Maryland Condo Law Blog
An online resource for condominium and homeowner associations and their members, and for developers, builders, contractors, architects, engineers and others in the building industry.
Proposed Maryland Law Would Require Condominiums and Homeowner Associations To Undertake Reserve Studies
House Bill 651, now pending in the Maryland General Assembly, would require condominiums and homeowner associations to conduct reserve studies of the common elements and common areas.
It is proposed that new Section 11-109.4 be added to the Maryland Condominium Act, and require that, within 90-days of the meeting at which the unit owners assume control of the council, a reserve study must be conducted of the common elements, and the condominium must conduct a reserve study every five years thereafter. Condominiums established before October 1, 2017 that had a reserve study conducted on or after October 1, 2013 are required to undertake an additional reserve study five years after the previous one, and every five years thereafter. Condominiums established before October 1, 2017 that have not had a reserve study undertaken on or after October 1, 2013 must conduct a reserve study on or before October 1, 2018, and every five years thereafter.
New Section 11B-112.3 would be added to the Maryland Homeowner Association Act so as to provide similar reserve study requirements for the common areas in homeowner associations.
Maryland Construction Law Institute
I will be speaking today (March 9) at the Maryland Construction Law Institute seminar at the Ecker Business Training Center, 6751 Columbia Gateway Drive, Columbia, Maryland 21046. My subject we be “Condominium and New Home Warranties and Rights of Action.”
Proposed Maryland Legislation Would Expressly Authorize Baltimore County Homeowner Associations To Bring Nuisance Actions
House Bill 496, now pending in the Maryland General Assembly, would give express authority to Homeowner and Community Associations in Baltimore County to bring a court action seeking relief from or abatement of an alleged nuisance. Under current Section 14-125 of the Real Property Article, “community associations” have authority to seek injunctive or other relief in the Circuit Court for Baltimore County for abatement of a nuisance. However, a community association” is limited to a “non-profit corporation.” The proposed legislation would broadly expand the definition of a “community association” to include a “non-profit association, corporation, or other organization.” Current law also requires that “community associations” be comprised of “at least 20% of the total number of households as members, with a minimum of 40 or more individual households as defined by specific geographic boundaries in the bylaws or charter of the community association.” The proposed legislation would do away with these requirements, and simply require that the association, corporation or other organization be “composed of residents of a community defined by specific geographic boundaries.” As such, it could be read to apply to condominium councils of unit owners as well as homeowner associations.
Bill In the Maryland General Assembly Would Permit Restrictions and Prohibitions On Smoking By Condos, HOAs and Landlords
House Bill 500, now pending the Maryland General Assembly, provides for a proposed amendment to Section 11-104 of the Maryland Condominium Act that would allow a condominium’s bylaws to include “a restriction or prohibition on smoking tobacco products within the units or in the common elements.” The proposed legislation would also amend Section 11-111 to authorize a council of unit owners to adopt a rule imposing such a restriction or prohibition.
The bill also would also add new Section 11B-111.7 to the Maryland Homeowners Association Act, which would permit a homeowner association to “include in its declaration, bylaws, rules, or recorded covenants and restrictions a provision that restricts or prohibits the smoking of tobacco products in any multi-unit dwelling or in the common areas. A “multi-unit dwelling” is defined in the bill as “a town house, a row house, or any other individually owned dwelling unit that shares a common wall, floor, or ceiling with another individually owned dwelling unit.”
The proposed legislation would also amend Maryland Real Property Code Section 8-208 to permit landlords to include in written residential leases “a restriction or prohibition on smoking tobacco products within the dwelling unit or elsewhere on the premises.”
Bills Proposed In Maryland General Assembly To Limit Restrictions Imposed By Condominium Developers On The Ability Of The Council And Unit Owners To Assert Construction Defect Claims
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. read more…
2017 Baltimore Orioles – The Remaining Roster Spots
Pitchers and catchers report to Ed Smith Stadium in Sarasota, Florida today as the Baltimore Orioles begin spring training for the 2017 season; so it is time for me to step back from condo law for a moment and provide my annual commentary on the state of the team. This year, I would like to focus on completing the position-player roster. Here are the current options as I see them: read more…
Maryland General Assembly Again Considers Registration Requirement For Common Ownership Communities
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.
Maryland Federal Court Approves Residential Sales Contract Provision Creating a One-Year Period of Limitations
In Daniels v. NVR, Inc., t/a Ryan Homes, the United States District Court for the District of Maryland upheld the validity of a contractual provision in a residential home purchase agreement that reduced the normal period of limitations for filing suit to one-year, despite the fact that the parties had entered into a tolling agreement. In Maryland, the general period of limitations applicable to most civil claims is the three-year period established in Md. Cts. & Jud. Proc. Code Ann. Sec. 5-101. This case involved construction defect claims concerning a newly constructed home. The NVR purchase agreement contained a provision that made claims and disputes subject to a one-year period of limitations. The Court, which had jurisdiction on diversity found that this was not inherently unreasonable, and, therefore, was fully enforceable.
Interestingly, the parties had entered into a tolling agreement, which suspended the running of limitations during attempts to come to a resolution of the issues. However, NVR successfully argued that the tolling agreement only suspended “statutes of limitations,” and did not toll a “contractual limitations period.”
Ober Kaler Joins Baker Donelson
Effective January 1, Ober|Kaler joined the national firm, Baker Donelson. The combined firm maintains the name Baker Donelson and has more than 800 attorneys across 25 offices in ten states and Washington, D.C. I am excited and privileged to begin 2017 as a Baker Donelson shareholder in their Baltimore office, and look forward to continuing communications and sharing of information with the many readers and followers of this blog.
Preserving Our Union
Here is a link to my latest opinion/commentary in The Baltimore Sun: Re-uniting our divided states.
ABOUT
The Maryland Condo Law Blog is written by Raymond Daniel Burke. One of the region's top construction and real estate development lawyers, Ray has more than 35 years of experience in matters relating to condominium and other multi-use development matters.