2022 Maryland Legislative Update
Date: September 26, 2022
Dispute Settlement/Hearings (HB 615) for Condominiums and Homeowners Associations
This law establishes new procedural requirements applicable to violations that arise on or after October 1, 2022, that an association must follow prior to the imposition of sanctions or other infringement of a right of an owner or occupant. This new law applies to both condominium associations and homeowner associations. The two main takeaways from the law are (1) homeowner associations now have a law that authorizes fining for violations and (2) a hearing before fining is no longer automatic, instead, the alleged violator must request one within a ten-day period. Further details on the new law are below.
Prior to the assessment of a fine, suspension of voting privileges, or suspension of any other right of an owner or occupant, an association’s board shall issue a written demand to cease and desist from the alleged violation and shall specify for the alleged violator: (i) the alleged violation; (ii) the action required to abate the violation; and (iii) a time period no shorter than fifteen days during which the violation may be abated without sanction, and that repeated or continued violations of the same nature may result in the imposition of sanctions after notice and an opportunity for a hearing on the alleged violation. If the violation continues past the period allowed for abatement or if the same rule is subsequently violated, the association’s board shall issue a written notice to the alleged violator specifying: (i) the nature of the alleged violation; (ii) the alleged violator’s right to, and procedure to, request a hearing before the executive body at which the alleged violator may produce any statement, evidence or witnesses on his or her behalf; (iii) a time period not less than ten days from the date of the notice within which a hearing may be requested by the alleged violator; and, (iv) the proposed sanction to be imposed.
If a hearing is requested and held, the proof of notice of such hearing shall be entered into the minutes of the meeting which shall also contain a written statement of the results and the sanction, if any. If a hearing is not requested, the Board shall deliberate as to whether the violation occurred and decide whether a sanction is appropriate for the violation.
Reserve Studies (HB 107) Statewide for Cooperative Housing Corporations, Condominiums, and Homeowners Associations
This law extends the replacement reserve study and funding requirements previously only applicable to associations in Prince George’s and Montgomery Counties to all community associations throughout Maryland and requires that such reserve studies be prepared by a person who meets certain professional, educational and experience criterion.
Under the new law, all Maryland cooperatives, condominium associations, and homeowner associations which have not obtained a replacement reserve study, or update thereto, since October 1, 2018, are required to obtain a replacement reserve study no later than October 1, 2023, and thereafter update it every five years. If the latest replacement reserve study of any association is an initial replacement reserve study, the association shall have three years from the initial replacement reserve study to fully fund its reserves per the reserve study. All other associations are required within one year from their updated reserve study to fund their reserves per the reserve study. A limited exception to this reserve funding requirement exists for homeowner associations with total capital item costs (including both materials and labor) under $10,000. Finally, for purposes of funding the reserves, the law voids any cap in the governing documents on the amount that the Board can raise assessments in a given year.
The new law also requires that each replacement reserve study be prepared by a person who has prepared or participated in the preparation of at least thirty replacement reserve studies within the prior three years and holds a current license from the State Board of Architects or the State Board for Professional Engineers or is designated as a reserve specialist by Community Associations Institute or as a professional reserve analyst by the Association of Professional Reserve Analysts.
Disclosures to Unit Owners and in Resale Documents (HB 40) for Condominiums
This law requires that a condominium’s board of directors: (1) disclose to unit owners an agreement that settles or releases any common element warranty claims no less than twenty-one days before execution of the agreement; and, (2) include in its resale certificate a statement whether the board of directors has entered into any agreement that settles or releases the council of unit owners’ claims related to common element warranties and/or intends to enter into an agreement for the purpose of settling a disputed common element warranty claim. Please note: A non-disclosure provision set forth in any warranty settlement agreement will not override the requirement in the new law to disclose the agreement to unit owners and in the resale certificate.
Electric Vehicles – Reserved Parking Spaces (HB 157)
This law prohibits any person from using or parking in a designated electric vehicle charging space unless the vehicle is an electric vehicle plugged into charging equipment in the space. This new law further requires that a publicly accessible electric vehicle charging space be designated by a sign which indicates the space is to be used only for charging electric vehicles. An electric vehicle charging space shall be counted as part of the overall number of parking spaces for the purpose of complying with any zoning or parking laws.
Maryland Swimming Pool and Spa Standards (HB 303)
This law requires the Maryland Department of Labor to adopt the International Swimming Pool and Spa Code as a regulation applicable to each swimming pool or spa in Maryland for which an application for a permit is submitted on or after December 31, 2023. Furthermore, this new law permits each local jurisdiction to adopt standards in excess of those adopted by the State and otherwise enforce the regulations. Notably, this new law does not apply to a swimming pool or spa built and in operation before December 31, 2023, unless there is construction or renovation that results in a substantial and material structural change to the swimming pool or spa that occurs on or after December 31, 2023.
Regulation of Amateur Radio Station Antenna Structures (HB 331)
Generally, this law codifies the Federal Communications Commission’s preemption of local ordinances which regulate amateur radio station antenna structures. This new law prohibits a county or municipal ordinance from precluding amateur radio communications.
Use or Maintenance of Improper or Outdated Addresses in Documents (HB 390)
This law prohibits a person or entity from using or maintaining an improper or outdated address for its principal office, resident agent or mailing address in any filing with the State Department of Assessments and Taxation. Furthermore, this new law provides a cause of action for any person who sustains damages as a result of a violation of this law.
Please contact a Whiteford, Taylor & Preston community association attorney with any questions you may have on any of these new laws or for more specific advice based on your association’s individual needs and concerns.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.