HUD Urged to Limit Association Fair Housing Liability

More than two years after new fair housing rules regarding discriminatory actions of residents which create a hostile housing environment for other residents were adopted by the United States Department of Housing and Urban Development (HUD) in October 2016, it remains uncertain what  community association boards and managers must do to avoid liability for not ending the discriminatory conduct of owners and other residents of condominiums, homeowner associations, and housing cooperatives.

The HUD rules establish nationwide standards which HUD will apply in enforcing the federal Fair Housing Act with respect to alleged harassment based on race, religion, national origin, sex, familial status or disability.    In addition to liability for a person’s own conduct and the conduct of that person’s agents and employees, the 2016 fair housing rules also make a community association liable for failing to take prompt action to end a discriminatory housing practice by residents where the person knew, or should have known, of the discriminatory conduct and had the power to correct it.  The HUD rule does not require that the housing provider have a discriminatory intent in not intervening to stop the resident’s discriminatory conduct. Continue reading

Condominium Owner Negligence Bars Claim Against Contractor

Where a condominium unit in Baltimore County, Maryland was damaged by steam escaping from the heating system when a unit owner hired a plumber to remove heat radiators in the unit  and was negligent by not requesting the contractor to re-install  the radiators after the unit was painted, the condo insurance carrier may not recover the cost to repair the unit from the plumbing contractor, a federal trial court in Maryland recently ruled.

The radiators were removed in July when the central heating system was not operating, and the unit owner did not request the contractor to re-install the radiators until November after the heating system had been tuned on. The cost of more than $120,000 to repair the damage to the unit was covered by the condominium’s property damage insurance.  The insurance company paid the condominium association which then paid the unit owner who hired a contractor to make the repairs to the unit.

The insurance carrier filed suit against the plumbing contractor to recover the amount it paid to the condominium.  The contractor contended that the claim should not be allowed because the unit owner was an insured under the condo master insurance policy and was negligent in not contacting the contractor to re-install the radiators. Continue reading

Short Term Rentals Now OK in Montgomery County, Maryland

Short term daily and weekly rentals are now allowed in all residential areas of Montgomery County, Maryland, beginning July 1, 2018.

Previously, no residential rentals were permitted in Montgomery County for less than 30 days.  Faced with widespread illegal daily and weekly rentals, the County Council passed legislation in October, 2017 to allow these rentals where the property is the primary residence of the owner or owner-authorized resident of the rental property. However, condominiums, homeowner associations and housing cooperatives are still allowed to ban or restrict short term rentals Continue reading

2018 Maryland Legislative Update–New Laws Help Condos and HOAs

The hot topic during the 2018 Maryland legislative session was how Maryland will adapt to recent changes in federal income tax and health insurance laws.

Beyond the headlines, the Maryland General Assembly considered many bills which directly affect Maryland condominiums, homeowner associations, and housing cooperatives. Several new laws which help condos and HOAs were enacted. Continue reading

Maryland General Assembly OKs Bill to Help Condos Collect Delinquent Assessments

The Maryland General Assembly has approved legislation to make it easier for condominium associations to suspend use of the common area parking lot, pool and other recreational amenities when an owner is delinquent in paying the condo assessments for more than 60 days.

The new law allows approval by owners with 60 percent of the total eligible votes to amend a condominium declaration to provide for the suspension of use of these portions of the condominium common property.  This is far less than the 80 percent minimum required by the Maryland Condominium Act for other declaration amendments, and some older condo documents require as much as 100 percent unanimous approval.  Continue reading

Maryland Legislature Bans Developer Restrictions on Condominium Warranty Claims

Legislation to prevent condominium developers from imposing restrictions on condominium warranty claims was passed by the Maryland General Assembly during the final days of the legislative session in April, 2018.  In recent years, condominium developers have put provisions in condominium bylaws and sales contracts to limit the ability to condominium associations and unit owners to sue the developer for construction defects. Continue reading