EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb1011*
SENATE BILL 1011
N1, C9 5lr3563
CF HB 1411
By: Senator Attar
Introduced and read first time: February 3, 2025
Assigned to: Rules
A BILL ENTITLED
AN ACT concerning 1
Real Property – Insufficient Condominium Reserve Account Grant Fund – 2
Establishment 3
FOR the purpose of establishing the Insufficient Condominium Reserve Account Grant 4
Fund as a special, nonlapsing fund to provide grants to low–income unit owners of 5
condominiums with insufficient reserve accounts to enable a low–income unit owner 6
to pay increased assessments necessary for a condominium association to meet 7
reserve account funding requirements; requiring interest earnings to be credited to 8
the Fund; requiring that the Fund prioritize certain older adults; and generally 9
relating to the Insufficient Condominium Reserve Account Grant Fund. 10
BY adding to 11
Article – Real Property 12
Section 11–144 13
Annotated Code of Maryland 14
(2023 Replacement Volume and 2024 Supplement) 15
BY repealing and reenacting, without amendments, 16
Article – State Finance and Procurement 17
Section 6–226(a)(2)(i) 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2024 Supplement) 20
BY repealing and reenacting, with amendments, 21
Article – State Finance and Procurement 22
Section 6–226(a)(2)(ii)204. and 205. 23
Annotated Code of Maryland 24
(2021 Replacement Volume and 2024 Supplement) 25
BY adding to 26
Article – State Finance and Procurement 27 2 SENATE BILL 1011
Section 6–226(a)(2)(ii)206. 1
Annotated Code of Maryland 2
(2021 Replacement Volume and 2024 Supplement) 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5
Article – Real Property 6
11–144. 7
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 8
INDICATED. 9
(2) “DEPARTMENT ” MEANS THE DEPARTMENT OF HOUSING AND 10
COMMUNITY DEVELOPMENT . 11
(3) “FUND” MEANS THE INSUFFICIENT CONDOMINIUM RESERVE 12
ACCOUNT GRANT FUND. 13
(4) “LOW–INCOME UNIT OWNER ” MEANS AN INDIVIDUAL OWNER OF A 14
CONDOMINIUM UNIT WHO IS A MEMBER OF A HOUSEHOLD WITH AN INCOME THAT IS 15
NOT GREATER THAN 80% OF THE AREA MEDIAN I NCOME. 16
(5) “SECRETARY” MEANS THE SECRETARY OF HOUSING AND 17
COMMUNITY DEVELOPMENT . 18
(B) THERE IS AN INSUFFICIENT CONDOMINIUM RESERVE ACCOUNT 19
GRANT FUND. 20
(C) THE PURPOSE OF THE FUND IS TO PROVIDE GR ANTS TO LOW–INCOME 21
UNIT OWNERS TO PAY F OR INCREASED ASSESSM ENTS NECESSARY FOR A 22
CONDOMINIUM ASSOCIAT ION TO MEET RESERVE FUNDING REQUIREMENTS UNDER 23
§ 11–109.2 OF THIS TITLE. 24
(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS N OT 25
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 26
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 27
AND THE SECRETARY SHALL ACCOU NT FOR THE FUND. 28
(E) THE FUND CONSISTS OF : 29
(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 30 SENATE BILL 1011 3
(2) INTEREST EARNINGS OF THE FUND; AND 1
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 2
THE BENEFIT OF THE FUND. 3
(F) THE FUND MAY BE USED ONLY TO PROVIDE GRANTS TO LOW–INCOME 4
UNIT OWNERS TO COVER INCREASED ASSESSMENT S NECESSARY TO MEET TH E 5
REQUIRED RESERVES OF THE CONDOMINIUM . 6
(G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 7
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 8
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 9
THE FUND. 10
(H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 11
WITH THE STATE BUDGET . 12
(I) (1) THE SECRETARY SHALL : 13
(I) ADMINISTER THE FUND AND AWARD GRANTS FROM THE 14
FUND TO ELIGIBLE LOW –INCOME UNIT OWNERS ; 15
(II) ESTABLISH PROCEDURES FOR LOW–INCOME UNIT OWNERS 16
TO APPLY FOR AND REC EIVE GRANTS FROM THE FUND; AND 17
(III) PUBLICIZE THE FUND AND THE APPLICAT ION PROCESS FOR 18
THE FUND. 19
(2) PRIORITY FOR GRANTS A WARDED UNDER THIS SE CTION SHALL BE 20
GIVEN TO LOW–INCOME UNIT OWNERS W HO ARE AT LEAST 65 YEARS OLD. 21
(3) BY DECEMBER 31 EACH YEAR, LOW–INCOME UNIT OWNERS W HO 22
RECEIVE GRANTS FROM THE FUND SHALL REPORT TO THE DEPARTMENT 23
REGARDING THE RESERV E ACCOUNT BALANCE IN A MANNER DETERMINED BY THE 24
DEPARTMENT . 25
(J) MONEY EXPENDED FROM T HE FUND SHALL BE SUPPLEM ENTAL TO AND 26
IS NOT INTENDED TO T AKE THE PLACE OF FUN DING THAT OTHERWISE WOULD BE 27
APPROPRIATED FOR A U NIT OWNER TO PAY FOR INCREASED ASSESSMENT S AGAINST 28
THE OWNER TO MEET TH E INCREASED RESERVE ACCOUNT AMOUNT REQUI RED 29
UNDER § 11–109.2 OF THIS TITLE. 30 4 SENATE BILL 1011
Article – State Finance and Procurement 1
6–226. 2
(a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 3
through 2028. 4
2. Notwithstanding any other provision of law, and unless 5
inconsistent with a federal law, grant agreement, or other federal requirement or with the 6
terms of a gift or settlement agreement, net interest on all State money allocated by the 7
State Treasurer under this section to special funds or accounts, and otherwise entitled to 8
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 9
Fund of the State. 10
(ii) The provisions of subparagraph (i) of this paragraph do not apply 11
to the following funds: 12
204. the Victims of Domestic Violence Program Grant Fund; 13
[and] 14
205. the Proposed Programs Collaborative Grant Fund; AND 15
206. THE INSUFFICIENT CONDOMINIUM RESERVE 16
ACCOUNT GRANT FUND. 17
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 18
October 1, 2025. 19