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.
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We are pleased to announce that Mr. Burke has completed mediation and conflict resolution skills training requirements, and been certified as a mediator, including qualification as a court-designated mediator for alternative dispute resolution procedures in all Maryland Courts. He may be retained for mediation services, as well as for representation in construction, condominium and homeowner association matters, through Baker Donelson, 100 Light Street, 19th Floor, Baltimore, Maryland 21202, 410-862-1192, email@example.com.
The Maryland State Senate has approved, with amendment, a bill previously passed by the House of Delegates. House Bill 34, would give homeowner associations the right to collect a fee relating to inspections during the resale process. The version passed by the House would entitle an HOA to charge “a reasonable fee not to exceed $100 for an inspection of the low owner’s lot if required.” The Senate Judicial Proceedings Committee changed the maximum amount of the fee to $50, and added “if the inspection is required by the governing documents of the homeowners association.” As reported in a prior post, the House of Delegates passed its version by a 85 – 44 vote.
By a vote of 135-1, the Maryland House of Delegates has passed House Bill 651, which would require condominiums and homeowner associations to conduct reserve studies of the common elements and common areas. As discussed in an earlier post, the new law would provide 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.
Also under the bill, similar reserve study requirements would be established for the common areas in homeowner associations.
By a vote of 135-0, the Maryland House of Delegates has passed legislation that 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. House Bill 789 would reduce this to 55 percent. Significantly, it would also permit the bylaws themselves to establish a percentage as low as 51%. Additionally, the bill would limit the voting to members in “good standing, ” which is defined as not being more than 90 days in arrears with regard to assessment payments. The original version of the bill would have also allowed voting to be denied to any member in violation of a provision of the declaration, bylaws or rules and regulations, but this provision was removed in the final version that was approved.
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.