home-based business may not be enforced unless it is approved by a simple majority
of the total eligible voters of the homeowners association, NOT INCLUDING THE
DEVELOPER, under the voting procedures contained in the declaration or bylaws of
the homeowners association.

(3) If a homeowners association includes in its declaration, bylaws, or
recorded covenants and restrictions a provision prohibiting the use of a residence as a
family day care home or no-impact home-based business, it shall also include a
provision stating that the prohibition may be eliminated and family day care homes
or no-impact home-based businesses may be approved by a simple majority of the
total eligible voters of the homeowners association under the voting procedures
contained in the declaration or bylaws of the homeowners association.

(4) If a homeowners association includes in its declaration, bylaws, or
recorded covenants and restrictions a provision expressly prohibiting the use of a
residence as a family day care, home or no-impact home-based business, the
prohibition may be eliminated and family day care or no-impact home-based
business activities may be permitted by the approval of a simple majority of the total
eligible voters of the homeowners association under the voting procedures contained
in the declaration or bylaws of the homeowners association.

(e) A homeowners association may include in its declaration, bylaws, rules, or
recorded covenants and restrictions a provision that:

(1) [Regulates the number or percentage of family day care homes
operating in the homeowners association, provided that the percentage of family day
care homes permitted may not be less than 7.5 percent of the total residences of the
homeowners association;

(2) ] Requires day care providers to pay on a pro rata basis based on the
total number of family day care homes operating in the homeowners association any
increase in insurance costs of the homeowners association that are solely and directly
attributable to the operation of family day care homes in the homeowners association;
and

[(3)] (2) Imposes a fee for use of common areas in a reasonable amount
not to exceed $50 per year on each family day care home or no-impact home-based
business which is registered and operating in the homeowners association.

(f) (1) If the homeowners association regulates the number or percentage of
family day care homes under subsection (e)(1) of this section, in order to assure
compliance with this regulation, the homeowners association may require residents to
notify the homeowners association before opening a family day care home.

(2) The homeowners association may require residents to notify the
homeowners association before opening a no-impact home-based business.

(g) (1) A day care provider in a homeowners association:

(i) Shall obtain the liability insurance described under §§ 19-106
and 19-202 of the Insurance Article in at least the minimum amount described under
that statute; and