Condo Boards Can Grant Leases For Clean Energy Equipment

A new law, passed by both houses during the 2024 session of the Maryland General Assembly and signed by Governor Moore, permits a condominium to lease clean energy equipment as part of the common elements.  House Bill 216/Chapter 253 empowers a condominium board of directors to “grant leases in excess of 1 year or similar interests affecting the common elements of the condominium for the installation and use of leased clean energy equipment.”  For purposes of this provision, clean energy equipment includes “electric vehicle recharging equipment, solar energy equipment, and energy storage systems.”   The legislation amends Section 11-125(f) of the Maryland Condominium Act, which generally provides that a declaration or bylaws may give the council of unit owners authority to grant easements, rights-of-way, licenses and leases in excess of one year affecting the common elements, with the approval of two-thirds of the unit owners and the consent of mortgagees.  New subsection (5) gives a majority of the board of directors authority to approve the leasing of clean energy equipment, without unit owner or mortgagee approval, by a vote at a board meeting with 30-days’ notice to the unit owners.  It is further provided that a mortgagee or group of mortgagees may not overrule the board’s vote.  The new law will take effect on October 1, 2024.