by Raymond Daniel Burke | Nov 6, 2024
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.
by Raymond Daniel Burke | Apr 22, 2022
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.
by Raymond Daniel Burke | Feb 11, 2022
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.
by Raymond Daniel Burke | Jun 30, 2021
The tragic collapse of the Champlain Towers Condominium in Surfside Florida, and the horrific consequences to residents and their families, will, no doubt, continue to be the subject of multiple news reports and long-term investigations. And it will be some time before we learn the true cause of the disaster, and how it might have been prevented. But the fundamental issue — deteriorated building conditions — is something about which all condominium unit owners and property managers need to be especially conscientious. Previously, I have written about the high importance of regular building evaluations by competent consultants. As a practical matter, these studies are necessary in order for an association to have information needed to develop accurate budgets for maintenance and reserves. Of equal importance to conducting a building survey, however, is properly allocating funds to address any conditions that the report identifies. The fact that the Maryland Condominium Act requires that condominiums adopt annual budgets that specifically include reserves and capital items indicates that the association must have a detailed understanding of its buildings if the specified budget items are to present a meaningful picture of building maintenance issues. The fact that the Condominium Act, and most condominium governing documents, makes the council of unit owners responsible for maintenance, repair and replacement of the common elements creates potential liability where due diligence as to building conditions is not properly undertaken. Most often, the consequences of failing to adhere to good maintenance practices are financial — resulting in expensive repair projects and burdensome special assessments. But as Champlain Towers demonstrates, some building conditions can lead to far more dreadful results.
by Raymond Daniel Burke | Feb 15, 2021
A bill proposed in the Maryland House of Delegates would make significant changes to the Maryland Condominium Act that relate to the period during which the developer is in control of the council of unit owners. House Bill 352 would require that the developer hold at least two meeting per year, rather than the current one annual meeting, and that the unit owners have an opportunity to comment on condominium matters during those meetings. Additionally the bill would require that, if the condominium has a board of directors, within 30 days after 25% of the units have been titled to unit owners, the developer must appoint a board member who is a unit owner and not otherwise affiliated with the developer; and that, if there is no board at that time, a board must then be established The bill would further require the developer to disclose any governmental bonds affecting the project, and provide notice in advance of requesting release of any such bonds. Also, it would be required that the maintenance of the condominium’s books and records begin on the date that the council of unit owners is established, and that the condominium’s books and records be kept separate and apart from those of the developer. The bill proposes similar changes to the Maryland Homeowner Association Act.
by Raymond Daniel Burke | Oct 12, 2020
Each year, The Best Lawyers in America designates a select group of individuals as “Lawyers of the Year” in high-profile specialties in large legal communities. Only a single lawyer in each practice area and designated metropolitan area is honored as the “Lawyer of the Year,” making this accolade particularly significant. Lawyers being honored as “Lawyer of the Year” are selected based on particularly impressive voting averages received during the exhaustive peer-review assessments that Best Lawyers® conducts with thousands of leading lawyers each year.
To view the full list of selected attorneys selected and the practice areas in which they are recognized, click here.
