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Bill

Bill

SB 651

Relating to the Secretary of State's business registry functions.

2025 Regular Session Introduced by Daniel Bonham and 2 co-sponsors

Allows Maryland counties to adopt local good-cause eviction rules for landlords with 6+ units, limiting nonrenewals and holdover evictions to enumerated grounds.

In committee upon adjournment.
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Bill Summary · SB 651

Summary — SB 651 (Landlord & Tenant — Local Good‑Cause Termination / “Good Cause Eviction”)

Status / Source
- Maryland Senate Bill 651 (Judicial Proceedings), introduced Jan 25, 2025. Fiscal and policy note prepared by Department of Legislative Services. Hearing noted 2/18.
- This bill authorizes (does not mandate) counties to enact local laws or ordinances establishing a “good cause” requirement before a landlord may decline to renew a lease or terminate a holdover tenancy.

Purpose / intent
- To give counties the option to limit a landlord’s ability to refuse lease renewal or terminate a holdover tenancy absent specified “good cause” — protecting tenants from non‑renewals or evictions for reasons other than enumerated grounds.

Who may adopt / who it applies to
- Counties may adopt local good‑cause ordinances consistent with the bill.
- Local ordinances created under this law must apply only to landlords who own six or more residential rental units in Maryland (including units owned directly or indirectly through entities), but not to owner‑occupied rental units. Certain passive, noncontrolling investments (e.g., minority interests in public companies) are excluded from counting as an “interest.”

Key required elements of a local ordinance
- The ordinance may only apply to landlords with ≥6 units (statewide counting rule).
- It must require landlords to enforce lease terms consistently among tenants (so that “substantial breach” cannot be selectively asserted).
- It may not add additional or different “good cause” grounds beyond the list specified in the bill.

Enumerated “good cause” grounds (local ordinance must treat these as good cause)
- Tenant committed a substantial lease breach or caused substantial property damage and, after notice to cure or pay the reasonable cost of repair, fails to comply within 14 days.
- Routine disorderly conduct disturbing other tenants.
- Illegal activity on the premises (or adjoining public right‑of‑way).
- Unreasonable refusal to grant landlord access for repairs, inspections, or authorized purposes.
- A holdover tenant refuses a landlord’s offer of a new lease (term at least one month, up to prior lease length) within one month of the offer (or other period established by law).
- Repeated minor lease violations that disrupt livability, property management, or have adverse financial impact.
- Habitual late rent: tenant notified in writing that rent was >10 days late at least four times in a 12‑month period.
- Landlord in good faith seeking possession for landlord/family use.
- Landlord seeking to do large repairs/renovations that cannot be completed while occupied (after obtaining permits).
- Landlord seeking to remove the unit from the rental market for at least one year.

Lease & notice / disclosure requirements
- In counties that adopt a local ordinance, leases and renewals must state whether the landlord is subject to the county’s good‑cause rules.
- If the landlord asserts they are not subject, the landlord must provide a disclosure form (developed by the Office of Tenant & Landlord Affairs, OTLA) listing full legal names and business names of owners/entities with direct or indirect interests, the number and addresses of rental units owned statewide by those entities, and other OTLA‑required information. OTLA will publish the form and may adopt implementing regulations.
- If a landlord later becomes subject to a local good‑cause law, the landlord must timely notify all applicable tenants (including holdovers).

Court pleading and enforcement mechanics
- A landlord’s complaint in a tenant holding‑over action must state the good cause for nonrenewal/termination or affirm they are not subject to local good‑cause requirements. Landlords must plead sufficient facts to prove the asserted ground by a preponderance of the evidence.
- If claiming an exemption from local good‑cause rules, the landlord must attach the current disclosure form and a certifying affidavit; failure to provide those documents in the action subjects the landlord to the local good‑cause requirements for that action.
- The bill does not otherwise alter landlords’ rights to seek relief under existing landlord‑tenant law except for the additional local good‑cause constraints when applicable.

Fiscal & administrative impact
- State: minimal; OTLA can develop forms and manage disclosures with existing resources.
- Local governments: not anticipated to have direct, material fiscal effect.
- Small businesses / landlords: potential meaningful effects for landlords owning ≥6 units in counties that enact local ordinances (limits on nonrenewal/eviction, additional disclosure obligations).
- Courts / enforcement: possible added litigation or evidentiary burden in holding‑over actions where local rules apply.

Operational / timeline notes
- The bill is an enabling statute—counties must affirmatively adopt local laws or ordinances for the good‑cause rules to take effect locally. OTLA must prepare required disclosure/notice forms and may adopt implementing regulations.

Implications in brief
- If a county adopts an ordinance under SB 651, many multi‑unit landlords (six or more units statewide) will face new limits on refusing lease renewals or terminating holdover tenancies except for specific, enumerated reasons; tenants in those counties would gain an additional layer of protection against nonrenewal/eviction for non‑enumerated reasons.

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

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