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.
Maryland General Assembly Considers Bill To Require Written Policies For Homeowner Association Payment Plans
Senate Bill 1115, filed in the Maryland General Assembly, would require homeowner associations to adopt a written policy if it permits payment plans for homeowner fees and other charges. The new law would add Section 11-114.1 to the Maryland Homeowner Association Act, and provide that, if a homeowner association allows members to pay fees and other charges pursuant to a payment plan, the association must develop a written policy that (1) establishes the qualifications needed to participate in a payment plan; and (2) discloses the terms and conditions of the payment plan. The bill would further require the written policy to be transmitted to each homeowner within 30 days of its adoption.
State Senate Bill Would Authorize Common Element Restrictions On Delinquent Unit Owners
Senate Bill 529 in the Maryland General Assembly would authorize condominiums to restrict the use of common elements by unit owners who are delinquent in paying assessments. The proposed law would add new subsection 11-104(e) to the Maryland Condominium Act to provide that the bylaws may contain a provision permitting such restrictions. Under the bill, the restriction on use of the common elements may be imposed on a delinquent unit owner who is not in a payment plan, is delinquent on a payment plan, or has defaulted on a previous payment plan. The law would specifically allow condominium bylaws to be amended to include such a provision.
Proposed Legislation Would Require Condominiums To Give Unit Owners Notice Of A Sale Or Lien Affecting A Common Element
Senate Bill 809 and House Bill 1369, now pending in the Maryland General Assembly, would require a condominium council of unit owners to provide at least 30-days notice to all unit owners of any sale, including a tax sale, of a common element. The bills would add new Subsection 11-108(d) to the Maryland Condominium Act. The legislation would also add new Subsection 14-804(e) to the Tax Article to provide that a council of unit owners must give at least 30-days notice to the unit owners when a tax lien has been imposed on a common element.
The proposed law would create a similar notice requirement for homeowner associations with respect to a sale of any common area in the community by adding new Section 11B-106.2 to the Maryland Homeowner Association Act. Proposed new Subsection 14-804(e) of the Tax Article would also require notice by a homeowner association when a tax lien is imposed on any common area.
Maryland Legislature Considers Proposal To Reduce Votes Required To Amend Bylaws
House Bill 789, now pending in the Maryland General Assembly, would reduce the percentage of affirmative votes required to amend condominium bylaws. Under Section 11-104(e) of the Maryland Condominium Act, condominium bylaws may only be amended upon a vote of two-thirds (66 2/3 percent) of the unit owners. The proposed legislation would reduce this to 55 percent. Significantly, it would also permit the bylaws themselves to establish an even lower percentage. Additionally, the bill would limit the voting to members in “good standing, ” which is defined as not being more than 90 days in arrears as to assessments, and not in violation of any provision of the declaration, bylaws or rules and regulations. This, of course, could have the affect of further reducing the number of votes required for a bylaw amendment.
The proposed legislation contains similar provisions to reduce the percentage vote required for bylaw amendments under Section 11B-116 of the Maryland Homeowners Association Act.
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…
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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.