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.
*sb0927*
SENATE BILL 927
C1, N1 5lr2139
CF HB 1052
By: Senator Smith
Introduced and read first time: January 28, 2025
Assigned to: Judicial Proceedings
Committee Report: Favorable
Senate action: Adopted with floor amendments
Read second time: February 28, 2025
CHAPTER ______
AN ACT concerning 1
Corporations and Associations – Cooperative Limited Equity Housing 2
Cooperatives Corporations – Establishment 3
FOR the purpose of authorizing a Maryland nonstock corporation to convert to a 4
cooperative limited equity housing cooperative corporation and establishing certain 5
procedures and requirements for the conversion of a Maryland nonstock corporation 6
to a cooperative limited equity housing cooperative corporation; requiring a 7
cooperative limited equity housing corporation to provide certain notice to certain 8
households under certain circumstances; requiring a cooperative limited equity 9
housing cooperative corporation to reimburse certain households for moving 10
expenses; establishing the allocation of votes in a cooperative limited equity housing 11
cooperative corporation; authorizing the Department of Housing and Community 12
Development to establish a program to provide grants to Maryland nonstock 13
corporations to promote the establishment of cooperative limited equity housing 14
cooperatives corporations; prohibiting local governments from imposing restrictions 15
on cooperative limited equity housing cooperatives corporations; establishing 16
limitations on the appreciation and sale of a cooperative interest; authorizing the 17
Department of Housing and Community Development to establish certain rights and 18
requirements for a cooperative limited equity cooperative corporation and its 19
members and to provide certain grants to promote the establishment of cooperative 20
limited equity cooperatives housing corporations; exempting real property owned by 21
certain limited equity housing cooperatives from State property tax subject to a 22
certain limitation; authorizing the Mayor and City Council of Baltimore City or the 23
governing body of a county or municipal corporation to grant, by law, a certain tax 24
credit against the county or municipal corporation property tax imposed on real 25 2 SENATE BILL 927
property owned by a certain limited equity housing cooperative; and generally 1
relating to cooperative limited equity housing cooperatives corporations and the 2
conversion of Maryland nonstock corporations. 3
BY repealing and reenacting, with amendments, 4
Article – Corporations and Associations 5
Section 5–207(a) 6
Annotated Code of Maryland 7
(2014 Replacement Volume and 2024 Supplement) 8
BY adding to 9
Article – Corporations and Associations 10
Section 5–6D–01 through 5–6D–10 5–6D–09 to be under the new subtitle “Subtitle 11
6D. Cooperative Limited Equity Housing Cooperatives Corporations” 12
Annotated Code of Maryland 13
(2014 Replacement Volume and 2024 Supplement) 14
BY adding to 15
Article – Tax – Property 16
Section 7–308 and 9–275 17
Annotated Code of Maryland 18
(2019 Replacement Volume and 2024 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Corporations and Associations 22
5–207. 23
(a) (1) A nonstock corporation may consolidate or merge only with: 24
(I) another ANOTHER nonstock corporation; OR 25
(II) A COOPERATIVE LIMITED EQUITY HOUSING CORPO RATION 26
UNDER SUBTITLE 6D OF THIS TITLE. 27
(2) A Maryland nonstock corporation may convert only into [a]: 28
(I) A foreign corporation that does not have the authority to issue 29
stock; OR 30
(II) A LIMITED EQUITY HOUSI NG COOPERATIVE UNDER 31
SUBTITLE 6D OF THIS TITLE. 32
(3) A foreign corporation that does not have the authority to issue stock: 33 SENATE BILL 927 3
(i) May convert into a Maryland nonstock corporation; and 1
(ii) May not convert into [a]: 2
1. A Maryland corporation that has the authority to issue 3
stock; OR 4
2. A COOPERATIVE LIMITED EQUITY HOUSI NG 5
COOPERATIVE CORPORATION UNDER SUBTITLE 6D OF THIS TITLE. 6
SUBTITLE 6D. COOPERATIVE LIMITED EQUITY HOUSING COOPERATIVES 7
CORPORATIONS . 8
5–6D–01. 9
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 10
INDICATED. 11
(B) “ARTICLES OF INCORPORA TION” MEANS THE CHARTER BY WHICH A 12
COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION BECOMES 13
INCORPORATED UNDER T HIS ARTICLE. 14
(C) “BYLAWS” MEANS THE DOCUMENT T HAT DETAILS AND GOVE RNS THE 15
INTERNAL ORGANIZATIO N AND OPERATION OF T HE COOPERATIVE LIMITED EQUITY 16
HOUSING COOPERATIVE CORPORATION . 17
(D) “CONVERSION” MEANS THE TRANSITION OF A PROPERTY FROM A 18
RESIDENTIAL RENTAL F ACILITY TO A PROPERT Y OWNED BY A COOPERATIVE 19
LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION FOR USE BY MEMBERS O F 20
THE COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION . 21
(E) “COOPERATIVE INTEREST ” MEANS THE OWNERSHIP INTEREST IN A 22
COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION THAT IS 23
COUPLED WITH A POSSE SSORY INTEREST IN RE AL OR PERSONAL PROPE RTY OWNED 24
BY THE COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORAT ION AND 25
EVIDENCED BY A MEMBE RSHIP CERTIFICATE . 26
(F) “COOPERATIVE LIMITED E QUITY HOUSING CORPOR ATION” MEANS A 27
MARYLAND NONSTOCK COR PORATION QUALIFIED I N THIS STATE, HAVING ONLY 28
ONE CLASS OF MEMBERS HIP, IN WHICH EACH MEMBER , BY VIRTUE OF THE 29
MEMBER’S MEMBERSHIP, HAS A COOPERATIVE IN TEREST IN THE CORPOR ATION. 30
4 SENATE BILL 927
(F) (G) “COOPERATIVE PROJECT ” MEANS ALL THE REAL A ND PERSONAL 1
PROPERTY IN THIS STATE THAT IS OWNED O R LEASED BY A COOPERATIVE LIMITED 2
EQUITY HOUSING COOPERATIVE CORPORATION FOR THE PRIMARY PURP OSE OF 3
RESIDENTIAL USE . 4
(G) (H) “DISABLED PERSON ” MEANS A PERSON WITH A MEASURABLE 5
LIMITATION OF MOBILI TY DUE TO CONGENITAL DEFECT, DISEASE, OR TRAUMA. 6
(H) “LIMITED EQUITY HOUSIN G COOPERATIVE ” MEANS A MARYLAND 7
NONSTOCK CORPORATION QUALIFIED IN THIS STATE, HAVING ONLY ONE CLASS O F 8
MEMBERSHIP , IN WHICH EACH MEMBER , BY VIRTUE OF THE MEM BER’S 9
MEMBERSHIP , HAS A COOPERATIVE IN TEREST IN THE CORPOR ATION. 10
(I) “LOW–INCOME HOUSEHOLD ” MEANS A HOUSEHOLD WI TH AN INCOME 11
THAT DOES NOT EXCEED 80% OF THE AREA MEDIAN I NCOME FOR A HOUSEHOLD OF 12
THE SAME SIZE. 13
(J) “MEMBER” MEANS A PERSON WHO O WNS A COOPERATIVE IN TEREST. 14
(K) “MEMBERSHIP CERTIFICAT E” MEANS: 15
(1) A DOCUMENT ISSUED BY A COOPERATIVE LIMITED EQUITY 16
HOUSING COOPERATIVE CORPORATION EVIDENCING OWNERSHIP OF A 17
COOPERATIVE INTEREST ; OR 18
(2) IF THERE IS NO DOCUME NT THAT SATISFIES IT EM (1) OF THIS 19
SUBSECTION, A PROPRIETARY LEASE . 20
(L) “MOVING EXPENSES ” MEANS COSTS INCURRED TO: 21
(1) HIRE CONTRACTORS , LABOR, TRUCKS, OR EQUIPMENT FOR THE 22
TRANSPORTATION OF PE RSONAL PROPERTY; 23
(2) PACK AND UNPACK PERSO NAL PROPERTY ; 24
(3) DISCONNECT AND INSTAL L PERSONAL PROPERTY ; 25
(4) INSURE PERSONAL PROPE RTY TO BE MOVED ; AND 26
(5) DISCONNECT AND RECONN ECT UTILITIES SUCH A S TELEPHONE 27
SERVICE, GAS, WATER, AND ELECTRICITY . 28
(M) (1) “PROPRIETARY LEASE ” MEANS AN AGREEMENT W ITH THE 29
COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION UNDER 30 SENATE BILL 927 5
WHICH A MEMBER HAS A N EXCLUSIVE POSSESSO RY INTEREST IN A UNI T AND A 1
POSSESSORY INTEREST IN COMMON WITH OTHER MEMBERS IN THAT PORT ION OF A 2
COOPERATIVE PROJECT N OT CONSTITUTING UNIT S AND THAT CREATES A LEGAL 3
RELATIONSHIP OF LAND LORD AND TENANT BETW EEN THE COOPERATIVE LIMITED 4
EQUITY HOUSING COOPERATIVE CORPORATION AND THE MEMBER , RESPECTIVELY . 5
(2) “PROPRIETARY LEASE ” INCLUDES, IF THERE IS NO OTHER 6
DOCUMENT THAT SATISF IES PARAGRAPH (1) OF THIS SUBSECTION , A MEMBERSHIP 7
CERTIFICATE. 8
(N) “RESIDENTIAL RENTAL FA CILITY” MEANS PROPERTY CONTA INING AT 9
LEAST FIVE DWELLING UNITS LEASED FOR RES IDENTIAL PURPOSES . 10
(O) “SENIOR CITIZEN” MEANS A PERSON WHO IS AT LEAST 62 YEARS OLD. 11
(P) “UNIT” MEANS A PORTION OF T HE COOPERATIVE PROJE CT LEASED FOR 12
EXCLUSIVE OCCUPANCY BY A MEMBER UNDER A PROPRIETARY LEASE . 13
5–6D–02. 14
A MARYLAND NONSTOCK COR PORATION MAY BE ORGA NIZED FOR THE 15
PURPOSE OF CONVERTIN G TO A COOPERAT IVE LIMITED EQUITY HOUSI NG 16
COOPERATIVE CORPORATION AFTER ACQUIRING OWNE RSHIP OF A RESIDENTI AL 17
RENTAL FACILITY . 18
5–6D–03. 19
(A) (1) ON ACQUIRING A RESIDE NTIAL RENTAL FACILIT Y, A MARYLAND 20
NONSTOCK CORPORATION MAY ADOPT A RESOLUTION T O APPLY FOR CONVERSI ON 21
TO A LIMITED EQUITY HOU SING COOPERATIVE . 22
(B) THE RESOLUTION TO APP LY FOR CONVERSION TO A LIMITED EQUITY 23
HOUSING COOPERATIVE MAY BE APPROVED BY A N AFFIRMATIVE VOTE O F A 24
MAJORITY OF: 25
(1) THE BOARD OF DIRECTOR S OF THE MARYLAND NONSTOCK 26
CORPORATION ; OR 27
(2) THE TOTAL MEMBERS OF THE MARYLAND NONSTOCK 28
CORPORATION . 29
(C) NOTICE OF THE OUTCOME OF A VOTE ON A RESOL UTION UNDER THIS 30
SECTION SHALL BE PRO VIDED TO EACH MEMBER OF THE MARYLAND NONSTOCK 31
CORPORATION . 32 6 SENATE BILL 927
(D) A VOTE UNDER THIS SECT ION SHALL BE CONDUCT ED IN ACCORDANCE 1
WITH THE GOVERNING D OCUMENTS OF THE MARYLAND NONSTOCK COR PORATION 2
HOLD A VOTE TO CONVE RT TO A COOPERATIVE LIMITED EQUITY HOUSI NG 3
CORPORATION NOT LATE R THAN 30 DAYS AFTER PROVIDING NOTICE. 4
(2) NOTICE UNDER PARAGRAP H (1) OF THIS SUBSECTION S HALL: 5
(I) INFORM THE MEMBERS TH AT AN ELECTION TO CO NVERT 6
THE MARYLAND NONSTOCK COR PORATION TO A COOPER ATIVE LIMITED EQUITY 7
HOUSING CORPORATION WILL BE HELD NOT LAT ER THAN 30 DAYS AFTER DELIVERY 8
OF THE NOTICE; AND 9
(II) INCLUDE A COPY OF THE DOCUMENT S TO BE SUBMITTED TO 10
THE DEPARTMENT . 11
(B) (1) A VOTE TO CONVERT FROM A MARYLAND NONSTOCK 12
CORPORATION TO A COO PERATIVE LIMITED EQU ITY HOUSING CORPORAT ION SHALL 13
REQUIRE AN AFFIRMATI VE VOTE OF AT LEAST TWO–THIRDS OF THE TOTAL 14
MEMBERS. 15
(2) A VOTE UNDER THIS SUBSECTION SHAL L BE CONDUCTED IN 16
ACCORDANCE WITH THE GOVERNING DOCUMENTS OF THE MARYLAND NONSTOCK 17
CORPORATION . 18
(C) (1) IF AT LEAST TWO –THIRDS OF THE TOTAL MEMBERS OF THE 19
MARYLAND NONSTOCK COR PORATION VOTE TO CON VERT TO A COOPERATIV E 20
LIMITED EQUITY H OUSING CORPORATION , THE MARYLAND NONSTOCK 21
CORPORATION SHALL PR EPARE AND SUBMIT TO THE DEPARTMENT THE REQUIR ED 22
DOCUMENTS AND INFORM ATION IN ACCORDANCE WITH § 5–6D–04 OF THIS 23
SUBTITLE. 24
(2) IF A VOTE TO CONVERT TO A COOPERATIVE LIM ITED EQUITY 25
HOUSING CORPO RATION UNDER SUBSECT ION (B) OF THIS SECTION FAIL S, THE 26
MARYLAND NONSTOCK COR PORATION MAY NOT ATT EMPT TO CONVERT TO A 27
COOPERATIVE LIMITED EQUITY HOUSING CORPO RATION FOR AT LEAST 12 MONTHS 28
AFTER THE DATE OF TH E FAILED VOTE. 29
(D) ONCE A MARYLAND NONSTOCK COR PORATION IS CONVERTE D TO A 30
COOPERATIVE LIMITED EQUITY HOUSING CORPO RATION, VOTES SHALL BE 31
ASSIGNED SO THAT EAC H UNIT HAS ONE VOTE . 32
5–6D–04. 33
SENATE BILL 927 7
(A) FOLLOWING AN AFFIRMAT IVE VOTE TO APPLY FOR CONVERSION 1
CONVERT TO A COOPERATIVE LIMITED EQUITY HOUSI NG COOPERA TIVE 2
CORPORATION , A MARYLAND NONSTOCK COR PORATION SHALL : 3
(1) PREPARE PREPARE AND SUBMIT TO THE DEPARTMENT THE 4
FOLLOWING DOCUMENTS AND INFORMATION FOR THE ESTABLISHMENT OF A 5
COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION : 6
(1) (I) ARTICLES OF INCORPORATION , INCLUDING: 7
(I) 1. THE NAME AND LOCATION OF THE COOPERATIVE 8
LIMITED EQUITY HOUSI NG COOPERATIVE ; CORPORATION ; AND 9
(II) 2. A STATEMENT OF THE PUR POSES OF THE 10
COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION ; AND 11
(III) (II) THE NAME AND ADDRESS OF THE MEMBERS OF TH E 12
MARYLAND NONSTOCK COR PORATION; ANY OTHER DOCUMENTS O R INFORMATION 13
REQUIRED BY THE DEPARTMENT ; AND 14
(2) MAINTAIN: 15
(I) THE NAME AND ADDRESS OF THE MEMBERS OF TH E 16
MARYLAND NONSTOCK COR PORATION; 17
(II) A DISCLOSURE STATEMENT , INCLUDING: 18
(I) 1. THE DATE ON WHICH THE AFFIRMATIVE VOTE TO 19
APPLY FOR CONVERSION CONVERT TO A COOPERATIVE LIMITED EQUITY HOUSI NG 20
CORPORATION TOOK PLA CE; 21
(II) 2. A STATEMENT OF THE FOR M OF OWNERSHIP OF AL L 22
REAL AND PERSONAL PR OPERTY THAT IS INTEN DED TO BE OWNED OR L EASED BY 23
THE COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION ; 24
(III) 3. A STATEMENT OF THE PRO JECTED COMPLETION 25
DATES FOR ANY PROPOS ED IMPROVEMENTS ; 26
(IV) 4. A STATEMENT OF THE PRO JECTED DATE OF 27
FORMATION FOR THE COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE 28
CORPORATION ; 29
(V) 5. A DESCRIPTION OF THE V OTING AND OTHER RIGH TS 30
IN THE COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION ; 31 8 SENATE BILL 927
(VI) 6. A STATEMENT OF ANY FEE S REQUIRED BY THE 1
LIMITED EQUITY HOUSI NG COOPERATIVE IN CO NNECTION WITH THE TR ANSFER OF 2
MEMBERSHIP OR ISSUAN CE OF A PROPRIETARY LEASE; 3
(VII) 7. A STATEMENT OF THE KNO WN OR ANTICIPATED 4
COMMON CHARGES THAT MAY BE IMPOSED ON MEM BERS; 5
(VIII) 8. A STATEMENT OF THE OWN ERSHIP INTEREST 6
ASSOCIATED WITH EACH UNIT AND THE UNDERLY ING DEBT RESPONSIBIL ITY 7
ASSOCIATED WITH EACH UNIT ON A PRO RATA B ASIS, IF APPLICABLE; 8
(IX) 9. A STATEMENT AS TO WHET HER THE COOPERATIVE 9
LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION HAS OR WILL OBTAIN 10
INSURANCE COVERAGE F OR CASUALTY, PROPERTY DAMAGE , AND PUBLIC LIABILITY 11
AND IN WHAT AMOUNTS ; 12
(X) 10. A STATEMENT OF ALL WAR RANTIES AND 13
DISCLAIMERS MADE DUR ING THE PURCHASE OF THE RESIDENTIAL RENT AL 14
FACILITY BY THE MARYLAND NONSTOCK COR PORATION; AND 15
(XI) 11. COPIES OF THE PROPOSE D OR FINAL: 16
1. A. CONTRACT OF SALE FOR THE RESIDENTIAL RENT AL 17
FACILITY THAT IS THE SUBJECT OF THE REAL PROPERTY OF THE COOPERATIVE 18
LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION ; 19
2. B. MEMBERSHIP CERTIFICAT E; 20
3. C. PROPRIETARY LEASE ; 21
4. D. RULES, IF ANY; 22
5. E. LEASE, OTHER THAN THE PROPR IETARY LEASE, TO A 23
THIRD PARTY OF REAL OR PERSONAL PROPERTY TO WHICH THE COOPERATIVE 24
LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION IS A PARTY; AND 25
6. F. IF APPLICABLE, NOTICE TO AFFECTED H OUSEHOLDS 26
THAT MAY BE REQUIRED UNDER § 5–6D–06 § 5–6D–05 OF THIS SUBTITLE; 27
(3) (III) AN ANNUAL OPERATING B UDGET, INCLUDING INSURANCE , 28
MAINTENANCE , RESERVES, AND GENERAL EXPENSES ; 29
(4) (IV) BYLAWS; AND 30 SENATE BILL 927 9
(5) (V) A SHARE AGREEMENT ; AND 1
(6) ANY OTHER DOCUMENTS O R INFORMATION REQUIR ED BY THE 2
DEPARTMENT . 3
(B) STATEMENTS REQUIRED U NDER THIS SECTION MAY BE SUMMARIZED OR 4
PRODUCED IN A COLLEC TION OF DOCUMENTS TH AT EFFECTIVELY CONVE YS THE 5
REQUIRED INFORMATION . 6
(C) (1) (I) A MARYLAND NONSTOCK COR PORATION SHALL FILE THE 7
DISCLOSURE STATEMENT REQUIRED UNDER SUBSE CTION (A)(2) OF THIS SECTION 8
WITH THE DEPARTMENT NOT LATER THAN 90 DAYS AFTER AN AFFIRM ATIVE VOTE 9
UNDER § 5–6D–03 THIS SUBTITLE. 10
(II) THE DEPARTMENT MAY GRANT AN EXTENSION OF THE 11
DEADLINE ESTABLISHED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH IF THE 12
MARYLAND NONSTOCK COR PORATION DEMONS TRATES A GOOD FAITH EFFORT TO 13
PREPARE THE DOCUMENT S. 14
(2) (I) A MARYLAND NONSTOCK COR PORATION MAY SUBMIT A 15
REQUEST TO THE DEPARTMENT FOR A FULL OR PARTIAL WAIVER OF THE 16
REQUIREMENT OF A DIS CLOSURE STATEMENT UN DER PARAGRAPH (1) OF THIS 17
SUBSECTION. 18
(II) THE DEPARTMENT MAY GRANT A FULL OR PARTIAL WA IVER 19
OF ONE OR MORE OF TH E REQUIREMENTS OF PA RAGRAPH (1) OF THIS SUBSECTION 20
IF THE MARYLAND NONSTOCK COR PORATION MAKES GOOD FAITH EFFORTS TO 21
SATISFY THE REQUIREM ENTS. 22
(D) WITHIN 30 DAYS AFTER RECEIPT O F DOCUMENTS AND INFORMATI ON 23
PROVIDED BY A MARYLAND NONSTOCK COR PORATION IN ACCORDAN CE WITH THIS 24
SECTION, THE DEPARTMENT SHALL : 25
(1) CONDITIONALLY ACCEPT ACCEPT THE DOCUMENTS FOR RE CORD 26
SUBJECT TO AN AFFIRM ATIVE VOTE BY THE MARYLAND NONSTOCK COR PORATION 27
TO CONVERT TO A LIMITED EQUITY HOUSING COOPE RATIVE; OR 28
(2) IF THE DOCUMENTS AND INFORMATION DO NOT M EET THE 29
REQUIREMENTS OF THIS SECTION AND ANY ADDI TIONAL REQUIREMENTS 30
ESTABLISHED BY THE DEPARTMENT , DENY THE DOCUMENTS F OR RECORD AND 31
NOTIFY THE MARYLAND NO NSTOCK CORPORATION O F THE BASIS FOR THE DENIAL. 32
10 SENATE BILL 927
(D) ON RECEIPT OF A DENIA L UNDER SUBSECTION (C)(2) OF THIS SECTION, 1
A MARYLAND NONSTOCK COR PORATION MAY RESUBMI T THE DOCUMENTS AND 2
INFORMATION IN ORDER TO MEET THE REQUIREM ENTS OF THIS SECTION . 3
5–6D–05. 4
(A) (1) IF THE DEPARTMENT CONDITIONA LLY ACCEPTS A SUBMIS SION 5
UNDER § 5–6D–04 OF THIS SUBTITLE , THE MARYLAND NONSTOCK COR PORATION 6
SHALL: 7
(I) PROMPTLY NOTIFY EACH MEMBER OF THE ACCEPT ANCE BY 8
THE DEPARTMENT ; AND 9
(II) HOLD A VOTE TO CONVER T TO A LIMITED EQUITY HOUSI NG 10
COOPERATIVE NOT LATE R THAN 30 DAYS AFTER PROVIDING NOTICE. 11
(2) NOTICE UNDER PARAGRAP H (1) OF THIS SUBSECTION S HALL: 12
(I) INFORM THE MEMBERS TH AT AN ELECTION TO CO NVERT 13
THE MARYLAND NONSTOCK COR PORATION TO A LIMITE D EQUITY HOUSING 14
COOPERATIVE WILL BE HELD NOT LATER THAN 30 DAYS AFTER DELIVERY OF THE 15
NOTICE; AND 16
(II) INCLUDE A COPY OF THE DOCUMENTS CONDITIONA LLY 17
ACCEPTED BY THE DEPARTMENT . 18
(B) (1) A VOTE TO CONVERT FROM A MARYLAND NONSTOCK 19
CORPORATION TO A LIM ITED EQUITY HOUSING COOPERATIV E SHALL REQUIRE AN 20
AFFIRMATIVE VOTE OF AT LEAST TWO–THIRDS OF THE TOTAL MEMBERS. 21
(2) A VOTE UNDER THIS SUBS ECTION SHALL BE COND UCTED IN 22
ACCORDANCE WITH THE GOVERNING DOCUMENTS OF THE MARYLAND NONSTOCK 23
CORPORATION . 24
(C) (1) IF AT LEAST TWO–THIRDS OF THE TOTAL MEMBERS OF THE 25
MARYLAND NONSTOCK COR PORATION VOTE TO CON VERT TO A LIMITED EQ UITY 26
HOUSING COOPERATIVE , THE MARYLAND NONSTOCK COR PORATION SHALL : 27
(I) NOTIFY THE DEPARTMENT ; AND 28
(II) BE CONVERTED TO AND R ECOGNIZED BY THE DEPARTMENT 29
AS A LIMITED EQUITY HOUSING COOPERATIVE . 30
SENATE BILL 927 11
(2) IF A VOTE TO CONVERT TO A LIMITED EQUITY HOUSING 1
COOPERATIVE UNDER SU BSECTION (B) OF THIS SECTION FAIL S, THE MARYLAND 2
NONSTOCK CORPORATION MAY NOT ATTEMPT TO C ONVERT TO A LIMITED EQUITY 3
HOUSING COO PERATIVE FOR AT LEAS T 12 MONTHS AFTER THE DAT E OF THE FAILED 4
VOTE. 5
(D) ONCE A MARYLAND NONSTOCK COR PORATION IS CONVERTE D TO A 6
LIMITED EQUITY HOUSI NG COOPERATIVE , VOTES SHALL BE ASSIG NED SO THAT 7
EACH UNIT HAS ONE VO TE. 8
5–6D–06. 9
(A) IF A MARYLAND NONSTOCK COR PORATION VOTES TO CO NVERT TO A 10
COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION , THE 11
COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION SHALL: 12
(1) OFFER THE OPPORTUNITY TO BECOME A MEMBER O F THE 13
LIMITED EQUITY HOUSING COOPERATIVE TO EACH HOUSEHOLD ; AND 14
(2) PROVIDE PROVIDE WRITTEN NOTICE OF TH E CONVERSION TO ANY 15
HOUSEHOLD THAT DOES NOT ACCEPT THE OFFER AND THAT WILL BE REQUIRED TO 16
VACATE A PORTION OF THE RESIDENTIAL RENT AL FACILITY USED AS A RESIDENCE 17
BY THE HOUSEHOLD . 18
(B) EXCEPT AS PROVIDED IN SUBSECTIONS (C) AND (D) OF THIS SECTION, A 19
COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION MAY 20
REQUIRE A HOUSEHOLD TO VACATE NOT EARLIE R THAN 90 DAYS AFTER RECEIPT O F 21
NOTICE DESCRIBED UND ER SUBSECTION (A) OF THIS SECTION. 22
(C) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION , A 23
HOUSEHOLD MAY NOT BE REQUIRED TO VACATE A UNIT EARLIER THAN 12 MONTHS 24
FOLLOWING THE RECEIP T OF NOTICE TO VACAT E UNDER SUBSECTION (A) OF THIS 25
SECTION IF, ON THE DATE THAT THE NOTICE IS GIVEN: 26
(1) A MEMBER OF THE HOUSEH OLD IS A DISABLED PE RSON OR A 27
SENIOR CITIZEN WHO H AS BEEN A MEMBER OF THE HOUSEHOLD FOR AT LEAST 12 28
MONTHS IMMEDIATELY P RECEDING RECEIPT OF THE NOTICE TO VACATE ; AND 29
(2) THE HOUSEHOLD : 30
(I) IS A LOW–INCOME HOUSEHOLD ; 31
12 SENATE BILL 927
(II) NOTIFIES THE COOPERATIVE LIMITED EQUITY HOUSI NG 1
COOPERATIVE CORPORATION OF THE INTENT TO REM AIN IN THE UNIT FOR A PERIOD 2
OF MORE THAN 90 DAYS; AND 3
(III) SUBMITS THE NOTICE UN DER ITEM (II) OF THIS ITEM TO 4
THE COOPERATIVE LIMITED EQUITY HOUSING COOPERATIVE CORPORATION WITHIN 5
30 DAYS AFTER RECEIVING THE NOTICE TO VACATE . 6
(D) A HOUSEHOLD MAY BE REQ UIRED TO VACATE THE PREMISES BEFORE 7
THE EXPIRATION OF AN Y MINIMUM TIME PERIO D UNDER THIS SECTION IF THE 8
HOUSEHOLD : 9
(1) BREACHES A COVENANT IN THE LEAS E OCCURRING BEFORE O R 10
AFTER THE NOTICE TO VACATE IS GIVEN; OR 11
(2) FAILS TO PAY RENT BEF ORE OR AFTER THE NOT ICE TO VACATE IS 12
GIVEN. 13
(E) A LOW–INCOME HOUSEHOLD THA T IS REQUIRED TO VAC ATE A UNIT 14
UNDER THIS SECTION S HALL RECEIVE REIMBU RSEMENT FROM THE COOPERATIVE 15
LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION FOR MOVING EXPENSES 16
THAT: 17
(1) ARE ACTUALLY AND REAS ONABLY INCURRED ; AND 18
(2) ARE AT LEAST $375 BUT LESS THAN $751. 19
5–6D–07. 5–6D–06. 20
(A) THE APPRECIATION AND RESALE OF A COOPERAT IVE INTEREST MAY 21
NOT EXCEED THE COST PAID BY THE MEMBER F OR THE INITIAL COOPE RATIVE 22
INTEREST, ADJUSTED FOR INFLATI ON PLUS THE COST OF IMPROVEMENTS TO THE 23
COOPERATIVE INTEREST MADE BY THE MEMBER T HAT WERE APPROVED BY THE 24
COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION . 25
(B) A COOPERATIVE INTEREST MAY BE SOLD ONLY TO A LOW–INCOME 26
HOUSEHOLD . 27
5–6D–08. 5–6D–07. 28
(A) THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT MAY : 29
(1) TO THE EXTENT APPLICA BLE TO AND NOT INCON SISTENT WITH 30
THIS SUBTITLE, USING A STANDARDIZED METHODOLOGY , ESTABLISH ADDITIONAL 31 SENATE BILL 927 13
RIGHTS AND REQUIREME NTS FOR A COOPERATIVE LIMITED EQUITY HOUSI NG 1
COOPERATIVE CORPORATION AND ITS MEMBERS BASE D ON AN INDIVIDUALIZ ED 2
ASSESSMENT OF THE CO OPERATIVE; 3
(2) BASE A DETERMINATION UNDER ITEM (1) OF THIS SUBSECTION 4
ON THE RIGHTS AND RE QUIREMENTS FOR COOPE RATIVE HOUSING CORPO RATIONS 5
AND THEIR MEMBERS UN DER SUBTITLE 6B OF THIS TITLE; AND 6
(3) ESTABLISH A PROGRAM T O PROVIDE GR ANTS TO MARYLAND 7
NONSTOCK CORPORATION S TO PROMOTE THE EST ABLISHMENT OF COOPERATIVE 8
LIMITED EQUITY HOUSI NG COOPERATIVES CORPORATIONS . 9
(B) THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT 10
SHALL ADOPT REGULATI ONS TO CARRY OUT THI S SECTION. 11
5–6D–09. 5–6D–08. 12
(A) A COUNTY OR MUNICIPALI TY MAY NOT IMPOSE RE STRICTIONS ON A 13
COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE CORPORATION . 14
(B) THE PROHIBITION IN SU BSECTION (A) OF THIS SECTION INCL UDES 15
REQUIREMENTS THROUGH LOCAL LAW OR ORDINAN CE THAT RESTRICT THE SALE OF 16
RESIDENTIAL RENTAL F ACILITIES TO A MARYLAND NONSTOCK COR PORATION THAT 17
PLANS TO CONVERT TO A COOPERATIVE LIMITED EQUITY HOUSI NG COOPERATIVE 18
CORPORATION . 19
5–6D–10. 5–6D–09. 20
THE DEPARTMENT SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 21
SUBTITLE AND ENSURE THE EFFECTIVE FUNCTI ONING OF COOPERATIVE LIMITED 22
EQUITY HOUSING COOPERATIVES CORPORATIONS . 23
SECTION 2. AND BE IT FURTHER ENACTED, Th at the Laws of Maryland read 24
as follows: 25
Article – Tax – Property 26
7–308. 27
(A) SUBJECT TO SUBSECTION (B) OF THIS SECTION , PROPERTY IS NOT 28
SUBJECT TO STATE PROPERTY TAX IF THE PROPERTY IS OWNE D BY A LIMITED 29
EQUITY HOUSING COOPE RATIVE THAT COMPLIES WITH THE REQUIREMENTS OF 30
TITLE 5, SUBTITLE 6D OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE. 31
14 SENATE BILL 927
(B) THE EXEMPTION UNDER S UBSECTION (A) OF THIS SECTION APPL IES 1
ONLY FOR THE FIRST 5 TAXABLE YEARS THAT T HE LIMITED EQUITY HO USING 2
COOPERATIVE OWNS THE PROPERTY. 3
9–275. 4
(A) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 5
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY GRAN T, BY LAW, 6
A PROPERTY TAX CREDI T AGAINST THE COUNTY OR MUNICIPAL CORPORA TION 7
PROPERTY TAX IMPOSED ON REAL PROPERTY OWN ED BY A LIMITED EQ UITY 8
HOUSING COOPERATIVE THAT COMPLIES WITH T HE REQUIREMENTS OF TITLE 5, 9
SUBTITLE 6D OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE. 10
(B) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 11
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY PROV IDE, BY 12
LAW, FOR: 13
(1) THE AMOUNT AND DURAT ION OF THE TAX CREDI T UNDER THIS 14
SECTION; 15
(2) ADDITIONAL ELIGIBILI TY CRITERIA FOR THE TAX CREDIT UNDER 16
THIS SECTION; 17
(3) REGULATIONS AND PROC EDURES FOR THE APPLI CATION AND 18
UNIFORM PROCESSING O F REQUESTS FOR THE TAX CREDIT; AND 19
(4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THE TAX 20
CREDIT UNDER THIS SE CTION. 21
SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 22
effect June 1, 2026, and shall be applicable to all taxable years beginning after June 30, 23
2026. 24
SECTION 4. 2. AND BE IT FURTHER ENACTED, That except as provided in 25
Section 3 of this Act, this Act shall take effect October 1, 2025 2026. 26