All Roll Calls
Yes: 138 • No: 41
MarylandHB 00852026 Regular SessionHouseWALLET
Corporations and Associations - Cooperative Limited Equity Housing Corporations - Establishment
Sponsored By: Lorig Charkoudian (Democratic)
Signed by Governor
Corporations and AssociationsReal PropertyAssociations -see also- Cooperative AssociationsBuilding CodesCooperative AssociationsCorporations -see also- Municipal Corps; Public Corps & InstDisclosureElderly Persons (65+) -see also- Elder Abuse and NeglectGrantsHousing and Community Development, Department ofLaws and Ordinances -see also- Pub Local Laws; Uniform LawsLeases and RentLow-IncomeModerate-IncomeNoticesPenalties and Sentences -see also- Death PenaltyReal Estate -see also- Agents and BrokersReimbursementsRules and RegulationsVoting -see also- Absentee and Mail-In VotingZoning and Planning
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 3 benefits, 0 costs, 1 mixed.
Tenant offers and moving-cost help
Beginning October 1, 2026, the co‑op must offer households who lived there on conversion day and for at least 180 days before the chance to buy a member interest. You have 89 days to accept. If you must leave, you get at least 90 days’ notice. Low‑income seniors or disabled households that give timely notice can stay up to 12 months. Earlier move‑out still applies for lease breaches or nonpayment. If a low‑income household is required to move, the co‑op must repay actual, reasonable moving costs from $375 up to $750.
New resident co-op ownership path
Beginning October 1, 2026, Maryland creates a new limited‑equity housing co‑op (CLEHC) for rental homes. A Maryland nonstock company that buys a rental building can form to convert to a CLEHC. After giving notice, it must hold a conversion vote within 60 days; a majority is a quorum, and a majority of those present must vote yes. If the vote fails, there is a 12‑month waiting period before trying again. After a yes vote, the company must send articles, bylaws, a budget, and a full disclosure (fees, common charges, debt shares, insurance, warranties, and proposed contracts) to the Housing Department. The Department must accept or deny within 30 days; if accepted, the conversion takes effect and each member‑occupied unit gets one vote. Nonstock firms may merge only with other nonstock firms or a CLEHC, and conversion paths are limited to similar nonstock entities.
State rules, grants, and local preemption
Beginning October 1, 2026, counties and cities cannot add special rules that target CLEHCs or block conversions. Local laws that do so are void, and building and zoning rules must look at how the property is used, not its ownership form. The Housing Department can set detailed rules for CLEHCs using standard methods and can run a grant program to help start them, subject to available funding.
Resale caps keep co-op homes affordable
Beginning October 1, 2026, the resale price of a co‑op interest is capped at your initial cost, adjusted for inflation, plus approved improvement costs. Buyers must be low‑ or moderate‑income or an eligible household from the conversion offers. At least 75% of co‑op members must be low‑income households.
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Sponsors & Cosponsors
Sponsor
Lorig Charkoudian
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 4/13/2026
Third Reading Passed
Yes: 35 • No: 8 • Other: 3
House vote • 2/26/2026
Third Reading Passed
Yes: 103 • No: 33
Actions Timeline
Approved by the Governor - Chapter 260
4/28/2026Returned Passed
4/13/2026HouseThird Reading Passed (35-8)
4/13/2026SenateSecond Reading Passed
4/9/2026SenateFavorable Adopted
4/9/2026SenateFavorable Report by Judicial Proceedings
4/9/2026SenateReferred Judicial Proceedings
2/27/2026SenateThird Reading Passed (103-33)
2/26/2026HouseSecond Reading Passed with Amendments
2/25/2026HouseFavorable with Amendments {833122/1 Adopted
2/25/2026HouseFavorable with Amendments Report by Economic Matters
2/24/2026HouseHearing 2/10 at 1:00 p.m.
1/19/2026HouseFirst Reading Economic Matters
1/14/2026HousePre-filed
9/17/2025House
Bill Text
Third Reading
2/25/2026
First Reading
1/14/2026
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