Maryland 2025 Regular Session

Maryland Senate Bill SB927 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5		-	Underlining indicates amendments to bill.
6		-	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7		-	amendment.
8	5		sb0927
9	6
10	7		SENATE BILL 927
11	8		C1, N1 5lr2139
12		-	CF ~~HB 1052~~
	9	+	CF 5lr2077
13	10		By: Senator Smith
14	11		Introduced and read first time: January 28, 2025
15	12		Assigned to: Judicial Proceedings
16		-	Committee Report: Favorable
17		-	Senate action: Adopted with floor amendments
18		-	Read second time: February 28, 2025
19	13
20		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
21	15
22	16		AN ACT concerning 1
23	17
24		-	Corporations and Associations – ~~Cooperative~~ Limited Equity Housing 2
25		-	~~Cooperatives Corporations –~~ Establishment 3
	18	+	Corporations and Associations – Limited Equity Housing Cooperatives – 2
	19	+	Establishment 3
26	20
27		-	FOR the purpose of authorizing a Maryland nonstock corporation to convert to a 4
28		-	~~cooperative limited~~ equity housing cooperative ~~corporation~~ and establishing certain 5
29		-	~~procedures and requirements for~~ the conversion of a Maryland nonstock corporation 6
30		-	to a ~~cooperative~~ limited equity housing ~~cooperative corporation;~~ ~~requiring a~~ 7
31		-	~~cooperative~~ limited equity housing ~~corporation to provide certain notice to certain~~ 8
32		-	~~households under~~ certain ~~circumstances~~; ~~requiring a cooperative limited equity~~ 9
33		-	housing cooperative ~~corporation to reimburse certain households for moving~~ 10
34		-	~~expenses; establishing the allocation~~ of ~~votes in~~ a ~~cooperative limited equity housing~~ 11
35		-	~~cooperative corporation;~~ ~~authorizing~~ the ~~Department~~ of ~~Housing and Community~~ 12
36		-	~~Development to establish a program to provide grants to Maryland nonstock~~ 13
37		-	~~corporations to promote the establishment of cooperative~~ limited equity housing 14
38		-	~~cooperatives corporations~~; ~~prohibiting local governments from imposing restrictions~~ 15
39		-	~~on cooperative limited equity~~ housing ~~cooperatives corporations;~~ ~~establishing~~ 16
40		-	~~limitations on the appreciation~~ and ~~sale of a cooperative interest;~~ ~~authorizing the~~ 17
41		-	~~Department~~ of ~~Housing and Community Development to establish certain rights and~~ 18
42		-	~~requirements for a cooperative~~ limited equity ~~cooperative corporation and its~~ 19
43		-	~~members~~ and ~~to provide certain grants to promote the establishment~~ of ~~cooperative~~ 20
44		-	~~limited equity cooperatives housing corporations;~~ ~~exempting real property owned~~ by 21
45		-	~~certain limited equity housing cooperatives from State~~ property tax ~~subject to a~~ 22
46		-	certain ~~limitation~~; ~~authorizing the Mayor~~ and ~~City Council of Baltimore City or the~~ 23
47		-	~~governing body~~ of ~~a county or municipal corporation to grant, by law, a certain tax~~ 24
48		-	~~credit against the county or municipal corporation property tax imposed on real~~ 25 ~~2 SENATE BILL 927~~
	21	+	FOR the purpose of authorizing a Maryland nonstock corporation to convert to a limited 4
	22	+	equity housing cooperative and establishing certain procedures and requirements for 5
	23	+	the conversion of a Maryland nonstock corporation to a limited housing cooperative; 6
	24	+	requiring a limited equity housing corporation to provide certain notice to certain 7
	25	+	households under certain circumstances; requiring a limited equity housing 8
	26	+	cooperative to reimburse certain households for moving expenses; establishing the 9
	27	+	allocation of votes in a limited equity housing cooperative; authorizing the 10
	28	+	Department of Housing and Community Development to establish a program to 11
	29	+	provide grants to Maryland nonstock corporations to promote the establishment of 12
	30	+	limited equity housing cooperatives; prohibiting local governments from imposing 13
	31	+	restrictions on limited equity housing cooperatives; establishing limitations on the 14
	32	+	appreciation and sale of a cooperative interest; authorizing the Department of 15
	33	+	Housing and Community Development to establish certain rights and requirements 16
	34	+	for a limited equity cooperative and its members and to provide certain grants to 17
	35	+	promote the establishment of limited equity cooperatives; exempting real property 18
	36	+	owned by certain limited equity housing cooperatives from State property tax subject 19
	37	+	to a certain limitation; authorizing the Mayor and City Council of Baltimore City or 20
	38	+	the governing body of a county or municipal corporation to grant, by law, a certain 21
	39	+	tax credit against the county or municipal corporation property tax imposed on real 22
	40	+	property owned by a certain limited equity housing cooperative; and generally 23
	41	+	relating to limited equity housing cooperatives and the conversion of Maryland 24
	42	+	nonstock corporations. 25
49	43
50		-
51		-	property owned by a certain limited equity housing cooperative; and generally 1
52		-	relating to cooperative limited equity housing cooperatives corporations and the 2
53		-	conversion of Maryland nonstock corporations. 3
54		-
55		-	BY repealing and reenacting, with amendments, 4
56		-	Article – Corporations and Associations 5
57		-	Section 5–207(a) 6
58		-	Annotated Code of Maryland 7
59		-	(2014 Replacement Volume and 2024 Supplement) 8
60		-
61		-	BY adding to 9
62		-	Article – Corporations and Associations 10
63		-	Section 5–6D–01 through 5–6D–10 5–6D–09 to be under the new subtitle “Subtitle 11
64		-	6D. Cooperative Limited Equity Housing Cooperatives Corporations” 12
65		-	Annotated Code of Maryland 13
66		-	(2014 Replacement Volume and 2024 Supplement) 14
67		-
68		-	BY adding to 15
69		-	Article – Tax – Property 16
70		-	Section 7–308 and 9–275 17
71		-	Annotated Code of Maryland 18
72		-	(2019 Replacement Volume and 2024 Supplement) 19
73		-
74		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
75		-	That the Laws of Maryland read as follows: 21
76		-
77		-	Article – Corporations and Associations 22
78		-
79		-	5–207. 23
80		-
81		-	(a) (1) A nonstock corporation may consolidate or merge only with: 24
82		-
83		-	(I) another ANOTHER nonstock corporation; OR 25
84		-
85		-	(II) A COOPERATIVE LIMITED EQUITY HOUSING CORPO RATION 26
86		-	UNDER SUBTITLE 6D OF THIS TITLE. 27
87		-
88		-	(2) A Maryland nonstock corporation may convert only into [a]: 28
89		-
90		-	(I) A foreign corporation that does not have the authority to issue 29
91		-	stock; OR 30
92		-
93		-	(II) A LIMITED EQUITY HOUSI NG COOPERATIVE UNDER 31
94		-	SUBTITLE 6D OF THIS TITLE. 32
95		-
96		-	(3) A foreign corporation that does not have the authority to issue stock: 33 SENATE BILL 927 3
	44	+	BY repealing and reenacting, with amendments, 26
	45	+	Article – Corporations and Associations 27
	46	+	Section 5–207(a) 28
	47	+	Annotated Code of Maryland 29
	48	+	(2014 Replacement Volume and 2024 Supplement) 30 2 SENATE BILL 927
97	49
98	50
99	51
100		-	(i) May convert into a Maryland nonstock corporation; and 1
	52	+	BY adding to 1
	53	+	Article – Corporations and Associations 2
	54	+	Section 5–6D–01 through 5–6D–10 to be under the new subtitle “Subtitle 6D. 3
	55	+	Limited Equity Housing Cooperatives” 4
	56	+	Annotated Code of Maryland 5
	57	+	(2014 Replacement Volume and 2024 Supplement) 6
101	58
102		-	(ii) May not convert into [a]: 2
	59	+	BY adding to 7
	60	+	Article – Tax – Property 8
	61	+	Section 7–308 and 9–275 9
	62	+	Annotated Code of Maryland 10
	63	+	(2019 Replacement Volume and 2024 Supplement) 11
103	64
104		-	1. ~~A Maryland corporation that has~~ the ~~authority to issue 3~~
105		-	~~stock; OR 4~~
	65	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
	66	+	That the Laws of Maryland read as follows: 13
106	67
107		-	2. A COOPERATIVE LIMITED EQUITY HOUSI NG 5
108		-	COOPERATIVE CORPORATION UNDER SUBTITLE 6D OF THIS TITLE. 6
	68	+	Article – Corporations and Associations 14
109	69
110		-	SUBTITLE 6D. COOPERATIVE LIMITED EQUITY HOUSING COOPERATIVES 7
111		-	CORPORATIONS . 8
	70	+	5–207. 15
112	71
113		-	5–6D–01. 9
	72	+	(a) (1) A nonstock corporation may consolidate or merge only with another 16
	73	+	nonstock corporation. 17
114	74
115		-	(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 10
116		-	INDICATED. 11
	75	+	(2) A Maryland nonstock corporation may convert only into [a]: 18
117	76
118		-	(B) “ARTICLES OF INCORPORA TION” MEANS THE CHARTER BY WHICH A 12
119		-	COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION BECOMES 13
120		-	INCORPORATED UNDER T HIS ARTICLE. 14
	77	+	(I) A foreign corporation that does not have the authority to issue 19
	78	+	stock; OR 20
121	79
122		-	(C) “BYLAWS” MEANS THE DOCUMENT T HAT DETAILS AND GOVE RNS THE 15
123		-	INTERNAL ORGANIZATIO N AND OPERATION OF T HE COOPERATIVE LIMITED EQUITY 16
124		-	HOUSING COOPERATIVE CORPORATION . 17
	80	+	(II) A LIMITED EQUITY HOUSI NG COOPERATIVE UNDER 21
	81	+	SUBTITLE 6D OF THIS TITLE. 22
125	82
126		-	(D) “CONVERSION” MEANS THE TRANSITION OF A PROPERTY FROM A 18
127		-	RESIDENTIAL RENTAL F ACILITY TO A PROPERT Y OWNED BY A COOPERATIVE 19
128		-	LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION FOR USE BY MEMBERS O F 20
129		-	THE COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION . 21
	83	+	(3) A foreign corporation that does not have the authority to issue stock: 23
130	84
131		-	(E) “COOPERATIVE INTEREST ” MEANS THE OWNERSHIP INTEREST IN A 22
132		-	COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION THAT IS 23
133		-	COUPLED WITH A POSSE SSORY INTEREST IN RE AL OR PERSONAL PROPE RTY OWNED 24
134		-	BY THE COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORAT ION AND 25
135		-	EVIDENCED BY A MEMBE RSHIP CERTIFICATE . 26
	85	+	(i) May convert into a Maryland nonstock corporation; and 24
136	86
137		-	(F) “COOPERATIVE LIMITED E QUITY HOUSING CORPOR ATION” MEANS A 27
138		-	MARYLAND NONSTOCK COR PORATION QUALIFIED I N THIS STATE, HAVING ONLY 28
139		-	ONE CLASS OF MEMBERS HIP, IN WHICH EACH MEMBER , BY VIRTUE OF THE 29
140		-	MEMBER’S MEMBERSHIP, HAS A COOPERATIVE IN TEREST IN THE CORPOR ATION. 30
	87	+	(ii) May not convert into [a]: 25
	88	+
	89	+	1. A Maryland corporation that has the authority to issue 26
	90	+	stock; OR 27
	91	+
	92	+	2. A LIMITED EQUITY HOUSI NG COOPERATIVE UNDER 28
	93	+	SUBTITLE 6D OF THIS TITLE. 29
	94	+
	95	+	SUBTITLE 6D. LIMITED EQUITY HOUSING COOPERATIVES . 30
	96	+	SENATE BILL 927 3
	97	+
	98	+
	99	+	5–6D–01. 1
	100	+
	101	+	(A) IN THIS SUBTITLE THE FOLLOWING WORDS HA VE THE MEANINGS 2
	102	+	INDICATED. 3
	103	+
	104	+	(B) “ARTICLES OF INCORPORA TION” MEANS THE CHARTER BY WHICH A 4
	105	+	LIMITED EQUITY HOUSI NG COOPERATIVE BECOM ES INCORPORATED UNDE R THIS 5
	106	+	ARTICLE. 6
	107	+
	108	+	(C) “BYLAWS” MEANS THE DOCUMENT T HAT DETAILS AND GOVE RNS THE 7
	109	+	INTERNAL ORGANIZATIO N AND OPERATION OF THE LIMI TED EQUITY HOUSING 8
	110	+	COOPERATIVE . 9
	111	+
	112	+	(D) “CONVERSION” MEANS THE TRANSITION OF A PROPERTY FROM A 10
	113	+	RESIDENTIAL RENTAL F ACILITY TO A PROPERT Y OWNED BY A LIMITED EQUITY 11
	114	+	HOUSING COOPERATIVE FOR USE BY MEMBERS O F THE LIMITED EQUITY HOUSING 12
	115	+	COOPERATIVE . 13
	116	+
	117	+	(E) “COOPERATIVE INTEREST ” MEANS THE OWNERSHIP INTEREST IN A 14
	118	+	LIMITED EQUITY HOUSI NG COOPERATIVE THAT IS COUPLED WITH A PO SSESSORY 15
	119	+	INTEREST IN REAL OR PERSONAL PROPERTY OW NED BY THE LIMITED E QUITY 16
	120	+	HOUSING COOPERATIVE AND EVIDENCED BY A M EMBERSHIP CERTIFICATE . 17
	121	+
	122	+	(F) “COOPERATIVE PROJECT ” MEANS ALL THE REAL A ND PERSONAL 18
	123	+	PROPERTY IN THIS STATE THAT IS OWNED O R LEASED BY A LIMITE D EQUITY 19
	124	+	HOUSING COOPERATIVE FOR THE PRIMARY PURP OSE OF RESIDENTIAL U SE. 20
	125	+
	126	+	(G) “DISABLED PERSON ” MEANS A PERSON WITH A MEASURABLE 21
	127	+	LIMITATION OF MOBILI TY DUE TO CONGENITAL DEFECT, DISEASE, OR TRAUMA. 22
	128	+
	129	+	(H) “LIMITED EQUITY HOUSIN G COOPERATIVE ” MEANS A MARYLAND 23
	130	+	NONSTOCK CORPORATION QUALIFIED IN THIS STATE, HAVING ONLY ONE CLAS S OF 24
	131	+	MEMBERSHIP , IN WHICH EACH MEMBER , BY VIRTUE O F THE MEMBER ’S 25
	132	+	MEMBERSHIP , HAS A COOPERATIVE IN TEREST IN THE CORPOR ATION. 26
	133	+
	134	+	(I) “LOW–INCOME HOUSEHOLD ” MEANS A HOUSEHOLD WI TH AN INCOME 27
	135	+	THAT DOES NOT EXCEED 80% OF THE AREA MEDIAN I NCOME FOR A HOUSEHOL D OF 28
	136	+	THE SAME SIZE. 29
	137	+
	138	+	(J) “MEMBER” MEANS A PERSON WHO O WNS A COOPERATIVE IN TEREST. 30
	139	+
	140	+	(K) “MEMBERSHIP CERTIFICAT E” MEANS: 31
141	141		4 SENATE BILL 927
142	142
143	143
144		-	(F) (G) “COOPERATIVE PROJECT ” MEANS ALL THE REAL A ND PERSONAL 1
145		-	PROPERTY IN THIS STATE THAT IS OWNED O R LEASED BY A COOPERATIVE LIMITED 2
146		-	EQUITY HOUSING COOPERATIVE CORPORATION FOR THE PRIMARY PURP OSE OF 3
147		-	RESIDENTIAL USE . 4
	144	+	(1) A DOCUMENT ISSUED BY A LIMITED EQUITY HOUSI NG 1
	145	+	COOPERATIVE EVIDENCI NG OWNERSHIP OF A CO OPERATIVE INTEREST ; OR 2
148	146
149		-	(G) (H) ~~“DISABLED PERSON ” MEANS A PERSON WITH A MEASURABLE 5~~
150		-	~~LIMITATION OF MOBILI TY DUE TO CONGENITAL DEFECT~~, ~~DISEASE, OR TRAUMA~~. 6
	147	+	(2) IF THERE IS NO DOCUME NT THAT SATISFIES IT EM (1) OF THIS 3
	148	+	SUBSECTION, A PROPRIETARY LEASE . 4
151	149
152		-	(H) “LIMITED EQUITY HOUSIN G COOPERATIVE ” MEANS A MARYLAND 7
153		-	NONSTOCK CORPORATION QUALIFIED IN THIS STATE, HAVING ONLY ONE CLASS O F 8
154		-	MEMBERSHIP , IN WHICH EACH MEMBER , BY VIRTUE OF THE MEM BER’S 9
155		-	MEMBERSHIP , HAS A COOPERATIVE IN TEREST IN THE CORPOR ATION. 10
	150	+	(L) “MOVING EXPENSES ” MEANS COSTS INCURRED TO: 5
156	151
157		-	(I) “LOW–INCOME HOUSEHOLD ” MEANS A HOUSEHOLD WI TH AN INCOME 11
158		-	THAT DOES NOT EXCEED 80% OF THE AREA MEDIAN I NCOME FOR A HOUSEHOLD OF 12
159		-	THE SAME SIZE. 13
	152	+	(1) HIRE CONTRACTORS , LABOR, TRUCKS, OR EQUIPMENT FOR THE 6
	153	+	TRANSPORTATION OF PE RSONAL PROPERTY ; 7
160	154
161		-	(J) ~~“MEMBER” MEANS A PERSON WHO O WNS A COOPERATIVE IN TEREST. 14~~
	155	+	(2) PACK AND UNPACK PERSO NAL PROPERTY ; 8
162	156
163		-	(K) ~~“MEMBERSHIP CERTIFICAT E”~~ ~~MEANS: 15~~
	157	+	(3) DISCONNECT AND INSTAL L PERSONAL PROPER TY; 9
164	158
165		-	(1) A DOCUMENT ISSUED BY A COOPERATIVE LIMITED EQUITY 16
166		-	HOUSING COOPERATIVE CORPORATION EVIDENCING OWNERSHIP OF A 17
167		-	COOPERATIVE INTEREST ; OR 18
	159	+	(4) INSURE PERSONAL PROPE RTY TO BE MOVED ; AND 10
168	160
169		-	(2) ~~IF THERE IS NO DOCUME NT THAT SATISFIES IT EM (1) OF THIS 19~~
170		-	~~SUBSECTION~~, ~~A PROPRIETARY LEASE~~ . 20
	161	+	(5) DISCONNECT AND RECONN ECT UTILITIES SUCH A S TELEPHONE 11
	162	+	SERVICE, GAS, WATER, AND ELECTRICITY . 12
171	163
172		-	(L) “MOVING EXPENSES ” MEANS COSTS INCURRED TO: 21
	164	+	(M) (1) “PROPRIETARY LEASE ” MEANS AN AGREEMENT W ITH THE 13
	165	+	LIMITED EQUITY HOUSI NG COOPERATIVE UNDER WHICH A MEMBER HAS AN 14
	166	+	EXCLUSIVE POSSESSORY INTEREST IN A UNIT A ND A POSSESSORY INTE REST IN 15
	167	+	COMMON WITH OTHER ME MBERS IN THAT PORTIO N OF A COOPERATIVE P ROJECT 16
	168	+	NOT CONSTITUTING UNI TS AND THAT CREATES A LEGAL RELATIONSHIP OF 17
	169	+	LANDLORD AND TENANT BETWEEN THE LIMITED EQUITY HOUSING COOPE RATIVE 18
	170	+	AND THE MEMBER , RESPECTIVELY . 19
173	171
174		-	(1) HIRE CONTRACTORS , LABOR, TRUCKS, OR EQUIPMENT FOR THE 22
175		-	TRANSPORTATION OF PE RSONAL PROPERTY; 23
	172	+	(2) “PROPRIETARY LEASE ” INCLUDES, IF THERE IS NO OTHER 20
	173	+	DOCUMENT THAT SATISF IES PARAGRAPH (1) OF THIS SUBSECTION , A MEMBERSHIP 21
	174	+	CERTIFICATE. 22
176	175
177		-	(2) PACK AND UNPACK PERSO NAL PROPERTY ; 24
	176	+	(N) “RESIDENTIAL RENTAL FA CILITY” MEANS PROPERTY CONTA INING AT 23
	177	+	LEAST FIVE DWELLING UNITS LEASED FOR RES IDENTIAL PURPOSES . 24
178	178
179		-	(3) ~~DISCONNECT AND INSTAL L PERSONAL PROPERTY ;~~ 25
	179	+	(O) “SENIOR CITIZEN” MEANS A PERSON WHO I S AT LEAST 62 YEARS OLD. 25
180	180
181		-	(4) INSURE PERSONAL PROPE RTY TO BE MOVED ; AND 26
	181	+	(P) “UNIT” MEANS A PORTION OF T HE COOPERATIVE PROJE CT LEASED FOR 26
	182	+	EXCLUSIVE OCCUPANCY BY A MEMBER UNDER A PROPRIETARY LE ASE. 27
182	183
183		-	(5) DISCONNECT AND RECONN ECT UTILITIES SUCH A S TELEPHONE 27
184		-	SERVICE, GAS, WATER, AND ELECTRICITY . 28
185		-
186		-	(M) (1) “PROPRIETARY LEASE ” MEANS AN AGREEMENT W ITH THE 29
187		-	COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION UNDER 30 SENATE BILL 927 5
	184	+	5–6D–02. 28
	185	+	SENATE BILL 927 5
188	186
189	187
190		-	WHICH A MEMBER HAS A N EXCLUSIVE POSSESSO RY INTEREST IN A UNI T AND A 1
191		-	POSSESSORY INTEREST IN COMMON WITH OTHER MEMBERS IN THAT PORT ION OF A 2
192		-	COOPERATIVE PROJECT N OT CONSTITUTING UNIT S AND THAT CREATES A LEGAL 3
193		-	RELATIONSHIP OF LAND LORD AND TENANT BETW EEN THE COOPERATIVE LIMITED 4
194		-	EQUITY HOUSING COOPERATIVE CORPORATION AND THE MEMBER , RESPECTIVELY . 5
	188	+	A MARYLAND NONSTOCK COR PORATION MAY BE ORGA NIZED FOR THE 1
	189	+	PURPOSE OF CONVERTIN G TO A LIMITED EQUIT Y HOUSING COOPERATIV E AFTER 2
	190	+	ACQUIRING OWNERSHIP OF A RESIDENTIAL REN TAL FACILITY. 3
195	191
196		-	(2) “PROPRIETARY LEASE ” INCLUDES, IF THERE IS NO OTHER 6
197		-	DOCUMENT THAT SATISF IES PARAGRAPH (1) OF THIS SUBSECTION , A MEMBERSHIP 7
198		-	CERTIFICATE. 8
	192	+	5–6D–03. 4
199	193
200		-	(N) “RESIDENTIAL RENTAL FA CILITY” MEANS PROPERTY CONTA INING AT 9
201		-	LEAST FIVE DWELLING UNITS LEASED FOR RES IDENTIAL PURPOSES . 10
	194	+	(A) ON ACQUIRING A RESIDE NTIAL RENTAL FACILIT Y, A MARYLAND 5
	195	+	NONSTOCK CORPORATION MAY ADOPT A RESOLUTI ON TO APPLY FOR CONV ERSION 6
	196	+	TO A LIMITED EQUITY HOUSING COOPERATIVE . 7
202	197
203		-	(O) “SENIOR CITIZEN” MEANS A PERSON WHO IS AT LEAST 62 YEARS OLD. 11
	198	+	(B) THE RESOLUTION TO APP LY FOR CONVERSION TO A LIMITED EQUITY 8
	199	+	HOUSING COOPERATIVE MAY BE APPROVED BY A N AFFIRMATIVE VOTE O F A 9
	200	+	MAJORITY OF: 10
204	201
205		-	(P) ~~“UNIT” MEANS A PORTION~~ OF ~~T HE COOPERATIVE PROJE CT LEASED FOR 12~~
206		-	~~EXCLUSIVE OCCUPANCY BY A MEMBER UNDER A PROPRIETARY LEASE . 13~~
	202	+	(1) THE BOARD OF DIRECTOR S OF THE MARYLAND NONSTOCK 11
	203	+	CORPORATION ; OR 12
207	204
208		-	5–6D–02. 14
	205	+	(2) THE TOTAL MEMBERS OF THE MARYLAND NONSTOCK 13
	206	+	CORPORATION . 14
209	207
210		-	A MARYLAND NONSTOCK COR PORATION MAY BE ORGA NIZED FOR THE 15
211		-	PURPOSE OF CONVERTIN G TO A COOPERAT IVE LIMITED EQUITY HOUSI NG 16
212		-	COOPERATIVE CORPORATION AFTER ACQUIRING OWNE RSHIP OF A RESIDENTI AL 17
213		-	RENTAL FACILITY . 18
	208	+	(C) NOTICE OF THE OUTCOME OF A VOTE ON A RESOL UTION UNDER THIS 15
	209	+	SECTION SHALL BE PRO VIDED TO EACH MEMBER OF THE MARYLAND NONSTOCK 16
	210	+	CORPORATION . 17
214	211
215		-	5–6D–03. 19
	212	+	(D) A VOTE UNDER THIS SECT ION SHALL BE CONDUCT ED IN ACCORDANCE 18
	213	+	WITH THE GOVERNING D OCUMENTS OF THE MARYLAND NONSTOCK COR PORATION. 19
216	214
217		-	(A) (1) ON ACQUIRING A RESIDE NTIAL RENTAL FACILIT Y, A MARYLAND 20
218		-	NONSTOCK CORPORATION MAY ADOPT A RESOLUTION T O APPLY FOR CONVERSI ON 21
219		-	TO A LIMITED EQUITY HOU SING COOPERATIVE . 22
	215	+	5–6D–04. 20
220	216
221		-	(B) THE RESOLUTION TO APP LY FOR CONVERSION TO A LIMITED EQUITY 23
222		-	HOUSING COOPERATIVE MAY BE APPROVED BY A N AFFIRMATIVE VOTE O F A 24
223		-	MAJORITY OF: 25
	217	+	(A) FOLLOWING AN AFFIRMAT IVE VOTE TO APPLY FO R CONVERSION TO A 21
	218	+	LIMITED EQUITY HOUSI NG COOPERATIVE , A MARYLAND NONSTOCK COR PORATION 22
	219	+	SHALL PREPARE AND SU BMIT TO THE DEPARTMENT THE FOLLOW ING DOCUMENTS 23
	220	+	AND INFORMATION FOR THE ESTABLISHMENT OF A LIMITED EQUITY HOU SING 24
	221	+	COOPERATIVE : 25
224	222
225		-	(1) THE BOARD OF DIRECTOR S OF THE MARYLAND NONSTOCK 26
226		-	CORPORATION ; OR 27
	223	+	(1) ARTICLES OF INCORPORA TION, INCLUDING: 26
227	224
228		-	(2) THE ~~TOTAL MEMBERS~~ OF THE ~~MARYLAND NONSTOCK 28~~
229		-	~~CORPORATION . 29~~
	225	+	(I) THE NAME AND LOCATION OF THE LIMITED EQUIT Y 27
	226	+	HOUSING COOPERATIVE ; 28
230	227
231		-	(C) NOTICE OF THE OUTCOME OF A VOTE ON A RESOL UTION UNDER THIS 30
232		-	SECTION SHALL BE PRO VIDED TO EACH MEMBER OF THE MARYLAND NONSTOCK 31
233		-	CORPORATION . 32 6 SENATE BILL 927
	228	+	(II) A STATEMENT OF THE PUR POSES OF THE LIMITED EQUITY 29
	229	+	HOUSING COOPERATIVE ; AND 30
	230	+	6 SENATE BILL 927
	231	+
	232	+
	233	+	(III) THE NAME AND ADDRESS OF THE MEMBERS OF THE 1
	234	+	MARYLAND NONSTOCK COR PORATION; 2
	235	+
	236	+	(2) A DISCLOSURE STATEMENT , INCLUDING: 3
	237	+
	238	+	(I) THE DATE ON WHICH THE AFFIRMATIVE VOTE TO APPLY 4
	239	+	FOR CONVERSION TO A LIMITED EQUITY HOUSI NG CORPORATION TOOK PLACE; 5
	240	+
	241	+	(II) A STATEMENT OF THE FOR M OF OWNERSHI P OF ALL REAL 6
	242	+	AND PERSONAL PROPERT Y THAT IS INTENDED T O BE OWNED OR LEASED BY THE 7
	243	+	LIMITED EQUITY HOUSI NG COOPERATIVE ; 8
	244	+
	245	+	(III) A STATEMENT OF THE PRO JECTED COMPLETION DA TES 9
	246	+	FOR ANY PROPOSED IMP ROVEMENTS ; 10
	247	+
	248	+	(IV) A STATEMENT OF THE PRO JECTED DATE OF FORMA TION 11
	249	+	FOR THE LIMITED EQUI TY HOUSING COOPERATI VE; 12
	250	+
	251	+	(V) A DESCRIPTION OF THE V OTING AND OTHER RIGH TS IN THE 13
	252	+	LIMITED EQUITY HOUSI NG COOPERATIVE ; 14
	253	+
	254	+	(VI) A STATEMENT OF ANY FEE S REQUIRED BY THE LI MITED 15
	255	+	EQUITY HOUSING COOPE RATIVE IN CONNECTION WITH THE TRANSFER OF 16
	256	+	MEMBERSHIP OR ISSUAN CE OF A PROPRIETARY LEASE; 17
	257	+
	258	+	(VII) A STATEMENT OF THE KNO WN OR ANTICIPATED CO MMON 18
	259	+	CHARGES THAT MAY BE IMPOSED ON MEMBERS ; 19
	260	+
	261	+	(VIII) A STATEMENT OF THE OWN ERSHIP INTEREST ASSO CIATED 20
	262	+	WITH EACH UNIT AND T HE UNDERLYING DEBT R ESPONSIBILITY ASSOCI ATED WITH 21
	263	+	EACH UNIT ON A PRO R ATA BASIS, IF APPLICABLE; 22
	264	+
	265	+	(IX) A STATEMENT AS TO WHET HER THE LIMITED EQUI TY 23
	266	+	HOUSING COOPERATIVE HAS OR WILL OBTAIN I NSURANCE COVERAGE FO R 24
	267	+	CASUALTY, PROPERTY DAMAGE , AND PUBLIC LIABILITY AND IN WHAT AMOU NTS; 25
	268	+
	269	+	(X) A STATEMENT OF ALL WAR RANTIES AND DISCLAIM ERS 26
	270	+	MADE DURING THE PURC HASE OF THE RESIDENT IAL RENTAL FACILITY BY THE 27
	271	+	MARYLAND NONSTOCK COR PORATION; AND 28
	272	+
	273	+	(XI) COPIES OF THE PROPOSE D OR FINAL: 29
	274	+	SENATE BILL 927 7
	275	+
	276	+
	277	+	1. CONTRACT OF SALE FOR THE RESIDENTIAL RENT AL 1
	278	+	FACILITY THAT IS THE SUBJECT OF THE REAL PROPERTY OF THE LIMI TED EQUITY 2
	279	+	HOUSING COOPERATIVE ; 3
	280	+
	281	+	2. MEMBERSHIP CERTIFICAT E; 4
	282	+
	283	+	3. PROPRIETARY LEASE ; 5
	284	+
	285	+	4. RULES, IF ANY; 6
	286	+
	287	+	5. LEASE, OTHER THAN THE PROPR IETARY LEASE, TO A 7
	288	+	THIRD PARTY OF REAL OR PERSONAL PROPERTY TO WHIC H THE LIMITED EQUITY 8
	289	+	HOUSING COOPERATIVE IS A PARTY; AND 9
	290	+
	291	+	6. IF APPLICABLE, NOTICE TO AFFECTED H OUSEHOLDS 10
	292	+	THAT MAY BE REQUIRED UNDER § 5–6D–06 OF THIS SUBTITLE; 11
	293	+
	294	+	(3) AN ANNUAL OPERATING B UDGET, INCLUDING INSURANCE , 12
	295	+	MAINTENANCE , RESERVES, AND GENERAL EXPENSES ; 13
	296	+
	297	+	(4) BYLAWS; 14
	298	+
	299	+	(5) A SHARE AGREEMENT ; AND 15
	300	+
	301	+	(6) ANY OTHER DOCUMENTS O R INFORMATION REQUIR ED BY THE 16
	302	+	DEPARTMENT . 17
	303	+
	304	+	(B) STATEMENTS REQUIRED U NDER THIS SECTION M AY BE SUMMARIZED OR 18
	305	+	PRODUCED IN A COLLEC TION OF DOCUMENTS TH AT EFFECTIVELY CONVE YS THE 19
	306	+	REQUIRED INFORMATION . 20
	307	+
	308	+	(C) (1) (I) A MARYLAND NONSTOCK COR PORATION SHALL FILE THE 21
	309	+	DISCLOSURE STATEMENT REQUIRED UNDER SUBSE CTION (A)(2) OF THIS SECTION 22
	310	+	WITH THE DEPARTMENT NOT LATER THAN 90 DAYS AFTER AN AFFIRM ATIVE VOTE 23
	311	+	UNDER § 5–6D–03 THIS SUBTITLE. 24
	312	+
	313	+	(II) THE DEPARTMENT MAY GRANT AN EXTENSION OF THE 25
	314	+	DEADLINE ESTABLISHED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH IF THE 26
	315	+	MARYLAND NONSTOCK COR PORATION DEMONSTRATE S A GOOD FAITH EFFORT TO 27
	316	+	PREPARE THE DOCUMENT S. 28
	317	+
	318	+	(2) (I) A MARYLAND NONSTOCK COR PORATION MAY SUBMIT A 29
	319	+	REQUEST TO THE DEPARTMENT FOR A FULL OR PARTIAL WAIVER OF THE 30 8 SENATE BILL 927
	320	+
	321	+
	322	+	REQUIREMENT OF A DIS CLOSURE STATEMENT UN DER PARAGRAPH (1) OF THIS 1
	323	+	SUBSECTION. 2
	324	+
	325	+	(II) THE DEPARTMEN T MAY GRANT A FULL O R PARTIAL WAIVER 3
	326	+	OF ONE OR MORE OF TH E REQUIREMENTS OF PA RAGRAPH (1) OF THIS SUBSECTION 4
	327	+	IF THE MARYLAND NONSTOCK COR PORATION MAKES GOOD FAITH EFFORTS TO 5
	328	+	SATISFY THE REQUIREM ENTS. 6
	329	+
	330	+	(D) WITHIN 30 DAYS AFTER RECEIPT O F DOCUMENTS AND INFO RMATION 7
	331	+	PROVIDED BY A MARYLAND NONSTOCK COR PORATION IN ACCORDAN CE WITH THIS 8
	332	+	SECTION, THE DEPARTMENT SHALL : 9
	333	+
	334	+	(1) CONDITIONALLY ACCEPT THE DOCUMENTS FOR RE CORD 10
	335	+	SUBJECT TO AN AFFIRM ATIVE VOTE BY THE MARYLAND NONSTOCK COR PORATION 11
	336	+	TO CONVERT TO A LIMI TED EQUITY HOUSING COOPERATIV E; OR 12
	337	+
	338	+	(2) IF THE DOCUMENTS AND INFORMATION DO NOT M EET THE 13
	339	+	REQUIREMENTS OF THIS SECTION AND ANY ADDI TIONAL REQUIREMENTS 14
	340	+	ESTABLISHED BY THE DEPARTMENT , DENY THE DOCUMENTS F OR RECORD AND 15
	341	+	NOTIFY THE MARYLAND NONSTOCK COR PORATION OF THE BASIS FOR THE DENIAL . 16
	342	+
	343	+	5–6D–05. 17
	344	+
	345	+	(A) (1) IF THE DEPARTMENT CONDITIONA LLY ACCEPTS A SUBMIS SION 18
	346	+	UNDER § 5–6D–04 OF THIS SUBTITLE , THE MARYLAND NONSTOCK COR PORATION 19
	347	+	SHALL: 20
	348	+
	349	+	(I) PROMPTLY NOTIFY EACH MEMBER OF THE ACCEPT ANCE BY 21
	350	+	THE DEPARTMENT ; AND 22
	351	+
	352	+	(II) HOLD A VOTE TO CONVER T TO A LIMITED EQUIT Y HOUSING 23
	353	+	COOPERATIVE NOT LATE R THAN 30 DAYS AFTER PROVIDING NOTICE. 24
	354	+
	355	+	(2) NOTICE UNDER PARAGRAP H (1) OF THIS SUBSECTION S HALL: 25
	356	+
	357	+	(I) INFORM THE MEMBERS TH AT AN ELECTION TO CO NVERT 26
	358	+	THE MARYLAND NONSTOCK COR PORATION TO A LIMITED EQU ITY HOUSING 27
	359	+	COOPERATIVE WILL BE HELD NOT LATER THAN 30 DAYS AFTER DELIVERY OF THE 28
	360	+	NOTICE; AND 29
	361	+
	362	+	(II) INCLUDE A COPY OF THE DOCUMENTS CONDITIONA LLY 30
	363	+	ACCEPTED BY THE DEPARTMENT . 31
	364	+	SENATE BILL 927 9
	365	+
	366	+
	367	+	(B) (1) A VOTE TO CONVERT FROM A MARYLAND NONSTOCK 1
	368	+	CORPORATION TO A LIM ITED EQUITY HOUSING COOPERATIVE SHALL RE QUIRE AN 2
	369	+	AFFIRMATIVE VOTE OF AT LEAST TWO–THIRDS OF THE TOTAL MEMBERS. 3
	370	+
	371	+	(2) A VOTE UNDER THIS SUBS ECTION SHALL BE COND UCTED IN 4
	372	+	ACCORDANCE WITH THE GOVERNING DOCUMENTS OF THE MARYLAND NONSTOCK 5
	373	+	CORPORATION. 6
	374	+
	375	+	(C) (1) IF AT LEAST TWO –THIRDS OF THE TOTAL MEMBERS OF THE 7
	376	+	MARYLAND NONSTOCK COR PORATION VOTE TO CON VERT TO A LIMITED EQ UITY 8
	377	+	HOUSING COOPERATIVE , THE MARYLAND NONSTOCK COR PORATION SHALL : 9
	378	+
	379	+	(I) NOTIFY THE DEPARTMENT ; AND 10
	380	+
	381	+	(II) BE CONVERTE D TO AND RECOGNIZED BY THE DEPARTMENT 11
	382	+	AS A LIMITED EQUITY HOUSING COOPERATIVE . 12
	383	+
	384	+	(2) IF A VOTE TO CONVERT TO A LIMITED EQUITY HOUSING 13
	385	+	COOPERATIVE UNDER SU BSECTION (B) OF THIS SECTION FAIL S, THE MARYLAND 14
	386	+	NONSTOCK CORPORATION MAY NOT ATTEMPT TO C ONVERT TO A LIMITED EQUITY 15
	387	+	HOUSING COOPERATIVE FOR AT LEAST 12 MONTHS AFTER THE DAT E OF THE FAILED 16
	388	+	VOTE. 17
	389	+
	390	+	(D) ONCE A MARYLAND NONSTOCK COR PORATION IS CONVERTE D TO A 18
	391	+	LIMITED EQUITY HOUSI NG COOPERATIVE , VOTES SHALL BE ASSIG NED SO THAT 19
	392	+	EACH UNIT HAS ONE VO TE. 20
	393	+
	394	+	5–6D–06. 21
	395	+
	396	+	(A) IF A MARYLAND NONSTOCK COR PORATION VOTES TO CO NVERT TO A 22
	397	+	LIMITED EQUITY HOUSI NG COOPERATIVE , THE LIMITED EQUITY H OUSING 23
	398	+	COOPERATIVE SHALL PR OVIDE WRITTEN NOTICE OF THE CONVERSION TO ANY 24
	399	+	HOUSEHOLD THAT WILL BE REQUIRED TO VACAT E A PORTION OF THE R ESIDENTIAL 25
	400	+	RENTAL FACILITY USED AS A RESIDENCE BY TH E HOUSEHOLD . 26
	401	+
	402	+	(B) EXCEPT AS PROVIDED IN SUBSECTIONS (C) AND (D) OF THIS SECTION, A 27
	403	+	LIMITED EQUITY HOUSI NG COOPERATIVE MAY R EQUIRE A HOUSEHOLD T O VACATE 28
	404	+	NOT EARLIER THAN 90 DAYS AFTER RECEIPT O F NOTICE DESCRIBED U NDER 29
	405	+	SUBSECTION (A) OF THIS SECTION. 30
	406	+
	407	+	(C) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION , A 31
	408	+	HOUSEHOLD MAY NOT BE REQUIRED TO VACATE A UNIT EARLIER THAN 12 MONTHS 32 10 SENATE BILL 927
	409	+
	410	+
	411	+	FOLLOWING THE RECEIP T OF NOTICE TO VACAT E UNDER SUBSECTION (A) OF THIS 1
	412	+	SECTION IF, ON THE DATE THAT THE NOT ICE IS GIVEN: 2
	413	+
	414	+	(1) A MEMBER OF THE HOUSEH OLD IS A DISABLED PE RSON OR A 3
	415	+	SENIOR CITIZEN WHO H AS BEEN A MEMBER OF THE HOUSEHOLD FOR AT LEAST 12 4
	416	+	MONTHS IMMEDIATELY P RECEDING RECEIPT OF THE NOTICE TO VACATE ; AND 5
	417	+
	418	+	(2) THE HOUSEHOLD : 6
	419	+
	420	+	(I) IS A LOW–INCOME HOUSEHOLD ; 7
	421	+
	422	+	(II) NOTIFIES THE LIMITED EQUITY HOUSING COOPE RATIVE OF 8
	423	+	THE INTENT TO REMAIN IN THE UNIT FOR A PE RIOD OF MORE THAN 90 DAYS; AND 9
	424	+
	425	+	(III) SUBMITS THE NOTICE UN DER ITEM (II) OF THIS ITEM TO 10
	426	+	THE LIMITED EQUITY H OUSING COOPE RATIVE WITHIN 30 DAYS AFTER RECEIVING 11
	427	+	THE NOTICE TO VACATE . 12
	428	+
	429	+	(D) A HOUSEHOLD MAY BE REQ UIRED TO VACATE THE PREMISES BEFORE 13
	430	+	THE EXPIRATION OF AN Y MINIMUM TIME PERIO D UNDER THIS SECTION IF THE 14
	431	+	HOUSEHOLD : 15
	432	+
	433	+	(1) BREACHES A COVENANT I N THE LEASE OCCURRIN G BEFORE OR 16
	434	+	AFTER THE NOTICE TO VACATE IS GIVEN; OR 17
	435	+
	436	+	(2) FAILS TO PAY RENT BEF ORE OR AFTER THE NOT ICE TO VACATE IS 18
	437	+	GIVEN. 19
	438	+
	439	+	(E) A LOW–INCOME HOUSEHOLD THA T IS REQUIRED TO VAC ATE A UNIT 20
	440	+	UNDER THIS SECTION S HALL RECEIVE REIMBUR SEMENT FROM THE LIMI TED EQUITY 21
	441	+	HOUSING COOPERATIVE FOR MOVING EXPENSES THAT : 22
	442	+
	443	+	(1) ARE ACTUALLY AND REAS ONABLY INCURRED ; AND 23
	444	+
	445	+	(2) ARE AT LEAST $375 BUT LESS THAN $751. 24
	446	+
	447	+	5–6D–07. 25
	448	+
	449	+	(A) THE APPRECIATION AND RESALE OF A COOPERAT IVE INTEREST MAY 26
	450	+	NOT EXCEED THE COST PAID BY THE MEMBER F OR THE INITIAL COOPERAT IVE 27
	451	+	INTEREST, ADJUSTED FOR INFLATI ON PLUS THE COST OF IMPROVEMENTS TO THE 28
	452	+	COOPERATIVE INTEREST MADE BY THE MEMBER T HAT WERE APPROVED BY THE 29
	453	+	LIMITED EQUITY HOUSI NG COOPERATIVE . 30 SENATE BILL 927 11
234	454
235	455
236	456
237		-	(D) A VOTE UNDER THIS SECT ION SHALL BE CONDUCT ED IN ACCORDANCE 1
238		-	WITH THE GOVERNING D OCUMENTS OF THE MARYLAND NONSTOCK COR PORATION 2
239		-	HOLD A VOTE TO CONVE RT TO A COOPERATIVE LIMITED EQUITY HOUSI NG 3
240		-	CORPORATION NOT LATE R THAN 30 DAYS AFTER PROVIDING NOTICE. 4
	457	+	(B) A COOPERATIVE INTEREST MAY BE SOLD ONLY TO A LOW–INCOME 1
	458	+	HOUSEHOLD . 2
241	459
242		-	~~(2) NOTICE UNDER PARAGRAP H (1) OF THIS SUBSECTION S HALL: 5~~
	460	+	5–6D–08. 3
243	461
244		-	(I) INFORM THE MEMBERS TH AT AN ELECTION TO CO NVERT 6
245		-	THE MARYLAND NONSTOCK COR PORATION TO A COOPER ATIVE LIMITED EQUITY 7
246		-	HOUSING CORPORATION WILL BE HELD NOT LAT ER THAN 30 DAYS AFTER DELIVERY 8
247		-	OF THE NOTICE; AND 9
	462	+	(A) THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT MAY : 4
248	463
249		-	(II) INCLUDE A COPY OF THE DOCUMENT S TO BE SUBMITTED TO 10
250		-	THE DEPARTMENT . 11
	464	+	(1) TO THE EXTENT APPLICA BLE TO AND NOT INCON SISTENT WITH 5
	465	+	THIS SUBTITLE, USING A STANDARDIZED METHODOLOGY , ESTABLISH ADDITIONAL 6
	466	+	RIGHTS AND REQUIREME NTS FOR A LIMITED EQUITY HOUSING COOPE RATIVE AND 7
	467	+	ITS MEMBERS BASED ON AN INDIVIDUALIZED AS SESSMENT OF THE COOP ERATIVE; 8
251	468
252		-	(B) (1) A VOTE TO CONVERT FROM A MARYLAND NONSTOCK 12
253		-	CORPORATION TO A COO PERATIVE LIMITED EQU ITY HOUSING CORPORAT ION SHALL 13
254		-	REQUIRE AN AFFIRMATI VE VOTE OF AT LEAST TWO–THIRDS OF THE TOTAL 14
255		-	MEMBERS. 15
	469	+	(2) BASE A DETERMINATION UNDER ITEM (1) OF THIS SUBSECTION 9
	470	+	ON THE RIGHTS AND RE QUIREMENTS FOR COOPE RATIVE HOUSING CORPO RATIONS 10
	471	+	AND THEIR MEMBERS UN DER SUBTITLE 6B OF THIS TITLE; AND 11
256	472
257		-	(2) A ~~VOTE UNDER THIS SUBSECTION SHAL L BE CONDUCTED IN 16~~
258		-	~~ACCORDANCE WITH~~ THE ~~GOVERNING DOCUMENTS~~ OF ~~THE MARYLAND NONSTOCK 17~~
259		-	~~CORPORATION~~ . 18
	473	+	(3) ESTABLISH A PROGRAM T O PROVIDE GRANTS TO MARYLAND 12
	474	+	NONSTOCK CORPORATION S TO PROMOTE THE EST ABLISHMENT OF LIMITE D EQUITY 13
	475	+	HOUSING COOPERATIVES . 14
260	476
261		-	(C) (1) IF AT LEAST TWO –THIRDS OF THE TOTAL MEMBERS OF THE 19
262		-	MARYLAND NONSTOCK COR PORATION VOTE TO CON VERT TO A COOPERATIV E 20
263		-	LIMITED EQUITY H OUSING CORPORATION , THE MARYLAND NONSTOCK 21
264		-	CORPORATION SHALL PR EPARE AND SUBMIT TO THE DEPARTMENT THE REQUIR ED 22
265		-	DOCUMENTS AND INFORM ATION IN ACCORDANCE WITH § 5–6D–04 OF THIS 23
266		-	SUBTITLE. 24
	477	+	(B) THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT 15
	478	+	SHALL ADOPT REGULATI ONS TO CARRY OUT THI S SECTION. 16
267	479
268		-	(2) IF A VOTE TO CONVERT TO A COOPERATIVE LIM ITED EQUITY 25
269		-	HOUSING CORPO RATION UNDER SUBSECT ION (B) OF THIS SECTION FAIL S, THE 26
270		-	MARYLAND NONSTOCK COR PORATION MAY NOT ATT EMPT TO CONVERT TO A 27
271		-	COOPERATIVE LIMITED EQUITY HOUSING CORPO RATION FOR AT LEAST 12 MONTHS 28
272		-	AFTER THE DATE OF TH E FAILED VOTE. 29
	480	+	5–6D–09. 17
273	481
274		-	(D) ONCE A MARYLAND NONSTOCK COR PORATION IS CONVERTE D TO A 30
275		-	COOPERATIVE LIMITED EQUITY HOUSING CORPO RATION, VOTES SHALL BE 31
276		-	ASSIGNED SO THAT EAC H UNIT HAS ONE VOTE . 32
	482	+	(A) A COUNTY OR MUNICIPALI TY MAY NOT IMPOSE RE STRICTIONS ON A 18
	483	+	LIMITED EQUITY HOUSI NG COOPERATIVE . 19
277	484
278		-	5–6D–04. 33
279		-	SENATE BILL 927 7
	485	+	(B) THE PROHIBITION IN SU BSECTION (A) OF THIS SECTION INCL UDES 20
	486	+	REQUIREMENTS THROUGH LOCAL LAW OR ORDINAN CE THAT RESTRICT THE SALE OF 21
	487	+	RESIDENTIAL RENTAL F ACILITIES TO A MARYLAND NONSTOCK COR PORATION THAT 22
	488	+	PLANS TO CONVERT TO A LIMITED EQUITY HOU SING COOPERATIVE . 23
280	489
	490	+	5–6D–10. 24
281	491
282		-	~~(A) FOLLOWING AN AFFIRMAT IVE VOTE~~ TO ~~APPLY FOR CONVERSION 1~~
283		-	~~CONVERT TO A COOPERATIVE LIMITED~~ EQUITY ~~HOUSI NG COOPERA TIVE 2~~
284		-	~~CORPORATION , A MARYLAND NONSTOCK COR PORATION SHALL : 3~~
	492	+	THE DEPARTMENT SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 25
	493	+	SUBTITLE AND ENSURE THE EFFECTIVE FUNCTIONING OF LIMIT ED EQUITY HOUSING 26
	494	+	COOPERATIVES . 27
285	495
286		-	(1) PREPARE PREPARE AND SUBMIT TO THE DEPARTMENT THE 4
287		-	FOLLOWING DOCUMENTS AND INFORMATION FOR THE ESTABLISHMENT OF A 5
288		-	COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION : 6
	496	+	SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 28
	497	+	as follows: 29
289	498
290		-	(1) (I) ARTICLES OF INCORPORATION , INCLUDING: 7
291		-
292		-	(I) 1. THE NAME AND LOCATION OF THE COOPERATIVE 8
293		-	LIMITED EQUITY HOUSI NG COOPERATIVE ; CORPORATION ; AND 9
294		-
295		-	(II) 2. A STATEMENT OF THE PUR POSES OF THE 10
296		-	COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION ; AND 11
297		-
298		-	(III) (II) THE NAME AND ADDRESS OF THE MEMBERS OF TH E 12
299		-	MARYLAND NONSTOCK COR PORATION; ANY OTHER DOCUMENTS O R INFORMATION 13
300		-	REQUIRED BY THE DEPARTMENT ; AND 14
301		-
302		-	(2) MAINTAIN: 15
303		-
304		-	(I) THE NAME AND ADDRESS OF THE MEMBERS OF TH E 16
305		-	MARYLAND NONSTOCK COR PORATION; 17
306		-
307		-	(II) A DISCLOSURE STATEMENT , INCLUDING: 18
308		-
309		-	(I) 1. THE DATE ON WHICH THE AFFIRMATIVE VOTE TO 19
310		-	APPLY FOR CONVERSION CONVERT TO A COOPERATIVE LIMITED EQUITY HOUSI NG 20
311		-	CORPORATION TOOK PLA CE; 21
312		-
313		-	(II) 2. A STATEMENT OF THE FOR M OF OWNERSHIP OF AL L 22
314		-	REAL AND PERSONAL PR OPERTY THAT IS INTEN DED TO BE OWNED OR L EASED BY 23
315		-	THE COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION ; 24
316		-
317		-	(III) 3. A STATEMENT OF THE PRO JECTED COMPLETION 25
318		-	DATES FOR ANY PROPOS ED IMPROVEMENTS ; 26
319		-
320		-	(IV) 4. A STATEMENT OF THE PRO JECTED DATE OF 27
321		-	FORMATION FOR THE COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE 28
322		-	CORPORATION ; 29
323		-
324		-	(V) 5. A DESCRIPTION OF THE V OTING AND OTHER RIGH TS 30
325		-	IN THE COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION ; 31 8 SENATE BILL 927
	499	+	Article – Tax – Property 30 12 SENATE BILL 927
326	500
327	501
328	502
329		-	(VI) 6. A STATEMENT OF ANY FEE S REQUIRED BY THE 1
330		-	LIMITED EQUITY HOUSI NG COOPERATIVE IN CO NNECTION WITH THE TR ANSFER OF 2
331		-	MEMBERSHIP OR ISSUAN CE OF A PROPRIETARY LEASE; 3
	503	+	7–308. 1
332	504
333		-	(VII) 7. A STATEMENT OF THE KNO WN OR ANTICIPATED 4
334		-	COMMON CHARGES THAT MAY BE IMPOSED ON MEM BERS; 5
	505	+	(A) SUBJECT TO SUBSECTION (B) OF THIS SECTION , PROPERTY IS NOT 2
	506	+	SUBJECT TO STATE PROPERTY TAX IF THE PROPERTY IS OWNED BY A LIMITED 3
	507	+	EQUITY HOUSING COOPE RATIVE THAT COMPLIES WITH THE REQUIREMENT S OF 4
	508	+	TITLE 5, SUBTITLE 6D OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE. 5
335	509
336		-	(~~VIII~~) 8. A ~~STATEMENT~~ OF ~~THE OWN~~ ~~ERSHIP INTEREST~~ 6
337		-	~~ASSOCIATED WITH EACH UNIT AND~~ THE ~~UNDERLY ING DEBT RESPONSIBIL ITY~~ 7
338		-	~~ASSOCIATED WITH EACH UNIT ON A PRO RATA B ASIS, IF APPLICABLE;~~ 8
	510	+	(B) THE EXEMPTION UNDER S UBSECTION (A) OF THIS SECTION APPL IES 6
	511	+	ONLY FOR THE FIRST 5 TAXABLE YEARS THAT T HE LIMITED EQUITY HO USING 7
	512	+	COOPERATIVE OWNS THE PROPERTY. 8
339	513
340		-	(IX) 9. A STATEMENT AS TO WHET HER THE COOPERATIVE 9
341		-	LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION HAS OR WILL OBTAIN 10
342		-	INSURANCE COVERAGE F OR CASUALTY, PROPERTY DAMAGE , AND PUBLIC LIABILITY 11
343		-	AND IN WHAT AMOUNTS ; 12
	514	+	9–275. 9
344	515
345		-	(X) 10. A STATEMENT OF ALL WAR RANTIES AND 13
346		-	DISCLAIMERS MADE DUR ING THE PURCHASE OF THE RESIDENTIAL RENT AL 14
347		-	FACILITY BY THE MARYLAND NONSTOCK COR PORATION; AND 15
	516	+	(A) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 10
	517	+	GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY GRAN T, BY LAW, 11
	518	+	A PROPERTY TAX CREDI T AGAINST THE COUNTY OR MUNI CIPAL CORPORATION 12
	519	+	PROPERTY TAX IMPOSED ON REAL PROPERTY OWN ED BY A LIMITED EQUI TY 13
	520	+	HOUSING COOPERATIVE THAT COMPLIES WITH T HE REQUIREMENTS OF TITLE 5, 14
	521	+	SUBTITLE 6D OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE. 15
348	522
349		-	(XI) 11. COPIES OF THE PROPOSE D OR FINAL: 16
	523	+	(B) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 16
	524	+	GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY PROV IDE, BY 17
	525	+	LAW, FOR: 18
350	526
351		-	1. A. CONTRACT OF SALE FOR THE RESIDENTIAL RENT AL 17
352		-	FACILITY THAT IS THE SUBJECT OF THE REAL PROPERTY OF THE COOPERATIVE 18
353		-	LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION ; 19
	527	+	(1) THE AMOUNT AND DURAT ION OF THE TAX CREDI T UNDER THIS 19
	528	+	SECTION; 20
354	529
355		-	2. B. MEMBERSHIP CERTIFICAT E; 20
	530	+	(2) ADDITIONAL ELIGIBILI TY CRITERIA FOR THE TAX CREDIT UNDER 21
	531	+	THIS SECTION; 22
356	532
357		-	3. C. PROPRIETARY LEASE ; 21
	533	+	(3) REGULATIONS AND PROC EDURES FOR THE APPLI CATION AND 23
	534	+	UNIFORM PROCESSING O F REQUESTS FOR THE T AX CREDIT; AND 24
358	535
359		-	4. D. RULES, IF ANY; 22
	536	+	(4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THE TAX 25
	537	+	CREDIT UNDER THIS SE CTION. 26
360	538
361		-	5. ~~E. LEASE~~, ~~OTHER THAN THE PROPR IETARY LEASE,~~ ~~TO A 23~~
362		-	~~THIRD PARTY OF REAL OR PERSONAL PROPERTY~~ TO ~~WHICH THE COOPERATIVE 24~~
363		-	~~LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION IS A PARTY; AND 25~~
	539	+	SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 27
	540	+	effect June 1, 2026, and shall be applicable to all taxable years beginning after June 30, 28
	541	+	2026. 29
364	542
365		-	6. F. IF APPLICABLE, NOTICE TO AFFECTED H OUSEHOLDS 26
366		-	THAT MAY BE REQUIRED UNDER § 5–6D–06 § 5–6D–05 OF THIS SUBTITLE; 27
367		-
368		-	(3) (III) AN ANNUAL OPERATING B UDGET, INCLUDING INSURANCE , 28
369		-	MAINTENANCE , RESERVES, AND GENERAL EXPENSES ; 29
370		-
371		-	(4) (IV) BYLAWS; AND 30 SENATE BILL 927 9
372		-
373		-
374		-
375		-	(5) (V) A SHARE AGREEMENT ; AND 1
376		-
377		-	(6) ANY OTHER DOCUMENTS O R INFORMATION REQUIR ED BY THE 2
378		-	DEPARTMENT . 3
379		-
380		-	(B) STATEMENTS REQUIRED U NDER THIS SECTION MAY BE SUMMARIZED OR 4
381		-	PRODUCED IN A COLLEC TION OF DOCUMENTS TH AT EFFECTIVELY CONVE YS THE 5
382		-	REQUIRED INFORMATION . 6
383		-
384		-	(C) (1) (I) A MARYLAND NONSTOCK COR PORATION SHALL FILE THE 7
385		-	DISCLOSURE STATEMENT REQUIRED UNDER SUBSE CTION (A)(2) OF THIS SECTION 8
386		-	WITH THE DEPARTMENT NOT LATER THAN 90 DAYS AFTER AN AFFIRM ATIVE VOTE 9
387		-	UNDER § 5–6D–03 THIS SUBTITLE. 10
388		-
389		-	(II) THE DEPARTMENT MAY GRANT AN EXTENSION OF THE 11
390		-	DEADLINE ESTABLISHED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH IF THE 12
391		-	MARYLAND NONSTOCK COR PORATION DEMONS TRATES A GOOD FAITH EFFORT TO 13
392		-	PREPARE THE DOCUMENT S. 14
393		-
394		-	(2) (I) A MARYLAND NONSTOCK COR PORATION MAY SUBMIT A 15
395		-	REQUEST TO THE DEPARTMENT FOR A FULL OR PARTIAL WAIVER OF THE 16
396		-	REQUIREMENT OF A DIS CLOSURE STATEMENT UN DER PARAGRAPH (1) OF THIS 17
397		-	SUBSECTION. 18
398		-
399		-	(II) THE DEPARTMENT MAY GRANT A FULL OR PARTIAL WA IVER 19
400		-	OF ONE OR MORE OF TH E REQUIREMENTS OF PA RAGRAPH (1) OF THIS SUBSECTION 20
401		-	IF THE MARYLAND NONSTOCK COR PORATION MAKES GOOD FAITH EFFORTS TO 21
402		-	SATISFY THE REQUIREM ENTS. 22
403		-
404		-	(D) WITHIN 30 DAYS AFTER RECEIPT O F DOCUMENTS AND INFORMATI ON 23
405		-	PROVIDED BY A MARYLAND NONSTOCK COR PORATION IN ACCORDAN CE WITH THIS 24
406		-	SECTION, THE DEPARTMENT SHALL : 25
407		-
408		-	(1) CONDITIONALLY ACCEPT ACCEPT THE DOCUMENTS FOR RE CORD 26
409		-	SUBJECT TO AN AFFIRM ATIVE VOTE BY THE MARYLAND NONSTOCK COR PORATION 27
410		-	TO CONVERT TO A LIMITED EQUITY HOUSING COOPE RATIVE; OR 28
411		-
412		-	(2) IF THE DOCUMENTS AND INFORMATION DO NOT M EET THE 29
413		-	REQUIREMENTS OF THIS SECTION AND ANY ADDI TIONAL REQUIREMENTS 30
414		-	ESTABLISHED BY THE DEPARTMENT , DENY THE DOCUMENTS F OR RECORD AND 31
415		-	NOTIFY THE MARYLAND NO NSTOCK CORPORATION O F THE BASIS FOR THE DENIAL. 32
416		-	10 SENATE BILL 927
417		-
418		-
419		-	(D) ON RECEIPT OF A DENIA L UNDER SUBSECTION (C)(2) OF THIS SECTION, 1
420		-	A MARYLAND NONSTOCK COR PORATION MAY RESUBMI T THE DOCUMENTS AND 2
421		-	INFORMATION IN ORDER TO MEET THE REQUIREM ENTS OF THIS SECTION . 3
422		-
423		-	5–6D–05. 4
424		-
425		-	(A) (1) IF THE DEPARTMENT CONDITIONA LLY ACCEPTS A SUBMIS SION 5
426		-	UNDER § 5–6D–04 OF THIS SUBTITLE , THE MARYLAND NONSTOCK COR PORATION 6
427		-	SHALL: 7
428		-
429		-	(I) PROMPTLY NOTIFY EACH MEMBER OF THE ACCEPT ANCE BY 8
430		-	THE DEPARTMENT ; AND 9
431		-
432		-	(II) HOLD A VOTE TO CONVER T TO A LIMITED EQUITY HOUSI NG 10
433		-	COOPERATIVE NOT LATE R THAN 30 DAYS AFTER PROVIDING NOTICE. 11
434		-
435		-	(2) NOTICE UNDER PARAGRAP H (1) OF THIS SUBSECTION S HALL: 12
436		-
437		-	(I) INFORM THE MEMBERS TH AT AN ELECTION TO CO NVERT 13
438		-	THE MARYLAND NONSTOCK COR PORATION TO A LIMITE D EQUITY HOUSING 14
439		-	COOPERATIVE WILL BE HELD NOT LATER THAN 30 DAYS AFTER DELIVERY OF THE 15
440		-	NOTICE; AND 16
441		-
442		-	(II) INCLUDE A COPY OF THE DOCUMENTS CONDITIONA LLY 17
443		-	ACCEPTED BY THE DEPARTMENT . 18
444		-
445		-	(B) (1) A VOTE TO CONVERT FROM A MARYLAND NONSTOCK 19
446		-	CORPORATION TO A LIM ITED EQUITY HOUSING COOPERATIV E SHALL REQUIRE AN 20
447		-	AFFIRMATIVE VOTE OF AT LEAST TWO–THIRDS OF THE TOTAL MEMBERS. 21
448		-
449		-	(2) A VOTE UNDER THIS SUBS ECTION SHALL BE COND UCTED IN 22
450		-	ACCORDANCE WITH THE GOVERNING DOCUMENTS OF THE MARYLAND NONSTOCK 23
451		-	CORPORATION . 24
452		-
453		-	(C) (1) IF AT LEAST TWO–THIRDS OF THE TOTAL MEMBERS OF THE 25
454		-	MARYLAND NONSTOCK COR PORATION VOTE TO CON VERT TO A LIMITED EQ UITY 26
455		-	HOUSING COOPERATIVE , THE MARYLAND NONSTOCK COR PORATION SHALL : 27
456		-
457		-	(I) NOTIFY THE DEPARTMENT ; AND 28
458		-
459		-	(II) BE CONVERTED TO AND R ECOGNIZED BY THE DEPARTMENT 29
460		-	AS A LIMITED EQUITY HOUSING COOPERATIVE . 30
461		-	SENATE BILL 927 11
462		-
463		-
464		-	(2) IF A VOTE TO CONVERT TO A LIMITED EQUITY HOUSING 1
465		-	COOPERATIVE UNDER SU BSECTION (B) OF THIS SECTION FAIL S, THE MARYLAND 2
466		-	NONSTOCK CORPORATION MAY NOT ATTEMPT TO C ONVERT TO A LIMITED EQUITY 3
467		-	HOUSING COO PERATIVE FOR AT LEAS T 12 MONTHS AFTER THE DAT E OF THE FAILED 4
468		-	VOTE. 5
469		-
470		-	(D) ONCE A MARYLAND NONSTOCK COR PORATION IS CONVERTE D TO A 6
471		-	LIMITED EQUITY HOUSI NG COOPERATIVE , VOTES SHALL BE ASSIG NED SO THAT 7
472		-	EACH UNIT HAS ONE VO TE. 8
473		-
474		-	5–6D–06. 9
475		-
476		-	(A) IF A MARYLAND NONSTOCK COR PORATION VOTES TO CO NVERT TO A 10
477		-	COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION , THE 11
478		-	COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION SHALL: 12
479		-
480		-	(1) OFFER THE OPPORTUNITY TO BECOME A MEMBER O F THE 13
481		-	LIMITED EQUITY HOUSING COOPERATIVE TO EACH HOUSEHOLD ; AND 14
482		-
483		-	(2) PROVIDE PROVIDE WRITTEN NOTICE OF TH E CONVERSION TO ANY 15
484		-	HOUSEHOLD THAT DOES NOT ACCEPT THE OFFER AND THAT WILL BE REQUIRED TO 16
485		-	VACATE A PORTION OF THE RESIDENTIAL RENT AL FACILITY USED AS A RESIDENCE 17
486		-	BY THE HOUSEHOLD . 18
487		-
488		-	(B) EXCEPT AS PROVIDED IN SUBSECTIONS (C) AND (D) OF THIS SECTION, A 19
489		-	COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION MAY 20
490		-	REQUIRE A HOUSEHOLD TO VACATE NOT EARLIE R THAN 90 DAYS AFTER RECEIPT O F 21
491		-	NOTICE DESCRIBED UND ER SUBSECTION (A) OF THIS SECTION. 22
492		-
493		-	(C) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION , A 23
494		-	HOUSEHOLD MAY NOT BE REQUIRED TO VACATE A UNIT EARLIER THAN 12 MONTHS 24
495		-	FOLLOWING THE RECEIP T OF NOTICE TO VACAT E UNDER SUBSECTION (A) OF THIS 25
496		-	SECTION IF, ON THE DATE THAT THE NOTICE IS GIVEN: 26
497		-
498		-	(1) A MEMBER OF THE HOUSEH OLD IS A DISABLED PE RSON OR A 27
499		-	SENIOR CITIZEN WHO H AS BEEN A MEMBER OF THE HOUSEHOLD FOR AT LEAST 12 28
500		-	MONTHS IMMEDIATELY P RECEDING RECEIPT OF THE NOTICE TO VACATE ; AND 29
501		-
502		-	(2) THE HOUSEHOLD : 30
503		-
504		-	(I) IS A LOW–INCOME HOUSEHOLD ; 31
505		-	12 SENATE BILL 927
506		-
507		-
508		-	(II) NOTIFIES THE COOPERATIVE LIMITED EQUITY HOUSI NG 1
509		-	COOPERATIVE CORPORATION OF THE INTENT TO REM AIN IN THE UNIT FOR A PERIOD 2
510		-	OF MORE THAN 90 DAYS; AND 3
511		-
512		-	(III) SUBMITS THE NOTICE UN DER ITEM (II) OF THIS ITEM TO 4
513		-	THE COOPERATIVE LIMITED EQUITY HOUSING COOPERATIVE CORPORATION WITHIN 5
514		-	30 DAYS AFTER RECEIVING THE NOTICE TO VACATE . 6
515		-
516		-	(D) A HOUSEHOLD MAY BE REQ UIRED TO VACATE THE PREMISES BEFORE 7
517		-	THE EXPIRATION OF AN Y MINIMUM TIME PERIO D UNDER THIS SECTION IF THE 8
518		-	HOUSEHOLD : 9
519		-
520		-	(1) BREACHES A COVENANT IN THE LEAS E OCCURRING BEFORE O R 10
521		-	AFTER THE NOTICE TO VACATE IS GIVEN; OR 11
522		-
523		-	(2) FAILS TO PAY RENT BEF ORE OR AFTER THE NOT ICE TO VACATE IS 12
524		-	GIVEN. 13
525		-
526		-	(E) A LOW–INCOME HOUSEHOLD THA T IS REQUIRED TO VAC ATE A UNIT 14
527		-	UNDER THIS SECTION S HALL RECEIVE REIMBU RSEMENT FROM THE COOPERATIVE 15
528		-	LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION FOR MOVING EXPENSES 16
529		-	THAT: 17
530		-
531		-	(1) ARE ACTUALLY AND REAS ONABLY INCURRED ; AND 18
532		-
533		-	(2) ARE AT LEAST $375 BUT LESS THAN $751. 19
534		-
535		-	5–6D–07. 5–6D–06. 20
536		-
537		-	(A) THE APPRECIATION AND RESALE OF A COOPERAT IVE INTEREST MAY 21
538		-	NOT EXCEED THE COST PAID BY THE MEMBER F OR THE INITIAL COOPE RATIVE 22
539		-	INTEREST, ADJUSTED FOR INFLATI ON PLUS THE COST OF IMPROVEMENTS TO THE 23
540		-	COOPERATIVE INTEREST MADE BY THE MEMBER T HAT WERE APPROVED BY THE 24
541		-	COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION . 25
542		-
543		-	(B) A COOPERATIVE INTEREST MAY BE SOLD ONLY TO A LOW–INCOME 26
544		-	HOUSEHOLD . 27
545		-
546		-	5–6D–08. 5–6D–07. 28
547		-
548		-	(A) THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT MAY : 29
549		-
550		-	(1) TO THE EXTENT APPLICA BLE TO AND NOT INCON SISTENT WITH 30
551		-	THIS SUBTITLE, USING A STANDARDIZED METHODOLOGY , ESTABLISH ADDITIONAL 31 SENATE BILL 927 13
552		-
553		-
554		-	RIGHTS AND REQUIREME NTS FOR A COOPERATIVE LIMITED EQUITY HOUSI NG 1
555		-	COOPERATIVE CORPORATION AND ITS MEMBERS BASE D ON AN INDIVIDUALIZ ED 2
556		-	ASSESSMENT OF THE CO OPERATIVE; 3
557		-
558		-	(2) BASE A DETERMINATION UNDER ITEM (1) OF THIS SUBSECTION 4
559		-	ON THE RIGHTS AND RE QUIREMENTS FOR COOPE RATIVE HOUSING CORPO RATIONS 5
560		-	AND THEIR MEMBERS UN DER SUBTITLE 6B OF THIS TITLE; AND 6
561		-
562		-	(3) ESTABLISH A PROGRAM T O PROVIDE GR ANTS TO MARYLAND 7
563		-	NONSTOCK CORPORATION S TO PROMOTE THE EST ABLISHMENT OF COOPERATIVE 8
564		-	LIMITED EQUITY HOUSI NG COOPERATIVES CORPORATIONS . 9
565		-
566		-	(B) THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT 10
567		-	SHALL ADOPT REGULATI ONS TO CARRY OUT THI S SECTION. 11
568		-
569		-	5–6D–09. 5–6D–08. 12
570		-
571		-	(A) A COUNTY OR MUNICIPALI TY MAY NOT IMPOSE RE STRICTIONS ON A 13
572		-	COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION . 14
573		-
574		-	(B) THE PROHIBITION IN SU BSECTION (A) OF THIS SECTION INCL UDES 15
575		-	REQUIREMENTS THROUGH LOCAL LAW OR ORDINAN CE THAT RESTRICT THE SALE OF 16
576		-	RESIDENTIAL RENTAL F ACILITIES TO A MARYLAND NONSTOCK COR PORATION THAT 17
577		-	PLANS TO CONVERT TO A COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE 18
578		-	CORPORATION . 19
579		-
580		-	5–6D–10. 5–6D–09. 20
581		-
582		-	THE DEPARTMENT SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 21
583		-	SUBTITLE AND ENSURE THE EFFECTIVE FUNCTI ONING OF COOPERATIVE LIMITED 22
584		-	EQUITY HOUSING COOPERATIVES CORPORATIONS . 23
585		-
586		-	SECTION 2. AND BE IT FURTHER ENACTED, Th at the Laws of Maryland read 24
587		-	as follows: 25
588		-
589		-	Article – Tax – Property 26
590		-
591		-	7–308. 27
592		-
593		-	(A) SUBJECT TO SUBSECTION (B) OF THIS SECTION , PROPERTY IS NOT 28
594		-	SUBJECT TO STATE PROPERTY TAX IF THE PROPERTY IS OWNE D BY A LIMITED 29
595		-	EQUITY HOUSING COOPE RATIVE THAT COMPLIES WITH THE REQUIREMENTS OF 30
596		-	TITLE 5, SUBTITLE 6D OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE. 31
597		-	14 SENATE BILL 927
598		-
599		-
600		-	(B) THE EXEMPTION UNDER S UBSECTION (A) OF THIS SECTION APPL IES 1
601		-	ONLY FOR THE FIRST 5 TAXABLE YEARS THAT T HE LIMITED EQUITY HO USING 2
602		-	COOPERATIVE OWNS THE PROPERTY. 3
603		-
604		-	9–275. 4
605		-
606		-	(A) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 5
607		-	GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY GRAN T, BY LAW, 6
608		-	A PROPERTY TAX CREDI T AGAINST THE COUNTY OR MUNICIPAL CORPORA TION 7
609		-	PROPERTY TAX IMPOSED ON REAL PROPERTY OWN ED BY A LIMITED EQ UITY 8
610		-	HOUSING COOPERATIVE THAT COMPLIES WITH T HE REQUIREMENTS OF TITLE 5, 9
611		-	SUBTITLE 6D OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE. 10
612		-
613		-	(B) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 11
614		-	GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY PROV IDE, BY 12
615		-	LAW, FOR: 13
616		-
617		-	(1) THE AMOUNT AND DURAT ION OF THE TAX CREDI T UNDER THIS 14
618		-	SECTION; 15
619		-
620		-	(2) ADDITIONAL ELIGIBILI TY CRITERIA FOR THE TAX CREDIT UNDER 16
621		-	THIS SECTION; 17
622		-
623		-	(3) REGULATIONS AND PROC EDURES FOR THE APPLI CATION AND 18
624		-	UNIFORM PROCESSING O F REQUESTS FOR THE TAX CREDIT; AND 19
625		-
626		-	(4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THE TAX 20
627		-	CREDIT UNDER THIS SE CTION. 21
628		-
629		-	SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 22
630		-	effect June 1, 2026, and shall be applicable to all taxable years beginning after June 30, 23
631		-	2026. 24
632		-
633		-	SECTION 4. 2. AND BE IT FURTHER ENACTED, That except as provided in 25
634		-	Section 3 of this Act, this Act shall take effect October 1, 2025 2026. 26
635		-
636		-
	543	+	SECTION 4. AND BE IT FURTHER ENACTED, That except as provided in Section 30
	544	+	3 of this Act, this Act shall take effect October 1, 2025. 31
637	545