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Lower Required Percentage For Approval of Declaration Amendments Is Now In Effect

During the 2024 Session, the Maryland General Assembly passed Senate Bill 665 and House Bill 1496, which changed the amendment process in Section 11-103(c) of the Maryland Condominium Act so, as to lower the percentage required for approval of an amendment from 80 percent to 66 -2/3 percent of the total eligible voters in the condominium.  The legislation was signed by the Governor and took effect on October 1, 2024.  However, the reduced percentage does not apply in the event that any units are still owned by the developer, in which case the 80 percent requirement is still applicable. Additionally, the reduced percentage requirement does not apply to a purely corrective amendment of a typographical error under Section 11-103.1, which can be accomplished by the condominium’s board of directors.  Also remaining unchanged is the provision that the council of unit owners may amend the declaration to add or repeal a suspension of privileges provision by the affirmative vote of at least 60 percent of the total eligible voters of the condominium.

Condominium Electrical Vehicle Charging Requirements Would Include Electric Bicycles

Legislation introduced in the current session of the Maryland General Assembly would include electric bicycles within the requirements for electric charging stations at condominiums.  House
Bill 159 would amend Section 11-111.4 of the Condominium Act to expressly include electric bicycles along with motor vehicles subject to the Section’s requirements.  Section 11-111.4 provides that condominiums cannot prohibit or unreasonably restrict the installation or use of electrical vehicle charging equipment.  If approval is required for the installation or use, the condominium is required to review the application as it would any submission for approval of an architectural modification. It may not willfully avoid or delay review, and, if the condominium does not deny the application in writing within 60 days, it is deemed to have been approved, unless the delay is caused by a reasonable request for additional information.  The Bill is pending before the House Environmental and Transportation Committee.

I Am Now a Member of Gordon Feinblatt

I am pleased to confirm that, as of January 1, 2024, I have moved my practice and become a member or Gordon Feinblatt, LLC.  www.gfrlaw.com.   As you can see, the blog has a fresh new look, and you can expect continuing information and commentary, particularly as issues relevant to condominiums, homeowner associations and real estate development arise during this year’s session of the Maryland General Assembly.

Maryland General Assembly Passes Bill Requiring Reserve Studies

The Maryland General Assembly has passed new legislation requiring all condominiums, homeowner associations, and housing cooperatives to undertake regular reserve studies of common area components.  Under House Bill 107, the reserve study requirement, which was previously applicable to only Prince George’s and Montgomery Counties, is applicable statewide.  A community that has had a reserve study conducted on or after October 1, 2018 must have that reserve study updated within five years from the date to that study, and every five years thereafter.  A community that has not had a reserve study on or after October 1, 2018, must undertake one no later than October 1, 2023, and that study must also be updated every five years thereafter.  The bill has been sent to the Governor for signature into law.

House Bill Would Make Changes In Condominium Governance, Particularly During The Period of Developer Control

House Bill 140, now pending in the Maryland General Assembly, would make several amendments to the Maryland Condominium Act relating to governance during the period of developer control and, in all condominiums, would expand unit owner participation in meetings of the board of directors.  In proposed new provisions to Section 11-109(c)(8) of the Maryland Condominium Act, the Bill would require a developer in control of a condominium to appoint a unit owner to the board of directors.  Where a developer controlled condominium has a board of directors and 25% of the units have been sold, the developer would be required to appoint at least one unit owner, not affiliated with the developer, to the board.  Where there is no board of directors, once 25% of the units are sold, the developer would be required to establish a board of directors, including at least one unit owner, not affiliated with the developer.

The Bill would also require and additional open agenda board meeting per year that provides an opportunity for unit owner comment.  Section 11-109(c) presently requires that condominium boards hold at least one such meeting each year.  House Bill 140 would amend this provision to require a board of directors to hold two such open agenda meetings per year.   This requirement would also apply to board meetings during the period when the developer is still in control of the condominium.

Additionally, the Bill would add a new provision to Section 11-116 requiring that, during the period of developer control, the condominium’s books and records be maintained “separate and apart from the developer or of any other person.”

The Bill proposes to add similar provisions to the Maryland Homeowner Association Act.  Please watch this blog for further developments on this legislative proposal.