Articles

2021 Maryland Legislative Update

The 2021 legislative session has produced several changes to Maryland Community Associations law. This article provides a brief summary of six bills passed by the Maryland General Assembly.

Condominiums and Homeowners Associations – Rights and Restrictions – Composting (HB 248 – repealing and reenacting, without amendments, § 9-1701(a) and (e) of the General Administration of the Office of Recycling and adding to § 11-111.5 of the Maryland Condominium Act and 11B-111.9 of the Maryland Homeowners Association Act) – Effective October 1, 2021

Maryland Condominium Act

The rights of unit owners in condominiums regarding composting have been clarified and a condominium’s governing documents may not prohibit or unreasonably restrict a unit owner from contracting with a private entity to collect organic waste materials from the unit owner for composting at a composting facility.

Any language in the governing documents that unreasonably impedes the ability of a private entity to access the common elements for the purpose of collecting organic waste materials from a unit owner shall be interpreted as a restriction on the unit owner’s right to contract for private composting services.

Maryland Homeowners Association Act

Similar to the legislation regarding condominium unit owner rights to compost, a homeowners association’s governing documents may not prohibit or unreasonably restrict a lot owner from composting organic waste materials for the lot owner’s personal or household use. The lot owner must own or have the exclusive right to use the area where the composting is being conducted and observes all laws, ordinances, and regulations of the state and local jurisdiction that pertain to composting. Alternatively, the lot owner may contract with a private entity to collect organic waste materials from the lot owner for composting at a composting facility.

As with the governing documents for a condominium, a homeowners association’s governing documents with language that unreasonably impedes the ability of a private entity to access the common elements for the purpose of collecting organic waste materials from a lot owner shall be interpreted as a restriction on the lot owner’s right to contract for private composting services.

Residential Construction – Electric Vehicle Charging (HB 784 – adding to § 12-205 of the Statewide Building and Housing Codes; HB 110 – adding to § 11-111.4 of the Maryland Condominium Act and § 11B-111.8 of the Maryland Homeowners Association Act) – Effective October 1, 2021

Statewide Building and Housing Codes

This amendment only applies to the construction of new housing units, which includes single-family detached homes and townhouses. If new construction includes one or more units that will include at least one garage, carport, or driveway for each housing unit, the builder or builder’s agent shall provide each buyer or potential buyer the option to include an electric vehicle charging station capable of providing at least level 2 charging[1] or a dedicated electric line of sufficient voltage to support the later addition of an electric vehicle charging station. The builder or builder’s agent shall give each buyer or prospective buyer information about any available rebate programs related to the purchase or installation of electric vehicle charging stations in addition to notice of their options for installation.  

Maryland Condominium Act and Maryland Homeowners Association Act

A recorded covenant or restriction, a provision in a declaration, or a provision in the bylaws or rules of the condominium or homeowners association is void if the provision is in conflict with the provisions in this legislation or prohibits or unreasonably restricts the installation or use of electric vehicle recharging equipment (“Equipment”)[2] in a unit owner’s or lot owner’s deeded parking space or parking space designated for use by a particular owner.

The governing body of a condominium or homeowners association may require the owner to seek approval for the installation or use of Equipment. The application for approval shall be treated in the same manner as an application for approval of an architectural modification. The governing body may not willfully avoid or delay the review or processing of the application. If an application is not denied within 60 days of the governing body receiving the application, the application shall be deemed approved, unless the delay is the result of a reasonable request for additional information. The approval or denial of an application shall be in writing. The governing body may also grant a license for up to 3 years, renewable at the discretion of the governing body, on any common element necessary for the installation of Equipment or for the supply of electricity to any Equipment.

The conditions for approval include: (1) the installation does not unreasonably impede the normal use of an area outside of the owner’s parking space; (2) the owner agrees in writing to comply with all relevant building codes and safety standards to maintain the safety of all users of the common area and the architectural standards for the installation of the Equipment; (3) the owner agrees in writing to engage a licensed contractor to install the Equipment, and; (4) the owner agrees in writing to pay for the electricity usage associated with the separately metered Equipment. For a homeowners association, the installation must also be reasonably possible. Additionally, the owner and each successive owner of the Equipment shall be responsible for: (1) installation costs of the Equipment; (2) costs for damage to the Equipment, common element, or limited common element resulting from the installation, maintenance, repair, removal, or replacement of the Equipment; (3) costs for the maintenance, repair, and replacement of Equipment up until Equipment is removed; (4) costs for removal of Equipment and restoration of the common or limited common elements after removal, if the owner chooses to remove the Equipment, and; (5) the cost of electricity associated with the Equipment.

After the application is approved, the owner shall obtain any permit or approval for Equipment that is required by the county or municipal corporation in which the condominium or homeowners association is located. The owner also shall provide a certificate of insurance naming the condominium or homeowners association as an additional insured or reimburse the condominium or homeowners association for the cost of an increased insurance premium attributable to the Equipment.

Cooperative Housing Corporations, Condominiums, and Homeowner Associations – Virtual Meetings (HB 1023/SB 686 – adding to § 5-6B-25.1 of the Maryland Cooperative Housing Corporation Act, § 11-139.3 of the Maryland Condominium Act, and § 11B-113.6 of the Maryland Homeowners Association Act) - Effective June 1, 2021

The board of directors or governing body of cooperatives, condominium associations, or homeowners associations may authorize meetings to be conducted or attended by telephone conference, video conference, or similar electronic means. There is no requirement for specific authorization from members, unit owners, or lot owners to hold a meeting virtually. The equipment or system used to conduct or attend meetings virtually must permit everyone in attendance to hear and be heard by others participating in the meeting.

If the meeting will be held virtually, a link or instructions on how to access the Virtual Meeting must be included in the meeting notice. Anyone attending the meeting virtually shall be deemed present for quorum and voting purposes. 

For any matters requiring a vote, the cooperative, condominium association, or homeowner association may set the matter for a vote at the meeting and a ballot may be delivered to members with the meeting notice. Only members present at the meeting may vote. Members, unit owners, and lot owners who are not present at the meeting (physically or virtually) may vote by proxy in accordance with the requirements of the governing documents and be considered present for quorum purposes through their proxy. The board of directors or governing body shall set a deadline for the return of the ballot, including return by electronic transmission. The deadline for the return of the ballot shall not be later than 24 hours after the conclusion of the meeting.

The inability of members, unit owners, and lot owners to join a virtual meeting due to technical difficulties with their telephone, computer, or other electronic device does not invalidate the meeting or any action taken at the meeting. Lastly, nominations from the floor at the meeting are not required if at least one candidate has been nominated to fill each open board position.

Cooperative Housing Corporations, Condominiums, and Homeowners Associations – Reserve Studies (HB 567 – repealing and reenacting, with amendments, § 5-6B-26.1 of the Maryland Cooperative Housing Corporation Act, §§ 11-109(c)(16)(v), 11-109.2(c), 11-109.4, and 11-110(b)(1)(ii) of the Maryland Condominium Act, and §§ 11B-106.1(e), 11B-112.2(d), 11B-112.3, and 11B-117(a)(2) of the Maryland Homeowners Association Act) – Effective October 1, 2021.

The Maryland Cooperative Housing Corporation Act, Maryland Condominium Act, and the Maryland Homeowners Association Act now requires reserve studies to be conducted by associations located in Montgomery County. Montgomery County has now been incorporated into the existing language of the statute. Governing bodies for Montgomery County cooperatives and condominiums established on or after October 1, 2021, shall have an independent reserve study completed not less than 30 calendar days before the first meeting of the cooperative or council of unit owners. For Montgomery County homeowners associations established on or after October 1, 2021, the governing body shall have an independent reserve study completed not more than 90 calendar days and not less than 30 calendar days before the first meeting of the homeowners association. The governing body shall have an updated reserve study completed within 5 years after the date of the initial study, which shall be updated at least every 5 years thereafter.

The timeline differs for cooperatives, condominiums, and homeowners associations established before October 1, 2021. If the governing body previously had a reserve study conducted on or after October 1, 2017, the governing body shall have an updated reserve study conducted within 5 years after the date of the previous reserve study and continue to have reserve studies conducted every 5 years thereafter. If the governing body has not had a reserve study conducted on or after October 1, 2017, the governing body has until October 1, 2022 to do so. Additional reserve studies must be updated at least every 5 years thereafter.

Real Property – Impermissible Restrictions on Use – Portable Basketball Apparatuses (HB 1347 – adding to § 2-124 of the Rules of Construction for Real Property) – Effective October 1, 2021

A restriction on use[3] regarding land may not impose or act to impose an unreasonable limitation on the location and use of a portable basketball apparatus[4], provided that the property owner owns or has the right to exclusive use of the in which the portable basketball apparatus is placed and used. An unreasonable limitation includes significant increases in the cost of using a portable basketball apparatus or significantly decreasing the ability to use a portable basketball apparatus as designed and intended.

This legislation does not apply to a restriction on use on historic property that is listed in, or determined by the Director of the Maryland Historic Trust to be eligible for inclusion in, the Maryland Register of Historic Properties.

Condominiums and Homeowners Associations – Meeting Requirements (HB 539/SB 535 – repealing and reenacting, with amendments, § 11-109(c)(8) of the Maryland Condominium Act and 11B-111(4) and (5) of the Maryland Homeowners Association Act and by adding to § 11B-111(6) of the Maryland Homeowners Association Act) – Effective October 1, 2021

Maryland Condominium Act

The new legislation clarifies the requirements for additional meetings when, at a properly called meeting of the council of unit owners, the number of persons present in person or by proxy is insufficient to constitute a quorum. The new, additional requirements for notice of the initial meeting include language stating that an additional meeting may be called and the date, time, and place of the additional meeting must also be included. The majority of unit owners present at the initial meeting must also vote to call the additional meeting.

The additional meeting shall occur no less than 15 days after the initial meeting. No less than 10 days before the additional meeting, a separate and distinct notice of the date, time, place, and purpose of the additional meeting shall be delivered, mailed and/or sent by electronic transmission to each unit owner, advertised in a newspaper published in the county where the condominium is located or posted on the homepage of the condominium’s website.

Maryland Homeowners Association Act

The addition to the Maryland Homeowners Association Act also concerns guidelines for additional meetings. If, at a properly called meeting, the number of lot owners present in person or by proxy is insufficient to constitute a quorum, an additional meeting of the lot owners may be called for the same purpose. The requirements for calling an additional meeting includes whether notice of the initial meeting stated that the procedure for additional meetings might be invoked and the date, time, and place of the additional meeting. In order to proceed, a majority of the lot owners present at the original meting vote in person or by proxy to call for the additional meeting.

The additional meeting shall occur no less than 15 days after the initial meeting. No less than 10 days before the additional meeting, a separate and distinct notice of the date, time, place, and purpose of the meeting shall be delivered, mailed and/or sent by electronic transmission to each lot owner, advertised in a newspaper published in the county where the homeowners association is located or posted on the homepage of the homeowners association’s website.

The notice of the additional meeting shall contain quorum and voting provisions. At the additional meeting, lot owners present in person or by proxy constitute a quorum. Unless the bylaws provide otherwise, a majority of the lot owners present in person or by proxy may approve or authorize the proposed action at the additional meeting and may take any other action that could have been taken at the original meeting if a sufficient number of lot owners had been present.

This legislation may not be construed to affect the percentage of votes required to amend the declaration or bylaws or to take any other action required to be taken by a specified percentage of votes. 

Please contact a Whiteford, Taylor & Preston, LLP community association attorney for more specific advice based on your community’s individual needs and concerns.

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