Senate Bill 136, now pending in the Maryland General Assembly, would make condominiums, cooperative housing corporations, and homeowners associations eligible to receive grants from the Maryland Solar Energy Grant Program to contribute to the cost of acquiring and installing photovoltaic and solar water heating equipment.
Legislation pending in the Maryland General Assembly would limit attorney’s fees recoverable by condominiums from unit owners, and by homeowners associations from lot owners, in connection with collecting assessments or fines. House Bill 1532 would add new Section 11-110.1 to the Maryland Condominium Act and new Section 11B-117.1 to the Homeowners Association Act. It would prohibit a council of unit owners or homeowners association from demanding, collecting or seeking to recover attorney’s fees from a unit owner “unless the amount of the attorney’s fees is reasonable in relation to the amount in controversy or the nature of the non-monetary violation. (more…)
House Bill 811, now pending before the Maryland General Assembly, would establish new notice requirements before a condominium, cooperative housing corporation or homeowner association would be able to pursue lien foreclosure for unpaid assessments. The proposed enactment of new Section 7-105.13 of the Real Property Article of the Annotated Code of Maryland would require that an action to foreclose a lien may not be filed until 45 days after written notice of intent to foreclose is provided. A complaint foreclose a lien would have to be accompanied by an affidavit establishing the debt owed and a copy of the notice of intent to foreclose. A foreclosure sale could not occur until at least 45 days after service of the complaint and supporting documents. (more…)
A bill now pending in the Maryland Legislature would prevent condominium’s, cooperative housing corporations, and homeowner associations from including in a lien foreclosure action amounts due for fines and attorney’s fees incurred in recovering fines. Instead, under House Bill 286, foreclosure of a lien could only involve delinquent monthly or special assessments. (more…)
House Bill 23, now before the Maryland General Assembly, would require information concerning “potential” special assessments to be included in resale contracts for both condominium units and properties subject to a homeowers association. Perhaps in response to the protracted litigation in MRA Property Management, Inc. v. Armstrong, 426 Md. 83, 43 A. 3d 397 (2012), which concerned the alleged failure to disclose knowledge of defects that would ultimately require special assessments to repair, the proposed legislation would amend Section 11-135 of the Maryland Condominium Act and Section 11B-106 of the Maryland Homeowners Association Act to require that any resale contract include a notice of “any potential special assessment that is referenced within the preceding 12 months in” (1) the agenda or minutes of any meeting of the board of directors of a condominium, or the governing body of a homeowners association; or (2) a vote at a meeting of a condominium’s council of unit owners or a homeowners association. As proposed, the new requirement would apply to a mere reference to the possibility of a special assessment, and not to just actual special assessment proposals or enactments.
Another bill effecting condominiums and homeowners association that failed to pass during the 2012 session of the Maryland General Assembly related to insurance coverage for property management companies. House Bill 741 would have required management companies, employed by condominiums, homeowners associations or housing cooperatives, to purchase fidelity insurance that would indemnify the assoication from an act or omission arising from fraud, dishonesty or criminal acts by an agent of employee of the mangagement company. The proposed law received an umfavorable report from the Environmental Matters Committee, and never came to a vote.
The Maryland Condo Law Blog is written by Raymond Daniel Burke. One of the region's top construction and real estate development lawyers, Ray has more than 35 years of experience in matters relating to condominium and other multi-use development matters.