Category Archives: Covenant enforcement

2022 Maryland Condominium and HOA Laws Enacted

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The Maryland Legislature considered various bills regarding the management and operation of condominiums, homeowners associations and housing cooperatives in 2022.  Although most were not approved, several significant new laws took effect October 1, 2022.

            Reserve Studies Statewide (HB 107).  Most Maryland condos, HOAs and coops will now be required to obtain a reserve study of the association common property at least every 5 years to determine the remaining useful life of each major component of the common property and the estimated cost for long-term repair and replacement. The reserve study must also state the estimated annual reserve amount necessary to accomplish any identified future repair or replacement. This extends statewide the reserve study requirements previously enacted for communities in Prince George’s and Montgomery County.

            Where a reserve study is required, the recommended annual reserve amount must be included in the annual budget.  However, if the most recent reserve study is an initial reserve study, up to 3 years is allowed to attain the annual reserve funding recommendation level.

             No reserve study is required for homeowner associations where the initial purchase and installation costs of components which require periodic repair and replacement is less than $10,000. The reserve study law amends the Maryland Condominium Act, Maryland Homeowners Association Act, and Maryland Cooperative Housing Corporation Act.

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Maryland General Assembly Wraps Up Virtual 2021 Legislative Session

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By Scott Silverman, Esq.

Maryland’s General Assembly recently concluded its 2021 legislative session which was mostly held by virtual video teleconference due to COVID-19 pandemic concerns. Several new laws regarding community association governance were enacted, and take effect October 1, 2021.

Common Property Replacement and Repairs. Reserve studies were again a top issue regarding condominiums, homeowner associations, and housing cooperatives.   In 2020, a new law was enacted to require condos, coops and HOAs in Prince George’s County, Maryland to obtain a study of the association needs for future major replacement and repair of common property, and require the annual budget of condos and coops to provide funds for future repair work. Although statewide reserve legislation was considered in 2020 and 2021, it was not passed.

But, HB 567, a bill like the one applicable to Prince George’s County associations, was passed this year with respect to associations in Montgomery County, Maryland.  Under the new law, condominiums, cooperatives and homeowner associations in Montgomery County will be required to obtain reserve studies and to have them updated at least every five years. And, condominium, HOA, and housing cooperative boards must include reserve funds in the annual budget for future major replacement and repair of common property.

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Maryland Condo and HOA Restrictions on Commercial Vehicle Parking

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Maryland condominium and homeowners association covenants often prohibit parking “commercial vehicles” without specifying what constitutes a commercial vehicle.

Where a word or phrase used in the declaration of covenants for a condominium or homeowners association is not defined in the covenants or by statute, the board of directors has broad discretion to adopt rules which explain how the provisions of the covenants will be applied.

If there are no community rules which define what constitutes a “commercial vehicle”, it is likely that a court would apply the Maryland statutory definition of “commercial motor vehicle” used in connection with the requirements for obtaining a commercial driver’s license.  Under that definition, a commercial vehicle includes any vehicle with a gross weight rating of at least 26,001 pounds; a vehicle designed to transport 16 or more passengers; or any size vehicle used to transport hazardous materials.  Excluded from the statutory definition are fire and rescue vehicles with audible and visual signals. Continue reading →

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

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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 Appeals Court Voids Condominium Parking Rule

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A Maryland condominium Rule which barred delinquent condo owners from using the common property parking lot and swimming pool has been struck down by the Maryland Court of Appeals–the highest state appellate court.

In Elvaton Towne Condominium Regime II v. Rose, the appeals court decided that a condominium board of directors can not rely on general rulemaking authority to adopt a Rule which interfered with the owner’s statutory property right to use the common elements. However, the court ruled that the Maryland Condominium Act permits a condominium Declaration to provide that an owner’s  parking and pool privileges may be suspended where the owner is in arrears in payment of condo assessments.

Although recognizing a condo board may adopt reasonable Rules regarding the use of the common elements, the court noted that such Rules must be consistent with the condominium Declaration and Bylaws and with the Maryland Condominium Act. Continue reading →

Maryland Makes it Easier to Amend Condo Bylaws and HOA Covenants

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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 of the total votes in the condo or HOA, or such lower amount allowed by the association governing documents, beginning October 1, 2017.  Continue reading →