EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0866*
SENATE BILL 866
N1, I3, P1 5lr3466
CF HB 306
By: Senators Muse, Augustine, and Charles
Introduced and read first time: January 28, 2025
Assigned to: Judicial Proceedings
A BILL ENTITLED
AN ACT concerning 1
Common Ownership Communities – Ombudsman Unit, Governing Document 2
Database, and Local Commissions 3
FOR the purpose of establishing the Common Ownership Community Ombudsman Unit in 4
the Division of Consumer Protection in the Office of the Attorney General to receive 5
and respond to certain complaints; requiring common ownership communities to file 6
certain documents with the Department of Housing and Community Development; 7
requiring the Department to establish a certain database; establishing requirements 8
for a local common ownership commission established by the local government of a 9
county; and generally relating to common ownership communities. 10
BY adding to 11
Article – Commercial Law 12
Section 13–207 13
Annotated Code of Maryland 14
(2013 Replacement Volume and 2024 Supplement) 15
BY adding to 16
Article – Housing and Community Development 17
Section 2–304 18
Annotated Code of Maryland 19
(2019 Replacement Volume and 2024 Supplement) 20
BY adding to 21
Article – Real Property 22
Section 11C–101 through 11C–114 to be under the new title “Title 11C. Local 23
Commissions on Common Ownership Communities” 24
Annotated Code of Maryland 25
(2023 Replacement Volume and 2024 Supplement) 26
2 SENATE BILL 866
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEM BLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Commercial Law 3
13–207. 4
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 5
INDICATED. 6
(2) “COMMON OWNERSHIP COMM UNITY” MEANS: 7
(I) A COOPERATIVE HOUSING CORPORATION AS DEFINED IN § 8
5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; 9
(II) A CONDOMINIUM AS DEFIN ED IN § 11–101 OF THE REAL 10
PROPERTY ARTICLE; OR 11
(III) A HOMEOWNERS ASSOCIATI ON AS DEFINED IN § 11B–101 OF 12
THE REAL PROPERTY ARTICLE. 13
(3) “GOVERNING BODY” MEANS: 14
(I) THE COUNCIL OF UNIT O WNERS OF A CONDOMINI UM; 15
(II) THE BOARD OF DIRECTOR S OF A COOPERATIVE H OUSING 16
CORPORATION ; 17
(III) A HOMEOWNERS ASSOCIATI ON, BOARD OF DIRECTORS , OR 18
ANY OTHER ENTITY EST ABLISHED TO GOVERN A PROPERTY SUBJECT TO AN 19
INSTRUMENT THAT IMPO SES ON LOTS, OR ON THE OWNERS OR OCCUPANTS OF LOTS , 20
ANY MANDATORY FEE IN CONNECTION WITH THE PROVISION OF SERVICE S OR 21
OTHERWISE FOR THE BE NEFIT OF SOME OR ALL OF THE LOTS; OR 22
(IV) ANY OTHER BODY AUTHOR IZED TO ADOPT RULES OR 23
REGULATIONS GOVERNING A CONDOMINIUM , COOPERATIVE HOUSING 24
CORPORATION , OR HOMEOWNERS ASSOCI ATION. 25
(4) “GOVERNING DOCUMENTS ” MEANS ANY BYLAW , COVENANT, 26
DECLARATION , RULE, PROPRIETARY LEASE , OR OTHER SIMILAR DOC UMENT OF A 27
COMMON OWNERSHIP COM MUNITY. 28
SENATE BILL 866 3
(5) “LOCAL COMMISSION ” MEANS A COMMISSION O N COMMON 1
OWNERSHIP COMMUNITIE S ESTABLISHED BY A C OUNTY, IN ACCORDANCE WITH § 2
11C–101 OF THE REAL PROPERTY ARTICLE. 3
(6) “MEMBER” MEANS: 4
(I) AN OCCUPANT OR A UNIT OWNER UNDER THE MARYLAND 5
CONDOMINIUM ACT; 6
(II) A LOT OWNER UNDER THE MARYLAND HOMEOWNERS 7
ASSOCIATION ACT; OR 8
(III) A MEMBER OF A COOPERAT IVE HOUSING CORPORAT ION AS 9
DEFINED IN § 5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE. 10
(7) “UNIT” MEANS THE COMMON OWNERSHIP COMMUNITY 11
OMBUDSMAN UNIT IN THE OFFICE OF THE ATTORNEY GENERAL. 12
(B) THERE IS A COMMON OWNERSHIP COMMUNITY OMBUDSMAN UNIT IN 13
THE DIVISION OF CONSUMER PROTECTION. 14
(C) THE PURPOSE OF THE UNIT IS: 15
(1) TO MONITOR CHANGES IN FEDERAL AND STATE LAWS RELATING 16
TO COMMON OWNERSHIP COMMUNITIES; 17
(2) TO PUBLISH INFORMATIO N CONCERNING COMMON OWNERSHIP 18
COMMUNITIES ON THE W EBSITE OF THE OFFICE OF THE ATTORNEY GENERAL; 19
(3) TO ASSIST MEMBERS IN UNDERSTANDING RIGHTS AND 20
PROCESSES AVAILABLE TO MEMBERS UNDER LAW S AND REGULATIONS GO VERNING 21
COMMON OWNERSHIP COMMUN ITIES; AND 22
(4) ON REQUEST, TO PROVIDE REFERRALS TO PUBLIC AND PRIVAT E 23
ALTERNATIVE DISPUTE RESOLUTION SERVICES , WITH A GOAL OF REDUC ING AND 24
RESOLVING CONFLICTS AMONG GOVERNING BODI ES AND MEMBERS . 25
(D) THE UNIT SHALL INCLUDE : 26
(1) A FULL–TIME COMMON OWNERSHIP COMMUNITY OMBUDSMAN ; 27
AND 28
(2) STAFF AS PROVIDED IN THE STATE BUDGET . 29 4 SENATE BILL 866
(E) (1) THE ATTORNEY GENERAL SHALL APPOINT THE COMMON 1
OWNERSHIP COMMUNITY OMBUDSMAN . 2
(2) THE COMMON OWNERSHIP COMMUNITY OMBUDSMAN MUST BE A 3
MEMBER OF TH E MARYLAND BAR. 4
(F) THE UNIT SHALL RECEIVE AN D RESPOND TO COMPLAI NTS BY MEMBERS 5
REGARDING FINAL ADVE RSE DECISIONS BY A G OVERNING BODY OR COM MON 6
OWNERSHIP COMMUNITY MANAGER. 7
(G) IN RESPONSE TO A COMP LAINT, OR ON THE INITIATIVE OF THE 8
OMBUDSMAN , THE UNIT SHALL: 9
(1) REFER THE COMPLAINT T O AN APPROPRIATE LOC AL COMMISSION 10
FOR FURTHER REVIEW O F WHETHER THE FINAL ADVERSE DECISION CON FLICTS 11
WITH LAWS OR REGULAT IONS GOVERNING COMMO N OWNERSHIP COMMUNIT IES IN 12
THE JURISDICTION ; OR 13
(2) MAKE A DETERMINATION OF WHETHER THE FINAL AD VERSE 14
DECISION CONFLICTS W ITH LAWS OR REGULATI ONS GOVERNING COMMON 15
OWNERSHIP COMMUNITIE S AND PROMPTLY NOTIF Y THE COMPLAINANT OF THE 16
DETERMINATION . 17
(H) (1) IF THE UNIT DETERMINES THAT A FINAL ADVERSE DECI SION 18
CONFLICTS WITH LAWS OR REGULATIONS GOVERNING COMMON OWNERSHIP 19
COMMUNITIES , THE UNIT SHALL PROMPTLY N OTIFY THE MEMBER , THE GOVERNING 20
BOARD, AND, IF APPLICABLE, THE COMMON OWNERSHIP COMMUNITY MANAGER 21
THAT THE ADVERSE DEC ISION CONFLICTS WITH LAWS OR REGULATIONS 22
GOVERNING COMMON OWN ERSHIP COMMUNITIES . 23
(2) IF WITHIN 1 YEAR AFTER ISSUING A DETERMINATION , THE 24
OMBUDSMAN RECEIVES A SUBSEQUENT COMPLAINT OF A FINAL ADVERSE D ECISION 25
FOR THE SAME VIOLATI ON, THE UNIT SHALL REFER THE MATTER TO THE 26
APPROPRIATE LOCAL CO MMISSION. 27
(I) (1) ON OR BEFORE DECEMBER 1, 2027, AND EACH DECEMBER 1 28
THEREAFTER , THE UNIT SHALL REPORT TO THE DEPARTMENT OF HOUSING AND 29
COMMUNITY DEVELOPMENT AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE 30
GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY ON THE ACTIV ITIES OF THE 31
UNIT DURING THE REPORTING PER IOD. 32
SENATE BILL 866 5
(2) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 1
SUBSECTION SHALL INC LUDE: 2
(I) THE NUMBER OF COMPLAI NTS RECEIVED BY THE UNIT; 3
(II) THE TYPES OF ASSISTAN CE REQUESTED ; 4
(III) ACTIONS TAKEN BY THE UNIT; 5
(IV) THE N UMBER OF REFERRALS M ADE TO LOCAL 6
COMMISSIONS ; AND 7
(V) DATA ON DISPOSITIONS AND OUTCOMES OF COMP LAINTS 8
RECEIVED. 9
Article – Housing and Community Development 10
2–304. 11
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 12
INDICATED. 13
(2) “COMMON OWNERSHIP COMM UNITY” HAS THE MEANING STAT ED 14
IN § 2–303 OF THIS SUBTITLE. 15
(3) “GOVERNING DOCUMENTS ” MEANS AN OFFERING ST ATEMENT, A 16
DECLARATION , BYLAWS, RULES, REGULATIONS , A PROPRIETARY LEASE , OR ANY 17
OTHER SIMILAR DOCUME NT OF A COMMON OWNER SHIP COMMUNITY. 18
(B) (1) A COMMON OWNERSHIP COM MUNITY LOCATED IN TH E STATE 19
SHALL FILE WITH THE DEPARTMENT A COPY OF THE GOVERNING DOCUME NTS, AND 20
ANY AMENDMENTS TO TH E GOVERNING DOCUMENT S, OF THE COMMON OWNERS HIP 21
COMMUNITY . 22
(2) A COMMON OWNERSHIP COM MUNITY TH AT FAILS TO MAKE A 23
FILING REQUIRED UNDE R PARAGRAPH (1) OF THIS SUBSECTION I S SUBJECT TO A 24
FINE OF $500. 25
(C) (1) THE DEPARTMENT SHALL DEVE LOP AND MAINTAIN A D ATABASE 26
OF GOVERNING DOCUMEN TS FILED WITH THE DEPARTMENT UNDER SUBS ECTION 27
(B) OF THIS SECTION ACC ESSIBLE TO THE PUBLI C THROUGH THE DEPARTMENT ’S 28
WEBSITE DESCRIBED IN § 2–303 OF THIS SUBTITLE . 29
6 SENATE BILL 866
(2) THE DEPARTMENT MAY CHARGE THE FOLLOWING FEES F OR 1
FILINGS REQUIRED UND ER THIS SECTION: 2
(I) FOR AN INITIAL FILIN G, UP TO $100; AND 3
(II) FOR ANY AMENDMENT TO A GOVER NING DOCUMENT , UP TO 4
$25. 5
Article – Real Property 6
TITLE 11C. LOCAL COMMISSIONS ON COMMON OWNERSHIP COMMUNITIES . 7
11C–101. 8
(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 9
INDICATED. 10
(B) “COMMON ELEMENT ” MEANS: 11
(1) ANY PORTION OF A COMMON OWNERSHIP COMMUNITY OTHER 12
THAN THE UNITS OF A CONDOMINIUM OR COOPE RATIVE; AND 13
(2) PROPERTY THAT IS OWNE D OR LEASED BY A HOM EOWNERS 14
ASSOCIATION. 15
(C) (1) “COMMON OWNERSHIP COMM UNITY” MEANS: 16
(I) A CONDOMINIUM AS DEFIN ED IN § 11–101 OF THIS ARTICLE 17
THAT IS USED FOR RES IDENTIAL PURPOSES ; 18
(II) A COOPERATIVE HOUSING CORPORATION AS DEFIN ED IN § 19
5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; AND 20
(III) A HOMEOWNERS ASSOCIATI ON AS DEFINED IN § 11B–101 OF 21
THIS ARTICLE. 22
(2) “COMMON OWNERSHIP COMM UNITY” DOES NOT INCLUDE A 23
TIME–SHARE PROJECT AS DEF INED IN § 11A–101 OF THIS ARTICLE. 24
(D) (1) “DISPUTE” MEANS A DISAGREEMENT BETWEEN AT LEAST TWO 25
PARTIES THAT INVOLVE S: 26
SENATE BILL 866 7
(I) THE AUTHORITY OF A GO VERNING BODY OF A CO MMON 1
OWNERSH IP COMMUNITY TO : 2
1. REQUIRE OR PROHIBIT A NY ACTION INVOLVING A 3
UNIT OR COMMON ELEME NT; 4
2. REQUIRE ANY PERSON TO PAY A FEE, A FINE, OR AN 5
ASSESSMENT ; 6
3. SPEND COMMON OWNERSHI P COMMUNITY FUNDS ; OR 7
4. ALTER OR ADD TO A COM MON ELEMENT ; OR 8
(II) THE FAILURE OF A GOVE RNING BODY OF A COMM ON 9
OWNERSHIP COMMUNITY TO: 10
1. PROPERLY CONDUCT AN E LECTION; 11
2. GIVE ADEQUATE NOTICE OF A MEETING OR AN O THER 12
ACTION; 13
3. PROPERLY CONDUCT A ME ETING; 14
4. PROPERLY ADOPT A BUDG ET OR RULES; 15
5. MAINTAIN OR AUDIT BOO KS AND RECORDS ; 16
6. ALLOW INSPECTION OF B OOKS AND RECORDS ; 17
7. MAINTAIN OR REPAIR A COMMON ELEMENT IF TH E 18
FAILURE RESULTS IN S IGNIFICANT PERSONAL INJURY OR PROPERTY D AMAGE; OR 19
8. EXERCISE ITS JUDGMENT IN GOOD FAITH 20
CONCERNING THE ENFORC EMENT OF THE ASSOCIA TION DOCUMENTS AGAIN ST ANY 21
PERSON THAT IS SUBJE CT TO THOSE DOCUMENT S. 22
(2) “DISPUTE” DOES NOT INCLUDE A D ISAGREEMENT THAT 23
INVOLVES: 24
(I) TITLE TO ANY UNIT OR COMMON ELEMENT ; 25
(II) THE PERCENTAGE INTERE ST OR VOTE ALLOCABLE TO A 26
UNIT; 27 8 SENATE BILL 866
(III) THE INTERPRETATION OR ENFORCEMENT OF ANY 1
WARRANTY; 2
(IV) THE COLLECTION OF AN ASSESSMENT VALIDLY L EVIED 3
AGAINST A PARTY ; OR 4
(V) THE EXERCISE OF THE J UDGMENT OR DISCRETIO N OF A 5
COMMON OWNERSHIP COM MUNITY REGARDING ANY LEGALLY AUTHORIZ ED ACTION. 6
(E) “GOVERNING BODY OF A C OMMON OWNERSHIP COMM UNITY” MEANS: 7
(1) THE COUNCIL OF UNIT O WNERS OF A CONDOMINI UM; 8
(2) THE BOARD OF DIRECTOR S OF A COOPERATIVE H OUSING 9
CORPORATION ; 10
(3) A HOMEOWNERS ASSOCIATI ON, BOARD OF DIRECTORS, OR AN 11
OTHER ENTITY ESTABLI SHED TO GOVERN A PRO PERTY SUBJECT TO AN INSTRUMENT 12
THAT IMPOSES ON LOTS , OR ON THE OWNERS OR OCCUPANTS OF LOTS , ANY 13
MANDATORY FEE IN CON NECTION WITH THE PRO VISION OF SERVICES O R 14
OTHERWISE FOR THE BE NEFIT OF SOME OR ALL OF THE LOTS; OR 15
(4) ANY OTHER BODY AUTHOR IZED TO ADOPT RULES OR 16
REGULATIONS GOVERNIN G A CONDOMINIUM , COOPERATIVE HOUSING 17
CORPORATION , OR HOMEOWNERS ASSOCI ATION. 18
(F) (1) “GOVERNING DOCUMENT ” MEANS: 19
(I) THE MASTER DEED , DECLARATION , INCORPORATION 20
DOCUMENT, BYLAWS, OR RULES OF ANY COMM ON OWNERSHIP COMMUNI TY; 21
(II) A WRITTEN PRIVATE AGRE EMENT BETWEEN PARTIE S 22
CONCERNING THE OPERA TION OF THE COMMUNIT Y OR MAINTENANCE OR CONTROL 23
OF COMMON OR LIMITED COMMON PROPERTY ; OR 24
(III) A DOCUMENT CONCERNING THE OPERATION OR 25
GOVERNANCE OF A COMM ON OWNERSHIP COMMUNI TY. 26
(2) “GOVERNING DOCUMENT ” DOES NOT INCLUDE A L EASE UNLESS 27
THE LEASE PROVIDES T HAT IT MAY BE ENFORC ED UNDER THIS TITLE . 28
SENATE BILL 866 9
(G) “LOCAL COMMISSION ” MEANS A COMMISSION O N COMMON OWNERSHIP 1
COMMUNITIES ESTABLIS HED BY A COUNTY IN A CCORDANCE WITH THIS TITLE. 2
(H) “LOCAL GOVERNMENT ” MEANS: 3
(1) THE COUNTY COMMISSION ERS OR COUNTY COUNCI L OF A 4
COUNTY; 5
(2) IF THE CHARTER OF THE COUNTY PROVIDES FOR A COUNTY 6
EXECUTIVE, THE COUNTY EXECUTIVE AND THE COUNTY COUNCIL ; OR 7
(3) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY. 8
(I) “OWNER” MEANS: 9
(1) A UNIT OWNER IN A COND OMINIUM; 10
(2) A MEMBER OF A COOPERAT IVE HOUSING CORPORAT ION; OR 11
(3) A LOT OWNER IN A HOMEO WNERS ASSOCIATION . 12
11C–102. 13
THE PROVISIONS OF THIS T ITLE SUPERSEDE ANY I NCONSISTENT PROVISIO NS 14
OF LOCAL LAW THAT CO NFLICT WITH THIS TIT LE TO THE EXTENT OF THE CONFLICT. 15
11C–103. 16
(A) A LOCAL COMMISSION ON COMMON OWNERSHIP COM MUNITIES 17
ESTABLISHED BY THE L OCAL GOVERNMENT OF A COUNTY BY L OCAL LAW SHALL 18
COMPLY WITH THE REQU IREMENTS OF THIS TIT LE. 19
(B) (1) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 20
LOCAL COMMISSION SHA LL INCLUDE MEMBERS W HO: 21
1. ARE OWNERS IN A COMMO N OWNERSHIP COMMUNIT Y; 22
AND 23
2. REPRESENT PROFESSIONS ASSOCIATED WITH 24
COMMON OWNERSHIP COM MUNITIES, INCLUDING INDIVIDUAL S INVOLVED IN 25
HOUSING DEVELOPMENT OR REAL ESTATE SALES , DEVELOPERS , OR ATTORNEYS 26
WHO REPRESENT COMMON OWNERSHIP COMMUNITIE S INCLUDING AT LEAST ONE 27
MEMBER WHO IS A LICE NSED COMMON OWNERSHI P COMMUNITY MANAGER . 28 10 SENATE BILL 866
(II) THE LOCAL GOVERNMENT SHALL DETERMINE THE TOTAL 1
NUMBER OF MEMBERS OF THE LOCAL COMMISSION . 2
(2) THE FOLLOWING INDIVID UALS SHALL SERVE AS NONVOTING 3
MEMBERS OF A LOCAL C OMMISSION: 4
(I) A DESIGNEE OF THE LOCA L GOVERNMENT ; AND 5
(II) A DESIGNEE OF A COUNTY AGENCY DEALING WITH : 6
1. PLANNING; 7
2. ENVIRONMENT ; 8
3. PERMITTING; 9
4. TRANSPORTATION ; OR 10
5. HOUSING AND COMMUNITY AFFAIRS. 11
(C) THE CHAIR AND VICE CH AIR OF A LOCAL COMMI SSION SHALL BE 12
ELECTED FROM AMONG THE VOTING MEMBERSHI P OF THE LOCAL COMMI SSION. 13
(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A LOCAL 14
GOVERNMENT ESTABLISH ING A LOCAL COMMISSI ON SHALL ADOPT PROCE DURES 15
FOR THE APPOINTMENT AND TERMS OF MEMBERS OF THE LOCAL COMMISS ION. 16
(2) A MEMBER OF A LOCAL CO MMISSION MAY NOT SER VE MORE THAN 17
TWO CONSECUTIVE TERM S. 18
11C–104. 19
(A) A MAJORITY OF THE TOTA L MEMBERSHIP OF A LO CAL COMMISSION 20
SHALL CONSTITUTE A Q UORUM. 21
(B) A LOCAL COMMISSION SHA LL MEET AT LEAST MON THLY AND 22
DETERMINE THE TIMES AND PLACES OF ITS MEETIN GS. 23
(C) A MEMBER OF A LOCAL CO MMISSION: 24
(1) MAY NOT RECEIVE COMPE NSATION AS A MEMBER OF THE LOCAL 25
COMMISSION; BUT 26 SENATE BILL 866 11
(2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE 1
STANDARD COUNTY TRAV EL REGULATIONS . 2
(D) (1) A LOCAL COM MISSION SHALL: 3
(I) ADOPT RULES OF PROFES SIONAL CONDUCT AS 4
APPROPRIATE FOR MEMB ERS AND STAFF; 5
(II) KEEP A RECORD OF ITS PROCEEDINGS ; 6
(III) EXAMINE THE NEEDS OF COMMON OWNERSHIP 7
COMMUNITIES IN THE C OUNTY; 8
(IV) ADVISE COUNTY GOVERNM ENT AND APPROPRIATE STATE 9
AND FEDERAL AGENCIES ON MATTERS RELATING TO COMMON OWNERSHIP 10
COMMUNITIES ; AND 11
(V) PROVIDE TRAINING ON T HE RESPONSIBILITIES OF A LOCAL 12
COMMISSION’S MEMBERS TO THE GOV ERNING BODY OF A COM MON OWNERSHIP 13
COMMUNITY BY : 14
1. DEVELOPING AN EDUCATIONAL CURRICUL UM FOR 15
NEW MEMBERS ; AND 16
2. APPROVING AN ALTERNAT IVE EDUCATIONAL 17
CURRICULUM FOR NEW M EMBERS. 18
(2) A LOCAL COMMISSION MAY : 19
(I) EMPLOY STAFF AS AUTHO RIZED BY A LOCAL GOV ERNMENT; 20
(II) ESTABLISH A PROCESS F OR RESOLVING DISCI PLINARY 21
MATTERS PENDING BEFO RE THE LOCAL COMMISS ION THROUGH NONJUDIC IAL 22
DISPUTE RESOLUTION P ROCESSES; 23
(III) DEVELOP EDUCATIONAL A ND TRAINING OPPORTUN ITIES 24
FOR GOVERNING BODIES ; 25
(IV) ADOPT ADDITIONAL BYLA WS NECESSARY TO CARR Y OUT 26
THE BUSINESS OF TH E LOCAL COMMISSION ; AND 27
12 SENATE BILL 866
(V) ADOPT ANY ADDITIONAL REGULATIONS , PROCEDURES , OR 1
STANDARDS CONSISTENT WITH THE MISSION OF THE LOCAL COMMISSION AND TO 2
CARRY OUT THE REQUIR EMENTS OF THIS TITLE . 3
11C–105. 4
(A) A LOCAL LAW ESTABLISHI NG A LOCAL COMMISSIO N SHALL REQUIRE 5
COMMON OWNERSHIP COM MUNITIES IN THE COUN TY TO REGISTER WITH THE LOCAL 6
COMMISSION ANNUALLY ON A FORM THAT IDENT IFIES: 7
(1) THE ELECTED LEADERSHI P OF THE COMMON OWNE RSHIP 8
COMMUNITY ; AND 9
(2) THE MANAGING AGENTS O F THE COMMON OWNERSH IP 10
COMMUNITY . 11
(B) A COMMON OWNERSHIP COM MUNITY THAT FAILS TO REGISTER OR 12
MAKES A FALSE STATEM ENT ON A REGISTRATIO N FORM IS INELIGIBLE TO FILE A 13
DISPUTE. 14
11C–106. 15
(A) A LOCAL LAW ESTABLISHI NG A LOCAL COMMISSIO N MAY AUTHORIZE 16
THE COLLECTION OF A REASONABLE FEE FOR SERVICES PROVIDED BY THE LOCAL 17
COMMISSION. 18
(B) ANY AUTHORIZED FEE SH ALL BE USED TO COVER THE COST OF 19
MAINTAINING THE LOCA L COMMISSION AND MAY INCLUDE: 20
(1) A PER UNIT ANNUAL CHAR GE TO COMMON OWNERSH IP 21
COMMUNITIES TO RENEW REGISTRATION ; 22
(2) FEES FOR DISPUTE RESOLUTION U NDER § 11C–110 OF THIS 23
TITLE, SERVICE, AND TECHNICAL ASSIST ANCE; AND 24
(3) A PER UNIT CHARGE TO D EVELOPERS FOR THE RE CORDATION OF 25
DOCUMENTS . 26
(C) IF THE COLLECTION OF A FEE BY A LOCAL COM MISSION IS AUTHORIZE D 27
UNDER THIS SECTION , THE LOCAL COMMISSION SHAL L PUBLISH THE FEE 28
SCHEDULE. 29
11C–107. 30 SENATE BILL 866 13
A LOCAL GOVERNMENT THA T ESTABLISHES A LOCA L COMMISSION SHALL 1
DESIGNATE A COUNTY A GENCY OR AN OFFICE T O: 2
(1) DISSEMINATE EDUCATION AL MATERIALS REGARDI NG PROGRAMS 3
THAT ASSIST COMMON O WNERSHIP COM MUNITIES; 4
(2) CONDUCT EDUCATIONAL P ROGRAMS TO PROMOTE T HE 5
OPERATION OF COMMON OWNERSHIP COMMUNITIE S; 6
(3) MAINTAIN A LIST OF: 7
(I) COMMON OWNERSHIP COMM UNITIES IN THE COUNT Y, 8
INCLUDING THE LEADER SHIP OF EACH COMMON OWNERSHIP COMMUNITY ; AND 9
(II) PROFESSIONAL MANAGEME NT COMPANIES THAT PR OVIDE 10
SERVICES TO COMMON O WNERSHIP COMMUNITIES IN THE COUNTY; 11
(4) MAINTAIN INFORMATION AND A REFERRAL SYSTE M FOR ALL 12
COUNTY SERVICES RELA TED TO COMMON OWNERS HIP COMMUNITIES ; 13
(5) MAINTAIN A COLLECTION OF GOVERNING DOCUMENTS ; 14
(6) PROVIDE TECHNICAL ASS ISTANCE TO GOVERNING BODIES ON 15
MATTERS INCLUDING : 16
(I) LEADERSHIP TRANSITION ; 17
(II) ELECTIONS; 18
(III) ADOPTION OF RULES ; 19
(IV) ENFORCEMENT OF RULES ; 20
(V) SELECTION OF ASSOCIAT ION MANAGERS ; AND 21
(VI) STORMWATER MANAGEMENT ; 22
(7) MAINTAIN AN OPERATION S MANUAL TO GUIDE CO MMON 23
OWNERSHIP COMMUNITY LEADERSHIP; 24
14 SENATE BILL 866
(8) ADVISE COMMON OWNERSH IP COMMUNITIES AND P ROFESSIONAL 1
ASSOCIATION MANAGERS OF CHANGES IN THE LA WS AND REGULATIONS T HAT 2
AFFECT THEI R COMMUNITIES OR OPE RATIONS; AND 3
(9) OPERATE A DISPUTE RES OLUTION PROCESS TO F URNISH 4
MEDIATION AND ADMINI STRATIVE HEARINGS . 5
11C–108. 6
(A) A LOCAL COMMISSION MAY HEAR ANY DISPUTE BET WEEN PARTIES . 7
(B) A PARTY MAY NOT FILE A DISPUTE WITH A LOCAL COMMISSION UNTIL : 8
(1) THE PARTY HAS MADE A GOOD FAITH EFFORT TO EXHAUST ALL 9
PROCEDURES AND REMED IES PROVIDED BY THE GOVERNING DOCUMENTS OF THE 10
COMMON OWNERSHIP COM MUNITY; AND 11
(2) AT LEAST 60 DAYS AFTER ANY PROCEDURE OR REMEDY HAS BEEN 12
INITIATED WITH THE G OVERNING BODY OF A C OMMON OWNERSHIP COMM UNITY. 13
(C) (1) IF THE GOVERNING BODY OF A COMMON OWNERSHI P COMMUNITY 14
DETERMINES THAT A DI SPUTE EXISTS, THE GOVERNING BODY O F THE COMMON 15
OWNERSHIP COMMUNITY SHALL NOTIFY THE OTHER PARTI ES OF THE OPTION TO 16
FILE THE DISPUTE WIT H A LOCAL COMMISSION . 17
(2) THE GOVERNING BODY OF A COMMON OWNERSHIP C OMMUNITY 18
MAY NOT TAKE ACTION TO ENFORCE OR IMPLEM ENT THE DECISION OF THE 19
GOVERNING BODY FOR 14 DAYS FOLLOWING NOTIF ICATION OF ALL OTHER PARTIES . 20
(D) EXCEPT AS PROVIDED IN § 11C–109 OF THIS TITLE, ON THE FILING OF 21
A DISPUTE WITH A LOC AL COMMISSION , THE DECISION OF THE GOVERNING BODY OF 22
A COMMON OWNERSHIP C OMMUNITY SHALL BE ST AYED AND MAY NOT BE ENFORCED 23
OR IMPLEMENTED , OTHER T HAN BY FILING A CIVI L ACTION, UNTIL THE 24
COMPLETION OF THE DI SPUTE PROCESS . 25
11C–109. 26
(A) (1) AT ANY TIME AFTER A D ISPUTE IS FILED, THE GOVERNING BODY 27
OF A COMMON OWNERSHI P COMMUNITY MAY SUBM IT A REQUEST TO LIFT AN 28
AUTOMATIC STAY UNDER § 11C–108 OF THIS TITLE. 29
SENATE BILL 866 15
(2) IF A HEARING PANEL HA S NOT BEEN APPOINTED UNDER § 1
11C–112 OF THIS TITLE, THE LOCAL COMMISSION SHALL AUTHORIZE A SP ECIAL 2
STANDING PANEL TO CO NSIDER REQUESTS FOR RELIEF FROM STAYS . 3
(3) THE SPECIAL PANEL SHA LL INCLUDE: 4
(I) THREE VOTING MEMBERS OF THE LOCAL COMMISSION 5
DESIGNATED BY THE CH AIR; AND 6
(II) AT LEAST ONE MEMBER D ESCRIBED UNDER § 7
11C–103(B)(1)(I)1 OF THIS TITLE AND AT LEAST ONE MEMBER DES CRIBED UNDER § 8
11C–103(B)(1)(I)2 OF THIS TITLE. 9
(B) (1) A GOVERNING BODY OF A COMMON O WNERSHIP COMMUNITY 10
THAT REQUESTS RELIEF FROM A STAY SHALL SE RVE A COPY OF ITS RE QUEST ON ANY 11
PARTY NAMED IN THE D ISPUTE BY CERTIFIED MAIL OR PERSONAL SER VICE. 12
(2) A CERTIFICATE OF SERVI CE SHALL ACCOMPANY A NY REQUEST 13
SUBMITTED UNDER THIS SECTION. 14
(3) A PARTY SERVED WITH A COPY OF THE REQUEST SHALL FILE ANY 15
OPPOSITION TO THE RE QUEST WITHIN 10 DAYS AFTER RECEIVING SERVICE. 16
(C) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, A REQUEST 17
FOR RELIEF FROM A ST AY MAY BE GRANTED ON LY IF THE ASSIGNED PANEL FINDS 18
THAT: 19
(1) ENFORCING THE STAY WO ULD RESULT IN UNDUE HARM TO THE 20
COMMON OWNERSHIP COM MUNITY; AND 21
(2) LIFTING THE STAY WILL NOT RESULT IN UNDUE HARM TO THE 22
RIGHTS OR INTERESTS OF ANY OPPOSING PART Y. 23
(D) IF A REQUEST FOR RELI EF FROM A STAY STATING FACTS SUFF ICIENT TO 24
SHOW A NEED FOR IMME DIATE ACTION IS NOT GRANTED OR DENIED WI THIN 20 DAYS 25
AFTER THE REQUEST WA S FILED, THE REQUEST SHALL BE DEEMED GRANTED . 26
11C–110. 27
(A) (1) FOLLOWING THE FILING OF A DISPUTE WITH A LOCAL 28
COMMISSION, AN AGENC Y DESIGNATED BY A LO CAL GOVERNMENT UNDER § 29
11C–107 OF THIS TITLE MAY IN VESTIGATE FACTS AND ASSEMBLE DOCUMENTS 30 16 SENATE BILL 866
RELEVANT TO THE DISP UTE AND MAY PREPARE A SUMMARY OF THE ISS UES IN THE 1
DISPUTE FOR USE BY T HE LOCAL COMMISSION . 2
(2) THE DESIGNATED AGENCY OR OFFICE MAY NOTIFY A PARTY IF 3
THE DESIGNATED AGENC Y OR OFFICE FINDS TH AT A DISPUTE WAS NOT PROPERLY 4
FILED. 5
(3) THE DESIGNATED AGENCY OR OFFICE MAY NOTIFY EACH PARTY 6
OF THE DISPUTE REGAR DING POSSIBLE SANCTI ONS UNDER § 11C–112 OF THIS 7
TITLE. 8
(B) IF THE DESIGNATED AGENCY OR OFFICE FINDS THAT , ASSUMING ALL 9
FACTS ALLEGED BY THE PARTY THAT FILED THE DISPUTE ARE TRUE , THERE ARE NO 10
REASONABLE GROUNDS T O CONCLUDE THAT A VI OLATION OF APPLICABL E LAW OR 11
ANY GOVERNING DOCUME NT HAS OCCURRED , THE DESIGNATED AGENC Y OR OFFICE 12
SHALL INFORM THE LOC AL COMMISSION . 13
(C) ON RECEIPT OF THE RES ULTS OF AN INVESTIGA TION BY A DESIGNATED 14
AGENCY OR OFFICE , A LOCAL COMMISSION M AY: 15
(1) IF IT FINDS THAT THER E ARE NO REASONABLE GROUNDS TO 16
CONCLUDE THAT A VIOL ATION OF APPLICABLE LAW OR ANY GOVERNING DOC UMENT 17
HAS OCCURRED , DISMISS THE DISPUTE ; 18
(2) REQUEST ADDITIONAL IN VESTIGATION BY THE D ESIGNATED 19
AGENCY OR OFFICE ; OR 20
(3) SCHEDULE A HEARING ON THE DISPUTE. 21
(D) A LOCAL COMMISSION MAY RECONSIDER THE DISMI SSAL OF A DISPUTE 22
IF ANY PARTY FILES A MOTION TO RECONSIDER WITHIN 30 DAYS AFTER THE 23
DISPUTE IS DISMISSED , DEMONSTRATING THAT : 24
(1) THE COMMISSION ERRONEOUSL Y INTERPRETED OR APP LIED 25
APPLICABLE LAW OR AN ASSOCIATION DOCUMENT ; OR 26
(2) MATERIAL ISSUES OF FA CT THAT ARE NECESSAR Y TO A FAIR 27
RESOLUTION OF THE DI SPUTE REMAIN UNRESOL VED. 28
11C–111. 29
(A) (1) ANY PARTY IN A DISPUT E MAY REQUEST MEDIAT ION. 30
SENATE BILL 866 17
(2) IF A PARTY REQUESTS M EDIATION, THE LOCAL COMMISSION 1
SHALL NOTIFY ALL PAR TIES OF THE REQUEST AND OF THE MEDIATION SESSION. 2
(3) A LOCAL COMMISSION SHA LL PROVIDE A QUALIFI ED MEDIATOR 3
TO MEET WITH THE PAR TIES WITHIN 30 DAYS AFTER A PARTY R EQUESTS MEDIATION 4
TO ATTEMPT TO SETTLE THE DISPUTE. 5
(B) IF A PARTY REFUSES TO ATTEND A MEDIATION S ESSION, OR IF 6
MEDIATION DOES NOT S UCCESSFULLY RESOLVE THE DISPUTE WITHIN 10 DAYS 7
AFTER THE FIRST MEDI ATION SESSION IS HEL D, THE LOCAL COMMISSION SHALL 8
PROMPTLY SCHEDULE A HEARING. 9
11C–112. 10
(A) (1) IF A HEARING IS SCHED ULED, THE CHAIR OF THE LOC AL 11
COMMISSION SHALL CON VENE A PANEL TO HEAR THE DISPUTE. 12
(2) THE CHAIR SHALL SELEC T AT LEAST ONE MEMBE R DESCRIBED 13
UNDER § 11C–103(B)(1)(I)1 OF THIS TITLE AND AT LEAST ONE MEMBER DES CRIBED 14
UNDER § 11C–103(B)(1)(I)2 OF THIS TITLE. 15
(3) THE LOCAL COMMISSION MEMBERS SELECTED BY THE CHAIR 16
SHALL DESIGNATE A TH IRD MEMBER OF THE PAN EL FROM A LIST OF VO LUNTEER 17
ARBITRATORS TRAINED OR EXPERIENCED IN CO MMON OWNERSHIP COMMU NITY 18
ISSUES MAINTAINED BY THE LOCAL COMMISSION . 19
(4) IF A SUITABLE ARBITRA TOR IS NOT AVAILABLE , THE CHAIR OF 20
THE LOCAL COMMISSION SHALL DESIGNATE : 21
(I) A THIRD PANELIST FROM AMONG THE VOTING MEM BERS OF 22
THE LOCAL COMMISSION ; AND 23
(II) THE CHAIR OF THE PANE L. 24
(B) A PANELIST MAY NOT HAV E AN INTEREST IN THE DISPUTE TO BE HEARD. 25
(C) A HEARING PANEL SHALL HOLD A HEARING ON EA CH DISPUTE THAT IS 26
NOT RESOLVED THROUGH MEDIATION UNDER § 11C–111 OF THIS TITLE UNLESS THE 27
LOCAL COMMISSION DET ERMINES THAT THE DIS PUTE IS: 28
(1) IDENTICAL TO ANOTHER DISPUTE BETW EEN THE SAME PARTIES 29
ON WHICH A HEARING H AS ALREADY BEEN HELD UNDER THIS SECTION ; OR 30
18 SENATE BILL 866
(2) CLEARLY NOT WITHIN TH E JURISDICTION OF TH E LOCAL 1
COMMISSION. 2
(D) A LOCAL COMMISSION SHA LL PROVIDE NOTICE OF A HEARING TO ALL 3
PARTIES NOT LESS THA N 30 DAYS BEFORE A HEARING, UNLESS THE LOCAL 4
COMMISSION DETERMINE S THAT AN EXPEDITED HEARING IS NECESSARY , IN WHICH 5
CASE NOTICE SHALL BE PROVIDED TO ALL PART IES AT LEAST 15 DAYS BEFORE A 6
HEARING. 7
(E) A PARTY OR WITNESS MAY BE ADVISED BY COUNSE L AT A HEARING. 8
(F) IF A PARTY, AFTER PROPER NOTICE , DOES NOT APPEAR AT T HE 9
SCHEDULED HEARING , THE HEARING PANEL MA Y ORDER ANY RELIEF F OR ANOTHER 10
PARTY THAT THE FACTS ON RECORD WARRANT . 11
(G) (1) THE HEARING PANEL SHA LL APPLY STATE AND COUNTY LAWS 12
AND ALL RELEVANT CAS E LAW TO THE FACTS OF THE DISPUTE . 13
(2) A DECISION OF THE HEAR ING PANEL IS BINDING ON THE PARTIES. 14
(H) (1) A LOCAL COMMISSION MAY ENFORCE A DECISION O F THE 15
HEARING PANEL BY APP ROPRIATE LEGAL ACTIO N. 16
(2) IN ADDITION TO ANY OT HER ENFORCEMENT ACTI ON, A LOCAL 17
COMMISSION MAY: 18
(I) FILE FOR INJUNCTIVE R ELIEF TO ENFORCE OR CORRECT 19
ANY VIOLATION OF THI S TITLE; AND 20
(II) FILE TO RECOVER DAMAG ES FOR A LOSS SUSTAI NED AS A 21
RESULT OF A VIOLATIO N OF THIS TITLE. 22
(I) A HEARING PANEL MAY AW ARD COSTS, INCLUDING REASONABLE 23
ATTORNEY’S FEES, TO ANY PARTY IF ANY OTHER PARTY : 24
(1) FILED OR MAINTAINED A FRIVOLOUS DISPUTE , OR FILED OR 25
MAINTAINED A DISPUTE IN BAD FAITH; 26
(2) REFUSED TO PARTICIPAT E IN MEDIATION OF A DISPUTE; OR 27
(3) SUBSTANTIALLY DELAYED OR HINDERED THE DISP UTE 28
RESOLUTION PROCESS W ITHOUT GOOD CAUSE . 29
SENATE BILL 866 19
(J) A HEARING PANEL MAY RE QUIRE A LOSING PARTY IN A DISPUTE TO PAY 1
ALL OR PART OF ANY F ILING FEE. 2
(K) A LOCAL GOVERNMENT MAY : 3
(1) ESTABLISH ADDITIONAL HEARING PROCEDURES ; AND 4
(2) ADOPT ADDITIONAL REQU IREMENTS RELATING TO WIT NESSES 5
AND EVIDENCE FOR A H EARING. 6
11C–113. 7
(A) A PARTY MAY APPEAL A D ECISION OF A HEARING PANEL TO A COURT OF 8
COMPETENT JURISDICTI ON. 9
(B) AN APPEAL OF A DECISI ON SHALL BE CONSOLID ATED WITH ANY CASE 10
THAT ARISES OUT OF T HE SAME FAC TS. 11
(C) THE COURT HEARING AN APPEAL SHALL SUSTAIN THE DECISION OF THE 12
HEARING PANEL UNLESS THE DECISION IS: 13
(1) INCONSISTENT WITH APP LICABLE LAW; 14
(2) LACKING SUBSTANTIAL E VIDENCE; OR 15
(3) ARBITRARY AND CAPRICI OUS. 16
11C–114. 17
(A) A PARTY MAY FILE A CIV IL ACTION ARISING OU T OF A GOVERNING 18
DOCUMENT OR A LAW RE GULATING THE POWERS OF A GOVERNING BODY OF A 19
COMMON OWNERSHIP COM MUNITY. 20
(B) IF THE COURT IS NOTIF IED THAT A DISPUTE H AS BEEN FILED WITH A 21
LOCAL COMMISSION IN ACCORDANCE WITH THIS TITLE, THE COURT MAY POSTPO NE 22
A PROCEEDING FOR AT LEAST 90 DAYS. 23
(C) THE COURT MAY HEAR TH E ACTION DE NOVO IF A HEARING PANEL 24
ASSIGNED TO THE DISP UTE HAS NOT ISSUED A DECISION UNDER § 11C–112 OF THIS 25
TITLE. 26
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 27
1, 2025. 28