MD SB511

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 with a quorum of total membership present within 60 days of notice.

Existing tenants who have lawfully resided in the property for at least 180 days prior to conversion must be offered the opportunity to acquire a cooperative interest; those who decline have 90 days to vacate, while low-income households with disabled or senior members receive 12 months.

Low-income households required to vacate must receive moving expense reimbursement between $375 and $750 for reasonable costs actually incurred.

Resale prices of cooperative interests are capped at the original purchase price adjusted for inflation plus approved improvements, and at least 75% of members must be from low-income households (income not exceeding 80% of area median income).

Local governments are prohibited from imposing restrictions on cooperative limited equity housing corporations or their formation; effective date is October 1, 2027.