Maryland General Assembly Wraps Up Virtual 2021 Legislative Session

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.

Continue reading

HUD to Enforce Fair Housing Act Based on Sexual Orientation and Gender Identity Discrimination

The United States Department of Housing and Urban Development (HUD) recently announced that it will administer and enforce the Fair Housing Act to prohibit discrimination on the basis of sexual orientation and gender identity. The HUD announcement implements President Biden’s January 20, 2021 Executive Order instructing that all statutes which prohibit sex discrimination should be applied to discrimination based on sexual orientation and gender identity, so long as the statute does not contain sufficient indications to the contrary.

In explaining its February, 2021 interpretation of the Fair Housing Act, HUD relied on the 2020 decision of the United Supreme Court in Bostock v. Clayton County which ruled that discrimination in the workplace based on sexual orientation or gender identity violates Title VII of the Civil Rights Act of 1964 which prohibits discrimination “because of…sex”.

Continue reading

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.

Maryland Condominium Is Responsible for Maintaining Common Property in Safe Condition

Condominiums in Maryland have a duty to exercise reasonable and ordinary care to keep the common area safe for residents and their guests. Where there is a dangerous condition on the property which the condominium board or manager knew or should have known about, the condominium may be liable for the injuries caused by the dangerous condition.

Duty Owed Depends on Status of Injured Person. As explained in a decision of the Maryland Court of Special Appeals, the potential “premises liability” depends on the relationship between the injured person and the condominium. For an “invitee” on the property at the invitation of the property owner, there is duty of reasonable and ordinary care which includes a duty to inspect the property to discover and correct dangerous conditions. Invitees must also be warned of known dangers. For a “social guest” or “licensee” who is permitted on the property for the benefit of the person entering the property, there is only a duty to warn of known dangers. For a “trespasser” or “bare licensee” who does not have permission to be on the portion of the property where an injury occurs, there is merely a duty to refrain from willful injury or entrapment but no duty to warn of dangerous conditions.

Continue reading

Coronavirus Update: Practical Tips for Community Associations

By Thomas C. Schild and Scott J. Silverman

When Coronavirus Disease (COVID-19) was declared a pandemic in mid-March, 2020, state and local governments in Maryland and Washington, D.C. ordered that most everyone stay home to limit the spread of the coronavirus.  After several months of staying home and restrictions on gathering in public places, business and social activity in Maryland and the District of Columbia stated Phase 2 re-opening in late June, 2020.

While the duration and impact of COVID-19 locally and throughout the United States is still unknown, it is certain that condominiums, homeowner associations, and housing cooperatives must continue to adapt their practices and procedures to the ongoing health crisis. With most offices in the Washington region likely to remain closed until September, 2020 or longer, many residents are still staying home and working at home.  Schools may not fully open until 2021, which means school-age children and their parents will continue to be home. 

Although we defer to medical and health professionals on how to best protect against the spread of COVID-19, we offer a few practical tips on how community association boards, managers, and residents can adapt the management and operation of their community to limit the risk of illness…and legal liability.  

Continue reading

2020 Vision: Maryland Condominium Legislative Update

Condominium insurance, replacement reserves and dispute resolution procedures were among the condominium and homeowners association topics which were considered during the 2019 Maryland legislative session.  However, virtually no new laws affecting community governance were enacted this year.

Looking ahead to 2020, legislation concerning insurance, reserves and dispute resolution is likely to introduced again.

Condominium Insurance Deductibles

Where damage to condominium units and common elements is caused by fire, water or other perils covered by the master property damage insurance, the Maryland Condominium Act requires a unit owner to pay up to the first $5,000 of repair expenses when the cause of the damage originates in that owner’s condominium unit.  While some condos choose a higher deductible, others can only obtain insurance with a deductible of $10,000 or more.  This leaves the condominium association responsible for repair expenses between $5,000 and the amount covered by insurance. Continue reading