Summary of 2013 Condominium and HOA Bills Passed by the Maryland General Assembly

Timothy Martin of Ballard Spahr contributed the following summary of Condominium and HOA bills passed by the Maryland General Assembly during its 2013 session:

HB286/SB161:  Limits on Foreclosure of Liens by a Condominium Association or HOA under the Maryland Contract Lien Act

Real Property:  Section 14-204

This bill amends the Maryland Contract Lien Act to provide that notwithstanding the provisions of condominium or HOA governing documents, a condominium association or HOA may only foreclose its lien for the amount of delinquent periodic or special assessments and reasonable costs and attorney’s fees directly related to the filing of the lien and not exceeding the amount of the delinquent assessments, but the condominium association or HOA may not foreclose the lien as to any fines that may be imposed or attorney’s fees relating to the recovery of fines.  The Act does not preclude a condominium association or HOA from using any other means to enforce a lien.  This Act shall apply only prospectively to liens filed on or after October 1, 2013.

Chapter 110 (HB388):  Closed Meetings of Condominium’s Board of Directors

Real Property:  Section 11-109.1

This bill adds to the limited list of purposes for which the Board of Directors of a Condominium may meet in closed session by permitting a closed Board meeting for the consideration by the Board of the terms or conditions of a business transaction in the negotiation stage if the disclosure could adversely affect the economic interests of the condominium association.  This Act takes effect on October 1, 2013.

SB1049:  Recycling Requirements for Condominiums and Apartments Buildings

Environment:  Section 9-1711

This bill amends § 9-1711 of the Environment Article to exempt condominiums and apartment buildings in Ocean City from the requirement that apartments and condominiums with 10 or more units provide for recycling on or before October 1, 2014.

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