New Maryland HOA and Condo Association Laws for 2018

Maryland HOA LawsAs an HOA board, keeping up with the latest legal regulations can be a daunting task when coupled with the myriad responsibilities your members face daily.

To help you stay abreast of the most recent developments in Maryland HOA law, Comsource has aggregated the new Maryland HOA laws for 2018 from a variety of reliable legal sources:

Maryland Short-Term Rentals

A rentable home (often called an AirBnB) in Montgomery County, Maryland, will be permitted if these rentals are the primary residence of the owner or owner-authorized resident of the rental property beginning on July 1, 2018. The rules surrounding short-term rentals are as follows:

  • The dwelling unit used as a short-term rental must be the property owner’s or owner-authorized resident’s primary residence
  • If the property owner or owner-authorized resident is not present in the residence, the property can be used as a short-term residential rental for a maximum of 120 days in a calendar year
  • The total number of adult overnight guests in a short-term rental to is limited to six, with a max of two overnight adults per bedroom
  • One off-street parking space is required for each rental contract

It’s important to note that condominiums, homeowner associations, and housing cooperatives are allowed to continue banning or restricting short-term rentals.

According to Montgomery County Council member Hans Riemer via Bethesda Magazine, ““The core of the proposal is that in Montgomery County, we want every home [rental] to have a homeowner who lives there. We don’t want to open our residential housing to investors to come in and buy properties and turn them into hotels where they own five or six hotels in the county that are essentially houses.”

We’re trying to prevent abuse while not standing in the way of the changing times we’re in,” Riemer said, referring to the growth in the short-term home-rental industry.

Resale Of Lot (Initial Sale Of Lot In Development Containing 12 Or Fewer Lots)

“The Maryland Department of Housing and Community Development shall adjust the maximum fee authorized under paragraph (1) of this subsection every two years, beginning on October 1, 2018, to reflect any aggregate increase in the Consumer Price Index for All Urban Consumers (CPI-U) for Washington-Baltimore, or any successor index, for the previous two years.” You can read the full Maryland Homeowners Association Act as of 2017 here.

Unit Resale

“The Maryland Department of Housing and Community Development shall adjust the maximum fee authorized under paragraph (1) of this subsection every two years, beginning October 1, 2018, to reflect any aggregate increase in the Consumer Price Index for All Urban Consumers (CPI–U) for Washington–Baltimore, or any successor index, for the previous two years.” You can read the full Maryland Condominium Act as of July 2017 here.

Notice Of Foreclosure

Effective Oct. 1, 2018, “persons filing foreclosure actions are re­quired to file a notice of such filing with the Department of Labor, Licensing and Regu­lation (DLLR) within seven days of such fil­ing. The notice will be required to specify a name, address and telephone number of the person authorized to make the sale and the person authorized to maintain and manage the property before sale. DLLR is expressly permitted to provide such information to homeowners and condominium associa­tions.”

Maryland Smoke Alarm Regulations

For homeowners “Maryland will require homeowners to replace...traditional battery-operated devices with new tamper resistance 10-year, lithium ion battery smoke alarms.” Residents can request up to three free 10-year smoke alarms from their nearest fire company In in Harford County, Maryland, through a program funded by the American Red Cross.

One-and two-dwelling unit landlords “must upgrade battery smoke alarms to new, 10-year sealed battery units whenever there’s a change in occupancy or when those systems are 10 years old or malfunction.”

For landlords managing more than two units, “the legislation assigns tenants of those units responsibility for testing the smoke alarms and notifying their landlords of any problems. Where problems occur, the landlords are required to replace or repair the broken systems.”

Additional Laws Under Consideration in the Current Maryland Legislative Session

  • An increase in the condominium insurance deductible paid by unit owners where damage originates in a unit
  • More stringent licensing for community association managers
  • Statewide registration of condominiums, homeowner associations and housing co-operatives
  • Periodic reserve study requirements to estimate the cost of replacing and repairing common property
  • A proposal to limit association authority to regulate electric vehicle charging stations in certain common elements
  • Proposed legislation on association governance matters, including director conflicts of interest, books and records and association websites  
  • A proposed bill allowing a condo board of directors to suspend an owner’s use of the common property parking lot and recreational amenities if the owner is delinquent in payment of assessments
  • A bill titled Expansion of Debtor Exemptions “which would have greatly expanded exemptions for assessment debtors and made it harder for community associations to collect outstanding dues,” according to the 2017 End of Session Report from the Maryland Legislative Action Committee

A skilled and experienced community management company like Comsource can help high functioning HOA and Condo boards stay on top of the ever-changing legal regulation landscape of HOA and condo association communities. We’re here to provide you resources and guidance, and professional services with integrity when you’re ready.

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Note: This blog is just an overview of new laws and possible regulations that are on the horizon. Please review the laws themselves directly or consult with legal counsel for additional information. 

 

Tags: HOA and condo associations, new maryland HOA laws, new condo association laws