EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0651* SENATE BILL 651 N1 5lr1579 HB 477/24 – ENT CF HB 709 By: Senators Muse and Lam Introduced and read first time: January 25, 2025 Assigned to: Judicial Proceedings A BILL ENTITLED AN ACT concerning 1 Landlord and Tenant – Residential Leases and Holdover Tenancies – Local 2 Good Cause Termination 3 (Good Cause Eviction) 4 FOR the purpose of authorizing a county to adopt, by local law or ordinance, provisions 5 prohibiting certain landlords of residential property from failing to renew a lease 6 during the lease period or from terminating a holdover tenancy without good cause; 7 establishing certain requirements and prohibitions for a local law or ordinance 8 adopted in accordance with this Act; requiring, in a county that has adopted a local 9 law or ordinance in accordance with this Act, that a landlord provide certain 10 information with a lease related to whether the landlord is subject to the local law 11 or ordinance; requiring the Office of Tenant and Landlord Affairs in the Department 12 of Housing and Community Development to develop certain forms for a landlord to 13 provide to a tenant; requiring, in a county that has adopted a local law or ordinance 14 in accordance with this Act, that a landlord provide certain information to a tenant 15 and in a certain court pleading relating to whether the landlord is required to 16 demonstrate good cause when seeking relief in accordance with a certain provision 17 of law; and generally relating to residential leases and holdover tenancies. 18 BY repealing and reenacting, with amendments, 19 Article – Real Property 20 Section 8–208(c) and 8–402(c)(2) 21 Annotated Code of Maryland 22 (2023 Replacement Volume and 2024 Supplement) 23 BY repealing and reenacting, without amendments, 24 Article – Real Property 25 Section 8–402(c)(1) and (d) 26 Annotated Code of Maryland 27 (2023 Replacement Volume and 2024 Supplement) 28 2 SENATE BILL 651 BY adding to 1 Article – Real Property 2 Section 8–402(e) and 8–402.3 3 Annotated Code of Maryland 4 (2023 Replacement Volume and 2024 Supplement) 5 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6 That the Laws of Maryland read as follows: 7 Article – Real Property 8 8–208. 9 (c) (1) IN THIS SUBSECTION , “OFFICE” MEANS THE OFFICE OF TENANT 10 AND LANDLORD AFFAIRS IN THE DEPARTMENT OF HOUSING AND COMMUNITY 11 DEVELOPMENT . 12 (2) A lease shall include: 13 [(1)] (I) A statement that the premises will be made available in a 14 condition permitting habitation, with reasonable safety, if that is the agreement, or if that 15 is not the agreement, a statement of the agreement concerning the condition of the 16 premises; 17 [(2)] (II) The landlord’s and the tenant’s specific obligations as to heat, 18 gas, electricity, water, and repair of the premises; 19 [(3)] (III) A receipt for the security deposit as specified in § 8–203.1 of this 20 subtitle; and 21 [(4)] (IV) A copy of the most current version of the Maryland Tenants’ Bill 22 of Rights published by the Office [of Tenant and Landlord Affairs in the Department of 23 Housing and Community Development]. 24 (3) (I) THIS PARAGRAPH APPLIE S ONLY IN A COUNTY T HAT HAS 25 ADOPTED A LOCAL LAW OR ORDINANCE IN ACCO RDANCE WITH § 8–402.3 OF THIS 26 TITLE. 27 (II) A LEASE OR LEASE RENEW AL SHALL INCLUDE NOT ICE 28 STATING WHETHER THE LANDLORD IS SU BJECT TO THE LOCAL G OOD CAUSE 29 STATUTE OR ORDINANCE OF THE COUNTY IN WHI CH A RESIDENTIAL REN TAL UNIT IS 30 LOCATED. 31 (III) A LANDLORD STATING IN A NOTICE UNDER SUBPA RAGRAPH 32 (II) OF THIS PARAGRAPH TH AT THE LOCAL GOOD CA USE PROVISIONS OF TH E 33 SENATE BILL 651 3 COUNTY DO NOT APP LY TO THE LANDLORD S HALL PROVIDE THE TEN ANT WITH THE 1 FOLLOWING INFORMATIO N ON A FORM PRESCRIB ED BY THE OFFICE: 2 1. THE FULL LEGAL NAME O F EACH INDIVIDUAL AN D 3 THE BUSINESS NAME OF EACH ENTITY WITH DIR ECT OR INDIRECT OWNE RSHIP OR 4 MEMBERSHIP INTEREST IN THE RESIDENTIAL RENTA L UNIT; 5 2. THE NUMBER OF RESIDEN TIAL RENTAL UNITS IN THE 6 STATE OWNED BY EACH I NDIVIDUAL OR ENTITY IDENTIFIED UNDER ITE M 1 OF THIS 7 SUBPARAGRAPH , INCLUDING THE ADDRES S OF EACH RESIDENTIA L RENTAL UNIT 8 IDENTIFIED; AND 9 3. ANY OTHER INFORMATION REQUIRED BY THE 10 OFFICE. 11 (IV) AN INDIVIDUAL OR ENTI TY HAS AN INTEREST I N A 12 RESIDENTIAL RENTAL U NIT UNDER SUBPARAGRA PH (III) OF THIS PARAGRAPH IF 13 THE INDIVIDUAL OR EN TITY HAS A DIRECT OR INDIRECT OWNERSHIP O R 14 MEMBERSHIP INTEREST IN ANY ENTIT Y THAT HAS A DIRECT OR INDIRECT 15 OWNERSHIP OR MEMBERS HIP INTEREST IN THE RENTAL UNIT. 16 (V) IF A LANDLORD BECOMES SUBJECT TO A LOCAL G OOD 17 CAUSE LAW OR ORDINAN CE, THE LANDLORD SHALL P ROVIDE TIMELY WRITTE N 18 NOTICE TO ALL TENANT S OF THE LANDLORD IN THE COUNTY IN WHICH THE GOOD 19 CAUSE REQUIREMENTS A PPLY, INCLUDING ANY TENANT HOLDING OVER UNDER § 20 8–402 OF THIS TITLE. 21 (VI) 1. THE OFFICE SHALL DEVELOP AND MAKE PUBLICLY 22 AVAILABLE A DISCLOSU RE FORM FOR USE BY A LANDLORD UNDER SUBPA RAGRAPH 23 (III) OF THIS PARAGRAPH . 24 2. THE OFFICE MAY ADOPT REGU LATIONS TO CARRY 25 OUT THIS PARAGRAPH . 26 8–402. 27 (c) (1) This subsection applies to all cases of tenancies at the expiration of a 28 stated term, tenancies from year to year, tenancies from month to month, and tenancies 29 from week to week. 30 (2) Except as provided in paragraphs (3) and (4) of this subsection, AND 31 SUBJECT TO ANY LOCAL REQUIREMENT ADOPTED IN ACCORDANCE WITH § 8–402.3 32 OF THIS SUBTITLE , a landlord shall provide written notice of the intent to terminate a 33 tenancy: 34 4 SENATE BILL 651 (i) If the parties have a written lease for a stated term in excess of 1 1 week or a tenancy from month to month, 60 days before the expiration of the tenancy; 2 (ii) In the case of tenancies from year to year, including tobacco farm 3 tenancies from year to year but excluding all other farm tenancies from year to year, 90 4 days before the expiration of the current year of the tenancy; 5 (iii) In the case of tenancies from year to year for all other farm 6 tenancies, 180 days before the expiration of the current year of the tenancy; and 7 (iv) In the case of tenancies from week to week: 8 1. If the parties have a written lease, 7 days before the 9 expiration of the tenancy; or 10 2. If the parties do not have a written lease, 21 days before 11 the expiration of the tenancy. 12 (d) Unless stated otherwise in the written lease and initialed by the tenant, when 13 a landlord consents to a holdover tenant remaining on the premises, the holdover tenant 14 becomes a periodic week–to–week tenant if the tenant was a week–to–week tenant before 15 the tenant’s holding over, and a periodic month–to–month tenant in all other cases. 16 (E) (1) IN THIS SUBSECTION , “OFFICE” MEANS THE OFFICE OF TENANT 17 AND LANDLORD AFFAIRS IN THE DEPARTMENT OF HOUSING AND COMMUNITY 18 DEVELOPMENT . 19 (2) THIS SUBSECTION APPLI ES ONLY IN A COUNTY THAT HAS 20 ADOPTED A LOCAL LAW OR ORDINANCE IN ACCO RDANCE WITH § 8–402.3 OF THIS 21 SUBTITLE. 22 (3) (I) PRIOR TO, OR CONTEMPORANEOUSLY WITH, NOTICE 23 REQUIRED UNDER SUBSE CTION (C) OF THIS SECTION, A LANDLORD SHALL USE THE 24 FORM DEVELOPED BY TH E OFFICE TO PROVIDE WRITTEN NOTI CE BY FIRST–CLASS 25 MAIL WITH A CERTIFIC ATE OF MAILING TO A TENANT STATING : 26 1. THE GOOD CAUSE FOR TH E NONRENEWAL OF THE 27 LEASE OR THE TERMINA TION OF THE HOLDOVER TENANCY; OR 28 2. THAT THE LANDLORD IS NOT SUBJECT TO THE LOCAL 29 GOOD CAUSE REQUIREME NTS ESTABLISHED IN A CCORDANCE WITH § 8–402.3 OF 30 THIS SUBTITLE. 31 SENATE BILL 651 5 (II) THE OFFICE SHALL DEVELOP AND MAKE PUBLICLY 1 AVAILABLE A FORM FOR THE NOTICE UNDER THI S PARAGRAPH . 2 (4) (I) A COMPLAINT FIL ED UNDER THIS SECTIO N SHALL STATE 3 ONE OF THE FOLLOWING : 4 1. THE GOOD CAUSE FOR TH E NONRENEWAL OF THE 5 LEASE OR THE TERMINA TION OF THE HOLDOVER TENANCY; OR 6 2. THAT THE LANDLORD IS NOT SUBJECT TO THE L OCAL 7 GOOD CAUSE REQUIREME NTS ADOPTED IN ACCOR DANCE WITH § 8–402.3 OF THIS 8 SUBTITLE. 9 (II) A LANDLORD SHALL PLEAD SPECIFIC FACTS IN TH E 10 COMPLAINT TO PROVE T HE STATEMENTS MADE U NDER SUBPARAGRAPH (I) OF THIS 11 PARAGRAPH BY A PREPO NDERANCE OF THE EVID ENCE. 12 (III) 1. IF A LANDLORD CLAIMS IN THE STATEMENT THAT THE 13 LANDLORD IS NOT SUBJ ECT TO THE LOCAL GOO D CAUSE REQUIREMENTS UNDER § 14 8–402.3(B) OF THIS SUBTITLE , THE LANDLORD SHALL I NCLUDE A CURRENT 15 DISCLOSURE FORM AS P ROVIDED IN § 8–208(C)(3)(III) OF THIS TITLE WITH T HE 16 COMPLAINT. 17 2. AN INDIVIDUAL THAT I S IDENTIFIED IN THE 18 DISCLOSURE FORM AS H AVING A DIRECT OR IN DIRECT OWNERSHIP INT EREST IN 19 THE RESIDENTIAL RENT AL UNIT OF THE LANDL ORD, OR THAT INDIVIDUAL ’S 20 DESIGNEE, SHALL SUBMIT AN AFFI DAVIT WITH THE COMPL AINT THAT CERTIFIES 21 THE DISCLOSURE FORM IS TRUE AND COMPLETE. 22 3. IF A CURRENT DISCLOSU RE FORM AND AFFIDAVI T 23 ARE NOT SUBMITTED WI TH THE COMPLAINT , THE LANDLORD SHALL B E SUBJECT TO 24 THE LOCAL GOOD CAUSE REQUIREMENTS OF THE COUNTY FOR THAT ACTI ON. 25 8–402.3. 26 (A) IN THIS SECTION , “HOLDOVER TENANCY” MEANS A TENANCY 27 ESTABLISHED UNDER § 8–402(D) OF THIS SUBTITLE. 28 (B) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A COUNTY 29 MAY ADOPT , BY LOCAL LAW OR ORDI NANCE, PROVISIONS THAT PROH IBIT A 30 LANDLORD FROM FAILIN G TO RENEW A LEASE D URING THE LEASE PERI OD OR 31 SEEKING TO TERMINATE A HOLDOVER TENANCY W ITHOUT GOOD CAUSE. 32 6 SENATE BILL 651 (2) EACH OF THE FOLLOWING GROUNDS SHALL CONSTI TUTE GOOD 1 CAUSE IN A LOCAL LAW OR ORDINANCE ADOPTED UNDER THIS SECTION : 2 (I) A TENANT COMMITTING A SUBSTANTIAL BREACH O F THE 3 LEASE OR CAUSING SUBSTANTIAL DAMAGE T O THE LEASED PREMISE S OR ANOTHER 4 AREA OF THE PROPERTY AND, AFTER RECEIVING NOTI CE TO CURE OR CORREC T THE 5 BREACH OR PAY THE RE ASONABLE COST OF REP AIRING THE DAMAGE , THE TENANT 6 FAILS TO COMPLY WITH IN 14 DAYS; 7 (II) A TENANT ENGAGING IN ROUTINE DISORDERLY C ONDUCT 8 THAT DISTURBS THE PE ACE AND QUIET OF OTH ER TENANTS; 9 (III) A TENANT ENGAGING IN I LLEGAL ACTIVITY ON T HE LEASED 10 PREMISES, ANOTHER AREA OF THE PROPERTY, OR A PUBLIC RIGHT –OF–WAY 11 ABUTTING THE LEASED PREMISES; 12 (IV) A TENANT, WITHOUT REASONABLE C AUSE, REFUSING TO 13 GRANT THE LANDLORD A CCESS TO THE LEASED PREMISES FOR THE PUR POSE OF 14 MAKING REPAIRS OR IM PROVEMENTS OR INSPEC TING THE LEASED PREM ISES, OR 15 AS OTHERWISE AUTHORI ZED UNDER THE RESIDE NTIAL LEASE OR APPLI CABLE LAW; 16 (V) A HOLDOVER TENANT FAIL ING TO ACCEPT A LAND LORD’S 17 OFFER OF A NEW LEASE AGREEMENT FOR A TERM OF AT LEAST 1 MONTH BUT NOT 18 LONGER THAN THE TERM OF THE LEASE AGREEME NT EFFECTIVE IMMEDIA TELY 19 BEFORE THE HOLDOVER TENANCY WITHIN 1 MONTH AFTER THE LAND LORD MAKES 20 THE OFFER OR A GREATER P ERIOD OF TIME AS OTH ERWISE ESTABLISHED B Y LAW; 21 (VI) A TENANT REPEATEDLY CO MMITTING MINOR VIOLA TIONS 22 OF THE LEASE THAT : 23 1. DISRUPT THE LIVABILIT Y OF THE LEASED PREM ISES; 24 2. INTERFERE WITH THE MA NAGEMENT OF THE 25 PROPERTY; OR 26 3. HAVE AN ADVERSE FINAN CIAL IMPACT ON THE 27 PROPERTY; 28 (VII) A TENANT HABITUALLY FA ILING TO PAY RENT WH EN DUE, 29 IF THE TENANT HAS BE EN NOTIFIED BY THE L ANDLORD IN WRITING T HAT THE RENT 30 IS MORE THAN 10 DAYS LATE AT LEAST F OUR TIMES IN A 12–MONTH PERIO D; 31 SENATE BILL 651 7 (VIII) A LANDLORD, IN GOOD FAITH , SEEKING TO RECOVER 1 POSSESSION OF THE LE ASED PREMISES FOR US E BY THE LANDLORD OR THE 2 LANDLORD’S: 3 1. SPOUSE; 4 2. CHILD OR STEPCHILD ; 5 3. PARENT OR STEPPARENT ; 6 4. GRANDPARENT ; 7 5. SIBLING; 8 6. MOTHER–IN–LAW OR FATHER –IN–LAW; 9 7. DAUGHTER–IN–LAW OR SON–IN–LAW; 10 8. GRANDCHILD; OR 11 9. AUNT OR UNCLE ; 12 (IX) A LANDLORD, AFTER HAVING OBTAINE D ALL NECESSARY 13 PERMITS, SEEKING TO UNDERTAKE SUBSTANTIAL REPAIRS OR RENOVATIONS THAT 14 CANNOT BE COMPLETED WHILE THE LEASED PREMISES ARE OCCUPIED; AND 15 (X) A LANDLORD, IN GOOD FAITH , SEEKING TO REMOVE TH E 16 LEASED PREMISES FOR AT LEAST 1 YEAR FROM THE RENTAL MARKET. 17 (3) A COUNTY MAY NOT ADOPT ADDITIONAL OR ALTERN ATIVE 18 GROUNDS FOR GOOD CAU SE BY LOCAL LAW OR ORDINANCE . 19 (C) A LOCAL LAW OR ORDINAN CE ADOPTED BY A COUN TY UNDER THIS 20 SECTION: 21 (1) SHALL: 22 (I) APPLY ONLY TO A LANDL ORD THAT OWNS SIX OR MORE 23 RESIDENTIAL RENTAL U NITS IN THE STATE, INCLUDING ANY RESIDE NTIAL RENTAL 24 UNITS THAT THE LANDL ORD OWNS OR CONTROLS : 25 1. IN WHOLE OR IN PART ; 26 2. DIRECTLY OR INDIRECTL Y; OR 27 8 SENATE BILL 651 3. THROUGH ONE OR MORE L EGAL ENTITIES; 1 (II) REQUIRE THAT A LANDLO RD ENFORCE SUBSTANTI AL 2 BREACHES OF A LEASE CONSISTENTLY AMONG A LL TENANTS; AND 3 (III) PROHIBIT A LANDLORD FROM ASSE RTING GOOD CAUSE 4 BASED ON A SUBSTANTI AL BREACH OF A LEASE UNLESS THE LANDLORD ENFORCES 5 SUBSTANTIAL BREACHES OF A LEASE CONSISTEN TLY AMONG ALL TENANT S; AND 6 (2) MAY NOT: 7 (I) APPLY TO AN OWNER –OCCUPIED RESIDENTIAL RENTAL 8 UNIT; 9 (II) REQUIRE A LANDLORD TO DEMONSTRATE GOOD CAUSE IF A 10 TENANT PROVIDES NOTI CE TO THE LANDLORD T HAT EXPRESSES THE TE NANT’S 11 INTENT NOT TO RENEW THE LEASE OR CONTINU E WITH THE HOLDOVER TENANCY; 12 OR 13 (III) CONFLICT WITH THE NOT ICE REQUIREMENTS OF § 8–402(C) 14 OF THIS SUBTITLE. 15 (D) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 16 FOR PURPOSES OF ESTA BLISHING THE NUMBER OF UNITS OWNED BY A LANDLORD 17 TO DETERMINE THE APP LICABILITY OF A LOCA L LAW OR ORDINANCE A DOPTED IN 18 ACCORDANCE WITH THIS SECTION, ANY RESIDENTIAL RENTAL U NIT IN THE STATE 19 OWNED BY AN INDIVIDU AL OR ENTITY THAT HA S DIRECT OR INDIRECT OWNERSHIP 20 OR MEMBERSHIP INTERE ST IN THE LANDLORD S HALL BE CONSIDERED A UNIT 21 OWNED BY THE LANDLOR D. 22 (2) AN INDIVIDUAL OR ENTI TY DOES NOT HAVE OWN ERSHIP OR 23 MEMBERSHIP INTEREST IN A LANDLORD IF THE INDIVIDUAL’S OR ENTITY ’S 24 INTEREST IN THE LAND LORD IS IN THE NATUR E OF A NONCONTROLLIN G INTEREST 25 IN A PUBLICLY TRADED CORPORATION , TRUST, MUTUAL FUND , OR SIMILAR 26 INVESTMENT VEHICLE . 27 (E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , NOTHING IN 28 THIS SECTION MAY BE INTERPRETED TO ALTER THE RIGHTS OF A LAND LORD THAT 29 SEEKS RELIEF UNDER T HIS SUBTITLE. 30 (2) A LANDLORD IN A COUNTY THAT HAS ADOPTED A L OCAL LAW OR 31 ORDINANCE UNDER THIS SUBSECTION MAY SEEK RELIEF UNDER § 8–402 OF THIS 32 SUBTITLE ONLY AFTER DECLINING TO ENTER I NTO A NEW LEASE OR T O CONTINUE A 33 SENATE BILL 651 9 HOLDOVER TENANCY IN ACCORDANCE WITH THE PROVISIONS OF THE LOCAL LAW 1 OR ORDINANCE . 2 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 3 October 1, 2025. 4