Calling the state?s archaic ground rent system “predatory” and “evil” city and state officials testified in favor of legislation to modernize the process and protect homeowners from losing their homes over small debts.
The House of Delegates environmental matters committee members Thursday issued a favorable report on a bill that would prevent the creation of any new ground rents.
The bill is the first in a package that would also stop the use of “ejectment” ? when ground rent owners sue to confiscate a house ? as a remedy for nonpayment, require ground rent owners to create a lien for nonpayment, notify the homeowner and give him or her first chance to buy a ground rent before selling it to a third party.
It calls for a registry and online database of all properties subject to ground rents, many of whom may not realize they don?t own the ground beneath their home.
“This is a simple bill,” Gov. Martin O?Malley top lobbyist Joe Bryce said. “It says let?s stop. Let?s not put more families in the position where this could happen.”
The initiative stems from a Baltimore Sun series published last month that estimated at least 521 homes were turned over to ground rent owners between 2000 and the end of March 2006 for ground rent.
The series highlighted Canton resident Vernon Onheiser, who had to pay $18,000 to keep his home over a $24 ground rent debt. O?Malley visited Onheiser?s home earlier this week to show his support for reform.
But the series failed to reveal that most of the sum Onheiser paid was owed to Baltimore City in overdue property taxes and water bills, said property management attorney Katherine Kelly Howard, who independently researched Onheiser?s court records. The ground rent holder sent notices to Onheiser for more than two and a half years, but he never responded, Howard said.
“There?s a lot of talk about this predatory, evil practice of ejectment and ground rent management,” Howard said. “I take enormous umbrage to that description. There?s a lot more to this story than meets the eye.”
Howard, the only person to testify against the bill as written, suggested the committee establish a task force to study the issue.
Committee chair Maggie McIntosh, D-Baltimore City, said she expects the bill to soon reach the Senate and House floors for full vote.
Properties subject to ground rent:
Baltimore City: 74,085
Anne Arundel: 5,000
Baltimore County: 35,705
Harford County: 1,500
Howard County: 200
Source: Maryland Department of Legislative Services
