Gov. Martin O'Malley signed into law yesterday a ban on new ground rents in Maryland, while the General Assembly worked to pass a package of bills that would phase out existing ground rents and ensure that the system could no longer be used to seize the houses of unwitting homeowners.
In his first bill-signing since taking office in January, O'Malley sat in the governor's reception room, flanked by Senate President Thomas V. Mike Miller and House Speaker Michael E. Busch.
Vernon Onheiser, who almost lost his Canton home over what began as $24 in unpaid ground rent, also attended the event, along with state legislators and Attorney General Douglas F. Gansler.
"It felt good working together for the working people of our state so they won't have to lose their homes because of some unscrupulous efforts to twist around a ground rent and eject the family," O'Malley said, holding up the hands of Miller and Busch.
O'Malley and the legislature sought to reform the ground rent system after an investigative series in The Sun revealed that some ground rent holders had levied large fees and seized hundreds of homes of residents who had fallen behind on payments, in some instances over minimal debts.
The bill - the first in a package of ground rent bills that is expected to reach O'Malley's desk - prohibits new leases that require homeowners to pay rent on the land under their houses to a person, charity or business. Under a system that dates to Colonial times, Maryland has about 115,000 ground rents, most of them in Baltimore and some in a few counties.
The emergency legislation takes effect immediately.
"This has been a big problem in the city, and I think this brings the kind of relief we need," said Sen. Catherine E. Pugh, a Baltimore Democrat.
More controls sought
One floor below the governor's office, the legislature continued to push for more controls on ground rents.
The state Senate passed legislation that mirrored bills approved by the House of Delegates this week, among them measures to create a state ground rent registry; allow ground rent owners to put a lien on a home over back rent instead of seeking ejectment, a process by which residents can lose their houses; and to prevent holders of ground rents from selling the leases without giving homeowners a chance to purchase them.
The House and Senate bills were drafted to contain the same language, a move designed to get them to the governor faster. O'Malley has pledged to sign the other bills.
