The 2024 legislative session was another busy one for the Maryland legislature, with over 1,000 bills signed into law. The Maryland Legislative Action Committee of the Community Associations Institute, the trade organization that represents and educates members of the community associations industry, was just as busy monitoring proposed bills and advocating on behalf of community associations in Maryland. Several of the bills that passed affect community associations and go into effect on October 1, 2024. Below is a summary of those bills.
SB 280/HB 446
SB 280/HB 446 gives counties and municipalities in Maryland the authority to establish a fund to provide support for the repair of critical infrastructure within a community association, such as stormwater management facilities and private roads. The county or municipality may establish eligibility requirements for the award of funds. This bill is meant to help lessen the burden for some community associations that are in difficult financial positions after the Maryland General Assembly recently passed new laws requiring community associations to obtain reserve studies every five years and budget for reserves for common area repairs and replacements based on those reserve studies.
SB 46/HB 142
SB 46/HB142 – adds new requirements for disclosures in sales contracts for condominium units. Sellers of condominium units must provide disclosures regarding any actual knowledge of the presence of asbestos in the unit, the location of any asbestos, and any actions that have been taken to abate the asbestos. The bill also requires disclosure of any known health code violations within the unit. Resale packages must also disclose any health or building code violations in the condominium.
SB 465/HB 159
SB 465/HB 159 amends Maryland’s existing law in the Maryland Condominium Act and the Maryland Homeowners Association Act regarding electric vehicle charging stations by adding language to include electric bicycles and other motor electric vehicles. The bill also added requirements for homeowners to pay for maintenance and insurance coverage for any electric vehicle charging equipment they install and to reimburse the association for any increase in insurance premiums resulting from their installation of the electric vehicle charging station. The bill also requires community associations to review applications from homeowners for the installation of electric vehicle charging stations in the same manner as other applications for architectural modifications and requires associations to provide the homeowner with a decision within 60 days, otherwise the application is automatically deemed approved. In addition, the bill amended the Maryland Cooperative Housing Corporation Act to provide that cooperatives cannot unreasonably restrict or prohibit the installation or use of electric vehicle charging stations in a member’s parking space that is designated for the member’s use. Lastly, the bill tasks the Department of Housing and Community Development with the obligation to maintain a database of contractors who install electric vehicle charging stations and other resources to assist homeowners who wish to install electric vehicle charging stations in their communities.
HB 1227/HB 1015
HB 1227/HB 1015 clarified last year’s amendment to the Maryland Condominium Act, which provided that condominium associations with detached condominium units were only required to insure the common elements, rather than the entire condominium (i.e., the detached units and common elements). The amendment led to a lot of confusion among condominium associations, owners of detached units, and insurance carriers. The new law clarifies that condominium associations of condominiums with detached units can choose whether or not to insure the entire condominium (detached units and common elements) or just the common elements. The law also only applies to condominiums comprised solely of detached units, and the condominium association must provide notice to their unit owners of the association’s and unit owners’ insurance obligations on an annual basis, as well as anytime there are changes to these obligations. A condominium that contains both detached and attached units must insure the entire condominium.
SB 665/HB 1496
SB 665/HB 1496 amends the Maryland Condominium Act and allows the declaration of a condominium to be amended with the written consent of 66 and 2/3 percent of the unit owners. This bill lowers the current requirement of 80% written consent of unit owners to amend a condominium declaration. However, if the developer still owns any units within the condominium, the 80% written consent of unit owners still applies to amend a declaration.
HB 216/SB 206
HB 216/SB 206 amends the Maryland Condominium Act by authorizing a condominium’s board of directors, upon a majority vote, to enter into lease agreements over one year for electric vehicle charging equipment, solar energy equipment, and clean energy equipment affecting the common elements. The board of directors must vote on the agreement at an open meeting held after 30 days’ notice is provided to the unit owners.
HB 255/ SB 015
HB 255/ SB 015 amends the Maryland Cooperative Housing Corporation Act to require cooperatives to follow new due process settlement procedures before imposing any sanctions against its members for violations of the cooperative’s governing documents. The new procedures are similar to those already required for condominium associations and homeowners associations under the Maryland Condominium Act and Homeowners Association Act, respectively.
For any questions about these bills or any other proposed legislation, you may contact CAI’s Maryland Legislative Action Committee (“LAC”) at government@caionline.org or by calling (888) 224-43321. You may also contact the author, who is a member of the LAC, at jlee@mcmillanmetro.com.