Baker, Donelson, Bearman, Caldwell & Berkowitz PC
08/13/2024 | News release | Archived content
New Law Permits Condominium Declarations To Be Amended By a Two-Thirds Vote
Senate Bill 665, which passed during the 2024 session of the Maryland General Assembly and has been signed into law by the Governor, reduces the percentage of unit owner votes needed to amend a condominium declaration from 80 percent to 66 2/3 percent. The new lower percentage applies only in the event that there are no units still owned by the condominium's developer. Where the developer continues to own any units, the 80 percent requirement still applies. The 80 percent requirement also will continue to apply to a corrective amendment under Section 11-103.1 of the Condominium Act. The new law amends Section 11-103(c) of the Condominium Act and will take effect on October 1, 2024. It retains all of the previous limitations on declaration amendments:
(i) Except to the extent expressly permitted or expressly required by other provisions of this title, an amendment to the declaration may not change the boundaries of any unit, the undivided percentage interest in the common elements of any unit, the liability for common expenses or rights to common profits of any unit, or the number of votes in the council of unit owners of any unit without the written consent of every unit owner and mortgagee.
(ii) An amendment to the declaration may not modify in any way rights expressly reserved for the benefit of the developer or provisions required by any governmental authority or for the benefit of any public utility.
(iii) Except to the extent expressly permitted by the declaration, an amendment to the declaration may not change residential units to nonresidential units or change nonresidential units to residential units without the written consent of every unit owner and mortgagee.
(iv) Except as otherwise expressly permitted by this title and by the declaration, an amendment to the declaration may not redesignate general common elements as limited common elements without the written consent of every unit owner and mortgagee.
(v) 1. Except as provided in subparagraph (vi) of this paragraph, if the declaration contains a provision requiring any action on the part of the holder of a mortgage or deed of trust on a unit in order to amend the declaration, that provision shall be deemed satisfied if the procedures under this subparagraph are satisfied.
2. If the declaration contains a provision described in subsubparagraph 1 of this subparagraph, the council of unit owners shall cause to be delivered to each holder of a mortgage or deed of trust entitled to notice a copy of the proposed amendment to the declaration.
3. If a holder of the mortgage or deed of trust that receives the proposed amendment fails to object, in writing, to the proposed amendment within 60 days after the date of actual receipt of the proposed amendment, the holder shall be deemed to have consented to the adoption of the amendment.
(vi) Subparagraph (v) of this paragraph does not apply to amendments that:
1. Alter the priority of the lien of the mortgage or deed of trust;
2. Materially impair or affect the unit as collateral; or
3. Materially impair or affect the right of the holder of the mortgage or deed of trust to exercise any rights under the mortgage, deed of trust, or applicable law.