| 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 | | *sb0464* |
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| 6 | 6 | | |
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| 7 | 7 | | SENATE BILL 464 |
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| 8 | 8 | | N1 5lr0905 |
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| 9 | 9 | | CF 5lr2587 |
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| 10 | 10 | | By: Senator King |
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| 11 | 11 | | Introduced and read first time: January 21, 2025 |
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| 12 | 12 | | Assigned to: Judicial Proceedings |
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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 – Condominiums – Assessments 2 |
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| 19 | 19 | | |
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| 20 | 20 | | FOR the purpose of authorizing the board of directors of a condominium to increase the 3 |
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| 21 | 21 | | amount of assessments levied in a fiscal year to cover common expenses other than 4 |
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| 22 | 22 | | reserves by not more than a certain amount notwithstanding certain provisions of 5 |
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| 23 | 23 | | the declaration, articles of incorporation, or bylaws of the condominium; and 6 |
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| 24 | 24 | | generally relating to condominium assessments. 7 |
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| 25 | 25 | | |
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| 26 | 26 | | BY repealing and reenacting, with amendments, 8 |
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| 27 | 27 | | Article – Real Property 9 |
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| 28 | 28 | | Section 11–110(b)(1) 10 |
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| 29 | 29 | | Annotated Code of Maryland 11 |
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| 30 | 30 | | (2023 Replacement Volume and 2024 Supplement) 12 |
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| 31 | 31 | | |
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| 32 | 32 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13 |
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| 33 | 33 | | That the Laws of Maryland read as follows: 14 |
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| 34 | 34 | | |
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| 35 | 35 | | Article – Real Property 15 |
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| 36 | 36 | | |
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| 37 | 37 | | 11–110. 16 |
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| 38 | 38 | | |
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| 39 | 39 | | (b) (1) (i) Funds for the payment of current common expenses and for the 17 |
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| 40 | 40 | | creation of reserves for the payment of future common expenses shall be obtained by 18 |
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| 41 | 41 | | assessments against the unit owners in proportion to their percentage interests in common 19 |
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| 42 | 42 | | expenses and common profits. 20 |
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| 43 | 43 | | |
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| 44 | 44 | | (ii) The board of directors of a residential condominium has the 21 |
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| 45 | 45 | | authority to [increase]: 22 |
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| 46 | 46 | | 2 SENATE BILL 464 |
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| 47 | 47 | | |
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| 48 | 48 | | |
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| 49 | 49 | | 1. INCREASE the assessment levied to cover the reserve 1 |
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| 50 | 50 | | funding amount required under § 11–109.4 of this title, notwithstanding any provision of 2 |
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| 51 | 51 | | the declaration, articles of incorporation, or bylaws restricting assessment increases or 3 |
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| 52 | 52 | | capping the assessment that may be levied in a fiscal year; AND 4 |
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| 53 | 53 | | |
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| 54 | 54 | | 2. INCREASE THE TOTAL AS SESSMENTS LEVIED IN A 5 |
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| 55 | 55 | | FISCAL YEAR TO COVER COMMON EXPENSES OTHE R THAN RESERVES BY N OT MORE 6 |
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| 56 | 56 | | THAN 5 PERCENT OF THE TOTAL ASSESSMENTS LEVIED F OR COMMON EXPENSES 7 |
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| 57 | 57 | | OTHER THAN RESERVES IN THE PREVIOUS FI SCAL YEAR, NOTWITHSTANDING ANY 8 |
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| 58 | 58 | | PROVISION OF THE DEC LARATION, ARTICLES OF INCORPOR ATION, OR BYLAWS 9 |
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| 59 | 59 | | REQUIRING THAT THE C OUNCIL OF UNIT OWNER S APPROVE THE AMOUNT OF AN 10 |
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| 60 | 60 | | ANNUAL ASSESSMENT . 11 |
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| 61 | 61 | | |
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| 62 | 62 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 12 |
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| 63 | 63 | | October 1, 2025. 13 |
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