MD HB85

Maryland nonstock corporations may convert to cooperative limited equity housing corporations after acquiring residential rental facilities with at least 5 dwelling units, requiring a majority vote of members present with a quorum

Existing tenants who have resided in the property for at least 180 days prior to conversion must be offered the opportunity to purchase a cooperative interest, with 89 days to accept; those who decline receive 90 days notice to vacate

Low-income households with disabled or senior members receive 12 months to vacate instead of 90 days, and low-income households required to vacate are entitled to moving expense reimbursement between $375 and $751

Resale prices of cooperative interests are capped at original purchase price plus inflation adjustments and approved improvements; at least 75% of members must be low-income households (earning up to 80% of area median income)

Local governments are preempted from imposing restrictions on cooperative limited equity housing corporations or their formation, and the Department of Housing and Community Development may establish grant programs to promote these cooperatives; effective October 1, 2026