2013 Maryland Code
REAL PROPERTY
§ 8-111 - Back rent on renewal of lease

§8-111.

If a tenant named in a lease or an assignee of a lease applies to the tenant’s landlord for a renewal under a covenant in the lease giving the tenant the right to renewal, and if the tenant cannot produce vouchers or satisfactory evidence showing payment of rent accrued for three years next preceding the tenant’s demand and application, the landlord, before executing the renewal of the lease or causing it to be executed, is entitled to demand and recover not more than three years’ back rent, in addition to any renewal fine that may be provided for in the lease. The tenant may plead this section in bar of the recovery of any larger amount of rent.

§ 8-111 - 1. Back rent pursuant to action by landlord or reversionary transferee

(a) Applicability. -- This section applies to all residential leases or subleases in effect on or after October 1, 1999, which have an initial term of 99 years and which create a leasehold estate, or subleasehold estate, subject to the payment of an annual ground rent.

(b) Three year limitation. -- In any suit, action, or proceeding by a landlord, or the transferee of the reversion in leased property, to recover back rent, the landlord, or the transferee of the reversion in leased property is entitled to demand or recover not more than 3 years back rent.

(c) Limitation on recovery of back rent; Mayor and City Council may acquire reversionary interest of ground rent. --

(1) Notwithstanding any other provision of law, in any suit, action, or proceeding to recover back rent, a landlord or holder of a ground rent may only recover not more than 3 years back rent if the property is:

(i) Owned or acquired by any means by the Mayor and City Council of Baltimore; and

(ii) Abandoned property, as defined in § 21-17(a)(2) of the Public Local Laws of Baltimore City, or distressed property, as defined in § 21-17(a)(3) of the Public Local Laws of Baltimore City.

(2) With regard to property described under paragraph (1) of this subsection, a landlord may request in writing that the Mayor and City Council of Baltimore acquire the reversionary interest under the ground rent for the market value established at the time of the acquisition by the Mayor and City Council of the leasehold interest under the ground rent.

§ 8-111 - 2. Reversionary interest under a ground lease or sublease prohibited for four or fewer dwelling units.

(a) Applicability. -- This section does not apply to property:

(1) Leased for business, commercial, manufacturing, mercantile, or industrial purposes, or any other purpose that is not primarily residential;

(2) Improved or to be improved by any apartment, condominium, cooperative, or other building for multifamily use of greater than four dwelling units;

(3) Leased for dwellings or mobile homes that are erected or placed in a mobile home development or mobile home park; or

(4) Subject to an affordable housing land trust agreement executed under Title 14, Subtitle 5 of this article.

(b) Prohibition. -- On or after January 22, 2007, the owner of a fee simple or leasehold estate in residential property that is or was used, intended to be used, or authorized to be used for four or fewer dwelling units may not create a reversionary interest in the property under a ground lease or a ground sublease for a term of years renewable forever subject to the payment of a periodic ground rent.