Maryland Developer Declaration Does Not Establish Assessment Lien

A developer’s Declaration notifies the purchaser of the property of a potential lien for unpaid assessments, but is not sufficient to create an assessment lien, according to a recent decision of the Maryland Court of Appeals–the top state appeals court.  A lien based on the contractual obligation to pay assessments is valid only if the party asserting the lien complies with the notice procedures of the Maryland Contract Lien Act.

At issue, in Select Portfolio Servicing, Inc. v. Saddlebrook West Utility Company, LLC, was a claimed lien as part of a deferred financing arrangement for the construction of the water and sewer infrastructure for a new home development in Prince George’s County, Maryland.  Continue reading

Fair Housing Claim Against Homeowner Association Director Allowed by District of Columbia Appeals Court

The District of Columbia Court of Appeals has ruled that a board member of a homeowners association may be personally liable for violating the disability discrimination provisions of the fair housing laws by delaying action on a homeowner’s request for a reasonable accommodation in the enforcement of the association’s leasing restrictions.

When  homeowners leased  their home to a non-profit organization for occupancy by recovering alcoholics and drug addicts, the association board asked the homeowners to terminate the lease because it violated the HOA bylaws which prohibited leasing to anyone not named in lease and prohibited subleasing.   After it received a request for waiver of the bylaw restrictions as a reasonable accommodation based on the disabilities of the sub-tenants, the HOA board approved the lease. Continue reading

Maryland Makes it Easier to Amend Condo Bylaws and HOA Covenants

Changes to the Maryland Condominium Act and Maryland Homeowners Association Act will soon make it easier to amend the governing documents of condominiums and homeowner associations.

The new law allows amendments to be made by a vote of members “in good standing” instead of all of the owners.  An owner is not in good standing if the payment of assessments or other charges is in arrears for more than 90 days.

Additionally, the votes required to approve amendments to condo bylaws and the declaration and bylaws of a homeowner association is reduced to 60 percent, or such lower amount allowed by the association governing documents, beginning October 1, 2017.  Continue reading

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

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