** “GOOD STANDING” PERCENTAGE REQUIRED TO AMEND DOCUMENTS:
(HB789 – Effective 10/01/17):
* The law defines “good standing” as not being more than 90 days in arrears in the
payment of any assessment or charge due to the Condominium or the Homeowners
Association.
* The law alters the minimum percentage of affirmative votes of owners required to
amend the bylaws of a condominium from 66b% (or any higher percentage provided in
the bylaws), to the affirmative vote of owners in good standing having at least 60% of
the votes in the council, or by a lower percentage if required in the bylaws.(§ 11-104
Condo Act)
* The law allows the provisions of a governing document of a homeowners
association* to be amended by the affirmative vote of lot owners in good standing
having at least 60% of the votes in the development, or by a lower percentage if
required in the governing document. (§ 11B-116 HOA Act)
*NOTE: The law does NOT apply to a homeowners association that issues bonds or other
long-term debt secured in whole or in part by annual charges assessed in accordance with
a declaration, or to a village community association affiliated with the homeowners
association. [This may be interpreted to mean any HOA that has borrowed money which
is secured by its assessments, and any “umbrella or master” association.]
** NOTICE OF SALE OF COMMON REAL PROPERTY:
(SB809 – Effective 10/01/17): The law requires the governing body of a condominium or homeowners
association (or, the developer if control has not been turned over), to provide written
notice to owners no less than 30 days before the sale of any common element or common
area (including through a tax sale), by written notice to each owner, or by posting a
sign about the sale on the property to be sold, and providing notice on the condominium
or association web site, if it has a web site. (§ 11-108 (d) Condo Act and § 11B-106.2
HOA Act)
NOTE: This law may be interpreted to require condominium and homeowners
associations to actively monitor the tax lien listings.
** FORECLOSURE NOTICE REQUIRED TO BE GIVEN TO HOA OR CONDO:
(HB26 – Effective 10/01/17): This law requires the person authorized to make a
foreclosure sale to give written notice of the proposed sale to the condominium or
homeowners association if at least 30 days before the date of the proposed sale, the
association has recorded a statement of lien against the property being foreclosed. The
notice must be sent to the condominium or homeowners association at the address as
shown on the lien statement for it. The law also requires the trustee, within 14 days
after the postponement or cancellation of a foreclosure sale, to send a notice to the
association that the sale was postponed or canceled. (§ 7-105.2 Real Property Article)
** HOA RESALE DISCLOSURE INSPECTION FEES: (HB34 – Effective 10/01/17):
This law authorizes a homeowners association to charge a reasonable fee not to exceed
$50 for an inspection of a lot owner’s lot in conjunction with providing the resale
disclosure package, if the inspection is required by the governing documents of the
homeowners association. This fee is in addition to the fees approved by the legislature in
2016 of up to $250 for providing the resale disclosure certificate information required,
plus rush fees of $50 for delivery of the package within 14 days, or $100 within 7 days.
The authorized fees may be charged by the HOA, its managing agent or any other
authorized officer or agent of the HOA providing the information. (§ 11B-106 (c) HOA
Act)
* NOTE: It is currently extremely uncommon for a homeowner association’s documents
to provide for a required inspection before issuing the required resale information.
However, even if the documents do not require it, it is recommended that inspections be
completed in order to determine
** HOA RESALE DISCLOSURE INSPECTION FEES: (HB34 – Effective 10/01/17):
(HB34 – Effective 10/01/17):This law authorizes a homeowners association to charge a reasonable fee not to exceed
$50 for an inspection of a lot owner’s lot in conjunction with providing the resale
disclosure package, if the inspection is required by the governing documents of the
homeowners association. This fee is in addition to the fees approved by the legislature in
2016 of up to $250 for providing the resale disclosure certificate information required,
plus rush fees of $50 for delivery of the package within 14 days, or $100 within 7 days.
The authorized fees may be charged by the HOA, its managing agent or any other
authorized officer or agent of the HOA providing the information. (§ 11B-106 (c) HOA
Act)
* NOTE: It is currently extremely uncommon for a homeowner association’s documents
to provide for a required inspection before issuing the required resale information.
However, even if the documents do not require it, it is recommended that inspections be
completed in order to determine whether there are any violations or maintenance issues
associated with the property.
** ATTORNEYS NOT REQUIRED FOR SMALL CLAIMS: (SB500 – Effective
(SB500 – Effective
10/01/17): The law extends the current ability of certain designated persons who are not
attorneys to represent a corporation, limited liability company, business partnership, or
certain other businesses in an appeal of a small claim from the District Court of
Maryland. These persons, i.e. already have the ability to represent their entities in small
claims (claims where the amount of principal in controversy is $5,000 or less). However,
in the event there is an appeal of the decision of the District Court, currently they are
required to hire an attorney to represent the entity. The law simply extends the current
ability of a corporation’s officers to represent the corporation at the circuit court level on
any appeal from the District Court if the principal amount in controversy is $5,000 or
less. (§ 10-206 (b)(4) Business Occupations and Professions Article)
*NOTE: The change will allow access to the courts to address small claims without the
necessity of hiring legal counsel whose fees may exceed the cost of the amount of the
claim. This is particularly important for non-profit condominiums, homeowners
associations and cooperatives. However, the advisability of representation by an officer
of the corporation rather than legal counsel may not be the better choice.
NOTABLE BILLS NOT PASSED
** DLLR Foreclosed Property Registry – Notice of Registration to CIOA (HB1156)
** Minimum Wage – Increase (HB1305/HB1416/SB962)
** Backyard Gardens – Permitted (HB434/SB62)
** Regulation of Common Ownership Community Managers (SB530/HB1192/HB1193)
** Unenforceability of Certain Condo Doc Provisions (HB676/SB670)
** Establishment of a SDAT Common Ownership Community Registry (HB41)
** Requirement for Reserve Study Every 5 Years (HB651)
