Common Ownership Communities - Ombudsman Unit, Governing Document Database, and Local Commissions

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0981*

SENATE BILL 981
N1, I3, P1 6lr3642
SB 866/25 – JPR CF HB 402
By: Senator Muse
Introduced and read first time: February 15, 2026
Assigned to: Rules

A BILL ENTITLED

AN ACT concerning 1

Common Ownership Communities – Ombudsman Unit, Governing Document 2
Database, and Local Commissions 3

FOR the purpose of establishing the Common Ownership Community Ombudsman Unit in 4
the Division of Consumer Protection in the Office of the Attorney General to receive 5
and respond to certain complaints; requiring common ownership communities to file 6
certain documents with the Department of Housing and Community Development; 7
requiring the Department to establish a certain database; establishing requirements 8
for a local common ownership commission established by the local government of a 9
county; and generally relating to common ownership communities. 10

BY adding to 11
Article – Commercial Law 12
Section 13–207 13
Annotated Code of Maryland 14
(2025 Replacement Volume) 15

BY adding to 16
Article – Housing and Community Development 17
Section 2–304 18
Annotated Code of Maryland 19
(2019 Replacement Volume and 2025 Supplement) 20

BY adding to 21
Article – Real Property 22
Section 11C –101 through 11C –114 t o be under the new title “Title 11C. Local 23
Commissions on Common Ownership Communities” 24
Annotated Code of Maryland 25
(2023 Replacement Volume and 2025 Supplement) 26

2 SENATE BILL 981

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

Article – Commercial Law 3

13–207. 4

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 5
INDICATED. 6

(2) “COMMON OWNERSHIP COMMUNITY” MEANS: 7

(I) A COOPERATIVE HOUSING CORPORATION AS DEFINED IN § 8
5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; 9

(II) A CONDOMINIUM AS DEFIN ED IN § 11–101 OF THE REAL 10
PROPERTY ARTICLE; OR 11

(III) A HOMEOWNERS ASSOCIATION AS DEFINED IN § 11B–101 OF 12
THE REAL PROPERTY ARTICLE. 13

(3) “GOVERNING BODY” MEANS: 14

(I) THE COUNCIL OF UNIT OWNERS OF A CONDOMINIUM; 15

(II) THE BOARD OF DIRECTOR S OF A COOPERATIVE H OUSING 16
CORPORATION; 17

(III) A HOMEOWNERS ASSOCIATION, BOARD OF DIRECTORS , OR 18
ANY OTHER ENTITY EST ABLISHED TO GOVERN A PROPERTY SUBJECT TO AN 19
INSTRUMENT THAT IMPOSES ON LOTS, OR ON THE OWNERS OR OCCUPANTS OF LOTS, 20
ANY MANDATORY FEE IN CONNECTION WITH THE PROVISION OF SERVICE S OR 21
OTHERWISE FOR THE BENEFIT OF SOME OR ALL OF THE LOTS; OR 22

(IV) ANY OTHER BODY AUTHOR IZED TO ADOPT RULES OR 23
REGULATIONS GOVERNIN G A CONDOMINIUM , COOPERATIVE HO USING 24
CORPORATION, OR HOMEOWNERS ASSOCIATION. 25

(4) “LOCAL COMMISSION ” MEANS A COMMISSION O N COMMON 26
OWNERSHIP COMMUNITIES ESTABLISHED BY A C OUNTY, IN ACCORDANCE WITH § 27
11C–101 OF THE REAL PROPERTY ARTICLE. 28

(5) “MEMBER” MEANS: 29

SENATE BILL 981 3

(I) AN OCCUPANT OR A UNIT OWNER UNDER THE MARYLAND 1
CONDOMINIUM ACT; 2

(II) A LOT OWNER UNDER THE MARYLAND HOMEOWNERS 3
ASSOCIATION ACT; OR 4

(III) A MEMBER OF A COOPERATIVE HOUSING CORPORATION AS 5
DEFINED IN § 5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE. 6

(6) “UNIT” MEANS THE COMMON OWNERSHIP COMMUNITY 7
OMBUDSMAN UNIT IN THE OFFICE OF THE ATTORNEY GENERAL. 8

(B) THERE IS A COMMON OWNERSHIP COMMUNITY OMBUDSMAN UNIT IN 9
THE DIVISION OF CONSUMER PROTECTION. 10

(C) THE PURPOSE OF THE UNIT IS: 11

(1) TO MONITOR CHANGES IN FEDERAL AND STATE LAWS RELATING 12
TO COMMON OWNERSHIP COMMUNITIES; 13

(2) TO PUBLISH INFORMATIO N CONCERNING COMMON OWNERSHIP 14
COMMUNITIES ON THE WEBSITE OF THE OFFICE OF THE ATTORNEY GENERAL; 15

(3) TO ASSIST MEMBERS IN UNDERSTANDING RIGHTS AND 16
PROCESSES AVAILABLE TO MEMBERS UNDER LAWS AND REGULATIONS GOVERNING 17
COMMON OWNERSHIP COMMUNITIES; AND 18

(4) ON REQUEST, TO PROVIDE REFERRALS TO PUBLIC AND PRIVAT E 19
ALTERNATIVE DISPUTE RESOLUTION SERVICES, WITH A GOAL OF REDUC ING AND 20
RESOLVING CONFLICTS AMONG GOVERNING BODIES AND MEMBERS. 21

(D) THE UNIT SHALL INCLUDE: 22

(1) A FULL–TIME COMMON OWNERSHIP COMMUNITY OMBUDSMAN; 23
AND 24

(2) STAFF AS PROVIDED IN THE STATE BUDGET. 25

(E) (1) THE ATTORNEY GENERAL SHALL APPOINT THE COMMON 26
OWNERSHIP COMMUNITY OMBUDSMAN. 27

(2) THE COMMON OWNERSHIP COMMUNITY OMBUDSMAN MUST BE A 28
MEMBER OF THE MARYLAND BAR. 29
4 SENATE BILL 981

(F) THE UNIT SHALL RECEIVE AND RESPOND TO COMPLAINTS BY MEMBERS 1
REGARDING FINAL ADVE RSE DECISIONS BY A G OVERNING BODY OR COM MON 2
OWNERSHIP COMMUNITY MANAGER. 3

(G) IN RESPONSE TO A COMPLAINT , OR ON THE INITIATIVE OF THE 4
OMBUDSMAN, THE UNIT SHALL: 5

(1) REFER THE COMPLAINT TO AN APPROPRIATE LOCAL COMMISSION 6
FOR FURTHER REVIEW O F WHETHER THE FINAL ADVERSE DECISION CON FLICTS 7
WITH LAWS OR REGULAT IONS GOVERNING COMMON OWNERSHIP COMMUNITIES IN 8
THE JURISDICTION; OR 9

(2) MAKE A DETERMINATION OF WHETHER THE FINAL ADVERSE 10
DECISION CONFLICTS W ITH LAWS OR REGULATI ONS GOVERNING COMMON 11
OWNERSHIP COMMUNITIE S AND PROMPTLY NOTIF Y THE COMPLAINANT OF THE 12
DETERMINATION. 13

(H) (1) IF THE UNIT DETER MINES THAT A FINAL A DVERSE DECISION 14
CONFLICTS WITH LAWS OR REGULATIONS GOVER NING COMMON OWNERSHI P 15
COMMUNITIES, THE UNIT SHALL PROMPTLY NOTIFY THE MEMBER, THE GOVERNING 16
BOARD, AND, IF APPLICABLE , THE COMMON OWNERSHIP COMMUNITY MANAGER 17
THAT THE ADVERSE DEC ISION CONFLICTS WITH L AWS OR REGULATIONS 18
GOVERNING COMMON OWNERSHIP COMMUNITIES. 19

(2) IF WITHIN 1 YEAR AFTER ISSUING A DETERMINATION THE 20
OMBUDSMAN RECEIVES A SUBSEQUENT COMPLAINT OF A FINAL ADVERSE DECISION 21
FOR THE SAME VIOLATI ON, THE UNIT SHALL REFER THE MATTER TO THE 22
APPROPRIATE LOCAL COMMISSION. 23

(I) (1) ON OR BEFORE DECEMBER 1, 2028, AND EACH DECEMBER 1 24
THEREAFTER, THE UNIT SHALL REPORT TO THE DEPARTMENT OF HOUSING AND 25
COMMUNITY DEVELOPMENT AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE 26
GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY ON THE ACTIV ITIES OF THE 27
UNIT DURING THE REPORTING PERIOD. 28

(2) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 29
SUBSECTION SHALL INCLUDE: 30

(I) THE NUMBER OF COMPLAINTS RECEIVED BY THE UNIT; 31

(II) THE TYPES OF ASSISTANCE REQUESTED; 32

SENATE BILL 981 5

(III) ACTIONS TAKEN BY THE UNIT; 1

(IV) THE NUMBER OF REFERRA LS MADE TO LOCAL 2
COMMISSIONS; AND 3

(V) DATA ON DISPOSITIONS AND OUTCOMES OF COMP LAINTS 4
RECEIVED. 5

Article – Housing and Community Development 6

2–304. 7

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 8
INDICATED. 9

(2) “COMMON OWNERSHIP COMMUNITY” HAS THE MEANING STATED 10
IN § 2–303 OF THIS SUBTITLE. 11

(3) “GOVERNING DOCUMENTS” MEANS AN OFFERING ST ATEMENT, A 12
DECLARATION, BYLAWS, RULES, REGULATIONS, A PROPRIETARY LEAS E, OR ANY 13
OTHER SIMILAR DOCUMENT OF A COMMON OWNERSHIP COMMUNITY. 14

(B) (1) A COMMON OWNERSHIP COM MUNITY LOCATED IN TH E STATE 15
SHALL FILE WITH THE DEPARTMENT A COPY OF THE GOVERNING DOCUMENTS, AND 16
ANY AMENDMENTS TO THE GOVERNING DOCUMENTS, OF THE COMMON OWNERSHIP 17
COMMUNITY. 18

(2) A COMMON OWNERSHIP COM MUNITY THAT FAILS TO MAKE A 19
FILING REQUIRED UNDE R PARAGRAPH (1) OF THIS SUBSECTION I S SUBJECT TO A 20
FINE OF $500. 21

(C) (1) THE DEPARTMENT SHALL DEVELOP AND MAINTAIN A D ATABASE 22
OF GOVERNING DOCUMEN TS FILED WITH THE DEPARTMENT UNDER SUBS ECTION 23
(B) OF THIS SECTION ACCE SSIBLE TO THE PUBLIC THROUGH THE DEPARTMENT’S 24
WEBSITE DESCRIBED IN § 2–303 OF THIS SUBTITLE. 25

(2) THE DEPARTMENT MAY CHARGE THE FOLLOWING FEES F OR 26
FILINGS REQUIRED UNDER THIS SECTION: 27

(I) FOR AN INITIAL FILING, UP TO $100; AND 28

(II) FOR ANY AMENDMENT TO A GOVERNING DOCUMENT, UP TO 29
$25. 30

6 SENATE BILL 981

Article – Real Property 1

TITLE 11C. LOCAL COMMISSIONS ON COMMON OWNERSHIP COMMUNITIES. 2

11C–101. 3

(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 4
INDICATED. 5

(B) “COMMON ELEMENT” MEANS: 6

(1) ANY PORTION OF A COMM ON OWNERSHIP COMMUNI TY OTHER 7
THAN THE UNITS OF A CONDOMINIUM OR COOPERATIVE; AND 8

(2) PROPERTY THAT IS OWNE D OR LEASED BY A HOM EOWNERS 9
ASSOCIATION. 10

(C) (1) “COMMON OWNERSHIP COMMUNITY” MEANS: 11

(I) A CONDOMINIUM AS DEFINED IN § 11–101 OF THIS ARTICLE 12
THAT IS USED FOR RESIDENTIAL PURPOSES; 13

(II) A COOPERATIVE HOUSING CORPORATION AS DEFINED IN § 14
5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; AND 15

(III) A HOMEOWNERS ASSOCIATION AS DEFINED IN § 11B–101 OF 16
THIS ARTICLE. 17

(2) “COMMON OWNERSHIP COMM UNITY” DOES NOT INCLUDE A 18
TIME–SHARE PROJECT AS DEFINED IN § 11A–101 OF THIS ARTICLE. 19

(D) (1) “DISPUTE” MEANS A DISAGREEMENT BETWEEN AT LEAST TWO 20
PARTIES THAT INVOLVES: 21

(I) THE AUTHORITY OF A GO VERNING BODY OF A CO MMON 22
OWNERSHIP COMMUNITY TO: 23

1. REQUIRE OR PROHIBIT A NY ACTION INVOLVING A 24
UNIT OR COMMON ELEMENT; 25

2. REQUIRE ANY PERSON TO PAY A FEE , A FINE, OR AN 26
ASSESSMENT; 27

SENATE BILL 981 7

3. SPEND COMMON OWNERSHIP COMMUNITY FUNDS; OR 1

4. ALTER OR ADD TO A COMMON ELEMENT; OR 2

(II) THE FAILURE OF A GOVE RNING BODY OF A COMM ON 3
OWNERSHIP COMMUNITY TO: 4

1. PROPERLY CONDUCT AN ELECTION; 5

2. GIVE ADEQUATE NOTICE OF A MEETING OR ANY 6
OTHER ACTION; 7

3. PROPERLY CONDUCT A MEETING; 8

4. PROPERLY ADOPT A BUDGET OR RULES; 9

5. MAINTAIN OR AUDIT BOOKS AND RECORDS; 10

6. ALLOW INSPECTION OF BOOKS AND RECORDS; 11

7. MAINTAIN OR REPAIR A COMMON ELEMENT IF TH E 12
FAILURE RESULTS IN SIGNIFICANT PERSONAL INJURY OR PROPERTY DAMAGE; OR 13

8. EXERCISE ITS JUDGMENT IN GOOD FAITH 14
CONCERNING THE ENFOR CEMENT OF THE GOVERN ING DOCUMENTS AGAINS T ANY 15
PERSON THAT IS SUBJECT TO THOSE DOCUMENTS. 16

(2) “DISPUTE” DOES NOT INCLUDE A D ISAGREEMENT THAT 17
INVOLVES: 18

(I) TITLE TO ANY UNIT OR COMMON ELEMENT; 19

(II) THE PERCENTAGE INTERE ST OR VOTE ALLOCABLE TO A 20
UNIT; 21

(III) THE INTERPRETATION OR ENFORCEMENT OF ANY 22
WARRANTY; 23

(IV) THE COLLECTION OF AN ASSESSMENT VALIDLY L EVIED 24
AGAINST A PARTY; OR 25

(V) THE EXERCISE OF THE J UDGMENT OR DISCRETION OF A 26
COMMON OWNERSHIP COMMUNITY REGARDING ANY LEGALLY AUTHORIZED ACTION. 27
8 SENATE BILL 981

(E) “GOVERNING BODY OF A COMMON OWNERSHIP COMMUNITY” MEANS: 1

(1) THE COUNCIL OF UNIT OWNERS OF A CONDOMINIUM; 2

(2) THE BOARD OF DIRECTOR S OF A COOPERATIVE H OUSING 3
CORPORATION; 4

(3) A HOMEOWNERS ASSOCIATION, BOARD OF DIRECTORS , OR ANY 5
OTHER ENTITY ESTABLISHED TO GOVERN A PROPERTY SUBJECT TO AN INSTRUMENT 6
THAT IMPOSES ON LOTS , OR ON THE OWNERS OR OCCUPANTS OF LOTS , ANY 7
MANDATORY FEE IN CON NECTION WITH THE PRO VISION OF SERVICES OR 8
OTHERWISE FOR THE BENEFIT OF SOME OR ALL OF THE LOTS; OR 9

(4) ANY OTHER BODY AUTHOR IZED TO ADOPT RULES OR 10
REGULATIONS GOVERNIN G A CONDOMINIUM , COOPERATIVE HOUSING 11
CORPORATION, OR HOMEOWNERS ASSOCIATION. 12

(F) (1) “GOVERNING DOCUMENT” MEANS: 13

(I) THE MASTER DEED , DECLARATION, INCORPORATION 14
DOCUMENT, BYLAWS, OR RULES OF ANY COMMON OWNERSHIP COMMUNITY; 15

(II) A WRITTEN PRIVATE AGRE EMENT BETWEEN PARTIE S 16
CONCERNING THE OPERATION OF THE COMMUNITY OR MAINTENANCE OR CONTROL 17
OF COMMON OR LIMITED COMMON PROPERTY; OR 18

(III) A DOCUMENT CONCERNING THE OPERATION OR 19
GOVERNANCE OF A COMMON OWNERSHIP COMMUNITY. 20

(2) “GOVERNING DOCUMENT” DOES NOT INCLUDE A L EASE UNLESS 21
THE LEASE PROVIDES THAT IT MAY BE ENFORCED UNDER THIS TITLE. 22

(G) “LOCAL COMMISSION” MEANS A COMMISSION ON COMMON OWNERSHIP 23
COMMUNITIES ESTABLISHED BY A COUNTY IN ACCORDANCE WITH THIS TITLE. 24

(H) “LOCAL GOVERNMENT” MEANS: 25

(1) THE COUNTY COMMISSION ERS OR COUNTY COUNCI L OF A 26
COUNTY; 27

(2) IF THE CHARTER OF THE COUNTY PROVIDES FOR A COUNTY 28
EXECUTIVE, THE COUNTY EXECUTIVE AND THE COUNTY COUNCIL; OR 29
SENATE BILL 981 9

(3) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY. 1

(I) “OWNER” MEANS: 2

(1) A UNIT OWNER IN A CONDOMINIUM; 3

(2) A MEMBER OF A COOPERATIVE HOUSING CORPORATION; OR 4

(3) A LOT OWNER IN A HOMEOWNERS ASSOCIATION. 5

11C–102. 6

THE PROVISIONS OF THIS TITLE SUPERSEDE ANY INCONSISTENT PROVISIONS 7
OF LOCAL LAW THAT CONFLICT WITH THIS TITLE TO THE EXTENT OF THE CONFLICT. 8

11C–103. 9

(A) A LOCAL COMMISSION ON COMMON OWNERSHIP COM MUNITIES 10
ESTABLISHED BY THE LOCAL GO VERNMENT OF A COUNTY BY LOCAL LAW SHALL 11
COMPLY WITH THE REQUIREMENTS OF THIS TITLE. 12

(B) (1) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 13
LOCAL COMMISSION SHALL INCLUDE MEMBERS WHO: 14

1. ARE OWNERS IN A COMMON OWNERSHIP COMMUNITY; 15
AND 16

2. REPRESENT PROFESSIONS ASSOCIATED WITH 17
COMMON OWNERSHIP COM MUNITIES, INCLUDING INDIVIDUAL S INVOLVED IN 18
HOUSING DEVELOPMENT OR REAL ESTATE SALES , DEVELOPERS, OR ATTORNEYS 19
WHO REPRESENT COMMON OWNERSHIP COMMUNITIES INCLUDING AT LEAST ONE 20
MEMBER WHO IS A LICENSED COMMON OWNERSHIP COMMUNITY MANAGER. 21

(II) THE LOCAL GOVERNMENT SHALL DETERMINE THE TOTAL 22
NUMBER OF MEMBERS OF THE LOCAL COMMISSION. 23

(2) THE FOLLOWING INDIVID UALS SHALL SERVE AS NONVOTING 24
MEMBERS OF A LOCAL COMMISSION: 25

(I) A DESIGNEE OF THE LOCAL GOVERNMENT; AND 26

(II) A DESIGNEE OF A COUNTY AGENCY DEALING WITH: 27
10 SENATE BILL 981

1. PLANNING; 1

2. ENVIRONMENT; 2

3. PERMITTING; 3

4. TRANSPORTATION; OR 4

5. HOUSING AND COMMUNITY AFFAIRS. 5

(C) THE CHAIR AND VICE CH AIR OF A LOCAL COMMISSION SHA LL BE 6
ELECTED FROM AMONG THE VOTING MEMBERSHIP OF THE LOCAL COMMISSION. 7

(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A LOCAL 8
GOVERNMENT ESTABLISHING A LOCAL COMMISSI ON SHALL ADOPT PROCE DURES 9
FOR THE APPOINTMENT AND TERMS OF MEMBERS OF THE LOCAL COMMISSION. 10

(2) A MEMBER OF A LOCAL COMMISSION MAY NOT SERVE MORE THAN 11
TWO CONSECUTIVE TERMS. 12

11C–104. 13

(A) A MAJORITY OF THE TOTA L MEMBERSHIP OF A LO CAL COMMISSION 14
SHALL CONSTITUTE A QUORUM. 15

(B) A LOCAL COMMISSION SHA LL MEET AT LEAST MONTHLY AND 16
DETERMINE THE TIMES AND PLACES OF ITS MEETINGS. 17

(C) A MEMBER OF A LOCAL COMMISSION: 18

(1) MAY NOT RECEIVE COMPENSATION AS A MEMBER OF THE LOCAL 19
COMMISSION; BUT 20

(2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE 21
STANDARD COUNTY TRAVEL REGULATIONS. 22

(D) (1) A LOCAL COMMISSION SHALL: 23

(I) ADOPT RULES OF PROFES SIONAL CONDUCT AS 24
APPROPRIATE FOR MEMBERS AND STAFF; 25

(II) KEEP A RECORD OF ITS PROCEEDINGS; 26
SENATE BILL 981 11

(III) EXAMINE THE NEEDS OF COMMON OWNERSHIP 1
COMMUNITIES IN THE COUNTY; 2

(IV) ADVISE COUNTY GOVERNM ENT AND APPROPRIATE STATE 3
AND FEDERAL AGENCIES ON MATTERS RELATING TO COMMON OWNERSHIP 4
COMMUNITIES; AND 5

(V) PROVIDE TRAINING ON THE RESPONSIBILITIES OF A LOCAL 6
COMMISSION’S MEMBERS TO THE GOV ERNING BODY OF A COM MON OWNERSH IP 7
COMMUNITY BY: 8

1. DEVELOPING AN EDUCATI ONAL CURRICULUM FOR 9
NEW MEMBERS; AND 10

2. APPROVING AN ALTERNAT IVE EDUCATIONAL 11
CURRICULUM FOR NEW MEMBERS. 12

(2) A LOCAL COMMISSION MAY: 13

(I) EMPLOY STAFF AS AUTHORIZED BY A LOCAL GOVERNMENT; 14

(II) ESTABLISH A PROCESS F OR RESOLVING DISCIPL INARY 15
MATTERS PENDING BEFO RE THE LOCAL COMMISS ION THROUGH NONJUDIC IAL 16
DISPUTE RESOLUTION PROCESSES; 17

(III) DEVELOP EDUCATIONAL A ND TRAINING OPPORTUN ITIES 18
FOR GOVERNING BODIES; 19

(IV) ADOPT ADDITIONAL BYLA WS NE CESSARY TO CARRY OUT 20
THE BUSINESS OF THE LOCAL COMMISSION; AND 21

(V) ADOPT ANY ADDITIONAL REGULATIONS, PROCEDURES, OR 22
STANDARDS CONSISTENT WITH THE MISSION OF THE LOCAL COMMISSION AND TO 23
CARRY OUT THE REQUIREMENTS OF THIS TITLE. 24

11C–105. 25

(A) A LOCAL L AW ESTABLISHING A LO CAL COMMISSION SHALL REQUIRE 26
COMMON OWNERSHIP COMMUNITIES IN THE COUNTY TO REGISTER WITH THE LOCAL 27
COMMISSION ANNUALLY ON A FORM THAT IDENTIFIES: 28

12 SENATE BILL 981

(1) THE ELECTED LEADERSHI P OF THE COMMON OWNE RSHIP 1
COMMUNITY; AND 2

(2) THE MANAGING A GENTS OF THE COMMON OWNERSHIP 3
COMMUNITY. 4

(B) A COMMON OWNERSHIP COM MUNITY THAT FAILS TO REGISTER OR 5
MAKES A FALSE STATEM ENT ON A REGISTRATIO N FORM IS INELIGIBLE TO FILE A 6
DISPUTE. 7

11C–106. 8

(A) A LOCAL LAW ESTABLISHI NG A LOCAL COMMISSIO N MAY AUTHORIZE 9
THE COLLECTION OF A REASONABLE FEE FOR SERVICES PROVIDED BY THE LOCAL 10
COMMISSION. 11

(B) ANY AUTHORIZED FEE SH ALL BE USED TO COVER THE COST OF 12
MAINTAINING THE LOCAL COMMISSION AND MAY INCLUDE: 13

(1) A PER UNIT ANNUAL CHAR GE TO COMMON OWNERSH IP 14
COMMUNITIES TO RENEW REGISTRATION; 15

(2) FEES FOR DISPUTE RESO LUTION UNDER § 11C–110 OF THIS 16
TITLE, SERVICE, AND TECHNICAL ASSISTANCE; AND 17

(3) A PER UNIT CHARGE TO DEVELOPERS FOR THE RECORDATION OF 18
DOCUMENTS. 19

(C) IF THE COLLECTION OF A FEE BY A LOCAL COMMISSION IS AUTHORIZED 20
UNDER THIS SECTION , THE LOCAL COMMISSION SHALL PUBLISH THE FE E 21
SCHEDULE. 22

11C–107. 23

A LOCAL GOVERNMENT THA T ESTABLISHES A LOCA L COMMISSION SHALL 24
DESIGNATE A COUNTY AGENCY OR AN OFFICE TO: 25

(1) DISSEMINATE EDUCATIONAL MATERIALS REGARDING PROGRAMS 26
THAT ASSIST COMMON OWNERSHIP COMMUNITIES; 27

(2) CONDUCT EDUCATIONAL P ROGRAMS TO PROMOTE T HE 28
OPERATION OF COMMON OWNERSHIP COMMUNITIES; 29

SENATE BILL 981 13

(3) MAINTAIN A LIST OF: 1

(I) COMMON OWNERSHIP COMM UNITIES IN THE COUNT Y, 2
INCLUDING THE LEADERSHIP OF EACH COMMON OWNERSHIP COMMUNITY; AND 3

(II) PROFESSIONAL MANAGEMENT COMPANIES THAT PR OVIDE 4
SERVICES TO COMMON OWNERSHIP COMMUNITIES IN THE COUNTY; 5

(4) MAINTAIN INFORMATION AND A REFERRAL SYSTE M FOR ALL 6
COUNTY SERVICES RELATED TO COMMON OWNERSHIP COMMUNITIES; 7

(5) MAINTAIN A COLLECTION OF GOVERNING DOCUMENTS; 8

(6) PROVIDE TECHNICAL ASS ISTANCE TO GOVERNING BODIES ON 9
MATTERS INCLUDING: 10

(I) LEADERSHIP TRANSITION; 11

(II) ELECTIONS; 12

(III) ADOPTION OF RULES; 13

(IV) ENFORCEMENT OF RULES; 14

(V) SELECTION OF ASSOCIATION MANAGERS; AND 15

(VI) STORMWATER MANAGEMENT; 16

(7) MAINTAIN AN OPERATION S MANUAL TO GUIDE CO MMON 17
OWNERSHIP COMMUNITY LEADERSHIP; 18

(8) ADVISE COMMON OWNERSHIP COMMUNITIES AND PROFESSIONAL 19
ASSOCIATION MANAGERS OF CHANGES IN THE L AWS AND REGULATIONS THAT 20
AFFECT THEIR COMMUNITIES OR OPERATIONS; AND 21

(9) OPERATE A DISPUTE RES OLUTION PROCESS TO F URNISH 22
MEDIATION AND ADMINISTRATIVE HEARINGS. 23

11C–108. 24

(A) A LOCAL COMMISSION MAY HEAR ANY DISPUTE BETWEEN PARTIES. 25

(B) A PARTY MAY NOT FILE A DISPUTE WITH A LOCAL COMMISSION UNTIL: 26
14 SENATE BILL 981

(1) THE PARTY HAS MADE A GOOD FAITH EFFORT TO EXHAUST ALL 1
PROCEDURES AND REMEDIES PROVIDED BY THE GOVERNING DOCUMENTS OF THE 2
COMMON OWNERSHIP COMMUNITY; AND 3

(2) AT LEAST 60 DAYS AFTER ANY PROCEDURE OR REMEDY HAS BEEN 4
INITIATED WITH THE GOVERNING BODY OF A COMMON OWNERSHIP COMMUNITY. 5

(C) (1) IF THE GOVERNING BODY OF A COMMON OWNERSHIP COMMUNITY 6
DETERMINES THAT A DI SPUTE EXISTS , THE GOVERNING BODY O F THE COMMON 7
OWNERSHIP COMMUNITY SHALL NOTIFY THE OTHER PARTI ES OF THE OPTION TO 8
FILE THE DISPUTE WITH A LOCAL COMMISSION. 9

(2) THE GOVERNING BODY OF A COMMON OWNERSHIP C OMMUNITY 10
MAY NOT TAKE ACTION TO ENFORCE OR IMPLEM ENT THE DECISION OF THE 11
GOVERNING BODY FOR 14 DAYS FOLLOWING NOTIFICATION OF ALL OTHER PARTIES. 12

(D) EXCEPT AS PROVIDED IN § 11C–109 OF THIS TITLE, ON THE FILING OF 13
A DISPUTE WITH A LOCAL COMMISSION, THE DECISION OF THE GOVERNING BODY OF 14
A COMMON OWNERSHIP COMMUNITY SHALL BE STAYED AND MAY NOT BE ENFORCED 15
OR IMPLEMENTED , OTHER T HAN BY FILING A CIVI L ACTION , UNTIL THE 16
COMPLETION OF THE DISPUTE PROCESS. 17

11C–109. 18

(A) (1) AT ANY TIME AFTER A D ISPUTE IS FILED, THE GOVERNING BODY 19
OF A COMMON OWNERSHI P COMMUNITY MAY SUBM IT A REQUEST TO LIFT AN 20
AUTOMATIC STAY UNDER § 11C–108 OF THIS TITLE. 21

(2) IF A HEARING PANEL HA S NOT BEEN APPOINTED UNDER § 22
11C–112 OF THIS TITLE , THE LOCAL COMMISSION SHALL AUTHORIZE A SP ECIAL 23
STANDING PANEL TO CONSIDER REQUESTS FOR RELIEF FROM STAYS. 24

(3) THE SPECIAL PANEL SHALL INCLUDE: 25

(I) THREE VOTING MEMBERS OF THE LOCAL COMMISSION 26
DESIGNATED BY THE CHAIR; AND 27

(II) AT LEAST ONE MEMBER D ESCRIBED UNDER § 28
11C–103(B)(1)(I)1 OF THIS TITLE AND AT LEAST ONE MEMBER DESCRIBED UNDER § 29
11C–103(B)(1)(I)2 OF THIS TITLE. 30

SENATE BILL 981 15

(B) (1) A GOVERNING BODY OF A COMMON O WNERSHIP COMMUNITY 1
THAT REQUESTS RELIEF FROM A STAY SHALL SERVE A COPY OF ITS REQUEST ON ANY 2
PARTY NAMED IN THE DISPUTE BY CERTIFIED MAIL OR PERSONAL SERVICE. 3

(2) A CERTIFICATE OF SERVI CE SHALL ACCOMPANY A NY REQUEST 4
SUBMITTED UNDER THIS SECTION. 5

(3) A PARTY SERVED WITH A COPY OF THE REQUEST SHALL FILE ANY 6
OPPOSITION TO THE REQUEST WITHIN 10 DAYS AFTER RECEIVING SERVICE. 7

(C) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, A REQUEST 8
FOR RELIEF FROM A ST AY MAY BE GRANTED ON LY IF THE ASSIGNED PANEL FINDS 9
THAT: 10

(1) ENFORCING THE STAY WO ULD RESULT IN UNDUE HARM TO THE 11
COMMON OWNERSHIP COMMUNITY; AND 12

(2) LIFTING THE STAY WILL NOT RESULT IN UNDUE HARM TO THE 13
RIGHTS OR INTERESTS OF ANY OPPOSING PARTY. 14

(D) IF A REQUEST FOR RELIEF FROM A STAY STATING FACTS SUFFICIENT TO 15
SHOW A NEED FOR IMMEDIATE ACTION IS NOT GRANTED OR DENIED WITHIN 20 DAYS 16
AFTER THE REQUEST WAS FILED, THE REQUEST SHALL BE DEEMED GRANTED. 17

11C–110. 18

(A) (1) FOLLOWING THE FILING OF A DISPUTE WITH A LOCAL 19
COMMISSION, AN AGENC Y DESIGNATED BY A LO CAL GOVERNMENT UNDER § 20
11C–107 OF THIS TITLE MAY IN VESTIGATE FACTS AND ASSEMBLE DOCUMENTS 21
RELEVANT TO THE DISPUTE AND MAY PREPARE A SUMMARY OF THE ISSUES IN THE 22
DISPUTE FOR USE BY THE LOCAL COMMISSION. 23

(2) THE DESIGNATED AGENCY OR OFFICE MAY NOTIFY A PARTY IF 24
THE DESIGNATED AGENCY OR OFFICE FINDS TH AT A DISPUTE WAS NOT PROPERLY 25
FILED. 26

(3) THE DESIGNATED AGENCY OR OFFICE MAY NOTIFY EACH PARTY 27
OF THE DISPUTE REGAR DING POSSIBLE SANCTI ONS UNDER § 11C–112 OF THIS 28
TITLE. 29

(B) IF THE D ESIGNATED AGENCY OR OFFICE FINDS THAT , ASSUMING ALL 30
FACTS ALLEGED BY THE PARTY THAT FILED THE DISPUTE ARE TRUE, THERE ARE NO 31
REASONABLE GROUNDS TO CONCLUDE THAT A VIOLATION OF APPLICABLE LAW OR 32
16 SENATE BILL 981

ANY GOVERNING DOCUMENT HAS OCCURRED, THE DESIGNATED AGENCY OR OFFICE 1
SHALL INFORM THE LOCAL COMMISSION. 2

(C) ON RECEIPT OF THE RESULTS OF AN INVESTIGATION BY A DESIGNATED 3
AGENCY OR OFFICE, A LOCAL COMMISSION MAY: 4

(1) IF IT FINDS THAT THER E ARE NO REASONABLE GROUNDS TO 5
CONCLUDE THAT A VIOLATION OF APPLICABLE LAW OR ANY GOVERNING DOCUMENT 6
HAS OCCURRED, DISMISS THE DISPUTE; 7

(2) REQUEST ADDITIONAL IN VESTIGATION BY THE D ESIGNATED 8
AGENCY OR OFFICE; OR 9

(3) SCHEDULE A HEARING ON THE DISPUTE. 10

(D) A LOCAL COMMISSION MAY RECONSIDER THE DISMISSAL OF A DISPUTE 11
IF ANY PARTY FILES A MOTION TO RECONSIDER WITHIN 30 DAYS AFTER THE 12
DISPUTE IS DISMISSED, DEMONSTRATING THAT: 13

(1) THE LOCAL COMMISSION ERRONEOUSLY INTERPRE TED OR 14
APPLIED APPLICABLE LAW OR A GOVERNING DOCUMENT; OR 15

(2) MATERIAL ISSUES OF FA CT THAT ARE NECESSA RY TO A FAIR 16
RESOLUTION OF THE DISPUTE REMAIN UNRESOLVED. 17

11C–111. 18

(A) (1) ANY PARTY IN A DISPUTE MAY REQUEST MEDIATION. 19

(2) IF A PARTY REQUESTS M EDIATION, THE LOCAL COMMISSION 20
SHALL NOTIFY ALL PARTIES OF THE REQUEST AND OF THE MEDIATION SESSION. 21

(3) A LOCAL COMMISSION SHA LL PROVIDE A QUALIFI ED MEDIATOR 22
TO MEET WITH THE PARTIES WITHIN 30 DAYS AFTER A PARTY REQUESTS MEDIATION 23
TO ATTEMPT TO SETTLE THE DISPUTE. 24

(B) IF A PARTY REFUSES TO ATTEND A MEDIATION S ESSION, OR IF 25
MEDIATION DOES NOT S UCCESSFULLY RESOLVE THE DISPU TE WITHIN 10 DAYS 26
AFTER THE FIRST MEDI ATION SESSION IS HEL D, THE LOCAL COMMISSION SHALL 27
PROMPTLY SCHEDULE A HEARING. 28

11C–112. 29

SENATE BILL 981 17

(A) (1) IF A HEARING IS SCHED ULED, THE CHAIR OF THE LOC AL 1
COMMISSION SHALL CONVENE A PANEL TO HEAR THE DISPUTE. 2

(2) THE CHAIR SHALL SELEC T AT LEAST ONE MEMBE R DESCRIBED 3
UNDER § 11C–103(B)(1)(I)1 OF THIS TITLE AND AT LEAST ONE MEMBER DESCRIBED 4
UNDER § 11C–103(B)(1)(I)2 OF THIS TITLE. 5

(3) THE LOCAL COMMISSION MEMBERS SELECTED BY THE CHAIR 6
SHALL DESIGNATE A THIRD MEMBER OF THE PANEL FROM A LIST OF VOLUNTEER 7
ARBITRATORS TRAINED OR EXPERIENCED IN CO MMON OWNERSHIP COMMU NITY 8
ISSUES MAINTAINED BY THE LOCAL COMMISSION. 9

(4) IF A SUITABLE ARBITRA TOR IS NOT AVAILABLE , THE CHAIR OF 10
THE LOCAL COMMISSION SHALL DESIGNATE: 11

(I) A THIRD PANELIST FROM AMONG THE VOTING MEMBERS OF 12
THE LOCAL COMMISSION; AND 13

(II) THE CHAIR OF THE PANEL. 14

(B) A PANELIST MAY NOT HAVE AN INTEREST IN THE DISPUTE TO BE HEARD. 15

(C) A HEARING PANEL SHALL HOLD A HEARING ON EACH DISPUTE THAT IS 16
NOT RESOLVED THROUGH MEDIATION UNDER § 11C–111 OF THIS TITLE UNLESS THE 17
LOCAL COMMISSION DETERMINES THAT THE DISPUTE IS: 18

(1) IDENTICAL TO ANOTHER DISPUTE BETWEEN THE SAME PARTIES 19
ON WHICH A HEARING HAS ALREADY BEEN HELD UNDER THIS SECTION; OR 20

(2) CLEARLY NOT WITHIN TH E JURISDICTION OF TH E LOCAL 21
COMMISSION. 22

(D) A LOCAL COMMISSION SHALL PROVIDE NOTICE OF A HEARING TO ALL 23
PARTIES NOT LESS THA N 30 DAYS BEFORE A HEARIN G, UNLESS THE LOCAL 24
COMMISSION DETERMINES THAT AN EXPEDITED HEARING IS NECESSARY, IN WHICH 25
CASE NOTICE SHALL BE PROVIDED TO ALL PART IES AT LEAST 15 DAYS BEFORE A 26
HEARING. 27

(E) A PARTY OR WITNESS MAY BE ADVISED BY COUNSEL AT A HEARING. 28

(F) IF A PARTY , AFTER PROPER NOTICE , DOES NOT APPEAR AT T HE 29
SCHEDULED HEARING, THE HEARING PANEL MAY ORDER ANY RELIEF FOR ANOTHER 30
PARTY THAT THE FACTS ON RECORD WARRANT. 31
18 SENATE BILL 981

(G) (1) THE HEARING PANEL SHA LL APPLY STATE AND COUNTY LAWS 1
AND ALL RELEVANT CASE LAW TO THE FACTS OF THE DISPUTE. 2

(2) A DECISION OF THE HEARING PANEL IS BINDING ON THE PARTIES. 3

(H) (1) A LOCAL COMMISSION MAY ENFORCE A DECISION O F THE 4
HEARING PANEL BY APPROPRIATE LEGAL ACTION. 5

(2) IN ADDITION TO ANY OT HER ENFORCEMENT ACTI ON, A LOCAL 6
COMMISSION MAY: 7

(I) FILE FOR INJUNCTIVE R ELIEF TO ENFORCE OR CORRECT 8
ANY VIOLATION OF THIS TITLE; AND 9

(II) FILE TO RECOVER DAMAG ES FOR A LOSS SUSTAI NED AS A 10
RESULT OF A VIOLATION OF THIS TITLE. 11

(I) A HEARING PANEL MAY AW ARD COSTS , INCLUDING REASONABLE 12
ATTORNEY’S FEES, TO ANY PARTY IF ANY OTHER PARTY: 13

(1) FILED OR MAINTAINED A FRIVOLOUS DISPUTE , OR FILED OR 14
MAINTAINED A DISPUTE IN BAD FAITH; 15

(2) REFUSED TO PARTICIPATE IN MEDIATION OF A DISPUTE; OR 16

(3) SUBSTANTIALLY DELAYED OR HINDERED THE DISP UTE 17
RESOLUTION PROCESS WITHOUT GOOD CAUSE. 18

(J) A HEARING PANEL MAY REQUIRE A LOSING PARTY IN A DISPUTE TO PAY 19
ALL OR PART OF ANY FILING FEE. 20

(K) A LOCAL GOVERNMENT MAY: 21

(1) ESTABLISH ADDITIONAL HEARING PROCEDURES; AND 22

(2) ADOPT ADDITIONAL REQU IREMENTS RELATING TO WITNESSES 23
AND EVIDENCE FOR A HEARING. 24

11C–113. 25

(A) A PARTY MAY APPEAL A DECISION OF A HEARING PANEL TO A COURT OF 26
COMPETENT JURISDICTION. 27
SENATE BILL 981 19

(B) AN APPEAL OF A DECISI ON SHALL BE CONSOLID ATED WITH ANY CASE 1
THAT ARISES OUT OF THE SAME FACTS. 2

(C) THE COURT HEARING AN APPEAL SHALL SUSTAIN THE DECISION OF THE 3
HEARING PANEL UNLESS THE DECISION IS: 4

(1) INCONSISTENT WITH APPLICABLE LAW; 5

(2) LACKING SUBSTANTIAL EVIDENCE; OR 6

(3) ARBITRARY AND CAPRICIOUS. 7

11C–114. 8

(A) A PARTY MAY FILE A CIV IL ACTION ARISING OU T OF A GOVERNING 9
DOCUMENT OR A LAW RE GULATING THE POWERS OF A GOVERNING BODY OF A 10
COMMON OWNERSHIP COMMUNITY. 11

(B) IF THE COURT IS NOTIF IED THAT A DISPUTE H AS BEEN FILED WITH A 12
LOCAL COMMISSION IN ACCORDANCE WITH THIS TITLE, THE COURT MAY POSTPONE 13
A PROCEEDING FOR AT LEAST 90 DAYS. 14

(C) THE COURT MAY HEAR TH E ACTION DE NOVO IF A HEARING PANEL 15
ASSIGNED TO THE DISPUTE HAS NOT ISSUED A DECISION UNDER § 11C–112 OF THIS 16
TITLE. 17

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 18
1, 2026. 19