2017 Maryland Condo and HOA Legislation–The Final Score

During the 2017 Maryland legislative session, the General Assembly considered many bills regarding condominium and homeowner association governance, foreclosure procedures, state registration of community associations, and regulation of community association managers.

Legislation passed includes bills to make it easier to amend condo bylaws and an HOA declaration; require lender notice of foreclosure sale postponement and cancellation; and require community associations to provide owner notice of common property sales, including government tax sales. Continue reading

2017 Maryland Condo and HOA Legislation–The Home Stretch

Two weeks until the 2017 Maryland legislative session ends on April 10.  Several bills affecting condominium and homeowner associations are still under consideration.

State Registration of Community Associations.  Passed by the House.  Reviewed by a Senate Committee and waiting further action.  Final passage possible but uncertain.

Manager Licensing.  Approval this year appears unlikely.  No action on the House bill, but summer study may be a possibility. Continue reading

2017 Maryland Condo and HOA Legislation–What’s Hot and What’s Not

With the Maryland General Assembly now in the final month of the 2017 legislative session which ends on April 10, several bills regarding community associations are still under consideration.  Other bills have died in committee.  A bill must be passed by the Maryland House and Senate and signed by the Governor in order to become law.

Here’s What’s HOT!

State Registration of Community Associations.  Legislation to require each condo, co-op and HOA to register with the state has been passed by the House after it was amended to limit the information required.  For communities which already register with the county, no additional state registration would be required. The bill is now under review in the Senate.

Manager Licensing.  A bill to require community managers to obtain a State license has been introduced again this year.  Manager licensing legislation was previously considered in 2014 and is under study again in the House of Delegates.  The proposed legislation would require a manager to have specified training, pass a test and pay a license fee in order to provide management services to condos, coops and HOAs.

Replacement Reserves for Capital Expenditures.  Every five years, each condominium and homeowners association would be required to obtain a study of the estimated costs to repair and replacement of building structural components, roads, recreation facilities and other similar items.  The House has passed this legislation which is now under review in the Senate.

Foreclosure Sale Notice.   A lender which sells a property at foreclosure would be required to give written notice of the proposed sale to any condo or HOA which has recorded an assessment lien against the property at least 30 days before the sale date.  Notice of any postponement or cancellation  of the foreclosure sale must also be provided to the property owner, condo and HOA.  This legislation has passed both the House and Senate.

Governing Documents.  Still under study are bills to make it easier to amend condo and HOA governing documents and to invalidate condo document provisions which limit the time for bringing condominium legal claims regarding construction defects.

Here’s What’s NOT

Electric Vehicle Charging Stations.  A bill to invalidate condominium and homeowner association covenants which prohibit or unreasonably restrict the installation electric vehicle charging stations in parking spaces designated for the exclusive use of a homeowner was killed by House and Senate committees.

Backyard Gardens.  Also killed in committee was a bill to invalidate association covenants which prohibited gardens in the backyard of a home.

Smoking Restrictions.  Legislation to allow the board of directors of a condominium or homeowners association to adopt rules to prohibit tobacco smoking in an owner’s  condo or townhome was voted down in committee.

For updates and details on legislation affecting Maryland condos, co-ops and homeowner associations, sign up for the Maryland Condominium & HOA Law Blog to receive the latest blogposts by email.

Posted by Thomas Schild Law Group, LLC, attorneys for condominiums, homeowner associations and housing cooperatives in Maryland–including Montgomery County, Prince George’s County, Howard County, Frederick County, and Baltimore County; and in Washington, D.C.

 

Maryland Top Court to Review Condo Towing Rule

To tow or not to tow…with apologies to William Shakespeare, that is the question at the heart of long-running litigation between an Anne Arundel County condominium and owners whose vehicles were towed from the condo parking lot.  The Maryland Court of Appeals will soon resolve the dispute over a condominium association’s authority to suspend a condo owner’s use of the common elements when the owner is in arrears in payment of condominium assessments. Continue reading

2017 Maryland Legislative Session Begins

Outside the glare of worldwide attention to the inauguration of Donald Trump as the President of the United States, the Maryland General Assembly began its 2017 90-day legislative session in mid-January.

Some bills considered–but not enacted–in 2016 will be examined again by legislative  committees in the Maryland House of Delegates and Maryland Senate.  This includes legislation to establish a state registry for common ownership communities, to require lender notice to condominiums and homeowner associations when a lender postpones or cancels a foreclosure sale, and to make it easier to amend the governing documents of condominiums and homeowner associations.

Other proposed legislation would require Maryland community association managers to obtain a state license to provide management services and establish a State Board of Common Ownership Community Managers.  Several bills would limit the authority to prohibit or regulate uses such as electric vehicle charging stations and backyard gardens.  Also under consideration is a bill to require condos and HOAs to obtain an independent reserve study of the condition of the common areas every 5 years to determine future costs of major repairs and replacement.

A legislative committee will receive comments on each bill and make a recommendation on whether the bill should become law.  Only legislation which is passed by both the House and Senate, and approved by the Governor becomes law.

For updates and details on legislation affecting Maryland condos, co-ops and homeowner associations, sign up for the Maryland Condominium & HOA Law Blog to receive the latest blogposts by email.

Posted by Thomas Schild Law Group, LLC, attorneys for condominiums, homeowner associations and housing cooperatives in Maryland–including Montgomery County, Prince George’s County, Howard County, Frederick County, and Baltimore County; and in Washington, D.C.

Montgomery County CCOC To Require Negotiation of Association Disputes

After a year-long examination of the operations of the Montgomery County Commission on Common Ownership Communities (CCOC), the County Council has enacted a new law which makes changes in the CCOC dispute resolution process.   More than 340,000 Montgomery County, Maryland residents live in over 1,000 condominiums, homeowners associations, and housing cooperatives.  The CCOC was created in 1991 to provide a forum for certain disputes between association residents and the board which govern the association to be resolved without going to court, and to provide educational resources for associaiton residents and leaders

Where the CCOC staff determines that there are reasonable grounds to conclude that a violation of law or association documents has occurred, the new law requires the staff to attempt to resolve disputes filed with the CCOC through informal negotiation and possibly mediation.

If the party who filed the CCOC dispute does not attend the mediation, the dispute must be dismissed.  If the party who is alleged to violation applicable law or the association documents does not attend the mediation, the matter must be set for a hearing and that party is prohibited from appearing at the hearing to present testimony and evidence. Previously, there was no requirement for active staff negotiation, and mediation was voluntary.

The new law also requires all members of the CCOC  to take the same CCOC training on community association governance which association board members are required to take, and any other training provided or approved by the County Attorney.   Additionally, volunteer arbitrators who chair CCOC hearing panels will be prohibited from representing any parties in disputes before other hearing panels.

Separately, the annual community association registration fee was increased from $3 to $5 per dwelling unit beginning July 1 to allow the CCOC to provide more staff and and educational resources. The CCOC is now part of the Montgomery County Department of Housing and Community Affairs.

Posted by Thomas Schild Law Group, LLC, attorneys for condominiums, homeowner associations, and housing cooperatives in  Maryland Counties of  Montgomery County, Prince George’s County, Howard County, and Frederick County; and in Washington, D.C.