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HB 402

Common Ownership Communities - Oversight, Governing Document Database, and Local Commissions

2026 Regular Session Introduced by Gabriel Acevero and 15 co-sponsors

Maryland establishes HOA ombudsman office, governing document database, and local commissions to increase transparency and protect common ownership community residents from governing board misconduct.

Hearing 4/02 at 1:00 p.m.
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Bill Summary · HB 402

Legislative bill overview

HB 402 establishes three new regulatory mechanisms for common ownership communities (HOAs, condominiums) in Maryland: a dedicated ombudsman unit to handle resident complaints, a statewide database of governing documents, and local commissions to oversee community governance. The bill aims to improve transparency, accountability, and resident protections in these communities that collectively govern hundreds of thousands of Marylanders.

Why is this important

Approximately 2 million Americans live in common ownership communities, and Maryland has a substantial HOA population with limited recourse when boards act unethically or without transparency. Currently, residents have few centralized resources to challenge abusive fees, discriminatory policies, or inaccessible governing documents. This bill directly addresses power imbalances between homeowners and community boards while creating infrastructure for oversight and dispute resolution.

Potential points of contention

  • Implementation costs and funding: Creating an ombudsman unit, maintaining a database, and establishing local commissions requires significant state funding and staffing, raising questions about budget allocation and whether costs might be passed to residents through HOA fees
  • HOA industry opposition: Community management companies and HOA boards may resist increased regulatory oversight, arguing it creates bureaucratic burden and infringes on their property management autonomy
  • Scope and enforcement authority: The bill's definition of what constitutes violations, the ombudsman's enforcement powers, and whether recommendations are binding versus advisory will determine practical effectiveness and generate debate about regulatory reach

Compiled from official sources — confirm details with the bill’s official record.

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