EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0758*
SENATE BILL 758
N1 5lr2031
CF 5lr2033
By: Senator Kagan
Introduced and read first time: January 27, 2025
Assigned to: Judicial Proceedings
A BILL ENTITLED
AN ACT concerning 1
Condominiums and Homeowners Associations – Elections, Financial 2
Statements, and Enforcement 3
FOR the purpose of establishing certain requirements for elections of the governing body 4
of a condominium or homeowners association; requiring the governing body of a 5
condominium to accommodate unit owner organizing activities relating to the 6
governance of the condominium; prohibiting a condominium or homeowners 7
association from charging a unit or lot owner for examining certain records of the 8
condominium or homeowners association in a certain manner; authorizing a 9
condominium or homeowners association to charge a reasonable fee for copying 10
certain documents; expanding the authority of the Division of Consumer Protection 11
of the Office of the Attorney General to enforce certain provisions of law relating to 12
condominiums and homeowners associations; and generally relating to 13
condominiums and homeowners associations. 14
BY renumbering 15
Article – Real Property 16
Section 11B–118 17
to be Section 11B–119 18
Annotated Code of Maryland 19
(2023 Replacement Volume and 2024 Supplement) 20
BY adding to 21
Article – Real Property 22
Section 11–109(c)(17) through (22) and 11B–118 23
Annotated Code of Maryland 24
(2023 Replacement Volume and 2024 Supplement) 25
BY repealing and reenacting, with amendments, 26
Article – Real Property 27
Section 11–116, 11–130, 11B–112, and 11B–115 28 2 SENATE BILL 758
Annotated Code of Maryland 1
(2023 Replacement Volume and 2024 Supplement) 2
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
That Section(s) 11B–118 of Article – Real Property of the Annotated Code of Maryland be 4
renumbered to be Section(s) 11B–119. 5
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 6
as follows: 7
Article – Real Property 8
11–109. 9
(c) (17) (I) ELECTIONS, INCLUDING THE COLLEC TION AND COUNTING 10
OF BALLOTS AND THE C ERTIFYING OF RESULTS , FOR OFFICERS OR MEMB ERS OF 11
THE GOVERNING BODY O THER THAN THE FULL M EMBERSHIP OF THE COU NCIL OF 12
UNIT OWNERS SHALL BE COND UCTED BY INDEPENDENT PARTIES WHO: 13
1. ARE NOT CANDIDATES IN THE ELECTION; AND 14
2. DO NOT HAVE A CONFLIC T OF INTEREST REGARD ING 15
ANY CANDIDATE IN THE ELECTION. 16
(II) A UNIT OWNER IS AN IND EPENDENT PARTY IF TH E UNIT 17
OWNER: 18
1. COMPLIES WITH THE REQ UIREMENTS OF THIS 19
SECTION; 20
2. DOES NOT ELECTIONEER FOR ANY CANDIDATE ; AND 21
3. IS NOT SUBJECT TO AN OBJECTION BY MORE TH AN 25 22
PERCENT OF THE ELIGIBLE VOTI NG MEMBERS OF THE CO UNCIL OF UNIT OWNERS . 23
(III) REPRESENTATIVES OF THE CONDOMINIUM ’S PROPERTY 24
MANAGEMENT ARE NOT I NDEPENDENT PARTIES . 25
(18) THE GOVERNING BODY MA Y RETAIN A THIRD–PARTY VENDOR OR 26
EMPLOY A COMMERCIAL TECHNOLOGY PLATFORM TO CONDUCT AN ELECTI ON. 27
(19) INDIVIDUALS CONDUCTIN G AN ELECTION SHALL MAKE 28
REASONABLE EFFORTS TO EN SURE THAT THE ELECTI ON IS FAIR AND THAT THERE 29
IS ACCOUNTABILITY FO R THE PROCESS AND TH E RESULTS OF THE ELE CTION. 30 SENATE BILL 758 3
(20) A UNIT OWNER DESIGNATE D TO CONDUCT AN ELEC TION WHO 1
ACTS IN GOOD FAITH I S NOT PERSONALLY LIA BLE IN CONNECTION WI TH THE 2
CONDUCT OF THE ELECT ION. 3
(21) (I) THE GOVERNING BODY SH ALL MAKE REASONABLE 4
ACCOMMODATIONS , INCLUDING REASONABLE USE OF ANY PORTION O F COMMON 5
AREAS, FOR UNIT OWNERS TO E NGAGE IN ORGANIZING ACTIVITIES RELATING TO 6
GOVERNANCE OF THE CO NDOMINIUM . 7
(II) THE GOVERNING BODY MA Y NOT PREVENT UNIT O WNERS 8
FROM OR RETALIATE AG AINST UNIT OWNERS FO R EXERCISING RIGHTS 9
GUARANTEED UNDER LAW OR UNDER THE GOVERNI NG DOCUMENTS OF THE 10
CONDOMINIUM . 11
(22) PROVISIONS OF THE GOV ERNING DOCUMENTS , RULES, OR 12
REGULATIONS OF A CONDOMINIUM RELATI NG TO THE CONDUCT OF ELECTIONS 13
THAT ARE INCONSISTEN T WITH THE REQUIREME NTS OF THIS SECTION ARE 14
UNENFORCEABLE AND VO ID. 15
11–116. 16
(a) The council of unit owners shall keep books and records in accordance with 17
good accounting practices on a consistent basis. 18
(b) On the request of the unit owners of at least 5 percent of the units, the council 19
of unit owners shall cause an audit of the books and records to be made by an independent 20
certified public accountant, provided an audit shall be made not more than once in any 21
consecutive 12–month period. The cost of the audit shall be a common expense. 22
(c) (1) (i) Except as provided in paragraph (3) of this subsection, all books 23
and records, including insurance policies, kept by the council of unit owners shall be 24
maintained in Maryland or within 50 miles of its borders and shall be available at some 25
place designated by the council of unit owners for examination or copying, or both, by any 26
unit owner, a unit owner’s mortgagee, or their respective duly authorized agents or 27
attorneys, during normal business hours, and after reasonable notice. 28
(ii) If a unit owner requests in writing a copy of financial statements 29
of the condominium or the minutes of a meeting of the board of directors or other governing 30
body of the condominium to be delivered, the board of directors or other governing body of 31
the condominium shall compile and send the requested information by mail, electronic 32
transmission, or personal delivery: 33
4 SENATE BILL 758
1. Within 21 days after receipt of the written request, if the 1
financial statements or minutes were prepared within the 3 years immediately preceding 2
receipt of the request; or 3
2. Within 45 days after receipt of the written request, if the 4
financial statements or minutes were prepared more than 3 years before receipt of the 5
request. 6
(2) Books and records required to be made available under paragraph (1) 7
of this subsection shall first be made available to a unit owner not later than 15 business 8
days after a unit is conveyed from a developer and the unit owner requests to examine or 9
copy the books and records. 10
(3) Books and records kept by or on behalf of a council of unit owners may 11
be withheld from public inspection, except for inspection by the person who is the subject 12
of the record or the person’s designee or guardian, to the extent that they concern: 13
(i) Personnel records, not including information on individual 14
salaries, wages, bonuses, and other compensation paid to employees; 15
(ii) An individual’s medical records; 16
(iii) An individual’s personal financial records, including assets, 17
income, liabilities, net worth, bank balances, financial history or activities, and 18
creditworthiness; 19
(iv) Records relating to business transactions that are currently in 20
negotiation; 21
(v) The written advice of legal counsel; or 22
(vi) Minutes of a closed meeting of the board of directors or other 23
governing body of the council of unit owners, unless a majority of a quorum of the board of 24
directors or governing body that held the meeting approves unsealing the minutes or a 25
recording of the minutes for public inspection. 26
(d) (1) [Except for a reasonable charge imposed on a person desiring to review 27
or copy the books and records or who requests delivery of information, the council of unit 28
owners may not impose any charges under this section.] 29
(I) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION , 30
THE COUNCIL OF UNIT OWNERS MAY IMPOSE A REASONABLE CHARGE ON A PERSON 31
DESIRING TO REVIEW O R COPY THE BOOKS AND RECORDS OF THE CONDOM INIUM OR 32
WHO REQUESTS DELIVER Y OF INFORMATION . 33
SENATE BILL 758 5
(II) THE COUNCIL OF UNIT O WNERS MAY NOT IMPOSE ANY 1
CHARGES UNDER THIS SECTION OTHER THAN THOSE AUT HORIZED UNDER 2
SUBPARAGRAPH (I) OF THIS PARAGRAPH . 3
(2) A UNIT OWNER MAY NOT B E CHARGED FOR : 4
(I) EXAMINING THE FINANCI AL STATEMENTS OF THE 5
CONDOMINIUM IN PERSON WHERE THE FIN ANCIAL STATEMENTS AR E MAINTAINED 6
IN ACCORDANCE WITH S UBSECTION (C)(1)(I) OF THIS SECTION; OR 7
(II) RECEIVING THE FINANCI AL STATEMENTS OF THE 8
CONDOMINIUM THROUGH ELECTRONIC TRA NSMISSION IN ACCORDA NCE WITH 9
SUBSECTION (C)(1)(II) OF THIS SECTION. 10
[(2)] (3) A charge imposed under paragraph (1) of this subsection for 11
copying books and records may not exceed the limits authorized under Title 7, Subtitle 2 of 12
the Courts Article. 13
11–130. 14
(a) This section is intended to provide minimum standards for the protection of 15
consumers in the State. 16
(b) (1) [For purposes of] IN this section, “consumer” means an actual or 17
prospective purchaser, lessee, assignee or recipient of a condominium unit OR A UNIT 18
OWNER. 19
(2) “Consumer” includes a co–obligor or surety for a consumer. 20
(c) [(1) To the extent that a violation of any provision of this title affects a 21
consumer, that] A violation OF THIS TITLE shall be within the scope of the enforcement 22
duties and powers of the Division of Consumer Protection of the Office of the Attorney 23
General, as described in Title 13 of the Commercial Law Article. 24
[(2) The provisions of this title shall otherwise be enforced by each agency 25
of the State within the scope of its authority.] 26
(d) THE DIVISION OF CONSUMER PROTECTION OF THE OFFICE OF THE 27
ATTORNEY GENERAL MAY ADOPT REG ULATIONS TO CARRY OU T THIS TITLE. 28
(E) A county or incorporated municipality, or an agency of any of those 29
jurisdictions, may adopt laws or ordinances for the protection of a consumer to the extent 30
and in the manner provided for under § 13–103 of the Commercial Law Article. 31
6 SENATE BILL 758
[(e)] (F) Within 30 days of the effective date of a law, ordinance, or regulation 1
enacted under this section which is expressly applicable to condominiums, the local 2
jurisdiction shall forward a copy of the law, ordinance, or regulation to the Secretary of 3
State. 4
11B–112. 5
(a) (1) (i) Subject to the provisions of paragraph (2) of this subsection, all 6
books and records kept by or on behalf of the homeowners association shall be made 7
available for examination or copying, or both, by a lot owner, a lot owner’s mortgagee, or 8
their respective duly authorized agents or attorneys, during normal business hours, and 9
after reasonable notice. 10
(ii) Books and records required to be made available under 11
subparagraph (i) of this paragraph shall first be made available to a lot owner no later than 12
15 business days after a lot is conveyed by the declarant and the lot owner requests to 13
examine or copy the books and records. 14
(iii) If a lot owner requests in writing a copy of financial statements 15
of the homeowners association or the minutes of a meeting of the governing body of the 16
homeowners association to be delivered, the governing body of the homeowners association 17
shall compile and send the requested information by mail, electronic transmission, or 18
personal delivery: 19
1. Within 21 days after receipt of the written request, if the 20
financial statements or minutes were prepared within the 3 years immediately preceding 21
receipt of the request; or 22
2. Within 45 days after receipt of the written request, if the 23
financial statements or minutes were prepared more than 3 years before receipt of the 24
request. 25
(2) Books and records kept by or on behalf of a homeowners association 26
may be withheld from public inspection, except for inspection by the person who is the 27
subject of the record or the person’s designee or guardian, to the extent that they concern: 28
(i) Personnel records, not including information on individual 29
salaries, wages, bonuses, and other compensation paid to employees; 30
(ii) An individual’s medical records; 31
(iii) An individual’s personal financial records, including assets, 32
income, liabilities, net worth, bank balances, financial history or activities, and 33
creditworthiness; 34
(iv) Records relating to business transactions that are currently in 35
negotiation; 36 SENATE BILL 758 7
(v) The written advice of legal counsel; or 1
(vi) Minutes of a closed meeting of the governing body of the 2
homeowners association, unless a majority of a quorum of the governing body of the 3
homeowners association that held the meeting approves unsealing the minutes or a 4
recording of the minutes for public inspection. 5
(b) (1) [Except for a reasonable charge imposed on a person desiring to review 6
or copy the books and records or who requests delivery of information, the homeowners 7
association may not impose any charges under this section.] 8
(I) EXCEPT AS OTHERWISE P ROVIDED IN THIS SUBS ECTION, 9
THE HOMEOWNERS ASSOCIATI ON MAY IMPOSE A REASONA BLE CHARGE ON A 10
PERSON DESIRING TO R EVIEW OR COPY THE BO OKS AND RECORDS OR W HO 11
REQUESTS DELIVERY OF INFORMATION . 12
(II) THE HOMEOWNERS ASSOCIATI ON MAY NOT IMPOSE ANY 13
CHARGES UNDER THIS SECTION OTHER THAN THOSE AUT HORIZED UNDER 14
SUBPARAGRAPH (I) OF THIS PARAGRAPH . 15
(2) A LOT OWNER MAY NOT BE CHA RGED FOR: 16
(I) EXAMINING THE FINANCI AL STATEMENTS OF THE 17
HOMEOWNERS ASSOCIATI ON IN PERSON WHERE THE F INANCIAL STATEMENTS AR E 18
MAINTAINED IN ACCORD ANCE WITH SUBSECTION (A)(1)(I) OF THIS SECTION , 19
UNLESS THE FINANCIAL STATEMENTS ARE LOCATED IN A DEP OSITORY; OR 20
(II) RECEIVING THE FINANCI AL STATEMENTS OF THE 21
HOMEOWNERS ASSOCIATIO N THROUGH ELECTRONIC TRANSMISSION IN 22
ACCORDANCE WITH SUBS ECTION (A)(1)(III) OF THIS SECTION. 23
[(2)] (3) A charge imposed under paragraph (1) of this subsection for 24
copying books and records may not exceed the limits authorized under Title 7, Subtitle 2 of 25
the Courts Article. 26
(c) (1) Each homeowners association that was in existence on June 30, 1987 27
shall deposit in the depository by December 31, 1988, and each homeowners association 28
established subsequent to June 30, 1987 shall deposit in the depository by the later of the 29
date 30 days following its establishment, or December 31, 1988, all disclosures, current to 30
the date of deposit, specified: 31
(i) By § 11B–105(b) of this title except for those disclosures required 32
by paragraphs (6)(i), (8), (9), and (12); 33
8 SENATE BILL 758
(ii) By § 11B–106(b) of this title except for those disclosures required 1
by paragraphs (1), (2), (4), and (5)(i); and 2
(iii) By § 11B–107(b) of this title. 3
(2) Beginning January 1, 1989, within 30 days of the adoption of or 4
amendment to any of the disclosures required by this title to be deposited in the depository, 5
a homeowners association shall deposit the adopted or amended disclosures in the 6
depository. 7
(3) If a homeowners association fails to deposit in the depository any of the 8
disclosures required to be deposited by this section, or by § 11B–105(b)(6)(ii) or § 9
11B–106(b)(5)(ii) of this title, then those disclosures which were not deposited shall be 10
unenforceable until the time they are deposited. 11
11B–115. 12
(a) (1) In this section, “consumer” means an actual or prospective purchaser, 13
lessee, assignee, or recipient of a lot in a development, OR A LOT OWNER . 14
(2) “Consumer” includes a co–obligor or surety for a consumer. 15
(b) This section is intended to provide minimum standards for protection of 16
consumers in the State. 17
(c) [(1) To the extent that a violation of any provision of this title affects a 18
consumer, that] A violation OF THIS TITLE shall be within the scope of the enforcement 19
duties and powers of the Division of Consumer Protection of the Office of the Attorney 20
General, as described in Title 13 of the Commercial Law Article. 21
[(2) The provisions of this title shall otherwise be enforced by each unit of 22
State government within the scope of the authority of the unit.] 23
(d) THE DIVISION OF CONSUMER PROTECTION OF THE OFFICE OF THE 24
ATTORNEY GENERAL MAY ADOPT REG ULATIONS TO CARRY OU T THIS TITLE. 25
(E) (1) A county or municipal corporation may adopt a law, ordinance, or 26
regulation for the protection of a consumer to the extent and in the manner provided for 27
under § 13–103 of the Commercial Law Article. 28
(2) Within 30 days of the effective date of a law, ordinance, or regulation 29
adopted under this subsection that is expressly applicable to a development, the county or 30
municipal corporation shall forward a copy of the law, ordinance, or regulation to the 31
homeowners association depository in the office of the clerk of the court in the county where 32
the development is located. 33
SENATE BILL 758 9
11B–118. 1
(A) (1) ELECTIONS FOR THE GOV ERNING BODY OF A HOM EOWNERS 2
ASSOCIATION, INCLUDING THE COLLEC TION AND COUNTING OF BALLOTS AND THE 3
CERTIFYING OF RESULT S, SHALL BE CONDUCTED B Y INDEPENDENT PARTIE S WHO: 4
(I) ARE NOT CANDIDATES FOR P OSITIONS ON THE GOVE RNING 5
BODY OF THE HOMEOWNE RS ASSOCIATION IN TH AT ELECTION; AND 6
(II) DO NOT HAVE A CONFLIC T OF INTEREST REGARD ING ANY 7
CANDIDATE IN THE ELE CTION. 8
(2) (I) REPRESENTATIVES OF TH E HOMEOWNERS ASSOCIA TION’S 9
PROPERTY MANAGEMENT ARE NOT INDEPENDENT PARTIES . 10
(II) A LOT OWNER IS AN INDEPENDENT PARTY IF THE LOT 11
OWNER: 12
1. COMPLIES WITH THE REQ UIREMENTS OF THIS 13
SUBSECTION; 14
2. DOES NOT ELECTIONEER FOR ANY CANDIDATE ; AND 15
3. IS NOT SUBJECT TO AN OBJECTION BY MORE THAN 25 16
PERCENT OF THE ELIGIBLE VOTI NG MEMBERS OF THE HO MEOWNERS ASSOCIATION . 17
(III) THE HOMEOWNERS ASSOCI ATION MAY RETAIN A 18
THIRD–PARTY VENDOR OR EMPL OY A COMMERCIAL TECH NOLOGY PLATFORM TO 19
CONDUCT THE ELECTION . 20
(B) INDIVIDUALS CONDUCTIN G AN ELECTION SHALL MA KE REASONABLE 21
EFFORTS TO ENSURE TH AT THE ELECTION IS F AIR AND THAT THERE I S 22
ACCOUNTABILITY FOR T HE PROCESS AND THE R ESULTS OF THE ELECTI ON. 23
(C) A LOT OWNER DESIGNATED TO CONDUCT AN ELECTI ON WHO ACTS IN 24
GOOD FAITH HAS NO PE RSONAL LIABI LITY IN CONNECTION W ITH THE CONDUCT OF 25
AN ELECTION. 26
(D) PROVISIONS OF THE GOV ERNING DOCUMENTS , RULES, OR 27
REGULATIONS OF A HOM EOWNERS ASSOCIATION RELATING TO THE COND UCT OF 28
ELECTIONS THAT ARE I NCONSISTENT WITH THE REQUIREMENTS OF THIS SECTION 29
ARE VOID AND UNENFORCEABLE . 30
10 SENATE BILL 758
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
October 1, 2025. 2