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HB 85

Corporations and Associations - Cooperative Limited Equity Housing Corporations - Establishment

2026 Regular Session Introduced by Lorig Charkoudian

HB 85 creates a legal structure allowing Maryland residents to form cooperative housing corporations that preserve long-term affordability by limiting equity gains and permanent occupancy rights.

Approved by the Governor - Chapter 260
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Bill Summary · HB 85

Legislative bill overview

HB 85 establishes a legal framework for Cooperative Limited Equity Housing Corporations in Maryland, creating a new corporate structure specifically designed for cooperative housing models. This bill enables groups of residents to form and operate housing cooperatives where residents maintain permanent occupancy rights while limiting equity gains to preserve affordability across generations.

Why is this important

Housing affordability remains a critical challenge in Maryland, and cooperative housing models have proven effective in other states at keeping homeownership accessible to low and moderate-income residents. By codifying this structure into law, the bill removes legal barriers that currently make it difficult or impossible to establish these cooperatives in Maryland, potentially expanding permanent affordable housing options beyond traditional subsidies.

Potential points of contention

  • Property tax treatment: Unclear whether cooperative housing will receive the same property tax assessment and exemption treatment as traditional homeownership, which could affect affordability claims
  • Financing and lending: Banks may be reluctant to finance cooperative structures without established secondary market practices, limiting practical accessibility despite legal authorization
  • Resale price controls: The bill's mechanism for limiting equity gains could face opposition from property rights advocates who view restrictions on asset appreciation as overreach

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

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