by Raymond Daniel Burke | Mar 23, 2017
House Bill 34 in the Maryland General Assembly would give homeowner associations the right to collect a fee relating to inspections during the resale process. The proposed law would entitle an HOA to charge “a reasonable fee not to exceed $100 for an inspection of the low owner’s lot if required.” Under Section 11B-106 of the Maryland Homeowner Association Act, sellers are required to provide certain information to prospective purchasers, much of which is often provided by the Association. Under the statute, the Association can charge “a reasonable fee” for providing this information, that does not exceed its actual cost, up to a maximum of $250. House Bill 34 would add an additional fee charge for costs relating to an inspection of the property as part of the resale process. The Bill passed the House of Delegates by a 85 – 44 vote, and is now pending in the Senate.
by Raymond Daniel Burke | Mar 22, 2017
Senate Bill 1115, filed in the Maryland General Assembly, would require homeowner associations to adopt a written policy if it permits payment plans for homeowner fees and other charges. The new law would add Section 11-114.1 to the Maryland Homeowner Association Act, and provide that, if a homeowner association allows members to pay fees and other charges pursuant to a payment plan, the association must develop a written policy that (1) establishes the qualifications needed to participate in a payment plan; and (2) discloses the terms and conditions of the payment plan. The bill would further require the written policy to be transmitted to each homeowner within 30 days of its adoption.
by Raymond Daniel Burke | Mar 17, 2017
Senate Bill 529 in the Maryland General Assembly would authorize condominiums to restrict the use of common elements by unit owners who are delinquent in paying assessments. The proposed law would add new subsection 11-104(e) to the Maryland Condominium Act to provide that the bylaws may contain a provision permitting such restrictions. Under the bill, the restriction on use of the common elements may be imposed on a delinquent unit owner who is not in a payment plan, is delinquent on a payment plan, or has defaulted on a previous payment plan. The law would specifically allow condominium bylaws to be amended to include such a provision.
by Raymond Daniel Burke | Mar 16, 2017
Senate Bill 809 and House Bill 1369, now pending in the Maryland General Assembly, would require a condominium council of unit owners to provide at least 30-days notice to all unit owners of any sale, including a tax sale, of a common element. The bills would add new Subsection 11-108(d) to the Maryland Condominium Act. The legislation would also add new Subsection 14-804(e) to the Tax Article to provide that a council of unit owners must give at least 30-days notice to the unit owners when a tax lien has been imposed on a common element.
The proposed law would create a similar notice requirement for homeowner associations with respect to a sale of any common area in the community by adding new Section 11B-106.2 to the Maryland Homeowner Association Act. Proposed new Subsection 14-804(e) of the Tax Article would also require notice by a homeowner association when a tax lien is imposed on any common area.
by Raymond Daniel Burke | Mar 10, 2017
House Bill 789, now pending in the Maryland General Assembly, would reduce the percentage of affirmative votes required to amend condominium bylaws. Under Section 11-104(e) of the Maryland Condominium Act, condominium bylaws may only be amended upon a vote of two-thirds (66 2/3 percent) of the unit owners. The proposed legislation would reduce this to 55 percent. Significantly, it would also permit the bylaws themselves to establish an even lower percentage. Additionally, the bill would limit the voting to members in “good standing, ” which is defined as not being more than 90 days in arrears as to assessments, and not in violation of any provision of the declaration, bylaws or rules and regulations. This, of course, could have the affect of further reducing the number of votes required for a bylaw amendment.
The proposed legislation contains similar provisions to reduce the percentage vote required for bylaw amendments under Section 11B-116 of the Maryland Homeowners Association Act.
