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

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.

Will Community Associations Get Trumped?

The election of Donald Trump as the President of the United States ushers in uncertainty for a variety of federal housing policies which affect the financing and governance of homes in community associations–condominiums, homeowner associations and housing cooperatives.  During the election campaign, Trump said little about the federal role in promoting homeownership.

But, his support for reduced government regulation and the 2016 Republican Platform provide clues about how a Trump Administration may impact community associations. Continue reading

New Fair Housing Harassment Rules Apply to Community Associations

Condominiums, housing co-ops and homeowner associations may be liable for the conduct of community residents which subjects other residents to “hostile environment harassment” under new rules issued by the United States Department of Housing and Urban Development (HUD).

The new fair housing rules, which apply beginning October 14, 2016, establish nationwide standards which HUD will apply in enforcing the federal Fair Housing Act with respect to alleged harassment based on race, color, religion, national origin, sex, familial status or disability. According to HUD, the rules do not create any new forms of liability under the Fair Housing Act but merely clarify HUD’s enforcement policies on “quid pro quo” and “hostile environment” harassment.  In addition, the rules clarify when a person may have vicarious liability for the actions of agents and employees in the context of discriminatory housing practices.

The new HUD rules define “hostile environment harassment” to mean “unwelcome conduct that is sufficiently severe or pervasive as to interfere with the availability, sale, rental, or use or enjoyment of a dwelling” and other housing-related activity.  Whether hostile environment harassment exists will be evaluated from the totality of the circumstances and from the perspective of a reasonable person in the aggrieved person’s position.

“Quid pro quo” harassment refers to circumstances where submission to an “unwelcome request or demand” is a condition related to housing transactions or services.

In addition to liability for a person’s own conduct and the conduct of that person’s agents and employees, the new fair housing rules also make a person liable for failing to take prompt action to correct and end a discriminatory housing practice by a third-party, where the person knew or should have known of the discriminatory conduct and had the power to correct it.

The HUD explanatory statement accompanying the rules specifically addresses the obligations of condominiums, homeowner associations and housing co-ops to act to correct a discriminatory housing practice by taking “whatever actions it legally can take to end the harassing conduct”.  And, HUD refers to the 2015 decision of the United States Supreme Court in Texas Department of Community v. Inclusive  Communities Project, Inc. in support of its position that a person’s failure to act to correct third-party harassment does not need to be motivated by a discriminatory intent in order to be liable for a Fair Housing Act violation.

Posted by Thomas Schild Law Group, LLC, attorneys for condominiums, homeowners associations and housing co-operatives in Maryland–including Montgomery County, Prince George’s County, Howard County, and Frederick County; and in the District of Columbia.

Maryland Condo and HOA Resale Disclosure Law Revised

New resale disclosure requirements for Maryland condominiums and homeowner associations apply beginning October 1, 2016.  Condos will now be required to provide prospective purchasers with the current reserve study report or a summary of the report, and a statement of the status and amount of any reserve or replacement fund.  There are also changes regarding disclosure of unsatisfied judgments against the condominium and pending lawsuits to which the condominium is a party.

Condo Resales. The condo resale disclosure information will no longer require a statement as to whether the association has knowledge of an alteration or improvement to the unit or limited common elements assigned to the unit are in violation of the bylaws or rules. And, the required statement about common element health or building code violations will be limited to actual knowledge of such violations.

The fees which a condominium may charge for providing the resale disclosure certificate and condo documents is capped at $250 plus additional fees up to $100 to inspect the unit and rush fees up to $100.

HOA Resales.  Additionally, Maryland homeowner associations for the first time will be required to provide information and documents to owners when they sell their property.  This includes information about the total amount of assessments and fees charged by the association; whether any of the assessments or fees are delinquent; the contact information for the associations of its management agent; unsatisfied court judgements; and pending claims, covenant violation actions or notices of default against to property.

A homeowners association may charge up to $250 for the resale disclosure information and HOA documents plus rush fees of up to $100.

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; and Frederick County; and in Washington, D.C.