by Raymond Daniel Burke | Aug 6, 2013
The House of Representatives is considering a bill to make condominiums, as well as housing cooperatives, eligible to receive grants for storm recovery relief for common element damage. H.R. 2887, introduced by several members of the House representing New York, would amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act to provide that individuals eligible for FEMA assistance under the Act include the associations that govern condominiums and housing cooperatives with respect to the property elements that are the responsibility of the assoication. It further would provide that the maximum amount that an association may receive could be adjusted by regulation and not limited to the amounts payable to indiviual homeowners. (more…)
by Raymond Daniel Burke | Jun 25, 2013
The interpretation of condominium resale disclosure requirements remains unclear as a result of certain Maryland court decisions and the Maryland General Assembly’s failure to provide clarification during the 2013 Session. Those disclosure requirements are intended to provide prospective condominium purchasers with sufficient information about potential expenses so as to permit them to make an informed purchase decision. Uncertainty arose when the Maryland Court of Appeals, in a footnote concerning an issue not even before the Court, offered the opinion that the required disclosure of known code violations, at the time of resale of a unit, under Section 11-135 of the Maryland Condominium Act, refers only to “charged violations.” While this observation was offered in dicta, and is not binding law, it suggested that knowledge of building or health code violations, that ultimately could lead to expensive repairs, need not be disclosed to a would-be purchaser unless the condition had been formally cited by the local code authority. During the 2013 session, legislation was considered that would have touched on this issue by requiring disclosure of “potential” special assessments, but the proposed new law was never enacted. Subsequently, in at least one unreported opinion, the Maryland Court of Special Appeals relied on the Court of Appeals statement to hold that knowledge of a violation requires “notice or citation from an official enforcement agency.” While the unreported opinion is also not binding law, the two decisions have clearly suggested a limited disclosure requirement that may not provide the level of information intended by the statute. (more…)
by Raymond Daniel Burke | Jun 7, 2013
A bill that would have prevented residential condominium developers from including provisions in declarations, bylaws and sales contracts that limit the rights of condominium councils and unit owners to bring claims, specifically targeting warranty claims against the developer, passed in the Maryland Senate, but failed in committee in the House. Senate Bill 167, which passed by a vote of 44 – 0, would have added new Section 11-134.1 to the Maryland Condominium Act. It would have made certain provisions in governing unenforceable, and would have limited the scope of others. (more…)
by Raymond Daniel Burke | Jun 7, 2013
The Maryland House of Delegates did not vote on a Senate bill that would have changed the current provisions applicable to the rights of condominiums and homeowners associations to terminate contracts that were entered into by the developer prior to the property owners having assumed control of the community. Senate Bill 162, which passed the Senate by a vote of 37 – 7, would expand the developer contracts now subject to termination by a subsequently elected independent governing body to include contracts providing “telecommunications, internet, cable, or other video services” in addition to utility services and communications systems.
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by Raymond Daniel Burke | May 30, 2013
A bill to license and regulate property managers that had passed in the Maryland House of Delegates died in committee in the Maryland Senate. By a vote of 103 – 35, the House had passed HB 576, which would establish a new regulatory agency for the licensing of community managers of condominiums, cooperative housing corporations, and homeowners associations. However, a cross-filed bill in the Senate never made it out of committee. (more…)
by Raymond Daniel Burke | May 21, 2013
Governor Martin O’Mally has signed legislation passed by the Maryland Senate and House of Delegates that permits closed condominium board meetings for the purpose of discussion business transactions. House Bill 388 and Senate Bill 197 were both approved by unanimous votes in each house of the Maryland General Assembly. The new law amends Section 11-109.1 of the Maryland Condominium Act to provide that the board of directors of a condominium council of unit owners may meet in closed session for “consideration of the terms or conditions of a business transaction in the negotiation stage if disclosure could adversely affect the economic interests of the council of unit owners.” The Governor signed the bill into law on April 9, 2013, and the amendment will take effect on October 1, 2013. (more…)
