Maryland council expands unit owner rights for elections and financial transparency

House Bill 1534, introduced in Maryland on February 27, 2025, aims to enhance governance and transparency within condominium associations. The bill seeks to address issues related to the conduct of elections, the rights of unit owners, and the management of financial records.

One of the key provisions of House Bill 1534 is the protection it offers to unit owners designated to conduct elections. The bill states that these individuals will not be personally liable for actions taken in good faith during the election process. This measure is intended to encourage participation and ensure that elections are conducted fairly without the fear of personal repercussions.

Additionally, the bill mandates that governing bodies of condominium associations must make reasonable accommodations for unit owners to engage in organizing activities related to governance. This includes the use of common areas for such activities. Importantly, the bill prohibits governing bodies from retaliating against unit owners for exercising their rights as outlined in the law or governing documents.

House Bill 1534 also stipulates that any provisions in governing documents that conflict with the new requirements regarding elections will be deemed unenforceable. This aims to standardize election procedures across condominium associations in Maryland.

In terms of financial oversight, the bill requires that the council of unit owners maintain accurate records and allows unit owners to request an independent audit of the association's financial records if at least 5 percent of the unit owners agree. This audit must occur no more than once a year, and the costs will be shared as a common expense.

The introduction of House Bill 1534 has sparked discussions among stakeholders in the condominium community. Proponents argue that the bill will empower unit owners and promote transparency, while critics express concerns about the potential for increased administrative burdens on governing bodies.

As the bill progresses through the legislative process, its implications could significantly impact how condominium associations operate in Maryland, potentially leading to greater accountability and enhanced rights for unit owners. The next steps will involve committee reviews and discussions that will shape the final version of the bill.