§ 5–6D-04
Statutes in effect as of October 1, 2026.
Md. Code Ann., Corps. & Ass'ns § 5-6D-04 (2026)
Title 5. Special Types of Corporations
Subtitle 6D. Cooperative Limited Equity Housing Corporations
§ 5–6D-04LinkCopy Citation
(a)
Following an affirmative vote to convert to a cooperative limited equity housing corporation, a Maryland nonstock corporation shall:
(1)
Prepare and submit to the Department the following documents and information for the establishment of a cooperative limited equity housing corporation:
(i)
Articles of incorporation, including:
(1)
The name and location of the cooperative limited equity housing corporation; and
(2)
A statement of the purposes of the cooperative limited equity housing corporation; and
(ii)
Any other documents or information required by the Department; and
(2)
Maintain:
(i)
The name and address of each member of the Maryland nonstock corporation;
(ii)
A disclosure statement, including:
(1)
The date on which the affirmative vote to convert to a cooperative limited equity housing corporation took place;
(2)
A statement of the form of ownership of all real and personal property that is intended to be owned or leased by the cooperative limited equity housing corporation;
(3)
A statement of the projected completion dates for any proposed improvements;
(4)
A statement of the projected date of formation for the cooperative limited equity housing corporation;
(5)
A description of the voting and other rights in the cooperative limited equity housing corporation;
(6)
A statement of any fees required by the cooperative limited equity housing corporation in connection with the transfer of membership or issuance of an occupancy agreement;
(7)
A statement of the known or anticipated common charges that may be imposed on members;
(8)
A statement of the ownership interest associated with each unit and the underlying debt responsibility associated with each unit on a pro rata basis, if applicable;
(9)
A statement as to whether the cooperative limited equity housing corporation has or will obtain insurance coverage for casualty, property damage, and public liability and in what amounts;
(10)
A statement of all warranties and disclaimers made during the purchase of the residential rental facility by the Maryland nonstock corporation; and
(11)
Copies of the proposed or final:
(A)
Contract of sale for the residential rental facility that is the subject of the real property of the cooperative limited equity housing corporation;
(B)
Membership certificate;
(C)
Occupancy agreement;
(D)
Rules, if any;
(E)
Lease, other than the occupancy agreement, to a third party of real or personal property to which the cooperative limited equity housing corporation is a party; and
(F)
If applicable, written notice to affected households that may be required under § 5–6D–05 of this subtitle;
(iii)
An annual operating budget, including insurance, maintenance, reserves, and general expenses;
(iv)
Bylaws; and
(v)
A subscription agreement.
(b)
Statements required under this section may be summarized or produced in a collection of documents that effectively conveys the required information.
(c)
Within 30 days after receipt of documents and information provided by a Maryland nonstock corporation in accordance with this section, the Department shall:
(1)
Accept the documents for record; or
(2)
If the documents and information do not meet the requirements of this section and any additional requirements established by the Department, deny the documents for record and notify the Maryland nonstock corporation of the basis for the denial.
(d)
(1)
(i)
On acceptance of the documents for record by the Department under subsection (c)(1) of this section, the Maryland nonstock corporation shall be converted to a cooperative limited equity housing corporation.
(ii)
Once a Maryland nonstock corporation is converted to a cooperative limited equity housing corporation, votes shall be assigned so that each unit occupied by a member has one vote.
(2)
On receipt of a denial under subsection (c)(2) of this section, the Maryland nonstock corporation may resubmit the documents and information in order to meet the requirements of this section.