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Maryland Senate and House Pass Measure Providing For Closed Meetings of Condominium Boards To Consider “Business Tranactions”

House Bill 388 and Senate Bill 197 have both been approved by unanimous votes in each house of the Maryland General Assembly.  The identical enactments would amend 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.”  If approved by the Governor, the amendment would take effect on October 1, 2013. (more…)

Legislature Considers Amendments To Provisions For Termination Of Developer Contracts

Senate Bill 162, now pending in the Maryland General Assembly, would change 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.  It 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. (more…)

Maryland Senate Versions of House Bills

The following are Maryland General Assembly Senate versions of House bills discussed in previous posts:

Licensing and regulation of property managers – SB 794

Precluding limits on causes of action – SB 167

Limiting liens to delinquent assessments and not fine – SB 161

Resale notice of potential special assessment – SB 176

Closed meetings to consider business transactions – SB 197

Maryland Legislature Considers Limits On Attorney’s Fees Charged To Homeowners

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…)

Maryland Legislature Considers Bill To Permit Certain Qualified Unit Owners To Rent Their Units Despite Restrictions On Rentals

The Maryland General Assembly is considering a bill that would require that  condominium unit owners, under certain qualifying circumstances, be permitted to rent their units even where the condominium governing documents limit the number of units that can be rented.  House Bill 1195 would add new Section 11-111.4 to the Maryland Condominium Act, and provide that unit owners who had experienced a “financial event” be allowed to rent their units despite a provision in the governing documents limiting the number or percentage of units that can be rented. (more…)

Maryland General Assembly Considers Legislation Precluding Limits On Condominium Rights To Sue

House Bill 1141, now pending in the Maryland General Assembly, would prevent 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.  It would add new Section 11-134.1 to the Maryland Condominium Act, which would make certain provisions in governing unenforceable, and would limit the scope of others. (more…)

Maryland Legislature Considers Requirements For Foreclosure of Liens By Condominiums, Coops and Homeowner Associations

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…)

Legislature Considers Clarifications to Maryland Contract Lien Act

The Maryland General Assembly is considering a bill that would clarify the language of the Maryland Contract Lien Act regarding the right to maintain a suit for monetary damages in addition to foreclosure.  The proposed revisions in House Bill 628 would make clear that a lien holder, including liens for unpaid assessments held by a condominium council of unit owners, could be subject to a monetary suit for damages, even if the lien has not been foreclosed; that such suits for monetary damages may include costs and attorney’s fees; and that, after foreclosure, a suit for monetary judgment could be brought for any deficiency either within the foreclosure proceeding or as a separate suit. (more…)

Bill In Maryland General Assembly Would Preclude Lien Foreclosures From Including Amounts Due For Fines and Related Fees

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…)