by Raymond Daniel Burke | Feb 14, 2017
Proposed legislation now pending in the Maryland General Assembly would prevent condominium developers from limiting the ability of the council of unit owners and individual unit owners to bring construction defect claims for issues affecting the condominium. Senate Bill 670 and House Bill 676 would prevent developers from including certain provisions in condominium governing documents or contracts of sale that act as an impediment to claims. Specifically, the proposed legislation relates to claims alleging the failure of the developer to comply with (1) applicable building codes; (2) plans and specifications for the project approved by the local governing authority; (3) manufacturer’s installation instructions for building products used the condominium; and (4) warranty provisions under Sections 10-203 and 11-131 of the Real Property Article.
As to such claims, the developer may not include provisions that:
(a) Shorten the statute of limitations for filing claims;
(b) Waives application of the “discovery rule” for purposes of determining when a claim accrued;
(c) Requires the council or a unit owner in an arbitration proceeding to assert a claim within a period shorter than the applicable statute of limitations; and
(d) operates to prevent a council or unit owner from filing a law suit, initiating arbitration proceedings, or otherwise asserting a claim within the applicable statute of limitations. (more…)
by Raymond Daniel Burke | Feb 13, 2017
House Bill 41 now pending in the Maryland General Assembly would require condominiums, homeowner associations and cooperative housing corporations to register annually with the Maryland Department of Assessments and Taxation. Similar to a bill that was filed during the 2016 session but did not pass, the proposed law would require registration information that includes the name and contact information for each officer, board member, and property manager. along with such other information as the Department might require. The bill proposes a $3 registration fee, and a $50 fine for failing to register.
by Raymond Daniel Burke | Nov 8, 2016
The Maryland Condominium Act, at Section 11‑109.2, makes mandatory an annual budget, and requires that the proposed budget be submitted to the unit owner membership at least 30 days before it is adopted. It is also required that the budget contain seven specific line items. These line items — income, administration, maintenance, utilities, general expenses, reserves, and capital items — must be set forth in the budget without exception and without to regard to any other line items that may be included. The adoption of the budget is required to take place at an open meeting of the owners. Here is the complete test of Section 11-109.2:
(a) Preparation and submission.—The council of unit owners shall cause to be prepared and submitted to the unit owners an annual proposed budget at least 30 days before its adoption.
(b) Items required to be included. – The annual budget shall provide for at least the following items:
(1) Income;
(2) Administration;
(3) Maintenance;
(4) Utilities;
(5) General expenses;
(6) Reserves; and
(7) Capitol items.
(c) Adoption. – The budget shall be adopted at an open meeting of the council of unit owners or any other body to which the council of unit owners delegates responsibility for preparing and adopting the budget. (more…)
by Raymond Daniel Burke | May 10, 2016
Legislation introduced in the Maryland General Assembly that would have prevented developers from including provisions in condominium governing documents that limit the developer’s liability for construction defects failed to reach a floor vote during the 2016 session. Senate Bill 250 and House Bill 1170 proposed to prohibit provisions in the declaration, bylaws or rules and regulations that limit the ability of a council of unit owners to file suit on behalf of itself or the unit owners or enforce warranty claims. The proposed new law would also have precluded limits on the rights of condominium councils or individual unit owners to bring claims relating to an alleged failure of the developer to comply with building codes, county approved plans and specifications, product manufacturer’s installation instructions, and other construction industry standards. Proposed new Section 11-134.1 of the Maryland Condominium Act would have prohibited provisions designed to prevent the filing of a claim within the applicable period of limitations or prevent claims from accruing pursuant to the “discovery rule.” The new law would also have precluded provisions requiring a vote of the unit owners approving the initiation of a claim, unless such a requirement is adopted after the unit owners assume control of the community from the developer.
by Raymond Daniel Burke | May 9, 2016
A bill that would have required common ownership communities to register with the State did not come to a vote on the floor of the Maryland General Assembly during 2016 session. House of Delegates Bill 1061 would have required common ownership communities — including residential condominiums, homeowner associations and cooperatives — to register each year with the Maryland Department of Assessments and Taxation.
by Raymond Daniel Burke | Mar 9, 2016
Bill 1061 in the Maryland House of Delegates would require common ownership communities — including residential condominiums, homeowner associations and cooperatives — to register each year with the Maryland Department of Assessments and Taxation. The community would be required to provide (1) the name, address and county in which it is located; (2) the number and type of units; (3) proof of registration with the county if required in that jurisdiction; (4) the name and contact information for each officer or member of the board of directors or other governing body, the property manager, and any attorney; (5) a statement as to fidelity insurance maintained; (6) a statement as to reserve studies and current reserve balances; (7) a statement as to grievance procedures; and (8) any other information that the Department may require.
