Residential Owners in Common Ownership Communities - Bill of Rights

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0537*

HOUSE BILL 537
N1 6lr1696
HB 557/25 – ENT
By: Delegate Holmes
Introduced and read first time: January 27, 2026
Assigned to: Economic Matters

A BILL ENTITLED

AN ACT concerning 1

Residential Owners in Common Ownership Communities – Bill of Rights 2

FOR the purpose of establishing a bill of rights for unit owners of a condominium, members 3
of a cooperative housing corporation, and lot owners of a homeown ers association; 4
and generally relating to residential owners in common ownership communities. 5

BY adding to 6
Article – Real Property 7
Section 1–105 8
Annotated Code of Maryland 9
(2023 Replacement Volume and 2025 Supplement) 10

Preamble 11

WHEREAS, The General Assembly authorized a Task Force on Common Ownership 12
Communities, or Task Force, under Chapter 469 of the Acts of 2005 and directed that Task 13
Force to study and prepare proposals for improving Maryland laws that relate to 14
communities that are gover ned as a common ownership community, including a 15
condominium, a cooperative housing corporation, or a homeowners association; and 16

WHEREAS, The Task Force concluded in 2006 that there was a marked increase in 17
interest nationwide in addressing issues between unit owners in a condominium, members 18
in a cooperative housing corporation, and lot owners in a homeowners association 19
(hereinafter, collectively, “residential owners”) and the governing bodies of such 20
communities, and that identifying and establishing a bill of rights for those residential 21
owners is an important objective; and 22

WHEREAS, The Uniform Law Commission recognized the need for a bill of rights 23
for residential owners and first approved a model bill of rights in 2008 for consideration by 24
the states; and 25

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WHEREAS, The Task Force completed its work in 2006, before the Uniform Law 1
Commission approved its first model bill of rights, and therefore the Task Force concluded 2
in its Final Report of December 31, 2006, that it would be prudent to wait on a final proposal 3
for a Maryland Bill of Rights until the model Uniform Law Commission Bill of Rights was 4
made available to the states; and 5

WHEREAS, The Task Force was informally reestablished during 2021 and diligently 6
drafted an updated bill of rights f rom the Uniform Law Commission, the Montgomery 7
County Commission on Common Ownership Communities, the Maryland Homeowners 8
Association, and other relevant sources; now, therefore, 9

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That the Laws of Maryland read as follows: 11

Article – Real Property 12

1–105. 13

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 14
INDICATED. 15

(2) “COMMON OWNERSHIP COMMUNITY” MEANS: 16

(I) A COOPERATIVE HOUSING CORPORATION AS DEFINED IN § 17
5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; 18

(II) A CONDOMINIUM AS DEFINED IN § 11–101 OF THIS ARTICLE; 19
OR 20

(III) A HOMEOWNERS ASSOCIATION AS DEFINED IN § 11B–101 OF 21
THIS ARTICLE. 22

(3) “GOVERNING DOCUMENTS ” MEANS ANY BYLAWS , COVENANTS, 23
DECLARATIONS, OR RULES OF A COMMON OWNERSHIP COMMUNITY. 24

(4) “LOT” HAS THE MEANING STATED IN § 11B–101 OF THIS ARTICLE. 25

(5) “RESIDENTIAL OWNER” MEANS: 26

(I) A MEMBER AS DEFINED IN § 5–6B–01 OF THE 27
CORPORATIONS AND ASSOCIATIONS ARTICLE; 28

(II) A UNIT OWNER AS DEFIN ED IN § 11–101 OF THIS ARTICLE; 29
OR 30

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(III) A LOT OWNER. 1

(B) SUBJECT TO THE PROVIS IONS OF ALL APPLICAB LE LAWS GOVERNING 2
COMMON OWNERSHIP COMMUNITIES ESTABLISHED IN THE STATE, A RESIDENTIAL 3
OWNER IN A COMMON OWNERSHIP COMMUNITY HAS THE FOLLOWING RIGHTS: 4

(1) THE RIGHT TO: 5

(I) BE DESIGNATED AS A ME MBER OF A COMMON OWN ERSHIP 6
COMMUNITY WHEN THE C OMMUNITY MAKES THAT RESIDENTIAL OWNER SU BJECT 7
TO A LIEN AND TO A MANDATORY ASSESSMENT; AND 8

(II) PARTICIPATE IN MEETIN GS ON COMMUNITY ISSU ES WITH 9
OTHER MEMBERS; 10

(2) THE RIGHT TO BE REPRE SENTED BY THE GOVERN ING BODY OF 11
THE COMMON OWNERSHIP COMMUNITY AND TO HAV E THE GOVERNING BODY 12
CONSIDER THE PRIORIT IES OF ALL RESIDENTI AL OWNERS WHEN APPRO VING A 13
BUDGET AND MANAGING THE COMMUNITY’S FACILITIES AND OPEN SPACE; 14

(3) THE RIGHT TO AN ANNUA L BUDGET FOR THE COM MON 15
OWNERSHIP COMMUNITY, TO BE DELIVERED TO THE RESIDENTIAL OWNER WITH THE 16
RESIDENTIAL OWNER ’S ANNUAL NOTICE OF A SSESSMENT FEES OWED TO THE 17
COMMON OWNERSHIP COM MUNITY, THAT PRIORITIZES SUP PORT FOR THE 18
FACILITIES AND SERVICE S AVAILABLE TO THE R ESIDENTIAL OWNER IN THE 19
COMMON OWNERSHIP COMMUNITY; 20

(4) THE RIGHT TO USE ALL FACILITIES AND SERVI CES OF THE 21
COMMON OWNERSHIP COMMUNITY AT A REASONABLE COST THAT DOES NOT EXCEED 22
HALF THE COST CHARGED TO ELIGIBLE USERS WHO ARE NOT RESIDENTIAL OWNERS 23
IN THE COMMON OWNERSHIP COMMUNITY; 24

(5) THE RIGHT TO BE A MEMBER OF THE CLASS OF SOLE OR PRIMARY 25
USERS OF THE COMMON OWNERSHIP COMMUNITY’S FACILITIES AND SER VICES IF 26
THERE IS SCARCE AVAI LABLE CAPACITY OF TH ESE FACILITIES AND SERVICES AND 27
TO BE PROVIDED WITH ADDITIONAL CAPACITY, TO THE EXTENT POSSIBLE, SO THAT 28
THE CLASS IS NOT DEN IED THE OPPORTUNITY TO USE THOSE FACILIT IES AND 29
SERVICES; 30

(6) THE RIGHT TO FAIR TRE ATMENT IN THE REPAYM ENT OF ANY 31
DEBT INCURRED BY THE COMMON OWNERSHIP COMMUNITY FOR MAJOR CAPITAL 32
PROJECTS OR OPERATING EXPENSES SO THAT PRESENT AND FUTURE RESIDENTIAL 33
OWNERS HAVE A RELATI VELY EQUAL SHARE IN THE RESPONSIBILITY T O REPAY 34
4 HOUSE BILL 537

SUCH DEBT; 1

(7) THE RIGHT TO VOTE: 2

(I) BY SECRET BALLOT TO E LECT THE MEMB ERSHIP OF THE 3
GOVERNING BODY FOR T HE COMMON OWNERSHIP COMMUNITY AND TO BE A 4
CANDIDATE IN FAIR EL ECTIONS ADMINISTERED BY NEUTRAL PARTIES , WITH 5
RESULTS THAT CAN BE VERIFIED BY AN AUDIT ON REQUEST; 6

(II) TO RECALL AN INCUMBEN T MEMBER OF THE GOVE RNING 7
BODY; 8

(III) ON CERTAIN FINANCIAL MATTERS, IF PERMITTED IN THE 9
GOVERNING DOCUMENTS OF THE COMMON OWNERSHIP COMMUNITY; AND 10

(IV) ON NEW CAPITAL PROJECTS PROPOSED BY THE GOVERNING 11
BODY, IF PERMITTED IN THE GOVERNING DOCUMENTS OF THE COMMON OWNERSHIP 12
COMMUNITY AND BY REFERENDUM; 13

(8) THE RIGHT, WITH REGARD TO MEETINGS AND ACTIVITIES OF THE 14
GOVERNING BODY FOR THE COMMON OWNERSHIP COMMUNITY OR A COMMITTEE OF 15
THE GOVERNING BODY, TO: 16

(I) RECEIVE REASONABLE ADVANCE NOTICE OF ANY OPEN AND 17
CLOSED MEETINGS, INCLUDING ANY AGENDA FOR A MEETING AND ANY SUPPORTING 18
INFORMATION; 19

(II) PARTICIPATE, EITHER IN PERSON OR THROUGH REMOTE 20
ACCESS, IN OPEN MEETINGS THA T ARE EASILY ACCESSI BLE TO THE RESIDENTI AL 21
OWNERS; AND 22

(III) A REASONABLE OPPORTUNITY TO SPEAK DURING A TIMELY 23
PERIOD WHEN MATTERS ARE DISCUSSED OR VOT ED ON BY THE GOVERNI NG BODY 24
OR COMMITTEE; 25

(9) THE RIGHT TO HAVE A C OMMON OWNERSHIP COMM UNITY 26
GOVERNING BODY AND COMMUNITY MANAGER THAT: 27

(I) ARE PROPERLY TRAINED AND INDEMNIFIED; 28

(II) ARE STEWARDS OF THE C OMMUNITY’S COMMON 29
INTERESTS; 30

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(III) ARE PROTECTIVE OF THE RIGHTS OF RESIDENTIAL OWNERS 1
IN THE COMMUNITY; 2

(IV) PROVIDE RESIDENTIAL OWNERS DUE PROCESS AND EQUAL 3
PROTECTION; AND 4

(V) COMPLY AND FUNCTION IN ACCORDANCE WITH STATE LAW 5
AND THE GOVERNING DOCUMENTS; 6

(10) THE RIGHT TO RECEIVE TIMELY ACCESS TO DOCUMENTS OF THE 7
COMMON OWNERSHIP COMMUNITY, INCLUDING THE ABILITY TO INSPECT AND COPY 8
SUCH DOCUMENTS; 9

(11) THE RIGHT TO RECEIVE PROMPT AND NONDISC RIMINATORY 10
SERVICE FROM THE STA FF AND GOVERNING BOD Y OF THE COMMON OWNE RSHIP 11
COMMUNITY; 12

(12) THE RIGHT TO INDIVIDU AL PRIVACY BY THE GO VERNANCE AND 13
MANAGEMENT OF THE COMMON OWNERSHIP COMMUNITY; 14

(13) THE RIGHT TO FAIR TREATMENT IF CHARGED WITH A VIOLATION 15
OF THE GOVERNING DOCUMENTS, INCLUDING THE OPPORTUNITY TO: 16

(I) BE NOTIFIED IN WRITIN G ABOUT THE NATURE O F THE 17
VIOLATION; 18

(II) PRESENT EVIDENCE AND CROSS–EXAMINE WITNESSES AT A 19
PROPER HEARING; AND 20

(III) ABATE THE VIOLATION WITHIN A REASONABLE AMOUNT OF 21
TIME; 22

(14) THE RIGHT TO: 23

(I) BE INFORMED BY THE GO VERNING BODY OF THE COMMON 24
OWNERSHIP COMMUNITY OF PROPOSED CHANGES TO EXISTING GOVERNIN G 25
DOCUMENTS OR POLICIES; AND 26

(II) VOTE TO APPROVE ANY CHANGES OF THE TYPE IDENTIFIED 27
IN ITEM (I) OF THIS ITEM AND HAV E THOSE CHANGES PROP ERLY ADOPTED AND 28
PUBLISHED; AND 29

(15) THE RIGHT TO HAVE THE CONSUMER PROTECTION DIVISION OF 30
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THE MARYLAND OFFICE OF THE ATTORNEY GENERAL: 1

(I) REVIEW ALLEGED VIOLAT IONS OF STATE LAWS THAT 2
GOVERN COMMON OWNERSHIP COMMUNITIES; AND 3

(II) TAKE DIRECT ENFORCEME NT ACTIONS ON BEHALF OF A 4
RESIDENTIAL OWNER , INCLUDING BY ACTING TO RECEIVE AN ADJUDI CATION OF 5
THE MATTER BEFORE A COURT OR THE IMPOSIT ION OF PENALTIES BY THE 6
MARYLAND OFFICE OF THE ATTORNEY GENERAL. 7

(C) THE LISTING OF RIGHTS IN SUBSECTION (B) OF THIS SECTION MAY NOT 8
BE CONSTRUED TO DENY OR DETRACT FROM OTHER RIGHTS THAT MAY BE RETAINED 9
BY RESIDENTIAL OWNERS IN A COMMON OWNERSHIP COMMUNITY. 10

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effe ct 11
October 1, 2026. 12