by Raymond Daniel Burke | Mar 24, 2017
The Maryland House of Delegates, by a vote of 99- 39, has passed House Bill 41, which would require residential condominiums, homeowner associations and cooperative housing corporations to register annually with the Maryland Department of Assessments and Taxation. The proposed law would require registration information that includes the name and contact information for the property manager, or, if the community does not employ a property manager, a person designated to answer inquiries on behalf of the community. Original language requiring the names and contact information for each officer and board member was removed in the final version of the bill. Also deleted from the final version was a provision that would have permitted the Department to require additional information. The final version of bill gives the Department authority to establish a registration fee not to exceed $10 per year. The bill proposes a$50 fine for failing to register.
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.
by Raymond Daniel Burke | Mar 9, 2017
House Bill 651, now pending in the Maryland General Assembly, would require condominiums and homeowner associations to conduct reserve studies of the common elements and common areas.
It is proposed that new Section 11-109.4 be added to the Maryland Condominium Act, and require that, within 90-days of the meeting at which the unit owners assume control of the council, a reserve study must be conducted of the common elements, and the condominium must conduct a reserve study every five years thereafter. Condominiums established before October 1, 2017 that had a reserve study conducted on or after October 1, 2013 are required to undertake an additional reserve study five years after the previous one, and every five years thereafter. Condominiums established before October 1, 2017 that have not had a reserve study undertaken on or after October 1, 2013 must conduct a reserve study on or before October 1, 2018, and every five years thereafter.
New Section 11B-112.3 would be added to the Maryland Homeowner Association Act so as to provide similar reserve study requirements for the common areas in homeowner associations.
by Raymond Daniel Burke | Mar 9, 2017
I will be speaking today (March 9) at the Maryland Construction Law Institute seminar at the Ecker Business Training Center, 6751 Columbia Gateway Drive, Columbia, Maryland 21046. My subject we be “Condominium and New Home Warranties and Rights of Action.”
