Bill > HB85

This bill establishes "Cooperative Limited Equity Housing Corporations" (CLEHCs) in Maryland, which are nonstock corporations designed to convert residential rental facilities into resident-owned housing. The bill outlines the process for a Maryland nonstock corporation to convert into a CLEHC, requiring a member vote and submission of specific documents to the Department of Housing and Community Development (DHCD). It defines key terms like "cooperative interest" (ownership in the corporation tied to a right to occupy a unit) and "occupancy agreement" (the contract allowing a member to live in a unit). The legislation also sets rules for offering membership to existing residents, including protections for low-income households, seniors, and disabled individuals, and limits the resale appreciation of cooperative interests to prevent speculation, ensuring that future sales are primarily to low or moderate-income households. The DHCD is empowered to create additional regulations and grant programs to support the establishment of these corporations, and local governments are prohibited from imposing restrictions on their formation or conversion.

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https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0085?ys=2026RS