASONABLE OPPORTUNITY TO SPEAK DURING A 23
175	175	TIMELY PERIOD WHEN M ATTERS ARE DISCUSSED OR VOTED ON BY THE G OVERNING 24
176	176	BODY OR COMMITTEE ; 25
177	177
178	178	(9) THE RIGHT TO HAVE A C OMMON OWNERSHIP COMM UNITY 26
179	179	GOVERNING BODY AND C OMMUNITY MANAGER THA T: 27
180	180
181	181	(I) ARE PROPERLY TRAINED AND INDEMNI FIED; 28
182	182
183	183	(II) ARE STEWARDS OF THE C OMMUNITY’S COMMON 29
184	184	INTERESTS; 30
185	185	HOUSE BILL 557 5
186	186
187	187
188	188	(III) ARE PROTECTIVE OF THE RIGHTS OF RESIDENTIA L OWNERS 1
189	189	IN THE COMMUNITY ; 2
190	190
191	191	(IV) PROVIDE RESIDENTIAL O WNERS DUE PROCESS AN D EQUAL 3
192	192	PROTECTION ; AND 4
193	193
194	194	(V) COMPLY AND FUNCTION I N ACCORDA NCE WITH STATE LAW 5
195	195	AND THE GOVERNING DO CUMENTS; 6
196	196
197	197	(10) THE RIGHT TO RECEIVE TIMELY ACCESS TO DOC UMENTS OF THE 7
198	198	COMMON OWNERSHIP COM MUNITY, INCLUDING THE ABILIT Y TO INSPECT AND COP Y 8
199	199	SUCH DOCUMENTS ; 9
200	200
201	201	(11) THE RIGHT TO RECEIVE PROMPT AND NONDISCRI MINATORY 10
202	202	SERVICE FROM THE STA FF AND GOVERNING BOD Y OF THE COMMON OWNE RSHIP 11
203	203	COMMUNITY ; 12
204	204
205	205	(12) THE RIGHT TO INDIVIDU AL PRIVACY BY THE GO VERNANCE AND 13
206	206	MANAGEMENT OF THE CO MMON OWNERSHIP COMMU NITY; 14
207	207
208	208	(13) THE RIGHT TO FAIR TRE ATMENT IF CHARGED WI TH A VIOLATION 15
209	209	OF THE GOVERNING DOCUMENTS , INCLUDING THE OPPORT UNITY: 16
210	210
211	211	(I) TO BE NOTIFIED IN WRI TING ABOUT THE NATUR E OF THE 17
212	212	VIOLATION; 18
213	213
214	214	(II) TO PRESENT EVIDENCE A ND CROSS–EXAMINE WITNESSES 19
215	215	AT A PROPER HEARING ; AND 20
216	216
217	217	(III) TO ABATE THE VIOLATIO N WITHIN A REASONABL E AMOUNT 21
218	218	OF TIME; 22
219	219
220	220	(14) THE RIGHT: 23
221	221
222	222	(I) TO BE INFORMED BY THE GOVERNING BODY OF TH E 24
223	223	COMMON OWNERSHIP COM MUNITY OF PROPOSED C HANGES TO EXISTING 25
224	224	GOVERNING DOCUMENTS OR POLICIES; AND 26
225	225
226	226	(II) TO VOTE TO APPROVE AN Y CHANGES OF THE TYP E 27
227	227	IDENTIFIED IN ITEM (I) OF THIS ITEM AND HAV E THOSE CHANGES PROP ERLY 28
228	228	ADOPTED AND PUBLISHE D; AND 29
229	229
230	230	(15) THE RIGHT TO HAVE THE CONSUMER PROTECTION DIVISION OF 30 6 HOUSE BILL 557
231	231
232	232
233	233	THE MARYLAND OFFICE OF THE ATTORNEY GENERAL: 1
234	234
235	235	(I) REVIEW ALLEGED VIOLAT IONS OF STATE LAWS THAT 2
236	236	GOVERN COMMON OWNERS HIP COMMUNITIES ; AND 3
237	237
238	238	(II) TAKE DIRECT ENFORCEME NT ACTIONS ON BEHALF OF A 4
239	239	RESIDENTIAL OWNER , INCLUDING BY ACTING TO RECEIVE AN ADJUDI CATION OF 5
240	240	THE MATTER BEFORE A COURT OR THE IMPOSIT ION OF PENALTIES BY THE 6
241	241	MARYLAND OFFICE OF THE ATTORNEY GENERAL. 7
242	242
243	243	(C) THE LISTING OF RIGHTS IN SUBSECTION (B) OF THIS SECTION MAY NOT 8
244	244	BE CONSTRUED TO DENY OR DETRACT FROM OTHE R RIGHTS THAT MAY BE RETAINED 9
245	245	BY RESIDENTIAL OWNER S IN A COMMON OWNERS HIP COMMUNITY . 10
246	246
247	247	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take e ffect 11
248	248	October 1, 2025. 12
249	249