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§ 5-6B-22. No-impact home-based businesses, application to cooperative housing corporations

West's Annotated Code of MarylandCorporations and AssociationsEffective: October 1, 2014

West's Annotated Code of Maryland
Corporations and Associations
Title 5. Special Types of Corporations (Refs & Annos)
Subtitle 6b. Maryland Cooperative Housing Corporation Act (Refs & Annos)
Effective: October 1, 2014
MD Code, Corporations and Associations, § 5-6B-22
§ 5-6B-22. No-impact home-based businesses, application to cooperative housing corporations
(a) The provisions of this section relating to no-impact home-based businesses do not apply to a cooperative housing corporation that has adopted, prior to July 1, 1999, procedures in accordance with its articles of incorporation or a proprietary lease or a provision of its bylaws for the prohibition or regulation of no-impact home-based businesses.
(b)(1) Subject to the provisions of subsection (c) of this section, a provision in the articles of incorporation or a proprietary lease or a provision of the bylaws of a cooperative housing corporation that prohibits or restricts commercial or business activity in general, but does not expressly apply to no-impact home-based businesses, may not be construed to prohibit or restrict the establishment and operation of no-impact home-based businesses.
(2) Subject to the provisions of subsection (c) of this section, the operation of a no-impact home-based business shall be:
(i) Considered a residential activity; and
(ii) A permitted activity.
(c)(1)(i) Subject to the provisions of paragraphs (2) and (3) of this subsection, a cooperative housing corporation may include in its articles of incorporation, bylaws, or proprietary leases a provision expressly prohibiting the use of a residential unit as a no-impact home-based business.
(ii) A provision described under subparagraph (i) of this paragraph expressly prohibiting the use of a residential unit as a no-impact home-based business shall apply to an existing no-impact home-based business in the cooperative project.
(2) A provision described under paragraph (1)(i) of this subsection expressly prohibiting the use of a residential unit as a no-impact home-based business may not be enforced unless it is approved by a simple majority of the total eligible voters of the cooperative housing corporation under the voting procedures contained in the articles of incorporation or bylaws of the corporation.
(3) If a cooperative housing corporation includes in its articles of incorporation, bylaws, or proprietary leases a provision prohibiting the use of a residential unit as a no-impact home-based business, it shall also include a provision stating that the prohibition may be eliminated and no-impact home-based businesses may be approved by a simple majority of the total eligible voters of the cooperative housing corporation under the voting procedures contained in the articles of incorporation or bylaws of the corporation.
(4) If a cooperative housing corporation includes in its articles of incorporation, bylaws, or proprietary leases a provision expressly prohibiting the use of a residential unit as a no-impact home-based business, the prohibition may be eliminated and no-impact home-based business activities may be permitted by the approval of a simple majority of the total eligible voters of the cooperative housing corporation under the voting procedures contained in the articles of incorporation or bylaws of the corporation.
(d) A cooperative housing corporation may:
(1) Restrict or prohibit a no-impact home-based business in any areas constituting those portions of a cooperative project possessed in common by the members; and
(2) Impose a fee for use of any areas constituting those portions of a cooperative project possessed in common by the members in a reasonable amount not to exceed $50 per year on each no-impact home-based business operating in the cooperative project.

Credits

Added as Corporations and Associations § 5-6B-18.1 by Acts 1998, c. 341, § 2, eff. July 1, 1998. Renumbered as Corporations and Associations § 5-6B-22 by Acts 2014, c. 567, § 1, eff. Oct. 1, 2014.
MD Code, Corporations and Associations, § 5-6B-22, MD CORP & ASSNS § 5-6B-22
Current through all legislation from the 2017 Regular Session of the General Assembly
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