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.

2018 Maryland Legislative Update–New Laws Help Condos and HOAs

The hot topic during the 2018 Maryland legislative session was how Maryland will adapt to recent changes in federal income tax and health insurance laws.

Beyond the headlines, the Maryland General Assembly considered many bills which directly affect Maryland condominiums, homeowner associations, and housing cooperatives. Several new laws which help condos and HOAs were enacted. Continue reading

Maryland General Assembly OKs Bill to Help Condos Collect Delinquent Assessments

The Maryland General Assembly has approved legislation to make it easier for condominium associations to suspend use of the common area parking lot, pool and other recreational amenities when an owner is delinquent in paying the condo assessments for more than 60 days.

The new law allows approval by owners with 60 percent of the total eligible votes to amend a condominium declaration to provide for the suspension of use of these portions of the condominium common property.  This is far less than the 80 percent minimum required by the Maryland Condominium Act for other declaration amendments, and some older condo documents require as much as 100 percent unanimous approval.  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

2017 Maryland Condo and HOA Legislation–What’s Hot and What’s Not

With the Maryland General Assembly now in the final month of the 2017 legislative session which ends on April 10, several bills regarding community associations are still under consideration.  Other bills have died in committee.  A bill must be passed by the Maryland House and Senate and signed by the Governor in order to become law.

Here’s What’s HOT!

State Registration of Community Associations.  Legislation to require each condo, co-op and HOA to register with the state has been passed by the House after it was amended to limit the information required.  For communities which already register with the county, no additional state registration would be required. The bill is now under review in the Senate.

Manager Licensing.  A bill to require community managers to obtain a State license has been introduced again this year.  Manager licensing legislation was previously considered in 2014 and is under study again in the House of Delegates.  The proposed legislation would require a manager to have specified training, pass a test and pay a license fee in order to provide management services to condos, coops and HOAs.

Replacement Reserves for Capital Expenditures.  Every five years, each condominium and homeowners association would be required to obtain a study of the estimated costs to repair and replacement of building structural components, roads, recreation facilities and other similar items.  The House has passed this legislation which is now under review in the Senate.

Foreclosure Sale Notice.   A lender which sells a property at foreclosure would be required to give written notice of the proposed sale to any condo or HOA which has recorded an assessment lien against the property at least 30 days before the sale date.  Notice of any postponement or cancellation  of the foreclosure sale must also be provided to the property owner, condo and HOA.  This legislation has passed both the House and Senate.

Governing Documents.  Still under study are bills to make it easier to amend condo and HOA governing documents and to invalidate condo document provisions which limit the time for bringing condominium legal claims regarding construction defects.

Here’s What’s NOT

Electric Vehicle Charging Stations.  A bill to invalidate condominium and homeowner association covenants which prohibit or unreasonably restrict the installation electric vehicle charging stations in parking spaces designated for the exclusive use of a homeowner was killed by House and Senate committees.

Backyard Gardens.  Also killed in committee was a bill to invalidate association covenants which prohibited gardens in the backyard of a home.

Smoking Restrictions.  Legislation to allow the board of directors of a condominium or homeowners association to adopt rules to prohibit tobacco smoking in an owner’s  condo or townhome was voted down in committee.

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.

 

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.