Md. Code, Corporations and Associations § 5-6B-22
This is the official text of Md. Code, Corporations and Associations § 5-6B-22, part of Maryland’s Code, Corporations and Associations — governs the formation and operation of corporations, LLCs, and partnerships.
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§5–6B–22.
Official statutory text
(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.
(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.
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