CB-19-606 Common ownership – Financial management

Where it stands

Full text

CITIZEN-DRAFTED BILL CB-606 
 
Requested: September 7, 2025 
Suggested assignment to: Economic Matters 
 
AN ACT concerning 
 
Common ownership – Financial management 
FOR the purpose of consumer protection and minimizing the potential hidden costs to home ownership arising from 
falsified or hidden calculations of debts, insular procurement or monopolies, use of association funds for personal causes, 
resources paid for by homeowners but diverted from their use or benefit for the profit of others connected to directors and 
managers, improper use of funds other than embezzlement, and other predatory abuses. 
 
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING 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. 
Bold indicates matters for general awareness, usually existing law that provides key context for the bill.   
 
 
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as 
follows: 
 
Article – Real Property 
11-109.2 
 (h) A GOVERNING BODY SHALL NOT BUDGET OR EXPEND ASSOCIATION FUNDS FOR: 
(1) A DEFAMATION LAWSUIT AGAINST A UNIT OWNER; 
(2)  MEALS OR ENTERTAINMENT,  UNLESS  ALL  UNIT  OWNERS  HAVE  ACCESS TO THE  MEAL  AND 
EVENT THEM; OR 
(3) BONUS TO MANAGEMENT OR STAFF IN EXCESS OF $100 $500 IN A FISCAL YEAR, UNLESS THE 
BONUS IS APPROVED BY THE COUNCIL OF UNIT OWNERS 
 
11-110 
(e)(1)    Any assessment, or installment thereof, not paid when due shall bear interest, at the option of the 
council of unit owners, from the date when due until paid at the rate provided in the bylaws, not exceeding 
18 percent per annum, and if no rate is provided, then at 18 percent per annum.  UPON REQUEST, ANY 
NOTICE  OF  INTEREST  DUE  MUST  CLEARLY  SHOW THE  PERCENTAGE  AND  DAYS  OF  INTEREST  CHARGED 
WHICH WERE AND JUSTIFY THE MATH USED TO CALCULATE THE INTEREST DUE.   
 

11-113 
(a)     Unless the declaration or bylaws  state otherwise,  the dispute settlement mechanism provided by 
this section is applicable to complaints or demands formally arising on or after October 1, 2022. 
(b)  (1)    The council of unit owners or board of directors may not impose a fine, suspend voting, or 
infringe upon any other rights of a unit owner or other occupant for violations of rules until the procedures 
in this subsection are followed.  THIS SECTION IS APPLICABLE ONLY TO ALLEGED VIOLATIONS OF RULES 
PROPERLY PASSED AND RECORDED UNDER SECTION 11-111 OF THIS TITLE OR APPEARING IN A PROPERLY 
PASSED GOVERNING  DOCUMENT  ON  FILE  IN  THE  COUNTY  LAND  RECORDS.   ALL  OTHER ALLEGED 
VIOLATIONS ARE UNENFORCEABLE AND VOID.   
(2)        A  written  demand  to  cease  and  desist  from  an  alleged  violation  shall  be  provided  to  the 
alleged violator specifying: 
(i)    The alleged violation, CITING THE GOVERNING DOCUMENT AND APPLICABLE PAGE, 
PARAGRAPH,  RULE  NUMBER,  OR  BYLAW  NUMBER, AND  EXCERPTING  THE  RELEVANT 
LANGUAGE; 
  (ii)    The action required to abate the violation; [and] 
(iii)        A  time  period,  not  less  than  15  days,  during  which  the  violation  may  be  abated 
without  further  sanction,  if  the  violation  is  a  continuing  one,  or  a  statement  that  any 
further violation of the same rule may result in the imposition of sanction after notice and 
opportunity for hearing if the violation is not continuing; AND 
(iv) A STATEMENT THAT “CONSUMERS ARE ADVISED TO REVIEW SECTIONS 11-110, 11-
113, AND 14-201 THROUGH 14-206 OF THE MARYLAND REAL PROPERTY ARTICLE.” 
 
11-116 
(a)    The council of unit owners shall keep books and records in accordance with good accounting practices 
on a consistent basis.  ALL INVOICES SHALL BE ORGANIZED AT LEAST BY VENDOR NAME TO FACILITATE 
INSPECTION AND INVESTIGATION.   
 
11B-112.2 
 (h) A GOVERNING BODY SHALL NOT BUDGET OR EXPEND ASSOCIATION FUNDS FOR: 
(1) A DEFAMATION LAWSUIT AGAINST A LOT OWNER; 
(2)  MEALS OR  ENTERTAINMENT,  UNLESS  ALL  LOT OWNERS  HAVE  ACCESS  TO THE  MEAL  AND 
EVENT THEM; OR 
(3) BONUS TO MANAGEMENT OR STAFF IN EXCESS OF $100 $500 IN A FISCAL YEAR, UNLESS THE 
BONUS IS APPROVED BY THE MEMBERSHIP OF THE HOMEOWNER ASSOCIATION 
 
11B-111.10 
(a)     Unless the declaration or bylaws  state otherwise,  the dispute settlement mechanism provided by 
this section is applicable to complaints or demands formally arising on or after October 1, 2022. 

(b) (1)        The  board  of  directors or  other governing  body  of  the  homeowners association may  not 
impose  a  fine,  suspend  voting,  or  infringe  on  any  other  right of  a  lot  owner or  any  other  occupant  for 
violations of rules until the procedures in this subsection are followed.  THIS SECTION IS APPLICABLE ONLY 
TO  ALLEGED  VIOLATIONS  OF  RULES, INCLUDING  VIOLATIONS  OF IN A PROPERLY  PASSED GOVERNING 
DOCUMENT   ON   FILE   IN   THE   COUNTY   LAND   RECORDS.    ALL   OTHER ALLEGED VIOLATIONS   ARE 
UNENFORCEABLE AND VOID.   
(2)        A  written  demand  to  cease  and  desist  from  an  alleged  violation  shall  be  provided  to  the 
alleged violator specifying: 
(i)        The  nature  of  the  alleged  violation, CITING  THE  GOVERNING  DOCUMENT  AND 
APPLICABLE PAGE, PARAGRAPH, RULE NUMBER, OR BYLAW NUMBER, AND EXCERPTING 
THE RELEVANT LANGUAGE; 
   (ii)    The action required to abate the violation; [and] 
(iii)    A period of time, not less than 15 days, during which the violation may be abated 
without further sanction, if the violation is a continuing violation, or a statement that any 
further violation of the same rule may result in the imposition of sanction after notice and 
opportunity for hearing if the violation is not continuing; AND 
(iv)  A  STATEMENT THAT “CONSUMERS ARE ADVISED TO REVIEW SECTIONS 11B-111.10 
AND 14-201 THROUGH 14-206 OF THE MARYLAND REAL PROPERTY ARTICLE.” 
11B-112 
(a)    (1)     (i)    Subject to the provisions of paragraph (2) of this subsection, all books and records 
kept by or on behalf of the homeowners association shall be made available for examination or copying, 
or both, by a lot owner, a lot owner’s mortgagee, or their respective duly authorized agents or attorneys, 
during normal business hours, and after reasonable notice.   
(ii) ALL  INVOICES  SHALL  BE  ORGANIZED  AT  LEAST  BY  VENDOR  NAME  TO  FACILITATE 
INSPECTION AND INVESTIGATION.   
 
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2026.