July 22, 2011
By: Jeremy M. Tucker
Community Association Update
- Three New Maryland Community Association Laws Take Effect October 1, 2011
- New Montgomery County Smoking Law Affects Smoking in Common Areas
- Save the Date! Seminar on October 6
Three New Maryland Community Association Laws Take Effect October 1, 2011
The 2011 Legislative Session of the Maryland General Assembly was an extraordinarily busy year for community association-related issues. Twenty-nine bills were introduced that directly related to community associations. Ultimately, only three bills passed and were signed into law. These laws are effective October 1, 2011:
Priority Lien: Portion of Condo/HOA Lien Has Priority Over Mortgage Claim
This new law provides that in the case of a foreclosure on a mortgage or deed of trust, a portion of a condominium/HOA lien has priority over the claim of a mortgage for up to four months worth of assessments, but not to exceed $1,200. This amount includes only regular assessments. Additionally, the priority of the association’s lien relates only to deeds of trust recorded after October 1, 2011. (HB 1246)
HOA Board Election: Disputes May Go to Maryland Attorney General
This new law provides that a member of an HOA who believes that the board of directors or other governing body of a homeowners association has failed to comply with the election procedures provisions of the governing documents of the homeowners association may submit the dispute to the Division of Consumer Protection of the Office of the Attorney General if the provisions concern:
- Notice about the date, time and place for the election of the board of directors or other governing body;
- The manner in which a call is made for nominations for the board of directors or other governing body;
- The format of the election ballot;
- The format, provision and use of proxies during the election process; or
- The manner in which a quorum is determined for election purposes. (SB 532)
HOA Insurance Amendment: Only 51% of Owners' Approval Needed to Require Insurance
This new law authorizes the council of unit owners of a condominium to amend its bylaws to require all unit owners to maintain individual condominium unit owner insurance policies on their units by an affirmative vote of 51 percent of the unit owners, as opposed to the generally required 66 2/3 percent approval. (HB 679)
New Montgomery County Smoking Law Affects Smoking in Common Areas
A new regulation effectively makes it illegal to smoke within 25 feet of any playground located on the common areas of a homeowners association and within the lobby, laundry room and hallways of a condominium that contains three or more units. On July 12, 2011, the Montgomery County Council adopted a regulation banning smoking within 25 feet of all playgrounds located on private property serving more than one dwelling and indoor common areas of multi-family buildings. Montgomery County's Department of Health and Human services offers the following guidance on the posting of signs in compliance with this regulation:
- There should be at least one sign prohibiting smoking in each common area and playground area.
- The sign must include either the words “No Smoking,” the international symbol for no smoking, or both.
- The sign may be printed on paper, cardboard or other signage material at the owner’s discretion.
HHS also suggests that owners may--but are not required to--add language to the signs regarding the filing of complaints, such as: "To report Violations, call 3-1-1 or visit: http://www.montgomerycountymd.gov/smoke-free." The department is updating its website and expects the information and complaint form to be ready by early August. They note that no enforcement action will be taken before August 11, 2012, the date the regulation becomes effective.
Save the Date! Seminar on October 6
The seminar "Community Association Issues: Legislative Update, Going Green & Innovative Collection Strategies" has been rescheduled to Thursday, October 6. Click Community Association Legal Issues Seminar for more.
We'd Like To Hear From You
We publish the Community Association Update as part of our ongoing efforts to provide our clients with responsive service and practical advice. As always, we would like to hear feedback from our readers regarding the content of the newsletter. If there are items or topics you would like to see covered in future issues, or you have a suggestion concerning the newsletter itself, please send them to Anne Core at ascore@lerchearly.com, or via phone at (301) 961-6096.
Additionally, a number of the Firm's other departments periodically issue highly informative newsletters on a variety of other subjects, including Commercial Lending, Real Estate, Community Associations, and Employment and Labor. If you would like to receive one or more of these newsletters, you may access them through our website, www.LerchEarly.com.
The information in this newsletter is not intended to constitute legal advice and should not be acted upon without consulting an attorney.
