Real Property - Condominiums and Homeowners Associations - Governing Bodies and Annual Meetings

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0841*

HOUSE BILL 841
N1 6lr1700
HB 295/25 – ENT
By: Delegate Holmes
Introduced and read first time: February 4, 2026
Assigned to: Economic Matters

A BILL ENTITLED

AN ACT concerning 1

Real Property – Condominiums and Homeowners Associations – Governing 2
Bodies and Annual Meetings 3

FOR the purpose of requiring that unit owners or lot owners have an opportunity to 4
comment during certain meetings convened by the board of directors, the developer, 5
or the declarant of a condominium or a homeowners association; requiring the 6
developer of a condominium to appoint certain persons to the board of directors for 7
the council of unit owners and to establish a board of directors if no board of directors 8
has been established; requiring a declarant to appoint certain persons to the 9
governing body of a homeowners association and to establish a governing body of the 10
homeowners association if no governing body has been establis hed; requiring a 11
council of unit owners and a homeowners association to maintain certain books and 12
records; making certain provisions of law applicable to the accounts of a 13
condominium or a homeowners association; and generally relating to the governing 14
bodies of condominium councils of unit owners and homeowners associations. 15

BY repealing and reenacting, with amendments, 16
Article – Real Property 17
Section 11–108(c)(1), 11–109(a) and (c), 11–109.4(c)(2), 11–116, 11B–106.1, 11B–111, 18
11B–111.6(d), and 11B–112(a) and (b)(2) 19
Annotated Code of Maryland 20
(2023 Replacement Volume and 2025 Supplement) 21

BY repealing and reenacting, without amendments, 22
Article – Real Property 23
Section 11–109(b), 11–114.1(d), 11–132, and 11B–101(a), (c), and (d) 24
Annotated Code of Maryland 25
(2023 Replacement Volume and 2025 Supplement) 26

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 27
That the Laws of Maryland read as follows: 28
2 HOUSE BILL 841

Article – Real Property 1

11–108. 2

(c) (1) This subsection does not apply to any meetings of unit owners occurring 3
at any time before the unit owners elect officers or a board of directors in accordance with 4
[§ 11–109(c)(16)] § 11–109(C)(18) of this title. 5

11–109. 6

(a) (1) The affairs of the condominium shall be governed by a council of un it 7
owners which, even if unincorporated, is constituted a legal entity for all purposes. 8

(2) The council of unit owners shall [be comprised of] COMPRISE all unit 9
owners. 10

(b) The bylaws may authorize or provide for the delegation of any power of the 11
council of unit owners to a board of directors, officers, managing agent, or other person for 12
the purpose of carrying out the responsibilities of the council of unit owners. 13

(c) (1) A meeting of the council of unit owners or board of directors may not be 14
held on less notice than required by this section. 15

(2) The council of unit owners shall maintain a current roster of names and 16
addresses of each unit owner to which notice of meetings of the board of directors shall be 17
sent at least annually. 18

(3) Each unit owner shall furnish the council of unit owners with his name 19
and current mailing address. A unit owner may not vote at meetings of the council of unit 20
owners until this information is furnished. 21

(4) A regular or special meeting of the council of unit owners may not be 22
held on less than 10 nor more than 90 days’: 23

(i) Written notice delivered or mailed to each unit owner at the 24
address shown on the roster on the date of the notice; or 25

(ii) Notice sent to each unit owner by electronic transm ission, if the 26
requirements of § 11–139.1 of this title are met. 27

(5) Notice of special meetings of the board of directors shall be given: 28

(i) As provided in the bylaws; or 29

(ii) If the requirements of § 11 –139.1 of this title are met, by 30
electronic transmission. 31
HOUSE BILL 841 3

(6) Except as provided in § 11–109.1 of this title, a meeting of a governing 1
body shall be open and held at a time and location as provided in the notice or bylaws. 2

(7) (i) This paragraph does not apply to any meeting of the governin g 3
body that occurs at any time before the meeting at which the unit owners elect officers or a 4
board of directors in accordance with paragraph [(16)] (18) of this subsection. 5

(ii) Subject to subparagraph (iii) of this paragraph and to reasonable 6
rules adopted by the governing body under § 11 –111 of this title, a governing body shall 7
provide a designated period of time during [a] EACH meeting to allow unit owners an 8
opportunity to comment on any matter relating to the condominium. 9

(iii) During a meeting at which the agenda is limited to specific topics 10
or at a special meeting, the unit owners’ comments may be limited to the topics listed on 11
the meeting agenda. 12

(iv) The governing body shall convene at least one meeting each year 13
at which [the]: 14

1. THE agenda is open to any matter relating to the 15
condominium; AND 16

2. THE UNIT OWNERS HAVE AN OPPORTUNITY TO 17
PROVIDE COMMENT. 18

(8) UNTIL A MEETING IS HE LD IN ACCO RDANCE WITH PARAGRAP H 19
(18) OF THIS SUBSECTION A T WHICH THE UNIT OWN ERS ELECT OFFICERS O R A 20
BOARD OF DIRECTORS , THE BOARD OF DIRECTO RS OR THE DEVELOPER SHALL 21
CONVENE AT LEAST ONE MEETING EACH YEAR AT WHICH: 22

(I) THE AGENDA IS OPEN TO ANY MATTER RELATING TO THE 23
CONDOMINIUM; AND 24

(II) THE UNIT OWNERS HAVE AN OPPORTUNITY TO PR OVIDE 25
COMMENT. 26

[(8)] (9) (i) Unless the bylaws provide otherwise, a quorum is deemed 27
present throughout any meeting of the council of unit owners if persons entitled to cast 25 28
percent of the total number of votes appurtenant to all units are present in person or by 29
proxy. 30

(ii) If the number of persons present in person or by proxy at a 31
properly called meeting of the council of unit owners is insufficient to constitute a quorum, 32
an additional meeting of the council of unit owners may be called for the same purpose if: 33

4 HOUSE BILL 841

1. The notice of the initial properly called meeting stated: 1

A. That the procedure authorized by this paragraph might be 2
invoked; and 3

B. The date, time, and place of the additional meeting; and 4

2. A majority of the unit owners present vote in person or by 5
proxy to call for the additional meeting. 6

(iii) 1. An additional meeting called under subparagraph (ii) of 7
this paragraph shall occur not less than 15 days after the initial properly called meeting. 8

2. Not less than 10 days before the additional meeting, a 9
separate and distinct notice of the date, time, place, and purpose of the additional meeting 10
called under subparagraph (ii) of this paragraph shall be: 11

A. Delivered, mailed, or sent by electronic transmission if the 12
requirements of § 11–139.1 of this title are met, to each unit owner at the address shown 13
on the roster maintained under paragraph (2) of this subsection; 14

B. Advertised in a newspaper published in the county where 15
the condominium is located; or 16

C. If the condominium has a website, posted on the homepage 17
of the website. 18

3. The notice shall contain the quorum and voting provisions 19
of subparagraph (iv) of this paragraph. 20

(iv) 1. At the additional meeting, the unit owners present in 21
person or by proxy constitute a quorum. 22

2. Unless the bylaws provide otherwise, a majority of the 23
unit owners present in person or by proxy: 24

A. May approve or autho rize the proposed action at the 25
additional meeting; and 26

B. May take any other action that could have been taken at 27
the original meeting if a sufficient number of unit owners had been present. 28

(v) This paragraph may not be construed to affect the percentage of 29
votes required to amend the declaration or bylaws or to take any other action required to 30
be taken by a specified percentage of votes. 31

HOUSE BILL 841 5

[(9)] (10) At meetings of the council of unit owners each unit owner shall 1
be entitled to cast the number of votes appurtenant to his unit. Unit owners may vote by 2
proxy, but the proxy is effective only for a maximum period of 180 days following its 3
issuance, unless granted to a lessee or mortgagee. 4

[(10)] (11) Any proxy may be revoked at any time at the pleasure of the unit 5
owner or unit owners executing the proxy. 6

[(11)] (12) A proxy who is not appointed to vote as directed by a unit owner 7
may only be appointed for purposes of meeting quorums and to vote for matters of business 8
before the council of un it owners, other than an election of officers and members of the 9
board of directors. 10

[(12)] (13) Only a unit owner voting in person or by electronic transmission 11
if the requirements of § 11 –139.2 of this title are met or a proxy voting for candidates 12
designated by a unit owner may vote for officers and members of the board of directors. 13

[(13)] (14) Unless otherwise provided in the bylaws, a unit owner may 14
nominate himself or any other person to be an officer or member of the board of directors. 15
A call for nominations shall be sent to all unit owners not less than 45 days before notice of 16
an election is sent. Only nominations made at least 15 days before notice of an election shall 17
be listed on the election ballot. Candidates shall be listed on the ballot in alphabetical order, 18
with no indicated candidate preference. Nominations may be made from the floor at the 19
meeting at which the election to the board is held. 20

[(14)] (15) Election materials prepared with funds of the council of unit 21
owners shall li st candidates in alphabetical order and may not indicate a candidate 22
preference. 23

[(15)] (16) Unless otherwise provided in this title, and subject to provisions 24
in the bylaws requiring a different majority, decisions of the council of unit owners shall be 25
made on a majority of votes of the unit owners listed on the current roster present and 26
voting. 27

(17) (I) IF THERE IS A BOARD OF DIRECTORS FOR THE COUNCIL OF 28
UNIT OWNERS ALREADY ESTABLISHED BY THE DEVELOPER, WITHIN 30 DAYS AFTER 29
THE DATE ON WHICH UN ITS REPRESENTING 25 PERCENT OF THE VOTES IN THE 30
CONDOMINIUM HAVE BEEN CONVEYED B Y THE DEVELOPER TO M EMBERS OF THE 31
PUBLIC FOR RESIDENTIAL PURPOSES, THE DEVELOPER SHALL APPOINT AT LEAST 32
ONE MEMBER TO THAT BOARD OF DIRECTORS WHO IS: 33

1. A UNIT OWNER; AND 34

2. NOT OTHERWISE AFFILIATED WITH THE DEVELOPER. 35

6 HOUSE BILL 841

(II) IF NO BOARD OF DIRECT ORS FOR THE COUNCIL OF UNIT 1
OWNERS HAS BEEN ESTABLISHED BY THE DEVELOPER WITHIN 30 DAYS AFTER THE 2
DATE ON WHICH UNITS REPRESENTING 25 PERCENT OF THE VOTES IN THE 3
CONDOMINIUM HAVE BEEN CONVEYED BY THE DEVELOPER TO MEM BERS OF THE 4
PUBLIC FOR RESIDENTIAL PURPOSES, THE DEVELOPER SHALL ESTABLISH A BOARD 5
OF DIRECTORS FOR THE COUNCIL OF UNIT OWNERS AND SHALL APPOINT AT LEAST 6
ONE MEMBER TO THAT BOARD OF DIRECTORS WHO IS: 7

1. A UNIT OWNER; AND 8

2. NOT OTHERWISE AFFILIATED WITH THE DEVELOPER. 9

(III) THE DETERMINATION OF WHEN UNITS REPRESENT ING 25 10
PERCENT OF THE VOTES IN AN EXPANDABLE CONDOMINIUM SUBJECT TO § 11–120 11
OF THIS TITLE HAVE B EEN CONVEYED BY THE DEVELOPER TO MEMBERS OF THE 12
PUBLIC FOR RESIDENTIAL PURPOSES SHALL BE BASED ON THE TOTAL NUMBER OF 13
UNITS THAT MAY BE SU BJECT TO THE DECLARA TION ON FULL EXPANSI ON OF THE 14
CONDOMINIUM, AS IDENTIFIED IN THE DECLARATION. 15

[(16)] (18) (i) A meeting of the council of unit owners to el ect a board of 16
directors for the council of unit owners, as provided in the condominium declaration or 17
bylaws, shall be held within: 18

1. 60 days from the date that units representing 50 percent 19
of the votes in the condominium have been conveyed by the developer to members of the 20
public for residential purposes; or 21

2. If a lesser percentage is specified in the declaration or 22
bylaws of the condominium, 60 days from the date the specified lesser percentage of units 23
in the condominium are sold to members of the public for residential purposes. 24

(ii) 1. Before the date of the meeting held under subparagraph 25
(i) of this paragraph, the developer shall deliver to each unit owner notice that the 26
requirements of subparagraph (i) of this paragraph have been met. 27

2. The notice shall include the date, time, and place of the 28
meeting to elect the board of directors for the council of unit owners. 29

(iii) If a replacement board member is elected, the term of each 30
member of the board of directors appointed by the developer shall end 10 days after the 31
meeting is held as specified in subparagraph (i) of this paragraph. 32

(iv) Within 30 days from the date of the meeting held under 33
subparagraph (i) of this paragraph, the developer shall deliver to the officers or board of 34
directors for the council of unit owners, as provided in the condominium declaration or 35
bylaws, at the developer’s expense: 36
HOUSE BILL 841 7

1. The documents specified in § 11–132 of this title; 1

2. The condominium funds, including operating funds, 2
replacement reserves, investment accounts, and working capital; 3

3. The tangible property of the condominium; and 4

4. A roster of current unit owners, including mailing 5
addresses, telephone numbers, and unit numbers, if known. 6

(v) The replacement reserves delivered under subparagraph (iv)2 of 7
this paragraph for a residential condominium shall be equal to at least the reserve funding 8
amount recommended in the reserve study completed under § 11 –109.4 of this title as of 9
the date of the meeting. 10

(vi) 1. This subparagraph does not apply to a contract entered 11
into before October 1, 2009. 12

2. A. In this subparagraph, “contract” means an 13
agreement with a company or individual to handle financial matters, maintenance, or 14
services for the condominium. 15

B. “Contract” does not include an agreement relating to the 16
provision of utility services or communication systems. 17

3. Until all members of the board of directors of the 18
condominium are elected by the unit owners at a transitional meeting as s pecified in 19
subparagraph (i) of this paragraph, a contract entered into by the officers or board of 20
directors of the condominium may be terminated, at the discretion of the board of directors 21
and without liability for the termination, not later than 30 days after notice. 22

(vii) If the developer fails to comply with the requirements of this 23
paragraph, an aggrieved unit owner may submit the dispute to the Division of Consumer 24
Protection of the Office of the Attorney General under § 11–130(c) of this title. 25

[(17)] (19) (i) Elections, including the collection and counting of ballots 26
and the certifying of results, for officers or members of the governing body other than the 27
full membership of the council of unit owners shall be conducted by independent parties 28
who: 29

1. Are not candidates in the election; and 30

2. Do not have a conflict of interest regarding any candidate 31
in the election. 32

(ii) A unit owner is an independent party if the unit owner: 33
8 HOUSE BILL 841

1. Complies with the requirements of this section; 1

2. Does not electioneer for any candidate; and 2

3. Is not subject to an objection by more than 25 percent of 3
the eligible voting members of the council of unit owners. 4

(iii) Unless property management for a condominium is owned by the 5
condominium, or a parent association of the condominium, representatives of the 6
condominium’s property management are not independent parties. 7

[(18)] (20) The governing body may retain a third –party vendor or employ 8
a commercial technology platform to conduct an election. 9

[(19)] (21) Individuals conducting an election shall make reasonable efforts 10
to ensure that the election is fair and that there is accountability for the process and the 11
results of the election. 12

[(20)] (22) A unit owner designated to conduct an election who acts in good 13
faith is not personally liable in connection with the conduct of the election. 14

[(21)] (23) (i) The governing body shall make reasonable 15
accommodations, including reasonable use of any portion of common areas, for unit owners 16
to engage in organizing activities relating to governance of the condominium. 17

(ii) The governing body may not prevent unit owners from or 18
retaliate against unit owners for exercising rights guaranteed under law or under the 19
governing documents of the condominium. 20

[(22)] (24) Provisions of the governing documents, rules, or regulations of a 21
condominium relating to the conduct of elections that are inconsistent with the 22
requirements of this section are unenforceable and void. 23

11–109.4. 24

(c) (2) The governing body of the condominium shall have an independent 25
reserve study completed not less than 30 calendar days before the meeting of the council of 26
unit owners required under [§ 11–109(c)(16)] § 11–109(C)(18) of this title. 27

11–114.1. 28

(d) A copy of the fidelity insurance policy or fidelity bond shall be included in the 29
books and records kept and made available by the council of unit owners under § 11–116 of 30
this title. 31

HOUSE BILL 841 9

11–116. 1

(a) The council of unit owners shall keep books and records BEGINNING ON THE 2
DATE THE COUNCIL OF UNIT OWNERS IS ESTAB LISHED in accordance with good 3
accounting practices on a consistent basis. 4

(b) On the request of the unit owners of at least 5 percent of the units, the council 5
of unit owners shall cause an audit of the books and records to be made by an independent 6
certified public accountant, provided an audit shall be made not more than once in any 7
consecutive 12–month period. The cost of the audit shall be a common expense. 8

(c) (1) (i) 1. Except as provided in paragraph (3) of this subsection, all 9
books and records, including insurance policies, kept by the council of unit owners shall be 10
maintained in Maryland or within 50 miles of its borders and shall be available at some 11
place designated by the council of unit owners for examination or copying, or both, by any 12
unit owner, a unit owner’s mortgagee, or their respective duly authorized agents or 13
attorneys, during normal business hours, and after reasonable notice. 14

2. ALL BOOKS AND RECORDS KEPT BY THE COUNCIL OF 15
UNIT OWNERS SHALL BE MAINTAINED SEPARATE AND APART FROM THE BOOKS AND 16
RECORDS OF THE DEVELOPER OR OF ANY OTHER PERSON. 17

(ii) If a unit owner requests in writing a copy of financial statements 18
of the condominium or the minutes of a meeting of the board of directors or other governing 19
body of the condominium to be delivered, the board of directors or other governing body of 20
the condominium shall compile and send the requested information by mail, electronic 21
transmission, or personal delivery: 22

1. Within 21 days after receipt of the written request, if the 23
financial statements or minutes were prepared within the 3 years immediately preceding 24
receipt of the request; or 25

2. Within 45 days after receipt of the written request, if the 26
financial statements or minutes were prepared more than 3 years before receipt of the 27
request. 28

(2) Books and records required to be made available under paragraph (1) 29
of this subsection shall first be made available to a unit owner not later than 15 business 30
days after a unit is conveyed from a developer and the unit owner requests to examine or 31
copy the books and records. 32

(3) Books and records kept by or on behalf of a council of unit owners may 33
be withheld from public inspection, except for inspection by the person who is the subject 34
of the record or the person’s designee or guardian, to the extent that they concern: 35

10 HOUSE BILL 841

(i) Personnel records, not including information on individual 1
salaries, wages, bonuses, and other compensation paid to employees; 2

(ii) An individual’s medical records; 3

(iii) An individual’s personal financial records, including assets, 4
income, liabilities, net worth, bank balances, financial history or activities, and 5
creditworthiness; 6

(iv) Records relating to bus iness transactions that are currently in 7
negotiation; 8

(v) The written advice of legal counsel; or 9

(vi) Minutes of a closed meeting of the board of directors or other 10
governing body of the council of unit owners, unless a majority of a quorum of the board of 11
directors or governing body that held the meeting approves unsealing the minutes or a 12
recording of the minutes for public inspection. 13

(d) (1) (i) Except as otherwise provided in this subsection, the council of 14
unit owners may impose a reasonabl e charge on a person desiring to review or copy the 15
books and records of the condominium or who requests delivery of information. 16

(ii) The council of unit owners may not impose any charges under 17
this section other than those authorized under subparagraph (i) of this paragraph. 18

(2) A unit owner may not be charged for: 19

(i) Examining the financial statements of the condominium in 20
person where the financial statements are maintained in accordance with subsection 21
(c)(1)(i) of this section; or 22

(ii) Receiving the financial statements of the condominium through 23
electronic transmission in accordance with subsection (c)(1)(ii) of this section. 24

(3) A charge imposed under paragraph (1) of this subsection for copying 25
books and records may not exceed the limits authorized under Title 7, Subtitle 2 of the 26
Courts Article. 27

11–132. 28

On transfer of control by the developer to the council of unit owners, the developer 29
shall turn over documents including: 30

(1) Copies of the condominium’s filed articles of incorporation, recorded 31
declaration, and all recorded covenants, bylaws, plats, and restrictions of the condominium; 32

HOUSE BILL 841 11

(2) Subject to the restrictions of § 11–116 of this title, all books and records 1
of the condominium, including financial statements, min utes of any meeting of the 2
governing body, and completed business transactions; 3

(3) Any policies, rules, and regulations adopted by the governing body; 4

(4) The financial records of the condominium from the date of creation to 5
the date of transfer of control, including budget information regarding estimated and actual 6
expenditures by the condominium and any report relating to the reserves required for major 7
repairs and replacement of the common elements of the condominium; 8

(5) A copy of all contracts to which the condominium is a party; 9

(6) The name, address, and telephone number of any contractor or 10
subcontractor employed by the condominium; 11

(7) Any insurance policies in effect and all prior insurance policies; 12

(8) Any permit or notice of code violation issued to the condominium by the 13
county, local, State, or federal government; 14

(9) Any warranty in effect; 15

(10) Drawings, architectural plans, or other suitable documents setting 16
forth the necessary information for location, maintenance, and repair of all condominium 17
facilities; and 18

(11) Individual owner files and records, including assessment account 19
records, correspondence, and notices of any violations. 20

11B–101. 21

(a) In this title the following words have the meanings indicated, unless the 22
context requires otherwise. 23

(c) “Declarant” means any person who subjects property to a declaration. 24

(d) (1) “Declaration” means an instrument, however denominated, recorded 25
among the land records of the county in which the property of the declarant is located, that 26
creates the authority for a homeowners association to impose on lots, or on the owners or 27
occupants of lots, or on another homeowners association, condominium, or cooperative 28
housing corporation any mandatory fee in connection wit h the provision of services or 29
otherwise for the benefit of some or all of the lots, the owners or occupants of lots, or the 30
common areas. 31

(2) “Declaration” includes any amendment or supplement to the 32
instruments described in paragraph (1) of this subsection. 33
12 HOUSE BILL 841

(3) “Declaration” does not include a private right –of–way or similar 1
agreement unless it requires a mandatory fee payable annually or at more frequent 2
intervals. 3

11B–106.1. 4

(A) (1) THE PROVISIONS OF THI S SUBSECTION APPLY T O A 5
DEVELOPMENT THAT CONTAINS MORE THAN 12 LOTS. 6

(2) IF THERE IS A BOARD O F DIRECTORS FOR THE HOMEOWNERS 7
ASSOCIATION ALREADY ESTABLISHED BY THE DECLARANT, WITHIN 30 DAYS AFTER 8
THE DATE THAT 25% OF THE MAXIMUM NUMBER OF LOTS CURRENTLY PLANNED OR 9
PERMITTED TO BE CONTAINED WITHIN THE DEVELOPMENT HAVE BEEN CONVEYED 10
TO MEMBERS OF THE PUBLIC FOR RESIDENTIAL PURPOSES, THE DECLARANT SHALL 11
APPOINT AT LEAST ONE MEMBER TO THAT BOARD OF DIRECTORS WHO IS: 12

(I) A LOT OWNER; AND 13

(II) NOT OTHERWISE AFFILIA TED WITH THE DECLARA NT OR A 14
VENDOR OF LOTS IN THE DEVELOPMENT. 15

(3) IF NO BOARD OF DIRECT ORS FOR THE HOMEOWNE RS 16
ASSOCIATION HAS BEEN ESTABLISHED BY THE D ECLARANT WHEN 25% OF THE 17
MAXIMUM NUMBER OF LO TS CURRENTLY PLANNED OR PERMITTED TO BE 18
CONTAINED WITHIN THE DEVELOPMENT HAVE BEEN CONVEYED TO MEMBERS OF 19
THE PUBLIC FOR RESID ENTIAL PURPOSES, THE DECLARANT SHALL ESTABLISH A 20
BOARD OF DIRECTORS AND SHALL APPOINT AT LEAST ONE MEMBER TO THAT BOARD 21
OF DIRECTORS WHO IS: 22

(I) A LOT OWNER; AND 23

(II) NOT OTHERWISE AFFILIA TED WITH THE DEC LARANT OR A 24
VENDOR OF LOTS IN THE DEVELOPMENT. 25

(4) THE DETERMINATION OF WHEN 25% OF THE MAXIMUM NUMBE R 26
OF LOTS CURRENTLY PL ANNED OR PERMITTED T O BE CONTAINED WITHI N THE 27
DEVELOPMENT HAVE BEE N CONVEYED TO MEMBER S OF THE PUBLIC FOR 28
RESIDENTIAL PURPOSES SHALL BE BASED ON THE INFORMATION SUPPLIED BY THE 29
VENDOR UNDER § 11B–105(B)(3)(I) OF THIS TITLE. 30

[(a)] (B) A meeting of the members of the homeowners association to elect a 31
governing body of the homeowners association shall be held within: 32

HOUSE BILL 841 13

(1) 60 days from the date that at least 75% of the total number of lots that 1
may be part of the development after all phases are complete are sold to members of the 2
public for residential purposes; or 3

(2) If a lesser percentage is specified in the governing do cuments of the 4
homeowners association, 60 days from the date the specified lesser percentage of the total 5
number of lots in the development after all phases are complete are sold to members of the 6
public for residential purposes. 7

[(b)] (C) (1) Before the date of the meeting held under subsection [(a)] (B) of 8
this section, the declarant shall deliver to each lot owner notice that the requirements of 9
subsection [(a)] (B) of this section have been met. 10

(2) The notice shall include the date, time, and place of the meeting to elect 11
the governing body of the homeowners association. 12

[(c)] (D) The term of each member of the governing body of the homeowners 13
association appointed by the declarant shall end 10 days after the meeting under subsection 14
[(a)] (B) of this section is held, if a replacement board member is elected. 15

[(d)] (E) Within 30 days from the date of the meeting held under subsection [(a)] 16
(B) of this section, the declarant shall deliver the following items to the governing body at 17
the declarant’s expense: 18

(1) The deeds to the common areas; 19

(2) Copies of the homeowners association’s filed articles of incorporation, 20
declaration, and all recorded covenants, plats, restrictions, and any other records of the 21
primary development and of related developments; 22

(3) A copy of the bylaws and rules of the primary development and of other 23
related developments as filed in the depository of the county in which the development is 24
located; 25

(4) The minute books, including all minutes; 26

(5) Subject to the restrictions of § 11B –112 of this title, all books and 27
records of the homeowners association, including financial statements, minutes of any 28
meeting of the governing body, and completed business transactions; 29

(6) Any policies, rules, and regulations adopted by the governing body; 30

(7) The financial records of the homeowners association from the date of 31
creation to the date of transfer of control, including budget information regarding estimated 32
and actual expenditures by the homeowners association and any report relating to the 33
14 HOUSE BILL 841

reserves required for major repairs and replacement of the common areas of the 1
homeowners association; 2

(8) A copy of all contracts to which the homeowners association is a party; 3

(9) The name, address, and telephone num ber of any contractor or 4
subcontractor employed by the homeowners association; 5

(10) Any insurance policies in effect; 6

(11) Any permit or notice of code violations issued to the homeowners 7
association by the county, local, State, or federal government; 8

(12) Any warranty in effect and all prior insurance policies; 9

(13) The homeowners association funds, including operating funds, 10
replacement reserves, investment accounts, and working capital; 11

(14) The tangible property of the homeowners association; 12

(15) A roster of current lot owners, including their mailing addresses, 13
telephone numbers, and lot numbers, if known; 14

(16) Individual member files and records, including assessment account 15
records, correspondence, and notices of any violations; and 16

(17) Drawings, architectural plans, or other suitable documents setting 17
forth the necessary information for location, maintenance, and repairs of all common areas. 18

[(e)] (F) The replacement reserves delivered under subsection [(d)(13)] (E)(13) 19
of this section shall be equal to at least the reserve funding amount recommended in the 20
reserve study completed under § 11B–112.3 of this title as of the date of the meeting. 21

[(f)] (G) (1) This subsection does not apply to a contract entered into before 22
October 1, 2009. 23

(2) (i) In this subsection, “contract” means an agreement with a 24
company or individual to handle financial matters, maintenance, or services for the 25
homeowners association. 26

(ii) “Contract” does not include an agreement relating to the 27
provision of utility services or communication systems. 28

(3) Until all members of the governing body are elected by the lot owners 29
at a transitional meeting under subsection [(a)] (B) of this section, a contract entered into 30
by the govern ing body may be terminated, at the discretion of the governing body and 31
without liability for the termination, not later than 30 days after notice. 32
HOUSE BILL 841 15

[(g)] (H) If the declarant fails to comply with the requirements of this section, an 1
aggrieved lot owner may submit the dispute to the Division of Consumer Protection of the 2
Office of the Attorney General under § 11B–115(c) of this title. 3

11B–111. 4

Except as provided in this title, and notwithstanding anything contained in any of 5
the documents of the homeowners association: 6

(1) Subject to the provisions of item [(4)] (5) of this section, all meetings of 7
the homeowners association, including meetings of the board of directors or other governing 8
body of the homeowners association or a committee of the homeow ners association, shall 9
be open to all members of the homeowners association or their agents; 10

(2) All members of the homeowners association shall be given reasonable 11
notice of all regularly scheduled open meetings of the homeowners association; 12

(3) (i) This item does not apply to any meeting of a governing body that 13
occurs at any time before the lot owners, other than the developer, have a majority of votes 14
in the homeowners association, as provided in the declaration; 15

(ii) Subject to item (iii) of this item and to reasonable rules adopted 16
by [a] THE governing body, [a] THE governing body shall provide a designated period of 17
time during [a] EACH meeting to allow lot owners an opportunity to comment on any 18
matter relating to the homeowners association; 19

(iii) During a meeting at which the agenda is limited to specific topics 20
or at a special meeting, the lot owners’ comments may be limited to the topics listed on the 21
meeting agenda; and 22

(iv) The governing body shall convene at least one meeting each year 23
at which [the]: 24

1. THE agenda is open to any matter relating to the 25
homeowners association; AND 26

2. THE LOT OWNERS HAVE A N OPPORTUN ITY TO 27
PROVIDE COMMENT; 28

(4) UNTIL THE LOT OWNERS, OTHER THAN THE DEVELOPER, HAVE A 29
MAJORITY OF VOTES IN THE HOMEOWNERS ASSOC IATION, AS PROVIDED IN THE 30
DECLARATION, THE BOARD OF DIRECTORS OR THE DECLARANT SHALL CONVENE AT 31
LEAST ONE MEETING EACH YEAR AT WHICH: 32

16 HOUSE BILL 841

(I) THE AGENDA IS OP EN TO ANY MATTER REL ATING TO THE 1
HOMEOWNERS ASSOCIATION; AND 2

(II) THE LOT OWNERS HAVE A N OPPORTUNITY TO PRO VIDE 3
COMMENT; 4

[(4)] (5) A meeting of the board of directors or other governing body of the 5
homeowners association or a committee of the home owners association may be held in 6
closed session only for the following purposes: 7

(i) Discussion of matters pertaining to employees and personnel; 8

(ii) Protection of the privacy or reputation of individuals in matters 9
not related to the homeowners association’s business; 10

(iii) Consultation with legal counsel on legal matters; 11

(iv) Consultation with staff personnel, consultants, attorneys, board 12
members, or other persons in connection with pending or potential litigation or other legal 13
matters; 14

(v) Investigative proceedings concerning possible or actual criminal 15
misconduct; 16

(vi) Consideration of the terms or conditions of a business 17
transaction in the negotiation stage if the disclosure could adversely affect the economic 18
interests of the homeowners association; 19

(vii) Compliance with a specific constitutional, statutory, or judicially 20
imposed requirement protecting particular proceedings or matters from public disclosure; 21
or 22

(viii) Discussion of individual owner assessment accounts; 23

[(5)] (6) If a meeting is held in closed session under item [(4)] (5) of this 24
section: 25

(i) An action may not be taken and a matter may not be discussed if 26
it is not permitted by item [(4)] (5) of this section; and 27

(ii) A statement of the time, place, and purpose of a closed meeting, 28
the record of the vote of each board or committee member by which the meeting was closed, 29
and the authority under this section for closing a meeting shall be included in the minutes 30
of the next meeting of the b oard of directors or the committee of the homeowners 31
association; and 32

HOUSE BILL 841 17

[(6)] (7) (i) If the number of lot owners present in person or by proxy 1
at a properly called meeting is insufficient to constitute a quorum, an additional meeting 2
of the lot owners may be called for the same purpose if: 3

1. The notice of the initial properly called meeting stated: 4

A. That the procedure authorized by this item [(6)] (7) might 5
be invoked; and 6

B. The date, time, and place of the additional meeting; and 7

2. A majority of the lot owners present vote in person or by 8
proxy to call for the additional meeting; 9

(ii) An additional meeting called under item (i) of this item shall 10
occur not less than 15 days after the initial properly called meeting; 11

(iii) 1. Not less than 10 days before the additional meeting, a 12
separate and distinct notice of the date, time, place, and purpose of the additional meeting 13
called under item (i) of this item shall be: 14

A. Delivered, mailed, or sent by electronic transmissio n, if 15
the requirements of § 11B–113.1 of this title are met, to each lot owner at the address shown 16
on the roster maintained by the homeowners association; 17

B. Advertised in a newspaper published in the county where 18
the homeowners association is located; or 19

C. If the homeowners association has a website, posted on the 20
homepage of the website; and 21

2. The notice shall contain the quorum and voting provisions 22
of item (iv) of this item; 23

(iv) 1. At the additional meeting, the lot owners present in 24
person or by proxy constitute a quorum; and 25

2. Unless the bylaws provide otherwise, a majority of the lot 26
owners present in person or by proxy: 27

A. May approve or authorize the proposed action at the 28
additional meeting; and 29

B. May take any other action that could have been taken at 30
the original meeting if a sufficient number of lot owners had been present; and 31

18 HOUSE BILL 841

(v) This item [(6)] (7) may not be construed to affect the percentage 1
of votes required to amend the declaration or bylaws or to take any other action required 2
to be taken by a specified percentage of votes. 3

11B–111.6. 4

(d) A copy of the fidelity insurance policy or fidelity bond shall be included in the 5
books [and], records, AND ACCOUNTS kept and made available by or on behalf of the 6
homeowners association under § 11B–112 of this title. 7

11B–112. 8

(a) (1) (I) THE HOMEOWNERS ASSOCIATION SHALL MAINTAIN BOOKS 9
AND RECORDS BEGINNING ON THE DAT E THE HOMEOWNERS ASS OCIATION IS 10
ESTABLISHED. 11

(II) ALL BOOKS AND RECORDS KEPT BY THE HOMEOWNE RS 12
ASSOCIATION SHALL BE MAINTAINED SEPARATE AND APART FROM THE BOOKS AND 13
RECORDS OF THE DECLARANT OR OF ANY OTHER PERSON. 14

[(1)] (2) (i) Subject to the provisions of paragraph [(2)] (3) of this 15
subsection, all books and records kept by or on behalf of the homeowners association shall 16
be made available for examination or copying, or both, by a lot owner, a lot owner’s 17
mortgagee, or their respective duly authorized agents or attorneys, during normal business 18
hours, and after reasonable notice. 19

(ii) Books and records required to be made available under 20
subparagraph (i) of this paragraph shall first be made available to a lot owner no later than 21
15 business days after a lot is conveyed by the declarant and the lot owner requests to 22
examine or copy the books and records. 23

(iii) If a lot owner requests in writing a copy of financial statements 24
of the homeowners association or the minutes of a meeting of the governing body of the 25
homeowners association to be delivered, the governing body of the homeowners association 26
shall compile and send the requested information by mail, electronic transmission, or 27
personal delivery: 28

1. Within 21 days after receipt of the written request, if the 29
financial statements or minutes were prepared within the 3 years immediately preceding 30
receipt of the request; or 31

2. Within 45 days after receipt of the written request, if the 32
financial statements or minutes were prepared more than 3 years before receipt of the 33
request. 34

HOUSE BILL 841 19

[(2)] (3) Books and records kept by or on behalf of a homeowners 1
association may be withheld from public inspection, except for inspection by the person who 2
is the subject of the record or the person’s designee or guardian, to the extent that they 3
concern: 4

(i) Personnel records, not including information on individual 5
salaries, wages, bonuses, and other compensation paid to employees; 6

(ii) An individual’s medical records; 7

(iii) An individual’s personal financial records, including assets, 8
income, liabilities, net worth, bank balances, financial history or activities, and 9
creditworthiness; 10

(iv) Records relating to business transactions that are currently in 11
negotiation; 12

(v) The written advice of legal counsel; or 13

(vi) Minutes of a close d meeting of the governing body of the 14
homeowners association, unless a majority of a quorum of the governing body of the 15
homeowners association that held the meeting approves unsealing the minutes or a 16
recording of the minutes for public inspection. 17

(b) (2) A lot owner may not be charged for: 18

(i) Examining the financial statements of the homeowners 19
association in person where the financial statements are maintained in accordance with 20
subsection [(a)(1)(i)] (A)(2)(I) of this section, unless the financial statements are located in 21
a depository; or 22

(ii) Receiving the financial statements of the homeowners 23
association through electronic transmission in accordance with subsection [(a)(1)(iii)] 24
(A)(2)(III) of this section. 25

SECTION 2. AND BE IT F URTHER ENACTED, That this Act shall take effect 26
October 1, 2026. 27