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WES MOORE, Governor Ch. 260
Chapter 260
(House Bill 85)
AN ACT concerning
Corporations and Associations – Cooperative Limited Equity Housing
Corporations – Establishment
FOR the purpose of authorizing a Maryland nonstock corporation to convert to a
cooperative limited equity housing corporation and establishing certain procedures
and requirements for the conversion of a Maryland nonstock corporation to a
cooperative limited equity housing corporation; establishing the allocation of votes
in a cooperative limited equity housing corporation; requiring a cooperative limited
equity housing corporation to provide certain notice and an offer to certain
households under certain circumstances; requiring a cooperative limited equity
housing corporation to reimburse certain households for moving expenses;
restricting the appreciation and sale of a cooperative interest in a cooperative limited
equity housing corporation; requiring a certain membership composition for a
cooperative limited equity housing corporation; authorizing the Department of
Housing and Community Development to establish certain rights and requirements
for a cooperative limited equity housing corporation and its members and to provide
certain grants to promote the establishment of cooperative limited equity housing
corporations; prohibiting local governments from imposing certain restrictions on
cooperative limited equity housing corporations or the conversion of a Maryland
nonstock corporation to a cooperative limited equity housing corporation; and
generally relating to cooperative limited equity housing corporations and the
conversion of Maryland nonstock corporations.
BY repealing and reenacting, with amendments,
Article – Corporations and Associations
Section 5–207(a)
Annotated Code of Maryland
(2025 Replacement Volume)
BY adding to
Article – Corporations and Associations
Section 5–6D–01 through 5–6D–09 to be under the new subtitle “Subtitle 6D.
Cooperative Limited Equity Housing Corporations”
Annotated Code of Maryland
(2025 Replacement Volume)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Corporations and Associations
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Ch. 260 2026 LAWS OF MARYLAND
5–207.
(a) (1) A nonstock corporation may consolidate or merge only with:
(I) ANOTHER nonstock corporation; OR
(II) A COOPERATIVE LIMITED EQUITY HOUSING CORPORATION
UNDER SUBTITLE 6D OF THIS TITLE.
(2) A Maryland nonstock corporation may convert only into a foreign
corporation that does not have the authority to issue stock.
(3) A foreign corporation that does not have the authority to issue stock:
(i) May convert into a Maryland nonstock corporation; and
(ii) May not convert into [a]:
1. A Maryland corporation that has the authority to issue
stock; OR
2. A COOPERATIVE LIMITED EQUITY HOUSING
CORPORATION UNDER SUBTITLE 6D OF THIS TITLE.
SUBTITLE 6D. COOPERATIVE LIMITED EQUITY HOUSING CORPORATIONS.
5–6D–01.
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(B) “ARTICLES OF INCORPORATION” MEANS THE CHARTER BY WHICH A
COOPERATIVE LIMITED EQUITY HOUSING CORPORATION BECOMES INCORPORATED
UNDER THIS ARTICLE.
(C) “BYLAWS” MEANS THE DOCUMENT THAT DETAILS AND GOVERNS THE
INTERNAL ORGANIZATION AND OPERATION OF THE COOPERATIVE LIMITED EQUITY
HOUSING CORPORATION.
(D) “CONVERSION” MEANS THE TRANSITION OF A PROPERTY FROM A
RESIDENTIAL RENTAL FACILITY TO A PROPERTY OWNED BY A COOPERATIVE
LIMITED EQUITY HOUSING CORPORATION FOR USE BY THE COOPERATIVE LIMITED
EQUITY HOUSING CORPORATION, THE MEMBERS, AND THE HOUSEHOLDS OF THE
MEMBERS.
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WES MOORE, Governor Ch. 260
(E) “COOPERATIVE INTEREST” MEANS THE OWNERSHIP INTEREST IN A
COOPERATIVE LIMITED EQUITY HOUSING CORPORATION THAT IS COUPLED WITH A
POSSESSORY INTEREST IN REAL OR PERSONAL PROPERTY OWNED BY THE
COOPERATIVE LIMITED EQUITY HOUSING CORPORATION AND EVIDENCED BY A
MEMBERSHIP CERTIFICATE.
(F) “COOPERATIVE LIMITED EQUITY HOUSING CORPORATION” MEANS A
MARYLAND NONSTOCK CORPORATION QUALIFIED IN THE STATE, HAVING ONLY ONE
CLASS OF MEMBERSHIP, IN WHICH EACH MEMBER, BY VIRTUE OF THE MEMBER’S
MEMBERSHIP, HAS A COOPERATIVE INTEREST IN THE CORPORATION.
(G) “COOPERATIVE PROJECT” MEANS ALL THE REAL AND PERSONAL
PROPERTY IN THE STATE THAT IS OWNED OR LEASED BY A COOPERATIVE LIMITED
EQUITY HOUSING CORPORATION FOR THE PRIMARY PURPOSE OF RESIDENTIAL USE.
(H) “DISABLED PERSON” MEANS A PERSON WITH A MEASURABLE
LIMITATION OF MOBILITY DUE TO CONGENITAL DEFECT, DISEASE, OR TRAUMA.
(I) “LOW–INCOME HOUSEHOLD” MEANS A HOUSEHOLD WITH AN INCOME
THAT DOES NOT EXCEED 80% OF THE AREA MEDIAN INCOME FOR A HOUSEHOLD OF
THE SAME SIZE.
(J) “MEMBER” MEANS AN INDIVIDUAL WHO OR A HOUSEHOLD THAT OWNS
A COOPERATIVE INTEREST ON BEHALF OF A HOUSEHOLD.
(K) “MEMBERSHIP CERTIFICATE” MEANS:
(1) A DOCUMENT ISSUED BY A COOPERATIVE LIMITED EQUITY
HOUSING CORPORATION EVIDENCING OWNERSHIP OF A COOPERATIVE INTEREST;
OR
(2) IF THERE IS NO DOCUMENT THAT SATISFIES ITEM (1) OF THIS
SUBSECTION, AN OCCUPANCY AGREEMENT.
(L) “MODERATE–INCOME HOUSEHOLD” MEANS A HOUSEHOLD WITH AN
INCOME GREATER THAN 80% OF THE AREA MEDIAN INCOME FOR A HOUSEHOLD OF
THE SAME SIZE BUT THAT DOES NOT EXCEED 120% OF THE AREA MEDIAN INCOME
FOR A HOUSEHOLD OF THE SAME SIZE.
(M) “MOVING EXPENSES” MEANS COSTS INCURRED TO:
(1) HIRE CONTRACTORS, LABOR, TRUCKS, OR EQUIPMENT FOR THE
TRANSPORTATION OF PERSONAL PROPERTY;
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Ch. 260 2026 LAWS OF MARYLAND
(2) PACK AND UNPACK PERSONAL PROPERTY;
(3) DISCONNECT AND INSTALL PERSONAL PROPERTY;
(4) INSURE PERSONAL PROPERTY TO BE MOVED; AND
(5) DISCONNECT AND RECONNECT UTILITIES SUCH AS TELEPHONE
SERVICE, GAS, WATER, AND ELECTRICITY.
(N) (1) “OCCUPANCY AGREEMENT” MEANS AN AGREEMENT WITH THE
COOPERATIVE LIMITED EQUITY HOUSING CORPORATION UNDER WHICH A MEMBER
AND THE HOUSEHOLD OF A MEMBER HAS AN EXCLUSIVE POSSESSORY INTEREST IN
A UNIT AND A POSSESSORY INTEREST IN COMMON WITH OTHER MEMBERS IN THAT
PORTION OF A COOPERATIVE PROJECT NOT CONSTITUTING UNITS AND THAT
CREATES RESTRICTIONS AND OBLIGATIONS SIMILAR TO A LEGAL RELATIONSHIP OF
LANDLORD AND TENANT BETWEEN THE CORPORATION AND THE MEMBER,
RESPECTIVELY.
(2) “OCCUPANCY AGREEMENT” INCLUDES, IF THERE IS NO OTHER
DOCUMENT THAT SATISFIES PARAGRAPH (1) OF THIS SUBSECTION, A MEMBERSHIP
CERTIFICATE.
(O) “RESIDENTIAL RENTAL FACILITY” MEANS PROPERTY CONTAINING AT
LEAST FIVE DWELLING UNITS LEASED FOR RESIDENTIAL PURPOSES.
(P) “SENIOR CITIZEN” MEANS A PERSON WHO IS AT LEAST 62 YEARS OLD.
(Q) “SUBSCRIPTION AGREEMENT” MEANS A WRITTEN AGREEMENT IN
WHICH A PROSPECTIVE MEMBER SUBSCRIBES TO ACQUIRE A COOPERATIVE
INTEREST.
(Q) (R) “UNIT” MEANS A PORTION OF THE COOPERATIVE PROJECT
AVAILABLE FOR EXCLUSIVE OCCUPANCY BY A MEMBER AND THE HOUSEHOLD OF A
MEMBER UNDER AN OCCUPANCY AGREEMENT OR TO ANY PERSON THE MEMBER
RENTS THE PORTION TO.
5–6D–02.
A MARYLAND NONSTOCK CORPORATION MAY BE ORGANIZED FOR THE
PURPOSE OF CONVERTING TO A COOPERATIVE LIMITED EQUITY HOUSING
CORPORATION AFTER ACQUIRING OWNERSHIP OF A RESIDENTIAL RENTAL
FACILITY.
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WES MOORE, Governor Ch. 260
5–6D–03.
(A) ON ACQUIRING A RESIDENTIAL RENTAL FACILITY, A MARYLAND
NONSTOCK CORPORATION ORGANIZED FOR THE PURPOSE OF CONVERTING TO A
COOPERATIVE LIMITED EQUITY HOUSING CORPORATION SHALL HOLD A VOTE TO
CONVERT TO A COOPERATIVE LIMITED EQUITY HOUSING CORPORATION NOT LATER
THAN 60 DAYS AFTER DELIVERING NOTICE THAT:
(1) INFORMS THE MEMBERS OF THE DATE OF THE VOTE; AND
(2) PROVIDES THE MEMBERS WITH A COPY OF THE DOCUMENTS TO
BE SUBMITTED TO THE DEPARTMENT.
(B) (1) A VOTE TO CONVERT SHALL:
(I) CONSIST OF A QUORUM OF THE MAJORITY OF THE TOTAL
MEMBERSHIP; AND
(II) REQUIRE AN AFFIRMATIVE VOTE BY A MAJORITY OF THE
MEMBERS PRESENT.
(2) A VOTE UNDER THIS SUBSECTION SHALL BE CONDUCTED IN
ACCORDANCE WITH THE GOVERNING DOCUMENTS OF THE MARYLAND NONSTOCK
CORPORATION.
(C) (1) IF A MAJORITY OF THE MEMBERS OF THE MARYLAND NONSTOCK
CORPORATION PRESENT FOR THE VOTE ELECT TO CONVERT TO A COOPERATIVE
LIMITED EQUITY HOUSING CORPORATION, THE MARYLAND NONSTOCK
CORPORATION SHALL PREPARE AND SUBMIT TO THE DEPARTMENT THE REQUIRED
DOCUMENTS AND INFORMATION IN ACCORDANCE WITH § 5–6D–04 OF THIS
SUBTITLE.
(2) IF A VOTE TO CONVERT TO A COOPERATIVE LIMITED EQUITY
HOUSING CORPORATION UNDER SUBSECTION (B) OF THIS SECTION FAILS, THE
MARYLAND NONSTOCK CORPORATION MAY NOT ATTEMPT TO CONVERT TO A
COOPERATIVE LIMITED EQUITY HOUSING CORPORATION FOR AT LEAST 12 MONTHS
AFTER THE DATE OF THE FAILED VOTE.
5–6D–04.
(A) FOLLOWING AN AFFIRMATIVE VOTE TO CONVERT TO A COOPERATIVE
LIMITED EQUITY HOUSING CORPORATION, A MARYLAND NONSTOCK CORPORATION
SHALL:
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Ch. 260 2026 LAWS OF MARYLAND
(1) PREPARE AND SUBMIT TO THE DEPARTMENT THE FOLLOWING
DOCUMENTS AND INFORMATION FOR THE ESTABLISHMENT OF A COOPERATIVE
LIMITED EQUITY HOUSING CORPORATION:
(I) ARTICLES OF INCORPORATION, INCLUDING:
1. THE NAME AND LOCATION OF THE COOPERATIVE
LIMITED EQUITY HOUSING CORPORATION; AND
2. A STATEMENT OF THE PURPOSES OF THE
COOPERATIVE LIMITED EQUITY HOUSING CORPORATION; AND
(II) ANY OTHER DOCUMENTS OR INFORMATION REQUIRED BY
THE DEPARTMENT; AND
(2) MAINTAIN:
(I) THE NAME AND ADDRESS OF EACH MEMBER OF THE
MARYLAND NONSTOCK CORPORATION;
(II) A DISCLOSURE STATEMENT, INCLUDING:
1. THE DATE ON WHICH THE AFFIRMATIVE VOTE TO
CONVERT TO A COOPERATIVE LIMITED EQUITY HOUSING CORPORATION TOOK
PLACE;
2. A STATEMENT OF THE FORM OF OWNERSHIP OF ALL
REAL AND PERSONAL PROPERTY THAT IS INTENDED TO BE OWNED OR LEASED BY
THE COOPERATIVE LIMITED EQUITY HOUSING CORPORATION;
3. A STATEMENT OF THE PROJECTED COMPLETION
DATES FOR ANY PROPOSED IMPROVEMENTS;
4. A STATEMENT OF THE PROJECTED DATE OF
FORMATION FOR THE COOPERATIVE LIMITED EQUITY HOUSING CORPORATION;
5. A DESCRIPTION OF THE VOTING AND OTHER RIGHTS
IN THE COOPERATIVE LIMITED EQUITY HOUSING CORPORATION;
6. A STATEMENT OF ANY FEES REQUIRED BY THE
COOPERATIVE LIMITED EQUITY HOUSING CORPORATION IN CONNECTION WITH THE
TRANSFER OF MEMBERSHIP OR ISSUANCE OF AN OCCUPANCY AGREEMENT;
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WES MOORE, Governor Ch. 260
7. A STATEMENT OF THE KNOWN OR ANTICIPATED
COMMON CHARGES THAT MAY BE IMPOSED ON MEMBERS;
8. A STATEMENT OF THE OWNERSHIP INTEREST
ASSOCIATED WITH EACH UNIT AND THE UNDERLYING DEBT RESPONSIBILITY
ASSOCIATED WITH EACH UNIT ON A PRO RATA BASIS, IF APPLICABLE;
9. A STATEMENT AS TO WHETHER THE COOPERATIVE
LIMITED EQUITY HOUSING CORPORATION HAS OR WILL OBTAIN INSURANCE
COVERAGE FOR CASUALTY, PROPERTY DAMAGE, AND PUBLIC LIABILITY AND IN
WHAT AMOUNTS;
10. A STATEMENT OF ALL WARRANTIES AND
DISCLAIMERS MADE DURING THE PURCHASE OF THE RESIDENTIAL RENTAL
FACILITY BY THE MARYLAND NONSTOCK CORPORATION; AND
11. COPIES OF THE PROPOSED OR FINAL:
A. CONTRACT OF SALE FOR THE RESIDENTIAL RENTAL
FACILITY THAT IS THE SUBJECT OF THE REAL PROPERTY OF THE COOPERATIVE
LIMITED EQUITY HOUSING CORPORATION;
B. MEMBERSHIP CERTIFICATE;
C. OCCUPANCY AGREEMENT;
D. RULES, IF ANY;
E. LEASE, OTHER THAN THE OCCUPANCY AGREEMENT,
TO A THIRD PARTY OF REAL OR PERSONAL PROPERTY TO WHICH THE COOPERATIVE
LIMITED EQUITY HOUSING CORPORATION IS A PARTY; AND
F. IF APPLICABLE, WRITTEN NOTICE TO AFFECTED
HOUSEHOLDS THAT MAY BE REQUIRED UNDER § 5–6D–05 OF THIS SUBTITLE;
(III) AN ANNUAL OPERATING BUDGET, INCLUDING INSURANCE,
MAINTENANCE, RESERVES, AND GENERAL EXPENSES;
(IV) BYLAWS; AND
(V) A SUBSCRIPTION AGREEMENT.
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Ch. 260 2026 LAWS OF MARYLAND
(B) STATEMENTS REQUIRED UNDER THIS SECTION MAY BE SUMMARIZED OR
PRODUCED IN A COLLECTION OF DOCUMENTS THAT EFFECTIVELY CONVEYS THE
REQUIRED INFORMATION.
(C) WITHIN 30 DAYS AFTER RECEIPT OF DOCUMENTS AND INFORMATION
PROVIDED BY A MARYLAND NONSTOCK CORPORATION IN ACCORDANCE WITH THIS
SECTION, THE DEPARTMENT SHALL:
(1) ACCEPT THE DOCUMENTS FOR RECORD; OR
(2) IF THE DOCUMENTS AND INFORMATION DO NOT MEET THE
REQUIREMENTS OF THIS SECTION AND ANY ADDITIONAL REQUIREMENTS
ESTABLISHED BY THE DEPARTMENT, DENY THE DOCUMENTS FOR RECORD AND
NOTIFY THE MARYLAND NONSTOCK CORPORATION OF THE BASIS FOR THE DENIAL.
(D) (1) (I) ON ACCEPTANCE OF THE DOCUMENTS FOR RECORD BY THE
DEPARTMENT UNDER SUBSECTION (C)(1) OF THIS SECTION, THE MARYLAND
NONSTOCK CORPORATION SHALL BE CONVERTED TO A COOPERATIVE LIMITED
EQUITY HOUSING CORPORATION.
(II) ONCE A MARYLAND NONSTOCK CORPORATION IS
CONVERTED TO A COOPERATIVE LIMITED EQUITY HOUSING CORPORATION, VOTES
SHALL BE ASSIGNED SO THAT EACH UNIT OCCUPIED BY A MEMBER HAS ONE VOTE.
(2) ON RECEIPT OF A DENIAL UNDER SUBSECTION (C)(2) OF THIS
SECTION, THE MARYLAND NONSTOCK CORPORATION MAY RESUBMIT THE
DOCUMENTS AND INFORMATION IN ORDER TO MEET THE REQUIREMENTS OF THIS
SECTION.
5–6D–05.
(A) (1) AFTER A MARYLAND NONSTOCK CORPORATION IS CONVERTED
TO A COOPERATIVE LIMITED EQUITY HOUSING CORPORATION, THE COOPERATIVE
LIMITED EQUITY HOUSING CORPORATION SHALL:
(I) PROMPTLY PROVIDE ALL HOUSEHOLDS IN THE
RESIDENTIAL RENTAL FACILITY WITH WRITTEN NOTICE OF THE CONVERSION AND
THE REQUIREMENTS TO VACATE UNDER THIS SECTION; AND
(II) OFFER THE OPPORTUNITY TO ACQUIRE A COOPERATIVE
INTEREST AND BECOME A MEMBER OF THE COOPERATIVE LIMITED EQUITY
HOUSING CORPORATION TO EACH HOUSEHOLD THAT HAS LAWFULLY RESIDED IN
THE RESIDENTIAL RENTAL FACILITY:
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WES MOORE, Governor Ch. 260
1. ON THE DATE OF THE CONVERSION; AND
2. FOR AT LEAST 180 DAYS PRIOR TO THE DATE OF THE
CONVERSION.
(2) IF AN ELIGIBLE HOUSEHOLD FAILS TO ACCEPT THE OFFER UNDER
PARAGRAPH (1)(II) OF THIS SUBSECTION WITHIN 89 DAYS OF RECEIPT, THE OFFER
SHALL BE DEEMED TO HAVE BEEN REJECTED.
(B) EXCEPT AS PROVIDED IN SUBSECTIONS (C) AND (D) OF THIS SECTION, A
COOPERATIVE LIMITED EQUITY HOUSING CORPORATION MAY REQUIRE A
HOUSEHOLD TO VACATE A UNIT AS FOLLOWS:
(1) FOR HOUSEHOLDS THAT ARE NOT ELIGIBLE TO RECEIVE AN
OFFER TO ACQUIRE A COOPERATIVE INTEREST IN ACCORDANCE WITH SUBSECTION
(A)(1)(II) OF THIS SECTION, NOT EARLIER THAN 90 DAYS AFTER RECEIPT OF A
WRITTEN NOTICE TO VACATE; OR
(2) FOR ELIGIBLE HOUSEHOLDS THAT RECEIVE AND REJECT AN
OFFER TO ACQUIRE A COOPERATIVE INTEREST IN ACCORDANCE WITH SUBSECTION
(A)(1)(II) OF THIS SECTION, NOT EARLIER THAN 90 DAYS AFTER RECEIPT OF THE
OFFER AND A WRITTEN NOTICE TO VACATE.
(C) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, A
HOUSEHOLD MAY NOT BE REQUIRED TO VACATE A UNIT EARLIER THAN 12 MONTHS
FOLLOWING THE RECEIPT OF A WRITTEN NOTICE TO VACATE IF, ON THE DATE THAT
THE NOTICE IS GIVEN:
(1) A MEMBER OF THE HOUSEHOLD IS A DISABLED PERSON OR A
SENIOR CITIZEN WHO HAS BEEN A MEMBER OF THE HOUSEHOLD FOR AT LEAST 12
MONTHS IMMEDIATELY PRECEDING RECEIPT OF THE NOTICE TO VACATE; AND
(2) THE HOUSEHOLD:
(I) IS A LOW–INCOME HOUSEHOLD;
(II) NOTIFIES THE COOPERATIVE LIMITED EQUITY HOUSING
CORPORATION OF THE INTENT TO REMAIN IN THE UNIT FOR A PERIOD OF MORE
THAN 90 DAYS; AND
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Ch. 260 2026 LAWS OF MARYLAND
(III) SUBMITS THE NOTICE UNDER ITEM (II) OF THIS ITEM TO
THE COOPERATIVE LIMITED EQUITY HOUSING CORPORATION WITHIN 30 DAYS
AFTER RECEIVING THE NOTICE TO VACATE.
(D) A HOUSEHOLD MAY BE REQUIRED TO VACATE THE PREMISES BEFORE
THE EXPIRATION OF ANY MINIMUM TIME PERIOD UNDER THIS SECTION IF THE
HOUSEHOLD:
(1) BREACHES A COVENANT IN THE LEASE OCCURRING BEFORE OR
AFTER THE NOTICE TO VACATE IS GIVEN; OR
(2) FAILS TO PAY RENT BEFORE OR AFTER THE NOTICE TO VACATE
HAS BEEN GIVEN.
(E) A LOW–INCOME HOUSEHOLD THAT IS REQUIRED TO VACATE A UNIT
UNDER THIS SECTION SHALL RECEIVE REIMBURSEMENT FROM THE COOPERATIVE
LIMITED EQUITY HOUSING CORPORATION FOR MOVING EXPENSES THAT:
(1) ARE ACTUALLY AND REASONABLY INCURRED; AND
(2) ARE AT LEAST $375 BUT LESS THAN $751.
5–6D–06.
(A) THE APPRECIATION AND RESALE OF A COOPERATIVE INTEREST MAY
NOT EXCEED THE COST PAID BY THE MEMBER FOR THE INITIAL COOPERATIVE
INTEREST, ADJUSTED FOR INFLATION PLUS THE COST OF IMPROVEMENTS TO THE
COOPERATIVE INTEREST MADE BY THE MEMBER THAT WERE APPROVED IN
ADVANCE BY THE COOPERATIVE LIMITED EQUITY HOUSING CORPORATION.
(B) A COOPERATIVE INTEREST MAY BE SOLD ONLY TO AN INDIVIDUAL OR
INDIVIDUALS WHO ARE IN:
(1) A LOW–INCOME HOUSEHOLD;
(2) A MODERATE–INCOME HOUSEHOLD; OR
(3) AN ELIGIBLE HOUSEHOLD THAT RECEIVES AND ACCEPTS AN
OFFER TO ACQUIRE A COOPERATIVE INTEREST IN ACCORDANCE WITH §
5–6D–05(A)(1)(II) OF THIS SUBTITLE.
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WES MOORE, Governor Ch. 260
(C) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, A
COOPERATIVE LIMITED EQUITY HOUSING CORPORATION SHALL HAVE THE
FOLLOWING MEMBERSHIP COMPOSITION:
(I) AT LEAST 75% OF THE MEMBERS SHALL BE IN A
LOW–INCOME HOUSEHOLD; AND
(II) ALL OTHER MEMBERS WHO ARE NOT IN A LOW–INCOME
HOUSEHOLD SHALL BE IN A MEDIUM–INCOME MODERATE–INCOME HOUSEHOLD.
(2) THE MEMBERSHIP COMPOSITION REQUIRED UNDER PARAGRAPH
(1) OF THIS SUBSECTION DOES NOT INCLUDE HOUSEHOLDS THAT ACQUIRE A
COOPERATIVE INTEREST FOLLOWING AN OFFER UNDER § 5–6D–05(A)(1)(II) OF THIS
SUBTITLE.
5–6D–07.
(A) THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT MAY:
(1) TO THE EXTENT APPLICABLE TO AND NOT INCONSISTENT WITH
THIS SUBTITLE, USING A STANDARDIZED METHODOLOGY, ESTABLISH ADDITIONAL
RIGHTS AND REQUIREMENTS FOR A COOPERATIVE LIMITED EQUITY HOUSING
CORPORATION AND ITS MEMBERS BASED ON AN INDIVIDUALIZED ASSESSMENT OF
THE COOPERATIVE;
(2) BASE A DETERMINATION UNDER ITEM (1) OF THIS SUBSECTION
ON THE RIGHTS AND REQUIREMENTS FOR COOPERATIVE HOUSING CORPORATIONS
AND THEIR MEMBERS UNDER SUBTITLE 6B OF THIS TITLE; AND
(3) ESTABLISH A PROGRAM TO PROVIDE GRANTS TO MARYLAND
NONSTOCK CORPORATIONS TO PROMOTE THE ESTABLISHMENT OF COOPERATIVE
LIMITED EQUITY HOUSING CORPORATIONS.
(B) THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
SHALL ADOPT REGULATIONS TO CARRY OUT THIS SECTION.
5–6D–08.
(A) A COUNTY OR MUNICIPALITY MAY NOT IMPOSE RESTRICTIONS ON A
COOPERATIVE LIMITED EQUITY HOUSING CORPORATION OR THE CONVERSION OF A
MARYLAND NONSTOCK CORPORATION TO A COOPERATIVE LIMITED EQUITY
HOUSING CORPORATION.
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Ch. 260 2026 LAWS OF MARYLAND
(A) (1) ALL LAWS, ORDINANCES, AND REGULATIONS CONCERNING
BUILDING CODES OR ZONING SHALL:
(I) HAVE FULL FORCE AND EFFECT TO THE EXTENT THAT THEY
APPLY TO PROPERTY THAT IS SUBJECT TO A COOPERATIVE LIMITED EQUITY
HOUSING CORPORATION REGIME; AND
(II) BE CONSTRUED AND APPLIED WITH REFERENCE TO THE
OVERALL NATURE AND USE OF THE PROPERTY WITHOUT REGARD TO THE FORM OF
OWNERSHIP.
(2) A LAW, AN ORDINANCE, OR A REGULATION CONCERNING
BUILDING CODES OR ZONING MAY NOT ESTABLISH ANY REQUIREMENT OR
STANDARD GOVERNING THE USE, LOCATION, PLACEMENT, OR CONSTRUCTION OF
ANY LAND AND IMPROVEMENTS THAT ARE SUBJECT TO THE PROVISIONS OF THIS
TITLE, UNLESS THE REQUIREMENT OR STANDARD IS UNIFORMLY APPLICABLE TO
ALL LAND AND IMPROVEMENTS OF THE SAME KIND OR CHARACTER NOT SUBJECT
TO THE PROVISIONS OF THIS TITLE.
(B) (1) EXCEPT AS OTHERWISE PROVIDED IN THIS TITLE, A COUNTY,
CITY, OR OTHER JURISDICTION MAY NOT ENACT ANY LAW, ORDINANCE, OR
REGULATION THAT WOULD IMPOSE A BURDEN OR RESTRICTION ON A COOPERATIVE
LIMITED EQUITY HOUSING CORPORATION THAT IS NOT IMPOSED ON ALL OTHER
PROPERTY OF SIMILAR CHARACTER THAT IS NOT SUBJECTED TO A COOPERATIVE
LIMITED EQUITY HOUSING CORPORATION REGIME.
(2) A LAW, AN ORDINANCE, OR A REGULATION DESCRIBED UNDER
PARAGRAPH (1) OF THIS SUBSECTION IS VOID AND UNENFORCEABLE.
(3) (I) EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS
TITLE, THE PROVISIONS OF THIS TITLE APPLY TO THE ENTIRE STATE.
(II) ANY LAW, ORDINANCE, OR REGULATION ENACTED BY A
COUNTY, CITY, OR OTHER JURISDICTION THAT IS INCONSISTENT WITH THIS TITLE IS
PREEMPTED BY THIS TITLE.
(B) (C) THE PROHIBITION IN SUBSECTION (A) OF THIS SECTION
INCLUDES REQUIREMENTS THROUGH LOCAL LAW OR ORDINANCE THAT RESTRICT
THE SALE OF RESIDENTIAL RENTAL FACILITIES TO A MARYLAND NONSTOCK
CORPORATION THAT PLANS TO CONVERT TO A COOPERATIVE LIMITED EQUITY
HOUSING CORPORATION.
5–6D–09.
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WES MOORE, Governor Ch. 260
THE DEPARTMENT SHALL ADOPT REGULATIONS TO CARRY OUT THIS
SUBTITLE AND ENSURE THE EFFECTIVE FUNCTIONING OF COOPERATIVE LIMITED
EQUITY HOUSING CORPORATIONS.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2027 2026.
Approved by the Governor, April 28, 2026.
– 13 –Every fact on this page links to its source, starting with the official bill record.