House Bill 59, introduced in Maryland on March 10, 2025, aims to reform the process surrounding the foreclosure of rights of redemption and the enforcement of liens for unpaid water and sewer services. The bill addresses concerns regarding inadequate notice to defendants in foreclosure cases and sets specific conditions under which municipalities can sell properties to recover unpaid charges.

One of the key provisions of House Bill 59 allows defendants or individuals affected by foreclosure judgments to file an action for damages due to inadequate notice within three years of the judgment date. However, the damages awarded cannot exceed the fair market value of the property interest at the time of sale. Importantly, the bill stipulates that individuals cannot reopen a judgment based solely on claims of inadequate notice.

Additionally, the bill imposes restrictions on the sale of properties by the Mayor and City Council of Baltimore City, or other governing bodies, to enforce liens for unpaid water and sewer services. Under the new regulations, properties can only be sold if the lien is at least $350, the property is not residential, and the unpaid charges are at least three quarters in arrears. There is a provision that allows for the enforcement of liens for amounts less than $350 if the property is being sold to satisfy another lien.

The introduction of House Bill 59 has sparked discussions among lawmakers and community advocates. Proponents argue that the bill will protect vulnerable property owners from losing their homes due to insufficient notice and will ensure that municipalities are held accountable in their collection practices. Critics, however, express concerns that the restrictions on lien enforcement could hinder local governments' ability to recover unpaid charges, potentially impacting public services.

The implications of House Bill 59 are significant, as it seeks to balance the rights of property owners with the financial needs of municipalities. If passed, the bill could lead to changes in how local governments manage tax sales and enforce liens, potentially reshaping the landscape of property rights and municipal finance in Maryland. The bill is currently under review, with further discussions anticipated in the coming weeks.