On February 6, 2024, Associate Policy Director Dominic Butchko submitted written testimony to the House Economic Matters Committee in support of HB 271- Limited Liability Companies- Articles of Organization- Required Information. This bill require Limited Liability Companies (LLCs) to include the contact information of its members authorized to act on behalf of the LLC.
LLCs are a common vehicle by which many Marylanders can, among other things, purchase property and participate in the housing ecosystem as responsible landlords. But for properties not properly maintained, LLCs can also become an obstacle to reducing blight, taking action against public health and safety concerns, and more broadly ensuring our communities are places where residents still want to call home. The opacity of corporate land ownership, allowable under current law, is an obstacle to community improvement and housing expansion.
To be clear, the vast majority of actors with LLCs are responsible. But increasingly, local jurisdictions are being faced with properties owned by LLCs which lack accurate contact information. In these cases, counties are forced to spend increasingly more staff resources and tax dollars to make every necessary effort to contact property owners. This process can take months to years, meanwhile, the property is continuing to be, at best, a blight weighing down the surrounding community, and, at worst, a serious health and safety hazard.
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