H.B. 1042

VETOES

Preamble

WHEREAS, There exists in Maryland property burdened by restrictive
covenants based on race or, religious belief, or national origin that run with the land;
and

WHEREAS, The Supreme Court in Shelley v. Kraemer, 334 U.S. 1 (1948), held
that judicial enforcement of a restrictive covenant based on race would constitute
state action, and therefore would violate the Fourteenth Amendment to the U.S.
Constitution; and

WHEREAS, The federal Fair Housing Act prohibits discrimination in the sale,
rental, and financing of dwellings based on race, religion, sex, handicap, familial
status, or national origin; and

WHEREAS, Under common law, unless the covenants or other restrictions
expressly provide to the contrary, covenants that run with the land may only be
removed by a unanimous vote of the land owners of each parcel of land burdened or
benefitted by the covenant or other restrictions; and

WHEREAS, In order to facilitate the removal of restrictive covenants based on
race or, religious belief, or national origin, a change in common law regarding the
removal or alteration of such covenants would be beneficial; now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Real Property

11B-113.1.

(A)     THIS SECTION APPLIES TO ANY RECORDED COVENANT OR RESTRICTION
THAT RESTRICTS OWNERSHIP BASED ON RACE OR, RELIGIOUS BELIEF, OR NATIONAL
ORIGIN, INCLUDING A COVENANT OR RESTRICTION THAT IS PART OF A UNIFORM
GENERAL SCHEME OR PLAN OF DEVELOPMENT.

(B)     EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION, A
HOMEOWNERS ASSOCIATION MAY DELETE A RECORDED COVENANT OR
RESTRICTION THAT RESTRICTS OWNERSHIP BASED ON RACE OR, RELIGIOUS BELIEF,
OR NATIONAL ORIGIN FROM THE DEEDS OR OTHER DECLARATIONS OF PROPERTY IN
THE DEVELOPMENT IF AT LEAST 85% OF THE LOT OWNERS IN THE DEVELOPMENT
AGREE TO THE DELETION OF THE RECORDED COVENANT OR RESTRICTION FROM
THE DEEDS OR OTHER DECLARATIONS.

(C)     IF THE DEEDS OR OTHER DECLARATIONS OF PROPERTY IN THE
DEVELOPMENT EXPRESSLY PROVIDE FOR A METHOD OF AMENDMENT OR DELETION
OF A RECORDED COVENANT OR RESTRICTION, A RECORDED COVENANT OR
RESTRICTION THAT RESTRICTS OWNERSHIP BASED ON RACE OR, RELIGIOUS BELIEF,
OR NATIONAL ORIGIN MAY BE DELETED AS PROVIDED FOR IN THE DEEDS OR
DECLARATIONS OR IN ACCORDANCE WITH SUBSECTION (B) OF THIS SECTION.

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