Maryland Manager Licensing Legislation Considered

by Tom Schild

Manager licensing legislation is under review by Maryland Senate and House committees.  The proposed Maryland Common Interest Community Managers Act (House Bill 433/Senate Bill 372) would require individuals who provide management services to Maryland condominiums, homeowner associations, and housing co-ops to obtain a license issued by a State Board of Common Interest Community Managers.

Applicants for a common interest community manager’s license would be required to complete a state-approved training program and pass an exam.   Those actively engaged in providing management services for at least 12 months prior to applying for a manager’s license and having specified professional manager designations would also be eligible for a manager’s license.

Beginning October 1, 2013, a license would be required for a manager to act on behalf of a Maryland association in its business, financial, legal or other transactions such as negotiating contracts, collecting and disbursing association funds, preparing budgets and financial reports, and enforcing association governing documents.

Among those exempt from the manager licensing requirements are management support staff who are supervised by a licensed common interest community manager, association board members and residents who act without compensation, attorneys engaged in the practice of law, certified public accountants providing bookkeeping or accounting services, and real estate brokers or sales persons when managing individual properties.

The State Board of Common Interest Community Managers would be authorized to establish license fees to produce sufficient funds to operate the licensing board.  Separately, most condos, HOAs and co-ops would be required to register with the state board and pay of a fee of $2 per unit up to $500 per association.

Public hearings on the proposed Maryland Common Interest Community Managers Act are scheduled for February 15 and 16.