EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0558*
HOUSE BILL 558
N1 5lr2687
HB 279/24 – ENT
By: Delegate Holmes
Introduced and read first time: January 23, 2025
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Common Ownership Communities – Local Commissions 2
FOR the purpose of establishing requirements for a local commission on common ownership 3
communities established by the local government of a county; and generally relating 4
to the regulation of common ownership communities 5
BY adding to 6
Article – Real Property 7
Section 11C–101 through 11C–114 to be under the new title “Title 11C. Local 8
Commissions on Common Ownership Communities” 9
Annotated Code of Maryland 10
(2023 Replacement Volume and 2024 Supplement) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Real Property 14
TITLE 11C. LOCAL COMMISSIONS ON COMMON OWNERSHIP COMMUNITIES . 15
11C–101. 16
(A) IN THIS TITLE THE FOLLOWI NG WORDS HAVE THE ME ANINGS 17
INDICATED. 18
(B) “COMMON ELEMENT ” MEANS: 19
(1) ANY PORTION OF A COMM ON OWNERSHIP COMMUNI TY OTHER 20
THAN THE UNITS OF A CONDOMINIUM OR COOPE RATIVE; AND 21
2 HOUSE BILL 558
(2) PROPERTY THAT IS OWNE D OR LEASED BY A HOM EOWNERS 1
ASSOCIATION. 2
(C) (1) “COMMON OWNERSHIP COMM UNITY” MEANS: 3
(I) A CONDOMINIUM AS DEFIN ED IN § 11–101 OF THIS ARTICLE 4
THAT IS USED FOR RES IDENTIAL PURPOSES ; 5
(II) A COOPERATIVE HOUSING CORPORATION AS DEFIN ED IN § 6
5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; AND 7
(III) A HOMEOWNERS ASSOCIATI ON AS DEFINED IN § 11B–101 OF 8
THIS ARTICLE. 9
(2) “COMMON OWNERSHIP COMM UNITY” DOES NOT INCLUDE A 10
TIME–SHARE PROJECT AS DEF INED IN § 11A–101 OF THIS ARTICLE. 11
(D) (1) “DISPUTE” MEANS A DISAGREEME NT BETWEEN AT LEAST TWO 12
PARTIES THAT INVOLVE S: 13
(I) THE AUTHORITY OF A GO VERNING BODY OF A CO MMON 14
OWNERSHIP COMMUNITY TO: 15
1. REQUIRE OR PROHIBIT A NY ACTION INVOLVING A 16
UNIT OR COMMON ELEME NT; 17
2. REQUIRE ANY PERSON TO PAY A FEE, A FINE, OR AN 18
ASSESSMENT; 19
3. SPEND COMMON OWNERSHI P COMMUNITY FUNDS ; OR 20
4. ALTER OR ADD TO A COM MON ELEMENT ; OR 21
(II) THE FAILURE OF A GOVE RNING BODY OF A COMM ON 22
OWNERSHIP COMMUNITY TO: 23
1. PROPERLY CONDUCT AN E LECTION; 24
2. GIVE ADEQUATE NOTICE OF A MEETING OR OTHER 25
ACTION; 26
3. PROPERLY CONDUCT A ME ETING; 27
HOUSE BILL 558 3
4. PROPERLY ADOPT A BUDG ET OR RULES; 1
5. MAINTAIN OR AUDIT BOO KS AND RECORDS ; 2
6. ALLOW INSPECTION OF B OOKS AND RECORDS ; 3
7. MAINTAIN OR REPAIR A COMMON ELEMENT IF TH E 4
FAILURE RESULTS IN SIGNIFICA NT PERSONAL INJURY O R PROPERTY DAMAGE ; OR 5
8. EXERCISE ITS JUDGMENT IN GOOD FAITH 6
CONCERNING THE ENFOR CEMENT OF THE ASSOCI ATION DOCUMENTS AGAI NST ANY 7
PERSON THAT IS SUBJE CT TO THOSE DOCUMENT S. 8
(2) “DISPUTE” DOES NOT INCLUDE A D ISAGREEMENT THAT 9
INVOLVES: 10
(I) TITLE TO ANY UNIT OR COMMON ELEMENT ; 11
(II) THE PERCENTAGE INTERE ST OR VOTE ALLOCABLE TO A 12
UNIT; 13
(III) THE INTERPRETATION OR ENFORCEMENT OF ANY 14
WARRANTY; 15
(IV) THE COLLECTION OF AN ASSESSMENT VALIDLY L EVIED 16
AGAINST A PARTY; OR 17
(V) THE EXERCISE OF THE J UDGMENT OR DISCRETIO N OF A 18
GOVERNING BODY OF A COMMON OWNERSHIP COM MUNITY REGARDING ANY 19
LEGALLY AUTHORIZED A CTION. 20
(E) “GOVERNING BODY OF A C OMMON OWNERSHIP COMM UNITY” MEANS: 21
(1) THE COUNCIL OF UNIT O WNERS OF A CONDOMINIUM ; 22
(2) THE BOARD OF DIRECTOR S OF A COOPERATIVE H OUSING 23
CORPORATION ; 24
(3) A HOMEOWNERS ASSOCIATI ON, BOARD OF DIRECTORS , OR OTHER 25
ENTITY ESTABLISHED T O GOVERN A PROPERTY SUBJECT TO AN INSTRU MENT THAT 26
IMPOSES ON LOTS , OR ON THE OWNERS OR OCCUPANTS OF LOTS , ANY MANDATORY 27
FEE IN CONNECTION WI TH THE PROVISION OF SERVICES OR OTHERWIS E FOR THE 28
BENEFIT OF SOME OR A LL OF THE LOTS; OR 29 4 HOUSE BILL 558
(4) ANY OTHER BODY AUTHOR IZED TO ADOPT RULES OR 1
REGULATIONS GOVERNIN G A CONDOMINIUM , COOPERATIVE HOUSING 2
CORPORATION, OR HOMEOWNERS ASSOCI ATION. 3
(F) (1) “GOVERNING DOCUMENT ” MEANS: 4
(I) THE MASTER DEED , DECLARATION , INCORPORATION 5
DOCUMENT , BYLAWS, OR RULES OF ANY COMM ON OWNERSHIP COMMUNI TY; 6
(II) A WRITTEN PRIVATE AGRE EMENT BETWEEN PARTIE S 7
CONCERNING THE OP ERATION OF THE COMMU NITY OR MAINTENANCE OR CONTROL 8
OF COMMON OR LIMITED COMMON PROPERTY ; OR 9
(III) A DOCUMENT CONCERNING THE OPERATION OR 10
GOVERNANCE OF A COMM ON OWNERSHIP COMMUNI TY. 11
(2) “GOVERNING DOCUMENT ” DOES NOT INCLUDE A L EASE UNLESS 12
THE LEASE PROVIDES THAT IT MAY BE ENFORCED UNDER TH IS TITLE. 13
(G) “LOCAL COMMISSION ” MEANS A COMMISSION O N COMMON OWNERSHIP 14
COMMUNITIES ESTABLIS HED BY A COUNTY IN A CCORDANCE WITH THIS TITLE. 15
(H) “LOCAL GOVERNMENT ” MEANS: 16
(1) THE COUNTY COMMISSION ERS OR COUNTY COUNCIL OF A 17
COUNTY; 18
(2) IF THE CHARTER OF THE COUNTY PROVIDES FOR A COUNTY 19
EXECUTIVE, THE COUNTY EXECUTIVE AND THE COUNTY COUNC IL; OR 20
(3) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY. 21
(I) “OWNER” MEANS: 22
(1) A UNIT OWNER IN A COND OMINIUM; 23
(2) A MEMBER OF A COOPERAT IVE HOUSING CORPORAT ION; OR 24
(3) A LOT OWNER IN A HOMEO WNERS ASSOCIATION . 25
11C–102. 26
HOUSE BILL 558 5
THE PROVISIONS OF THI S TITLE SUPERSEDE AN Y INCONSISTENT PROVI SIONS 1
OF LOCAL LAW THAT CO NFLICT WITH THIS TIT LE TO THE EXTENT OF THE CONFLICT. 2
11C–103. 3
(A) A LOCAL COMMISSION ON COMMON OWNERSHIP COM MUNITIES 4
ESTABLISHED BY THE L OCAL GOVERNMENT OF A COUNTY BY LOCAL LAW SHALL 5
COMPLY WITH THE REQU IREMENTS OF THIS TIT LE. 6
(B) (1) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 7
LOCAL COMMISSION S HALL INCLUDE MEMBERS WHO: 8
1. ARE OWNERS IN A COMMO N OWNERSHIP COMMUNIT Y; 9
AND 10
2. REPRESENT PROFESSIONS ASSOCIATED WITH 11
COMMON OWNERSHIP COM MUNITIES, INCLUDING INDIVIDUAL S INVOLVED IN 12
HOUSING DEVELOPMENT OR REAL ESTATE SALES , DEVELOPERS , OR ATTORNE YS 13
WHO REPRESENT COMMON OWNERSHIP COMMUNITIE S, INCLUDING AT LEAST O NE 14
MEMBER WHO IS A LICE NSED COMMON OWNERSHI P COMMUNITY MANAGER . 15
(II) THE LOCAL GOVERNMENT SHALL DETERMINE THE TOTAL 16
NUMBER OF MEMBERS OF THE LOCAL COMMISSION . 17
(2) THE FOLLOWING INDIV IDUALS SHALL SERVE A S NONVOTING 18
MEMBERS OF A LOCAL C OMMISSION: 19
(I) A DESIGNEE OF THE LOCA L GOVERNMENT ; AND 20
(II) A DESIGNEE OF A COUNTY AGENCY DEALING WITH : 21
1. PLANNING; 22
2. ENVIRONMENT ; 23
3. PERMITTING; 24
4. TRANSPORTATION ; OR 25
5. HOUSING AND COMMUNITY AFFAIRS. 26
(C) THE CHAIR AND VICE CH AIR OF A LOCAL COMMI SSION SHALL BE 27
ELECTED FROM AMONG T HE VOTING MEMBERSHIP OF THE LOCAL COMMISS ION. 28 6 HOUSE BILL 558
(D) (1) SUBJECT TO THE REQUIR EMENTS OF PARAGRAPH (2) OF THIS 1
SUBSECTION, A LOCAL GOVERNMENT ESTABLISHING A LOCAL COMMISSION SHALL 2
ADOPT PROCEDURES FOR THE APPOINTMENT AND TERMS OF MEMBERS OF THE 3
LOCAL COMMISSION . 4
(2) A MEMBER OF A LOCAL CO MMISSION MAY NOT SER VE MORE THAN 5
TWO CONSECUTIVE TERM S. 6
11C–104. 7
(A) A MAJORITY OF THE TOTA L MEMBERSHIP OF A LOCAL COMMISSIO N 8
SHALL CONSTITUTE A Q UORUM. 9
(B) A LOCAL COMMISSION SHA LL MEET AT LEAST MON THLY AND 10
DETERMINE THE TIMES AND PLACES OF ITS ME ETINGS. 11
(C) A MEMBER OF A LOCAL CO MMISSION: 12
(1) MAY NOT RECEIVE COMPE NSATION AS A MEMBER OF THE LOCAL 13
COMMISSION; BUT 14
(2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE 15
STANDARD COUNTY TRAV EL REGULATIONS . 16
(D) (1) A LOCAL COMMISSION SHA LL: 17
(I) ADOPT RULES OF PROFES SIONAL CONDUCT AS 18
APPROPRIATE FOR MEMB ERS AND STAFF; 19
(II) KEEP A RECORD OF ITS PROCEEDINGS ; 20
(III) EXAMINE THE NEEDS OF COMMON OWNERSHIP 21
COMMUNITIES IN THE C OUNTY; 22
(IV) ADVISE COUNTY GOVERNM ENT AND APPROPRIATE STATE 23
AND FEDERAL AGENCIES ON MATTERS RELATING TO COMMON OWNERSHIP 24
COMMUNITIES ; AND 25
(V) PROVIDE TRAINING ON T HE RESPONSIBILITIES OF A LOCAL 26
COMMISSION’S MEMBERS TO THE GOV ERNING BODY OF A COM MON OWNERSHIP 27
COMMUNITY BY : 28
HOUSE BILL 558 7
1. DEVELOPING AN EDUCATI ONAL CURRICULUM FOR 1
NEW MEMBERS ; AND 2
2. APPROVING AN ALTERNAT IVE EDUCATIONAL 3
CURRICULUM FOR NEW M EMBERS. 4
(2) A LOCAL COMMISSION MAY : 5
(I) EMPLOY STAFF AS AUTHO RIZED BY A LOCAL GOV ERNMENT; 6
(II) ESTABLISH A PROCESS F OR RESOLVING DISCIPL INARY 7
MATTERS PENDING BEFO RE THE LOCAL COMMISS ION THROUGH NONJUDIC IAL 8
DISPUTE RESOLUTION P ROCESSES; 9
(III) DEVELOP EDUCATIONAL A ND TRAINING OPPORTUN ITIES 10
FOR GOVERNING BODIES ; 11
(IV) ADOPT ADDITIONAL BYLA WS NECESSARY TO CARR Y OUT 12
THE BUSINESS OF THE LOCAL COMMISSION ; AND 13
(V) ADOPT ANY ADDITIONAL REGULATIONS , PROCEDURES , OR 14
STANDARDS CONSISTENT WITH THE MISSION OF THE LOCAL COMMISSION AND TO 15
CARRY OUT THE REQUIR EMENTS OF THIS TITLE . 16
11C–105. 17
(A) A LOCAL LAW ESTABLISHI NG A LOCAL COMMISSIO N SHALL REQUIRE 18
COMMON OWNERSHIP COM MUNITIES IN THE COUN TY TO REGISTER WITH THE LOCAL 19
COMMISSION ANNUALLY ON A FORM THAT IDENTIFIES: 20
(1) THE ELECTED LEADERSHI P OF THE COMMON OWNE RSHIP 21
COMMUNITY ; AND 22
(2) THE MANAGING AGENTS O F THE COMMON OWNERSH IP 23
COMMUNITY . 24
(B) A COMMON OWNERSHIP COM MUNITY THAT FAILS TO REGISTER OR 25
MAKES A FALSE STATEM ENT ON A REGISTRATIO N FORM IS INELIGIBLE TO FILE A 26
DISPUTE. 27
11C–106. 28
8 HOUSE BILL 558
(A) A LOCAL LAW ESTABLISHI NG A LOCAL COMMISSIO N MAY AUTHORIZE 1
THE COLLECTION OF A REASONABLE FEE FOR S ERVICES PROVIDED BY THE LOCAL 2
COMMISSION. 3
(B) ANY AUTHORIZED FEE SH ALL BE USED TO COVER THE COST OF 4
MAINTAINING THE LOCAL COMMIS SION AND MAY INCLUDE : 5
(1) A PER–UNIT ANNUAL CHARGE T O COMMON OWNERSHIP 6
COMMUNITIES TO RENEW REGISTRATION ; 7
(2) FEES FOR DISPUTE RESO LUTION UNDER § 11C–110 OF THIS 8
TITLE, SERVICES, AND TECHNICAL ASSIST ANCE; AND 9
(3) A PER–UNIT CHARGE TO DEVELOPERS FO R THE RECORDATION OF 10
DOCUMENTS . 11
(C) IF THE COLLECTION OF A FEE BY A LOCAL COM MISSION IS AUTHORIZE D 12
UNDER THIS SECTION , THE LOCAL COMMISSION SHALL PUBLISH THE FE E 13
SCHEDULE. 14
11C–107. 15
A LOCAL GOVERNMENT THA T ESTABLISHES A LOCA L COMMISSION SHALL 16
DESIGNATE A COUNTY A GENCY OR OFFICE TO : 17
(1) DISSEMINATE EDUCATION AL MATERIALS REGARDI NG PROGRAMS 18
THAT ASSIST COMMON O WNERSHIP COMMUNITIES ; 19
(2) CONDUCT EDUCATIONAL P ROGRAMS TO PROMOTE T HE 20
OPERATION OF COMMON OWNERSHIP COMMUNITIE S; 21
(3) MAINTAIN A LIST OF: 22
(I) COMMON OWNERSHIP COMM UNITIES IN THE COUNT Y, 23
INCLUDING THE LEADER SHIP OF THE COMMON O WNERSHIP COMMUNITIES ; AND 24
(II) PROFESSIONAL MANAGEME NT COMPANIES THAT PR OVIDE 25
SERVICES TO COMMON O WNERSHIP COMMUNITIES IN THE COUNTY; 26
(4) MAINTAIN INFORMATION AND A REFERRAL SYSTE M FOR ALL 27
COUNTY SERVICES RELA TED TO COMMON OWNERS HIP COMMUNITIES ; 28
(5) MAINTAIN A COLLECTION OF GOVERNING DOCUMEN TS; 29 HOUSE BILL 558 9
(6) PROVIDE TECHNICAL ASS ISTANCE TO GOVERNING BODIES ON 1
MATTERS INCLUDING : 2
(I) LEADERSHIP TRANSITION ; 3
(II) ELECTIONS; 4
(III) ADOPTION OF RULES ; 5
(IV) ENFORCEMENT OF RULES ; 6
(V) SELECTION OF ASSOCIAT ION MANAGERS ; AND 7
(VI) STORMWATER MANAGEMENT ; 8
(7) MAINTAIN AN OPERATION S MANUAL TO GUIDE CO MMON 9
OWNERSHIP COMMUNITY LEADERSHIP; 10
(8) ADVISE COMMON OWNERSH IP COMMUNITIES AND P ROFESSIONAL 11
ASSOCIATION MANAGERS OF CHANGES IN THE LA WS AND REGULATIONS T HAT 12
AFFECT THEIR COMMUNI TIES OR OPERATIONS ; AND 13
(9) OPERATE A DISPUTE RES OLUTION PROCESS TO F URNISH 14
MEDIATION AND ADMINI STRATIVE HEARINGS . 15
11C–108. 16
(A) A LOCAL COMMISSION MAY HEAR ANY DISPUTE BET WEEN PARTIES . 17
(B) A PARTY MAY NOT FILE A DISPUTE WITH A LOCAL COMMISSION UNTIL 18
THE PARTY HAS MADE A GOOD FAITH EFFORT TO EXHAUST ALL PROCEDUR ES AND 19
REMEDIES PROVIDED BY THE GOV ERNING DOCUMENTS OF THE COMMON 20
OWNERSHIP COMMUNITY . 21
(C) A PARTY MAY FILE A DIS PUTE WITH A LOCAL CO MMISSION AT LEAST 60 22
DAYS AFTER A PROCEDU RE OR REMEDY HAS BEE N INITIATED WITH THE GOVERNING 23
BODY OF A COMMON OWN ERSHIP COMMUNITY . 24
(D) (1) IF THE GOVERNING BODY OF A COMMON OWNERSHI P COMMUNITY 25
DETERMINES THAT A DI SPUTE EXISTS, THE GOVERNING BODY O F THE COMMON 26
OWNERSHIP COMMUNITY SHALL NOTIFY THE OTH ER PARTIES OF THE OP TION TO 27
FILE THE DISPUTE WIT H A LOCAL COMMISSION . 28 10 HOUSE BILL 558
(2) THE GOVERNING BOD Y OF A COMMON OWNERS HIP COMMUNITY 1
MAY NOT TAKE ACTION TO ENFORCE OR IMPLEM ENT THE DECISION OF THE 2
GOVERNING BODY FOR 14 DAYS FOLLOWING NOTIF ICATION OF THE OTHER PARTIES. 3
(E) EXCEPT AS PROVIDED IN § 11C–109 OF THIS TITLE, ON THE FILING OF 4
A DISPUTE WITH A LOCAL COMMISSION , THE DECISION OF THE GOVERNING BODY OF 5
A COMMON OWNERSHIP C OMMUNITY SHALL BE ST AYED AND MAY NOT BE ENFORCED 6
OR IMPLEMENTED , OTHER THAN BY FILING A CIVIL ACTION , UNTIL THE 7
COMPLETION OF THE DI SPUTE PROCESS . 8
11C–109. 9
(A) (1) AT ANY TIME AFTER A DISPUTE IS F ILED, THE GOVERNING BODY 10
OF A COMMON OWNERSHI P COMMUNITY MAY SUBM IT A REQUEST TO LIFT AN 11
AUTOMATIC STAY UNDER § 11C–108 OF THIS TITLE. 12
(2) IF A HEARING PANEL HA S NOT BEEN APPOINTED UNDER § 13
11C–112 OF THIS TITLE, THE LOCAL COMMISSION SHALL AUT HORIZE A SPECIAL 14
STANDING PANEL TO CO NSIDER REQUESTS FOR RELIEF FROM STAYS . 15
(3) THE SPECIAL PANEL SHA LL INCLUDE: 16
(I) THREE VOTING MEMBERS OF THE LOCAL COMMISS ION 17
DESIGNATED BY THE CH AIR; AND 18
(II) AT LEAST ONE MEMBER D ESCRIBED UNDER § 19
11C–103(B)(1)(I)1 OF THIS TITLE AND AT LEAST ONE MEMBER DES CRIBED UNDER § 20
11C–103(B)(1)(I)2 OF THIS TITLE. 21
(B) (1) A GOVERNING BODY OF A COMMON OWNERSHIP COM MUNITY 22
THAT REQUESTS RELIEF FROM A STAY SHALL SE RVE A COPY OF ITS RE QUEST ON ANY 23
PARTY NAMED IN THE DISPUTE BY CERTIFIED MAIL OR PERSONAL SERVICE . 24
(2) A CERTIFICATE OF SERVI CE SHALL ACCOMPANY A NY REQUEST 25
SUBMITTED UNDER THIS SECTION. 26
(3) A PARTY SERVED WITH A COPY OF THE REQUEST SHALL FILE ANY 27
OPPOSITION TO THE RE QUEST WITHIN 10 DAYS AFTER RECEIVING SE RVICE. 28
(C) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, A REQUEST 29
FOR RELIEF FROM A ST AY MAY BE GRANTED ON LY IF THE ASSIGNED P ANEL FINDS 30
THAT: 31 HOUSE BILL 558 11
(1) ENFORCING THE STAY WO ULD RESULT IN UNDUE HARM TO THE 1
COMMON OWNERSHIP COM MUNITY; AND 2
(2) LIFTING THE STAY WILL NOT RESULT IN UNDUE HARM TO THE 3
RIGHTS OR INTERESTS OF ANY OPPOSING PART Y. 4
(D) IF A REQUEST FOR RELI EF FROM A STAY STATI NG FACTS SUFFICIENT TO 5
SHOW A NEED FOR IMME DIATE ACTION IS NOT GRANTED OR DENIED WI THIN 20 DAYS 6
AFTER THE REQUEST WA S FILED, THE REQUEST SHALL BE TREATED AS GRANTED . 7
11C–110. 8
(A) (1) FOLLOWING THE FILING OF A DISPUTE WITH A LOCAL 9
COMMISSION, AN AGENCY DESIGNATED BY A LOCAL GOVERNMEN T UNDER § 10
11C–107 OF THIS TITLE MAY IN VESTIGATE FACTS AND ASSEMBLE DOCUMENTS 11
RELEVANT TO THE DISP UTE AND MAY PREPARE A SUMMARY OF THE ISS UES IN THE 12
DISPUTE FOR USE BY T HE LOCAL COMMISSION . 13
(2) THE DESIGNATED AGENCY OR OFFICE MAY NOTIFY A PARTY IF 14
THE DESIGNATED AGENC Y OR OFFICE FINDS TH AT A DISPUTE WAS NOT PROPERLY 15
FILED. 16
(3) THE DESIGNATED AGENCY OR OFFICE MAY NOTIFY EACH PARTY 17
OF THE DISPUTE REGAR DING POSSIBLE SANCTI ONS UNDER § 11C–112 OF THIS 18
TITLE. 19
(B) IF THE DESIGNATED AGE NCY OR OFFICE FINDS THAT, ASSUMING ALL 20
FACTS ALLEGED BY THE PARTY THAT FILED THE DISPUTE ARE TRUE , THERE ARE NO 21
REASONABLE GROUNDS T O CONCLUDE THAT A VI OLATION OF APPLICABL E LAW OR 22
ANY GOVERNING DOCUME NT HAS OCCURRED , IT SHALL INFORM THE LOCAL 23
COMMISSION. 24
(C) ON RECEIPT OF THE RES ULTS OF AN INVESTIGA TION BY A DESIGNATED 25
AGENCY OR OFFICE, A LOCAL COMMISSION M AY: 26
(1) IF IT FINDS THAT THER E ARE NO REASONABLE GROUNDS TO 27
CONCLUDE THAT A VIOL ATION OF APPLICABLE LAW OR ANY GOVERNING DOCUMENT 28
HAS OCCURRED , DISMISS THE DISPUTE ; 29
(2) REQUEST ADDITIONAL IN VESTIGATION BY THE D ESIGNATED 30
AGENCY OR OFFICE ; OR 31
12 HOUSE BILL 558
(3) SCHEDULE A HEARING ON THE DISPUTE. 1
(D) A LOCAL COMMISSION MAY RECONSIDER THE DISMI SSAL OF A DISPUTE 2
IF ANY PARTY FILES A MOTION TO RECONSIDER WITHIN 30 DAYS AFTER THE 3
DISPUTE IS DISMISSED , DEMONSTRATING THAT : 4
(1) THE COMMISSION ERRONEOUSLY IN TERPRETED OR APPLIED 5
APPLICABLE LAW OR AN ASSOCIATION DOCUMENT ; OR 6
(2) MATERIAL ISSUES OF FA CT THAT ARE NECESSAR Y TO A FAIR 7
RESOLUTION OF THE DI SPUTE REMAIN UNRESOL VED. 8
11C–111. 9
(A) (1) ANY PARTY IN A DISPUT E MAY REQUEST MEDIAT ION. 10
(2) IF A PARTY REQUESTS M EDIATION, THE LOCAL COMMISSION 11
SHALL NOTIFY ALL PAR TIES OF THE REQUEST AND OF THE MEDIATION SESSION. 12
(3) A LOCAL COMMISSION SHA LL PROVIDE A QUALIFI ED MEDIATOR 13
TO MEET WITH THE PAR TIES WITHIN 30 DAYS AFTER A PARTY R EQUESTS MEDIATION 14
TO ATTEMPT TO SETTLE THE DISPUTE. 15
(B) IF A PARTY REFUSES TO ATTEND A MEDIATION S ESSION, OR IF 16
MEDIATION DOES NOT S UCCESSFULLY RESOLVE THE DISPUTE WITHIN 10 DAYS 17
AFTER THE FIRST MEDI ATION SESSION IS HEL D, THE LOCAL COMMISSION SHALL 18
PROMPTLY SCHEDULE A HEARING . 19
11C–112. 20
(A) (1) IF A HEARING IS SCHED ULED, THE CHAIR OF THE LOC AL 21
COMMISSION SHALL CON VENE A PANEL TO HEAR THE DISPUTE. 22
(2) THE CHAIR SHALL SELEC T AT LEAST ONE MEMBE R DESCRIBED 23
UNDER § 11C–103(B)(1)(I)1 OF THIS TITLE AND AT LEAST ONE MEMBER DESCRIBED 24
UNDER § 11C–103(B)(1)(I)2 OF THIS TITLE. 25
(3) THE LOCAL COMMISSION MEMBERS SELECTED BY THE CHAIR 26
SHALL DESIGNATE A TH IRD MEMBER OF THE PA NEL FROM A LIST OF V OLUNTEER 27
ARBITRATORS TRAINED OR EXPERIENCED IN CO MMON OWNERSHIP COMMU NITY 28
ISSUES MAINTAINED BY THE LOCAL COMMISSION . 29
HOUSE BILL 558 13
(4) IF A SUITABLE ARBITRA TOR IS NOT AVAILABLE , THE CHAIR OF 1
THE LOCAL COMMISSION SHALL DESIGNATE : 2
(I) A THIRD PANELIST FROM AMONG THE VOTING MEM BERS OF 3
THE LOCAL COMMISSION ; AND 4
(II) THE CHAIR OF THE PANEL. 5
(B) A PANELIST MAY NOT HAV E AN INTEREST IN THE DISPUTE TO BE HEARD . 6
(C) A HEARING PANEL SHALL HOLD A HEARING ON EA CH DISPUTE THAT IS 7
NOT RESOLVED THROUGH MEDIATION UNDER § 11C–111 OF THIS TITLE UNLESS THE 8
LOCAL COMMISSION DET ERMINES THAT THE DIS PUTE IS: 9
(1) IDENTICAL TO ANOTHER DISPUTE BETWEEN THE SAME PARTIES 10
ON WHICH A HEARING H AS ALREADY BEEN HELD UNDER THIS SECTION ; OR 11
(2) CLEARLY NOT WITHIN TH E JURISDICTION OF TH E LOCAL 12
COMMISSION. 13
(D) A LOCAL COMMISSION SHA LL PROVIDE NOTICE OF A HEARING TO ALL 14
PARTIES NOT LESS THA N 30 DAYS BEFORE A HEARIN G, UNLESS THE LOCAL 15
COMMISSION DETERMINE S THAT AN EXPEDITED HEARING IS NECESSARY , IN WHICH 16
CASE NOTICE SHALL BE PROVIDED TO ALL PART IES AT LEAST 15 DAYS BEFORE A 17
HEARING. 18
(E) A PARTY OR WITNESS MAY BE ADVISED BY CO UNSEL AT A HEARING . 19
(F) IF A PARTY, AFTER PROPER NOTICE , DOES NOT APPEAR AT T HE 20
SCHEDULED HEARING , THE HEARING PANEL MA Y ORDER ANY RELIEF F OR ANOTHER 21
PARTY THAT THE FACTS ON RECORD WARRANT . 22
(G) (1) THE HEARING PANEL SHA LL APPLY STATE AND COUNTY LAWS 23
AND ALL RELEVANT CAS E LAW TO THE FACTS O F THE DISPUTE. 24
(2) A DECISION OF THE HEAR ING PANEL IS BINDING ON THE PARTIES. 25
(H) (1) A LOCAL COMMISSION MAY ENFORCE A DECISION O F THE 26
HEARING PANEL BY APP ROPRIATE LEGAL ACTIO N. 27
(2) IN ADDITION TO ANY OTHER EN FORCEMENT ACTION , A LOCAL 28
COMMISSION MAY : 29
14 HOUSE BILL 558
(I) FILE FOR INJUNCTIVE R ELIEF TO ENFORCE OR CORRECT 1
ANY VIOLATION OF THI S TITLE; AND 2
(II) FILE TO RECOVER DAMAG ES FOR A LOSS SUSTAI NED AS A 3
RESULT OF A VIOLATIO N OF THIS TITLE. 4
(I) A HEARING PANEL MAY AW ARD COSTS, INCLUDING REASONABLE 5
ATTORNEY’S FEES, TO ANY PARTY IF ANY OTHER PARTY : 6
(1) FILED OR MAINTAINED A FRIVOLOUS DISPUTE , OR FILED OR 7
MAINTAINED A DISPUTE IN BAD FAITH; 8
(2) REFUSED TO PARTICIPAT E IN MEDIATION OF A DISPUTE; OR 9
(3) SUBSTANTIALLY DELAYED OR HINDERED THE DISP UTE 10
RESOLUTION PROCESS W ITHOUT GOOD CAUSE . 11
(J) A HEARING PANEL MAY RE QUIRE A LOSING PARTY IN A DISPUTE TO PAY 12
ALL OR PART OF ANY F ILING FEE. 13
(K) A LOCAL GOVERNMENT MAY : 14
(1) ESTABLISH ADDITIONAL HEARING PROCEDURES ; AND 15
(2) ADOPT ADDITIONAL REQU IREMENTS RELATING TO WITNESSES 16
AND EVIDENCE FOR A H EARING. 17
11C–113. 18
(A) A PARTY MAY APPEAL A D ECISION OF A HEARING PANEL TO A COURT OF 19
COMPETENT JURISDICTI ON. 20
(B) AN APPEAL OF A DECISI ON SHALL BE CO NSOLIDATED WITH ANY CASE 21
THAT ARISES OUT OF T HE SAME FACTS . 22
(C) THE COURT HEARING AN APPEAL SHALL SUSTAIN THE DECISION OF THE 23
HEARING PANEL UNLESS THE DECISION IS: 24
(1) INCONSISTENT WITH APP LICABLE LAW; 25
(2) LACKING SUBSTANTIAL E VIDENCE; OR 26
(3) ARBITRARY AND CAPRICIO US. 27 HOUSE BILL 558 15
11C–114. 1
(A) A PARTY MAY FILE A CIV IL ACTION ARISING OU T OF A GOVERNING 2
DOCUMENT OR A LAW RE GULATING THE POWERS OF A GOVERNING BODY OF A 3
COMMON OWNERSHIP COM MUNITY. 4
(B) IF THE COURT IS NOTIF IED THAT A DISPUTE H AS BEEN FILED WI TH A 5
LOCAL COMMISSION IN ACCORDANCE WITH THIS TITLE, THE COURT MAY POSTPO NE 6
A PROCEEDING FOR AT LEAST 90 DAYS. 7
(C) THE COURT MAY HEAR TH E ACTION DE NOVO IF A HEARING PANEL 8
ASSIGNED TO THE DISP UTE HAS NOT ISSUED A DECISION UNDER § 11C–112 OF THIS 9
TITLE. 10
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
October 1, 2025. 12