2026-09-12 · Maryland · Legislation · Did not pass

What happened. The most ambitious attempt in years to put a state regulator over Maryland's community associations did not become law. House Bill 402 passed the House of Delegates 99–35, went to the Senate Judicial Proceedings Committee, was given a hearing on 2 April 2026 — and then nothing. No committee report. No vote. It died when the session adjourned on 13 April 2026.¹

That distinction matters, because at least one widely indexed bill tracker records HB 402 as having passed and awaiting signature. It did not. There is no chapter number, and Maryland has no HOA ombudsman, no oversight division and no document database.

What it would have built

HB 402 was not a single office. The Third Reader — the version the House actually passed — would have added an entire new title to the Real Property Article: Title 11C, Local Commissions on Common Ownership Communities, running from § 11C-101 to § 11C-206, plus new sections in the Commercial Law, Housing and Community Development, and State Finance and Procurement Articles.²

Three machines inside it:

• A Common Ownership Community Oversight Division to receive and respond to complaints, with hearing panels that could issue decisions.
• A public database — associations would have had to file their declarations, bylaws and governing documents with the State, which would publish them.
• Statutory standards for county commissions, covering membership, fees, coordination with other county agencies, and mandatory annual registration.

It also carried a provision that would have changed litigation practice directly. Under proposed § 11C-204, if a court were notified that a complaint had been filed with the Division, “THE COURT MAY POSTPONE A PROCEEDING FOR AT LEAST 90 DAYS” — and could then hear the matter de novo if no hearing panel had ruled.²

1. House Bill 402, Maryland General Assembly 2026 Regular Session — bill record; passed House 99-35, Senate Judicial Proceedings hearing 2 April 2026, no further action, died at sine die ↩
2. House Bill 402 Third Reader — the text as passed by the House: new Real Property Title 11C §§ 11C-101 to 11C-206, the Oversight Division moved from the Office of the Attorney General to DHCD by amendment, the Oversight Fund at § 11C-206, and the 90-day court postponement at § 11C-204 ↩
3. Department of Legislative Services fiscal and policy note, HB 402 (2026) — $192,300 FY 2027, $50,004 mandated FY 2028 database appropriation, rising to roughly $259,500 by FY 2031 ↩
4. CAI Advocacy, 2026 Maryland End of Legislative Session Report (position: opposed; 98 bills tracked, 42 testimonies, 820 advocates) ↩
5. Maryland REALTORS, Summary of 2026 Real Estate Legislation — HB 402 recorded as "DID NOT PASS. POSITION: Support" ↩
6. Maryland Association of Counties, Conduit Street — testimony on preserving the functionality of existing local common ownership communities commissions (2 April 2026 hearing) ↩
7. Senate Bill 981 (2026) — the cross-file; first reading in Senate Rules 15 February 2026, no hearing scheduled, died at sine die ↩
8. Chapter 512 of the Acts of 2025 (SB 758), enrolled text — Real Property §§ 11-130 and 11B-115 as amended: full Consumer Protection Division enforcement over both Acts and express regulation-adopting authority ↩