Fair Housing Is A Top Priority for Biden Administration

President Joe Biden has directed the United States Department of Housing and Urban Development (HUD) to re-examine the the 2020 Trump-era rule which limited the role of the federal government in encouraging local government to affirmatively further the goals of the Fair Housing Act to prevent housing discrimination. Also, under review is the 2020 HUD rule regarding implementation of the “disparate impact” standard of the Fair Housing Act.

Although the Fair Housing Act does not specifically mention the housing practices, policies and services of condominiums, homeowners associations, and housing cooperatives, the courts and HUD have long- recognized that the Fair Housing Act applies to prohibit discrimination with respect to owners and residents of such communities. The federal fair housing law prohibits discrimination based on race, color, national origin, religion, sex, disability, and familial status. Community association boards are also required to affirmatively take action to prevent harassment and a hostile housing environment caused by the conduct of owners, residents and managers.

In a memorandum issued on January 26, 2021, President Biden explained that the housing policies and practices of the federal government during much of the 20th century “systematically supported discrimination and exclusion in housing and mortgage lending”.

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2021 Maryland Condo and HOA Legislation Introduced

The 2021 Maryland legislative session is now underway and runs until mid-April. Although the top priority for the Maryland General Assembly is Covid-19 relief funding, several bills affecting governance of condominiums, homeowner associations and housing cooperatives have been introduced and are under consideration by Maryland House and Senate legislative committees.

Replacement Reserve Funding. Legislation proposes to require all Maryland condos, HOAs and co-ops to conduct a study of the reserves necessary for major repair and replacement of common property components. The developer would be required to have the initial reserve study prepared and contribute to the reserve fund. The board would then be required to have a reserve study done every 5 years and would be required to fund the recommended amount of reserves. (House Bill 313).

A separate bill to require a reserve study and funding the recommended reserve amount only in Montgomery County was also introduced (House Bill 567). A similar reserve study and funding requirement applicable only in Prince George’s County was enacted in 2020.

Board Member Training. Legislation would require all board members to complete a training course on the responsibilities of being a board member or officer of a Maryland condominium, HOA or housing cooperative within 90 days of first being elected or appointed. A similar training requirement currently applies in Montgomery County. (House Bill 361)

Regulation of Community Association Managers. A proposal requiring community association mangers to be licensed by a Maryland State Board of Common Ownership Community Managers is again under consideration. Requirements for obtaining a community association manager license are based on training, community association management work experience, and knowledge of state laws and regulations concerning common ownership communities. Similar legislation has been introduced for the past several years.

The manager licensing legislation also requires each community association to register annually with the State of Maryland. (House Bill 367)

Electric Vehicle Re-charging Equipment. Covenants and other restrictions of a condominium or homeowners association which prohibit, or unreasonably restrict, the installation or use of electric vehicle recharging equipment in a parking space owned by, or designated for exclusive use by, a homeowner would be void and enforceable under proposed legislation. Additionally, an association board would have to approve a homeowner’s request to install electric vehicle re-charging equipment in the parking space if the owner agreed to comply with specified safety and use conditions. Similar legislation has been considered for the past several years. (House Bill 116/Senate Bill 144)

These bills and other related information can be found on the website of the Maryland General Assembly. To be enacted, proposed legislation must be passed by the Maryland House of Delegates and Maryland Senate, and be approved by the Governor.

Posted by Thomas Schild Law Group, LLC which represents condominiums, homeowner associations, and housing cooperatives throughout Maryland (including Montgomery County, Prince George’s County, Howard County, Frederick County, and Baltimore) and Washington, D.C.

Short Term Rentals Coming Soon to Montgomery County, Maryland

Short term rentals will soon be allowed in all residential areas of Montgomery County, Maryland.  A home rented on a daily or weekly basis is often referred to as an AirBnb–which is the dominant online booking web site for short term rentals.

Under current law, no residential rentals are permitted in Montgomery County for less than 30 days.  Faced with widespread illegal daily and weekly rentals, the County Council passed legislation in October, 2017 to allow these rentals where the property is the primary residence of the owner or owner-authorized resident of the rental property. However, condominiums, homeowner associations and housing cooperatives will still be allowed to ban or restrict short term rentals.  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

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

Board Training Required for Condo and HOA Association Directors

Mid-way through 2016, hundreds of directors of condos, HOAs and coops in Montgomery County, Maryland have successfully completed the online training program now required by County law for directors elected, re-elected or appointed since January 1.  The training program, Community Governance Fundamentals, is provided by the Montgomery County Commission on Common Ownership Communities (CCOC).

The required education program is intended to promote more knowledgeable and responsible management of common ownership communities.  Topics include the roles and responsibilities of board members and homeowners, community governing documents, financial management, meeting procedures, and covenant and rule enforcement procedures.

The online training takes about 2 hours to complete, may be taken in phases over time, is interactive and includes short quizzes which must be passed to move on to the next section.  The program is also offered in a live format by community association attorneys and managers in conjunction with the Community Associations Institute.

A director who does not complete the training is not prohibited from continuing to serve on the board.  However, a CCOC dispute resolution panel may consider failure to complete the training in deciding a dispute between the association and a homeowner.

There are more than 1,000 common ownership communities in Montgomery County, which include over 130,000 dwelling units and 5,000 board members.

Posted by:  Thomas Schild Law Group, LLC, attorneys for Maryland condominiums, homeowner associations, and housing cooperatives in Montgomery County, Prince George’s County, Howard County and Frederick County.