EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0758*
SENATE BILL 758
N1 5lr2031
CF HB 1534
By: Senator Kagan
Introduced and read first time: January 27, 2025
Assigned to: Judicial Proceedings
Committee Report: Favorable
Senate action: Adopted
Read second time: March 10, 2025
CHAPTER ______
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 2 SENATE BILL 758
Annotated Code of Maryland 1
(2023 Replacement Volume and 2024 Supplement) 2
BY repealing and reenacting, with amendments, 3
Article – Real Property 4
Section 11–116, 11–130, 11B–112, and 11B–115 5
Annotated Code of Maryland 6
(2023 Replacement Volume and 2024 Supplement) 7
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That Section(s) 11B–118 of Article – Real Property of the Annotated Code of Maryland be 9
renumbered to be Section(s) 11B–119. 10
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 11
as follows: 12
Article – Real Property 13
11–109. 14
(c) (17) (I) ELECTIONS, INCLUDING THE COLLEC TION AND COUNTING 15
OF BALLOTS AND THE C ERTIFYING OF RESULTS , FOR OFFICERS OR MEMB ERS OF 16
THE GOVERNING BODY OTHER THAN THE FULL MEMBERSHIP OF T HE COUNCIL OF 17
UNIT OWNERS SHALL BE CONDUCTED BY INDEPEN DENT PARTIES WHO : 18
1. ARE NOT CANDIDATES IN THE ELECTION; AND 19
2. DO NOT HAVE A CONFLIC T OF INTEREST REGARD ING 20
ANY CANDIDATE IN THE ELECTION. 21
(II) A UNIT OWNER IS AN IND EPENDENT PARTY IF TH E UNIT 22
OWNER: 23
1. COMPLIES WITH THE REQ UIREMENTS OF THIS 24
SECTION; 25
2. DOES NOT ELECTIONEER FOR ANY CANDIDATE ; AND 26
3. IS NOT SUBJECT TO AN OBJECTION BY MORE TH AN 25 27
PERCENT OF THE ELIGIBLE VOTI NG MEMBERS OF THE CO UNCIL OF UNIT OWNERS . 28
(III) REPRESENTATIVES OF TH E CONDOMINIUM ’S PROPERTY 29
MANAGEMENT ARE NOT I NDEPENDENT PARTIES . 30
SENATE BILL 758 3
(18) THE GOVERNING BODY MA Y RETAIN A THIRD–PARTY VENDOR OR 1
EMPLOY A COMMERCIAL TECHNOLOGY PLA TFORM TO CONDUCT AN ELECTION. 2
(19) INDIVIDUALS CONDUCTIN G AN ELECTION SHALL MAKE 3
REASONABLE EFFORTS T O ENSURE THAT THE EL ECTION IS FAIR AND T HAT THERE 4
IS ACCOUNTABILITY FO R THE PROCESS AND TH E RESULTS OF THE ELE CTION. 5
(20) A UNIT OWNER DESIGNATE D TO CONDUCT AN ELECTION WHO 6
ACTS IN GOOD FAITH I S NOT PERSONALLY LIA BLE IN CONNECTION WI TH THE 7
CONDUCT OF THE ELECT ION. 8
(21) (I) THE GOVERNING BODY SH ALL MAKE REASONABLE 9
ACCOMMODATIONS , INCLUDING REASONABLE USE OF ANY PORTION O F COMMON 10
AREAS, FOR UNIT OWNERS TO E NGAGE IN ORGANIZING ACTIVITIES RELATING TO 11
GOVERNANCE OF THE CO NDOMINIUM . 12
(II) THE GOVERNING BODY MA Y NOT PREVENT UNI T OWNERS 13
FROM OR RETALIATE AG AINST UNIT OWNERS FO R EXERCISING RIGHTS 14
GUARANTEED UNDER LAW OR UNDER THE GOVERNI NG DOCUMENTS OF THE 15
CONDOMINIUM . 16
(22) PROVISIONS OF THE GOV ERNING DOCUMENTS , RULES, OR 17
REGULATIONS OF A CON DOMINIUM RELATING TO THE CONDUCT OF ELECTIONS 18
THAT ARE INCONSISTEN T WITH THE REQUIREME NTS OF THIS SECTION ARE 19
UNENFORCEABLE AND VO ID. 20
11–116. 21
(a) The council of unit owners shall keep books and records in accordance with 22
good accounting practices on a consistent basis. 23
(b) On the request of the unit owners of at least 5 percent of the units, the council 24
of unit owners shall cause an audit of the books and records to be made by an independent 25
certified public accountant, provided an audit shall be made not more than once in any 26
consecutive 12–month period. The cost of the audit shall be a common expense. 27
(c) (1) (i) Except as provided in paragraph (3) of this subsection, all books 28
and records, including insurance policies, kept by the council of unit owners shall be 29
maintained in Maryland or within 50 miles of its borders and shall be available at some 30
place designated by the council of unit owners for examination or copying, or both, by any 31
unit owner, a unit owner’s mortgagee, or their respective duly authorized agents or 32
attorneys, during normal business hours, and after reasonable notice. 33
(ii) If a unit owner requests in writing a copy of financial statements 34
of the condominium or the minutes of a meeting of the board of directors or other governing 35 4 SENATE BILL 758
body of the condominium to be delivered, the board of directors or other governing body of 1
the condominium shall compile and send the requested information by mail, electronic 2
transmission, or personal delivery: 3
1. Within 21 days after receipt of the written request, if the 4
financial statements or minutes were prepared within the 3 years immediately preceding 5
receipt of the request; or 6
2. Within 45 days after receipt of the written request, if the 7
financial statements or minutes were prepared more than 3 years before receipt of the 8
request. 9
(2) Books and records required to be made available under paragraph (1) 10
of this subsection shall first be made available to a unit owner not later than 15 business 11
days after a unit is conveyed from a developer and the unit owner requests to examine or 12
copy the books and records. 13
(3) Books and records kept by or on behalf of a council of unit owners may 14
be withheld from public inspection, except for inspection by the person who is the subject 15
of the record or the person’s designee or guardian, to the extent that they concern: 16
(i) Personnel records, not including information on individual 17
salaries, wages, bonuses, and other compensation paid to employees; 18
(ii) An individual’s medical records; 19
(iii) An individual’s personal financial records, including assets, 20
income, liabilities, net worth, bank balances, financial history or activities, and 21
creditworthiness; 22
(iv) Records relating to business transactions that are currently in 23
negotiation; 24
(v) The written advice of legal counsel; or 25
(vi) Minutes of a closed meeting of the board of directors or other 26
governing body of the council of unit owners, unless a majority of a quorum of the board of 27
directors or governing body that held the meeting approves unsealing the minutes or a 28
recording of the minutes for public inspection. 29
(d) (1) [Except for a reasonable charge imposed on a person desiring to review 30
or copy the books and records or who requests delivery of information, the council of unit 31
owners may not impose any charges under this section.] 32
(I) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION , 33
THE COUNCIL OF UNIT OWNERS MAY IMPOSE A REASONABLE CHARGE ON A PERSON 34 SENATE BILL 758 5
DESIRING TO REVIEW O R COPY THE BOOKS AND RECORDS OF THE CONDOMINIUM OR 1
WHO REQUESTS DELIVER Y OF INFORMATION . 2
(II) THE COUNCIL OF UNIT O WNERS MAY NOT IMPOSE ANY 3
CHARGES UNDER THIS SECTION OTHER THAN THOSE AUT HORIZED UNDER 4
SUBPARAGRAPH (I) OF THIS PARAGRAPH . 5
(2) A UNIT OWNER MAY NOT B E CHARGED FOR : 6
(I) EXAMINING THE FINANCI AL STATEMENTS OF THE 7
CONDOMINIUM IN PERSON WHERE THE FIN ANCIAL STATEMENTS AR E MAINTAINED 8
IN ACCORDANCE WITH S UBSECTION (C)(1)(I) OF THIS SECTION; OR 9
(II) RECEIVING THE FINANCI AL STATEMENTS OF THE 10
CONDOMINIUM THROUGH ELECTRONIC TRA NSMISSION IN ACCORDA NCE WITH 11
SUBSECTION (C)(1)(II) OF THIS SECTION. 12
[(2)] (3) A charge imposed under paragraph (1) of this subsection for 13
copying books and records may not exceed the limits authorized under Title 7, Subtitle 2 of 14
the Courts Article. 15
11–130. 16
(a) This section is intended to provide minimum standards for the protection of 17
consumers in the State. 18
(b) (1) [For purposes of] IN this section, “consumer” means an actual or 19
prospective purchaser, lessee, assignee or recipient of a condominium unit OR A UNIT 20
OWNER. 21
(2) “Consumer” includes a co–obligor or surety for a consumer. 22
(c) [(1) To the extent that a violation of any provision of this title affects a 23
consumer, that] A violation OF THIS TITLE shall be within the scope of the enforcement 24
duties and powers of the Division of Consumer Protection of the Office of the Attorney 25
General, as described in Title 13 of the Commercial Law Article. 26
[(2) The provisions of this title shall otherwise be enforced by each agency 27
of the State within the scope of its authority.] 28
(d) THE DIVISION OF CONSUMER PROTECTION OF THE OFFICE OF THE 29
ATTORNEY GENERAL MAY ADOPT REG ULATIONS TO CARRY OU T THIS TITLE. 30
6 SENATE BILL 758
(E) A county or incorporated municipality, or an agency of any of those 1
jurisdictions, may adopt laws or ordinances for the protection of a consumer to the extent 2
and in the manner provided for under § 13–103 of the Commercial Law Article. 3
[(e)] (F) Within 30 days of the effective date of a law, ordinance, or regulation 4
enacted under this section which is expressly applicable to condominiums, the local 5
jurisdiction shall forward a copy of the law, ordinance, or regulation to the Secretary of 6
State. 7
11B–112. 8
(a) (1) (i) Subject to the provisions of paragraph (2) of this subsection, all 9
books and records kept by or on behalf of the homeowners association shall be made 10
available for examination or copying, or both, by a lot owner, a lot owner’s mortgagee, or 11
their respective duly authorized agents or attorneys, during normal business hours, and 12
after reasonable notice. 13
(ii) Books and records required to be made available under 14
subparagraph (i) of this paragraph shall first be made available to a lot owner no later than 15
15 business days after a lot is conveyed by the declarant and the lot owner requests to 16
examine or copy the books and records. 17
(iii) If a lot owner requests in writing a copy of financial statements 18
of the homeowners association or the minutes of a meeting of the governing body of the 19
homeowners association to be delivered, the governing body of the homeowners association 20
shall compile and send the requested information by mail, electronic transmission, or 21
personal delivery: 22
1. Within 21 days after receipt of the written request, if the 23
financial statements or minutes were prepared within the 3 years immediately preceding 24
receipt of the request; or 25
2. Within 45 days after receipt of the written request, if the 26
financial statements or minutes were prepared more than 3 years before receipt of the 27
request. 28
(2) Books and records kept by or on behalf of a homeowners association 29
may be withheld from public inspection, except for inspection by the person who is the 30
subject of the record or the person’s designee or guardian, to the extent that they concern: 31
(i) Personnel records, not including information on individual 32
salaries, wages, bonuses, and other compensation paid to employees; 33
(ii) An individual’s medical records; 34
SENATE BILL 758 7
(iii) An individual’s personal financial records, including assets, 1
income, liabilities, net worth, bank balances, financial history or activities, and 2
creditworthiness; 3
(iv) Records relating to business transactions that are currently in 4
negotiation; 5
(v) The written advice of legal counsel; or 6
(vi) Minutes of a closed meeting of the governing body of the 7
homeowners association, unless a majority of a quorum of the governing body of the 8
homeowners association that held the meeting approves unsealing the minutes or a 9
recording of the minutes for public inspection. 10
(b) (1) [Except for a reasonable charge imposed on a person desiring to review 11
or copy the books and records or who requests delivery of information, the homeowners 12
association may not impose any charges under this section.] 13
(I) EXCEPT AS OTHERWISE P ROVIDED IN THIS SUBS ECTION, 14
THE HOMEOWNERS ASSOCIATI ON MAY IMPOSE A REASONA BLE CHARGE ON A 15
PERSON DESIRING TO R EVIEW OR COPY THE BO OKS AND RECORDS OR W HO 16
REQUESTS DELIVERY OF INFORMATION . 17
(II) THE HOMEOWNERS ASSOCIATI ON MAY NOT IMPOSE ANY 18
CHARGES UNDER THIS SECTION OTHER THAN THOSE AUTHORIZED UND ER 19
SUBPARAGRAPH (I) OF THIS PARAGRAPH . 20
(2) A LOT OWNER MAY NOT BE CHA RGED FOR: 21
(I) EXAMINING THE FINANCI AL STATEMENTS OF THE 22
HOMEOWNERS ASSOCIATI ON IN PERSON WHERE THE F INANCIAL STATEMENTS ARE 23
MAINTAINED IN ACCORD ANCE WITH SUBSE CTION (A)(1)(I) OF THIS SECTION , 24
UNLESS THE FINANCIAL STATEMENTS ARE LOCATED IN A DEP OSITORY; OR 25
(II) RECEIVING THE FINANCI AL STATEMENTS OF THE 26
HOMEOWNERS ASSOCIATIO N THROUGH ELECTRONIC TRANSMISS ION IN 27
ACCORDANCE WITH SUBS ECTION (A)(1)(III) OF THIS SECTION. 28
[(2)] (3) A charge imposed under paragraph (1) of this subsection for 29
copying books and records may not exceed the limits authorized under Title 7, Subtitle 2 of 30
the Courts Article. 31
(c) (1) Each homeowners association that was in existence on June 30, 1987 32
shall deposit in the depository by December 31, 1988, and each homeowners association 33
established subsequent to June 30, 1987 shall deposit in the depository by the later of the 34 8 SENATE BILL 758
date 30 days following its establishment, or December 31, 1988, all disclosures, current to 1
the date of deposit, specified: 2
(i) By § 11B–105(b) of this title except for those disclosures required 3
by paragraphs (6)(i), (8), (9), and (12); 4
(ii) By § 11B–106(b) of this title except for those disclosures required 5
by paragraphs (1), (2), (4), and (5)(i); and 6
(iii) By § 11B–107(b) of this title. 7
(2) Beginning January 1, 1989, within 30 days of the adoption of or 8
amendment to any of the disclosures required by this title to be deposited in the depository, 9
a homeowners association shall deposit the adopted or amended disclosures in the 10
depository. 11
(3) If a homeowners association fails to deposit in the depository any of the 12
disclosures required to be deposited by this section, or by § 11B–105(b)(6)(ii) or § 13
11B–106(b)(5)(ii) of this title, then those disclosures which were not deposited shall be 14
unenforceable until the time they are deposited. 15
11B–115. 16
(a) (1) In this section, “consumer” means an actual or prospective purchaser, 17
lessee, assignee, or recipient of a lot in a development, OR A LOT OWNER . 18
(2) “Consumer” includes a co–obligor or surety for a consumer. 19
(b) This section is intended to provide minimum standards for protection of 20
consumers in the State. 21
(c) [(1) To the extent that a violation of any provision of this title affects a 22
consumer, that] A violation OF THIS TITLE shall be within the scope of the enforcement 23
duties and powers of the Division of Consumer Protection of the Office of the Attorney 24
General, as described in Title 13 of the Commercial Law Article. 25
[(2) The provisions of this title shall otherwise be enforced by each unit of 26
State government within the scope of the authority of the unit.] 27
(d) THE DIVISION OF CONSUMER PROTECTION OF THE OFFICE OF THE 28
ATTORNEY GENERAL MAY ADOPT REG ULATIONS TO CARRY OU T THIS TITLE. 29
(E) (1) A county or municipal corporation may adopt a law, ordinance, or 30
regulation for the protection of a consumer to the extent and in the manner provided for 31
under § 13–103 of the Commercial Law Article. 32
SENATE BILL 758 9
(2) Within 30 days of the effective date of a law, ordinance, or regulation 1
adopted under this subsection that is expressly applicable to a development, the county or 2
municipal corporation shall forward a copy of the law, ordinance, or regulation to the 3
homeowners association depository in the office of the clerk of the court in the county where 4
the development is located. 5
11B–118. 6
(A) (1) ELECTIONS FOR THE GOV ERNING BODY OF A HOM EOWNERS 7
ASSOCIATION, INCLUDING THE COLLEC TION AND COUNTING OF BALLOTS AND THE 8
CERTIFYING OF RESULT S, SHALL BE CONDUCTED B Y INDEPENDENT PARTIE S WHO: 9
(I) ARE NOT CANDIDATES FOR P OSITIONS ON THE GOVE RNING 10
BODY OF THE HOMEOWNE RS ASSOCIATION IN TH AT ELECTION; AND 11
(II) DO NOT HAVE A CONFLIC T OF INTEREST REGARD ING ANY 12
CANDIDATE IN THE ELE CTION. 13
(2) (I) REPRESENTATIVES OF TH E HOMEOWNERS ASSOCIA TION’S 14
PROPERTY MANAGEMENT ARE NOT INDEPENDENT PARTIES . 15
(II) A LOT OWNER IS AN INDEPENDENT PARTY IF THE LOT 16
OWNER: 17
1. COMPLIES WITH THE REQ UIREMENTS OF THIS 18
SUBSECTION; 19
2. DOES NOT ELECTIONEER FOR ANY CANDIDATE ; AND 20
3. IS NOT SUBJECT TO AN OBJECTION BY MORE THAN 25 21
PERCENT OF THE ELIGIBLE VOTI NG MEMBERS OF THE HO MEOWNERS ASSOCIATION . 22
(III) THE HOMEOWNERS ASSOCI ATION MAY RETAIN A 23
THIRD–PARTY VENDOR OR EMPL OY A COMMERCIAL TECH NOLOGY PLATFORM TO 24
CONDUCT THE ELECTION . 25
(B) INDIVIDUALS CONDUCTIN G AN ELECTION SHALL MA KE REASONABLE 26
EFFORTS TO ENSURE TH AT THE ELECTION IS F AIR AND THAT THERE I S 27
ACCOUNTABILITY FOR T HE PROCESS AND THE R ESULTS OF THE ELECTI ON. 28
(C) A LOT OWNER DESIGNATED TO CONDUCT AN ELECTI ON WHO ACTS IN 29
GOOD FAITH HAS NO PE RSONAL LIABI LITY IN CONNECTION W ITH THE CONDUCT OF 30
AN ELECTION. 31
10 SENATE BILL 758
(D) PROVISIONS OF THE GOV ERNING DOCUMENTS , RULES, OR 1
REGULATIONS OF A HOM EOWNERS ASSOCIATION RELATING TO THE COND UCT OF 2
ELECTIONS THAT ARE I NCONSISTENT WITH THE REQUIREMENTS OF THIS SECTION 3
ARE VOID AND UNENFORCEABLE . 4
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 5
October 1, 2025. 6
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.