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Maryland General Assembly Again Considers Legislation To License And Regulate Community Managers

A proposal to establish a new regulatory agency for the licensing of community managers,  that failed in during 2012 legislative session, is again before this year’s session of the Maryland General Assembly.  House Bill 576 would establish a new regulatory agency for the licensing of community managers of condominiums, cooperative housing corporations, and homeowners associations.  It proposes the creation of a nine-member “State Board of Common Ownership Community Managers” in the Maryland Department of Labor, Licensing and Regulation.  A license from the Board would be required in order to provide property management services to a common ownership community.  Applicants would be required to complete a training program and pass an examination.  The Board would have the power to deny, suspend or revoke licenses for various wrongful acts, and impose penalties for misconduct.  Licensees would be required to to provide a fidelity bond or other insurance in the lesser amount of $2,000,000 or the aggregate amount of operating reserve balances of all communities that they manage.

The bill would require  a condominium or cooperative with 11 or more units, and a homeowners association with 31 or more units to annually register with the Board and identify its licensed community manager.

A resident of a community who provides property management services without compensation would be exempt from the licensing and regulatory requirements.