Collections - Local Bank Option for Condo/HOA Payments

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CITIZEN-DRAFTED BILL CB-45-621 
 
Requested: March 1, 2026 
Suggested assignment to: Economic Matters 
 
AN ACT concerning 
 
Common ownership – Financial management 
FOR the purpose of consumer protection and minimizing predatory practices in late fee handling and processing in order to 
keep homeowners in a manipulated debt trap out of retaliation.   
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 
11-110 
    (b)    (1)    (i)    Funds  for  the  payment  of  current  common  expenses  and  for  the  creation  of 
reserves for the payment of future common expenses shall be obtained by assessments against 
the  unit  owners  in  proportion  to  their  percentage  interests  in  common  expenses  and  common 
profits. 
 
            (ii)    The  board  of  directors OR  THE  COUNCIL  OF  UNIT  OWNERS of  a  residential 
condominium has the authority to increase the assessment levied to cover the reserve funding 
amount required under § 11–109.4 of this title, notwithstanding any provision of the declaration, 
articles of incorporation, or bylaws restricting assessment increases or capping the assessment 
that may be levied in a fiscal year. 
(iii) FOR THE PURPOSE OF DIRECT COLLECTIONS OF FEES FROM DELINQUENT 
OR PROPERLY FINED OR ASSESSED UNIT OWNERS, OR FOR OTHER GENERAL 
RECEIPTS FROM UNIT OWNERS, THE GOVERNING BODY OF A CONDOMINIUM SHALL 
MAINTAIN A BANK ACCOUNT AT A LOCAL BANK THAT IS AMONG THE NEAREST FIVE 
BANKS TO THE LOCATION OF THE CONDOMINIUM REAL PROPERTY.   
 
 
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2026.