The Maryland Court of Appeals has invalidated a rule adopted by a condominium to suspend access to common elements for unit owners who are delinquent in paying assessments. In an opinion issued on June 23, 2017 in the case of Elvation Towne Condominium Regime II, Inc. v. Rose, No. 33, Sept. 2016, the Court held […]
Columbia, Maryland was an early template for smart growth. It turns 50 this week.
One part real estate project, one part social experiment, Columbia, Maryland is one of the most ambitious and successful planned communities ever built in the United States. Inspired by purposely planned and built “new towns” in postwar Britain, Columbia joined Reston, Virginia and Coral Springs, Florida as one of the most prominent communities conceived during […]
Resident Rights: Knowing Them, Upholding Them
To paraphrase the Declaration of Independence, all men and women are created equal with certain inalienable rights, including life, liberty, and the pursuit of happiness. That may not be the case if you live in a condominium, co-op, or HOA, however. Unlike a private home, living in a ‘common interest community’ represents a commitment to […]
Developer Transition: MD Condos and HOAs – Part 2
This article is a continuation of “Developer Transition – Part I,” an overview of laws governing the developer transition process for condominium and homeowners associations in Maryland. Part II, below, is a transition checklist that should be addressed by the initial, homeowner-controlled board once it assumes control over the association from the developer. Read […]
Developer Transition: MD Condos and HOAs – Part 1
This is a two-part article dealing with “developer transition,” the process by which the governance of a condominium or homeowners association is transferred from developer to unit owner or lot owner control. Part I, below, is an overview of the legal requirements that govern the transition process. Part II will contain a “transition checklist” for […]
Mittal v. Council of Unit Owners of University One Condo (MD)
Eyler, Deborah, S., Kehoe, Shaw Geter, JJ. Opinion by Kehoe, J. *This is an unreported opinion, and it may not be cited in any paper, brief, motion or other document filed in this Court or any other Maryland Court as either precedent within the rule of stare decisis or as persuasive authority. See Md. Rule […]
Mandatory Requirements for Adoption of an Annual Budget (MD)
The Maryland Condominium Act, at Section 11?109.2, makes mandatory an annual budget, and requires that the proposed budget be submitted to the unit owner membership at least 30 days before it is adopted. It is also required that the budget contain seven specific line items. These line items — income, administration, maintenance, utilities, general expenses, […]
Associations Not Required to Disclose Privileged Information
The Maryland Court of Special Appeals held that the Maryland Condominium Act did not require disclosure of information related to legal advice or attorney work product (privileged information) to owners. Although this case was decided in Maryland, and it is not binding in Washington, it could indicate how Washington courts would decide a similar issue […]
Board Training Required for Condo and HOA Association Directors
Mid-way through 2016, hundreds of directors of condos, HOAs and coops in Montgomery County, Maryland have successfully completed the online training program now required by County law for directors elected, re-elected or appointed since January 1. The training program, Community Governance Fundamentals, is provided by the Montgomery County Commission on Common Ownership Communities (CCOC).
Tips from Our Property Management Team – Mulch
Keep mulch from exceeding 3” in depth. This includes OLD and NEW mulch. Consider removing old mulch before applying a fresh layer. Too much mulch leads to a decline in plant health. The extra mulch used leads to increased material costs. Read the article……….
Montgomery County Requires Association Board Members To Complete An On-Line Education Course
As of January 2, 2016, those who serve on the boards of condominiums, homeowner associations, and housing coops in Montgomery County, Maryland must now complete an education course on the responsibilities of serving on a board of directors Read the article……….
Mandatory Training for Community Association Board Members (MD)
Following the release of a report evaluating the Montgomery County Commission on Common Ownership Communities, the Montgomery County Council in Maryland enacted legislation that requires training and certification for board members of common ownership communities. Read the article…………
Maryland Condo Held In Contempt For Failing To Complete Court Ordered Repairs and Subjected To a Significant Money Judgment
The Circuit Court for Baltimore City has entered a significant money judgment against a condominium council of unit owners as a means of enforcing its prior order finding the condominium in contempt for failing to complete court ordered repairs. In a case in which I represented the unit owner, the Circuit Court had originally ordered […]
HOA must make homeowners a part of its rule-making process
If a homeowners association votes to amend a restriction, does that change go into effect immediately after notification to property owners via the minutes and any future owners via the disclosure package or not until the paperwork has been completed and recorded, which can take considerable time? Thank you. Read the Q&A…………….
The Top 10 Questions asked by Board Members and Community Managers Regarding HOA and Condo Association Insurance
Question # 1: Is Flood Covered? Question # 2: What is Co-Insurance? Question 3: Does my insurance provide coverage if we serve beer/wine/liquor at a community function? Question 4: What do I need to have on my HO6 policy? Question 5: What is Hired Non-Owned Auto and why do I need it? Question 6: What […]
Condominiums May Not Opt Out Of Maryland’s Mandatory Insurance Provisions
Section 11-114 of the Maryland Condominium Act provides that Condominium Associations must maintain property insurance on the entire condominium including units, excepting improvements and betterments installed by the Unit Owner. Any deductible in the Master Policy is a common expense with one exception. The Association may recover up to $5,000 of its deductible from a […]
CAI Best Practices: Ethics
Simply put, when someone is employing ethics, he or she recognizes what is right and what is wrong and is choosing to do the right thing; however, as a great deal of business ethics literature will attest, “the right thing” is not always straightforward. For example, most ethical dilemmas in the workplace are not simply […]
Drones could get expanded role in real estate
Drones — also known as “unmanned aerial vehicles ” — are everywhere. Our military uses them in warfare, archeologists scan ancient Peruvian ruins to avoid damage, and others survey hydroelectric dams. One even illegally landed early Monday on the White House lawn. Read more………
The Maryland Condominium Act Contains Specific Requirements For Adopting Rules and Regulations
While the governing documents of some condominiums contain procedures for the adoption of rules and regulations, most do not. As a result, it is often assumed that rules and regulations may be adopted in the same manner as any other enactment by the condominium’s board of directors or other governing body. Read more………..
A Portion of a Maryland Condominium Assessment Lien Takes Priority Over Mortgages and Deeds of Trust
Under Section 11-110 of the Maryland Condominium Act, in the event of a foreclosure of a mortgage or deed of trust on a condominium unit, a portion of the condominium’s lien for unpaid assessments has priority over the holder of a first mortgage or first deed of trust recorded after October 1, 2011. Read […]
Condominium Expenditures In Excess of 15 Percent of the Budget Must Approved By Amendment (MD)
Where a residential condominium expenditure results in an assessment increase that exceeds 15% of the amount contained in the adopted budget, the expenditure must be approved in an amendment to the budget, except in cases where the expenditure is required to address a threat to health or safety, or a significant risk of damage to […]
Can Delinquent Condo Owners Be Exposed? (MD)
If you live in a condominium and you are delinquent on your monthly assessment, can your association disclose your name? If you live in a Montgomery County, Maryland condominium, the answer is yes. Read more………
The Law Governing The Running of Implied Warranties On Common Elements Depends On Whether a Maryland Condominium Was Created Prior To Or After October 1, 2010
During 2010 legislative session, then Maryland General Assembly enacted an amendment to Section 10-131 of the Maryland Condominium Act governing the warranty period for the implied warranties on the common elements of a condominium. Originally, the warranty on common elements commenced “with the first transfer of title to a unit owner” and ran for three […]
Condominium Council (MD) Held In Contempt Of Court For Failing To Make Common Element Repairs
In a case in which my colleague, Jack Boyd, and I represented the unit owner, the Circuit Court for Baltimore City has held a high-rise condominium in contempt of a prior order of the Court to undertake and complete repairs to the exterior common elements needed to make the building watertight. Read more…….
Maryland’s Statute Of Repose Prevents Some Construction Defect Claims In Properties More Than 10-Years-Old And Bars All Claims After 20 Years
In terms of the accrual of causes of action, Maryland abides by the discovery rule, through which a cause of action arsies when it is disovered or should have been discovered in the exercise of reasonable diligence. Read more……..
Condominium Insurance Basics (MD)
Maybe it is the weather, but we have been receiving a number of questions about condominium insurance coverage as between the common elements and units. Here is a summary: A condominium master policy must, at a minimum, cover property damage to all of the condominium structure, including both the common elements and units as originally […]
From Good to Great: Principles for Community Association Success
Every community has its own history, personality, attributes and challenges, but all associations share common characteristics and core principles. Good associations preserve the character of their communities, protect property values and meet the established expectations of homeowners. Great associations also cultivate a true sense of community, promote active homeowner involvement and create a culture of […]
Who should be responsible for common areas?
Folded into the seemingly endless stack of papers people sign when the by houses in modern times, at least houses in residential developments, are seemingly innocuous commitments to participate in homeowners associations. Generally, homeowners and the associations have relatively little contact. The associations send dues bills or dues bill booklets to the houses or townhouses […]
One way to address the S.B. 1062 fee shifting issue
S.B. 1062, currently in the Maryland State Senate (see two posts on it below), deals with the problem of attorney fee shifting in covenant enforcement cases where the fees are grossly disproportionate to what is at stake in the case. Here is one way it could be amended, using the California approach. This is from […]
What is S.B. 1062 about? (MD)
I testified at the Maryland State Senate hearing yesterday in support of S.B. 1062. The hearing was long and emotional at times, as unit owners told how they have been subjected to foreclosure actions by association lawyers seeking up to $70,000 in fees on top of fines in the hundreds of dollars. The current draft […]
Maryland Senate Passes Amendment To Provisions For Termination Of Developer Contracts
By a vote of 37 – 7, the Maryland Senate passed SB 162, which provides for amendments to the current provisions applicable to the rights of condominiums and homeowners associations to terminate contracts that were entered into by the developer prior to the property owners having assumed control of the community.
Maryland House Passes Bill To License And Regulate Property Managers
By a vote of 103 – 35, the Maryland House of Delegates has passed HB 576, which would establish a new regulatory agency for the licensing of community managers of condominiums, cooperative housing corporations, and homeowners associations. Read more…
Maryland Senate, House reach compromise on pit bull issue
Key members of the Maryland Senate and House have reached a compromise on how to undo a Court of Appeals ruling last year that labeled pit bulls as an inherently dangerous breed. Read More……
Holiday Safety Reminders
As we celebrate the holidays this season, it is important that we practice safety during the festivities. The following are some precautions and safety measures recommended by the United States Fire Administration and your local Fire Department. Read More……
Rules for the Holidays
The holidays are just around the corner, and for many people, that means lots of festivities with friends and loved ones. With all of the merriment that’s sure to ensue, it’s important that residents who are hosting celebrations are not only considerate of their neighbors, but also take note of the association’s rules. A complete […]
Significant Maryland Condominium Arbitration Award Confirmed By Balitmore City Circuit Court
The Circuit Court’s confirmation of the $1,252,487 arbitration award resulted in what is believed to be Maryland’s largest judgment against a condominium council of unit owners for its failure to maintain, repair, and replace the common elements of a condominium building (in this case, the roof system, exterior façade, and HVAC ductwork of a 27-story […]
New Maryland Towing Law Immediately Impacts Community Association Towing Procedures
As of October 1, 2012, community associations throughout the state of Maryland must comply with new towing laws prior to towing or removing a vehicle from association property. The new towing laws affect all Maryland associations that have more than three common area/common element parking spaces. Read More……
So Now You’re On the Board
The first steps to superior board performance are clarifying your board’s job and then following through with appropriate plans, actions and evaluation of results. The checklists presented here are intended to assist you in those tasks. They cover a significant number of your responsibilities. The checklists will apply to virtually any association. To use them, […]