Maryland HOA Laws

There are certain Maryland HOA laws that all homeowners associations must comply with to avoid legal problems. But, what are these laws anyway?

For Homeowners Associations

The Maryland Homeowners Association Act controls the creation, authority, operation, and management of homeowners associations in the state. You can find it under Real Property, Title 11B of the Maryland Code. It consists of 35 sections, namely:

• Definitions
• Application of Title
• Variation of Provisions of Title by Agreement Prohibited
• Construction and Application of Building Codes OR Zoning Laws
• Initial Sales in Developments Containing More than 12 Lots
• Resales Within Developments or Initial Sales Within Small Developments
• Election of Governing Body of Homeowners Association
• Notice Issued by Governing Body of a Homeowners Association Before Sale of Any Common Element
• Initial Sales of Lots Used for Nonresidential Purposes
• Rights of Purchaser to Cancel Contract
• False Statements or Omissions of Material Fact
• Implied Warranties Relating to Improvements to Common Areas
• Homeowners Association Meetings
• Use of Residence for Child Care
• Candidate or Political Signs
• Distribution of Materials to Lot Owners
• Meetings of Lot Owners
• Appointment of Receiver to Manage Homeowners Association
• Purchase of Fidelity Insurance by Homeowners Association
• Voting on a Homeowners Association Matter Before All Lots Have Been Subdivided and Recorded
• Books and Records of Homeowners Association Available for Examination and Copying
• Late Charges
• Homeowners Association Annual Budget
• Homeowners Association Depositories
• Notice and Delivery by Electronic Transmission
• Voting by Electronic Transmission
• Recorded Covenants and Restrictions Relating to Race, Religious Belief, or National Origin
• Annual Charges for Properties
• Annexation of Land Parcels in Columbia
• Electronic Payment Fees
• Minimum Standards for Consumer Protection
• Failure to Comply with the Election Procedures of Homeowners Association
• Amendments to Governing Documents
• Responsibility of Lot Owners for Assessments, Charges, and Liens
• Short Title

For Condominiums

The Maryland Condominium Act governs the formation, operation, and management of all condominium associations in the state, except as otherwise stated within the statute. Condominiums created before July 1, 1982 don’t need to amend their governing documents to comply with the Act.

You can find the Maryland Condominium Act under Real Property, Title 11 of the Maryland Code. It consists of 57 sections, namely:

• Definitions
• Creation Of Condominium Regime
• Notice Required Before Conversion To Condominiums
• Procedures For Termination Of Leases
• Condominium Declarations
• Corrections To Declarations, Bylaws, Or Plats
• Bylaws Of Condominium
• Condominium Plats
• Incidents And Descriptions Of Condominium Units
• Percentage Interests Of Unit Owners In Common Elements
• Rights Of Unit Owners In Common Elements
• Duties To Maintain, Repair, And Replace Common Elements And Units
• Council Of Unit Owners
• Meetings Of Board Of Directors
• Preparation Of Annual Budget
• Quorum Requirements And Appointment Of Receiver
• Distribution Of Common Profits And Expenses
• Rules Adopted For Condominiums
• Family Child Care Homes And No–Impact Home-Based Businesses
• Candidate Signs Or Signs Relating To Voter Propositions
• Distribution Of Information, Application;  Door-To-Door Distribution
• Allocation Of Eminent Domain Awards And Damages
• Dispute Settlement Mechanisms
• Mandatory Insurance Coverage
• Purchase Of Fidelity Insurance By Condominium Governing Body
• Condominium Bylaws Requiring Insurance Coverage
• Improvements Or Alterations To Units By Unit Owners
• Maintenance Of Books And Records
• Repealed By Acts 1985, C. 480, § 2, Eff. Feb. 1, 1986
• Mechanics’ Liens Or Materialmen’s Liens
• Service On Council Of Unit Owners
• Expansion Of Condominiums
• Deposits Made On New Condominiums
• Building Codes Or Zoning Laws, Ordinances, And Regulations
• Termination Of Condominiums
• Construction Of Title, Declarations, Bylaws, Or Other Instruments
• Easements, Encroachments, And Boundary Presumptions
• Disclosure Requirements
• Registration Requirements
• Powers And Duties Of Secretary Of State
• Sales Of Condominiums Located Elsewhere
• Consumer Protection Standards And Enforcement
• Warranties Applicable To Units And Common Elements
• Documents Required From Developer
• Termination Of Leases And Contracts
• Employment Of Developer Or Affiliate To Effect Sale Or Lease Of Unit
• Claims Against Condominium Developers And Vendors;  Unenforceability Of Provisions That Reduce Unit Owner’s Or Council Of Unit Owners’ Rights
• Resale Contract Requirements
• Tenant’S Right To Buy Property
• Lease Extensions To Designated Households
• Restrictions Relating To Conversion Of Rental Facilities To Condominium Regime
• Purchase Of Rental Facilities By Local Governments
• Notice Of Meeting Or Delivery Of Information By Electronic Transmission
• Voting By Electronic Transmission
• Legislative Intent
• Construction And Application Of Title
• Application Of Title To Condominiums Existing Before July 1, 1982
• Short Title

For Cooperatives

The Maryland Cooperative Housing Corporation Act governs the creation, ownership rights, management, and voting of cooperatives in the state. You can find this Act under Sections 5-6B-01 through 5-6B-33 of the Maryland Code. It consists of 33 sections, namely:

• Definitions
• Contract for initial sale of cooperative interest; public offering statements
• Rescission; amendments to public offering statement; failure of developer to comply with section; return of deposits; liability for misrepresentation; waiver of rights; sale of units for nonresidential purposes
• Warranties
• Notice of conversion to tenants
• Option to purchase
• Lease extension for designated households
• Right of local governments to first right of purchase
• Authority of local governments to require first right of purchase at same terms
• Actions by local governments to protect consumers from displacement during rental housing emergency
• Deposits made on sale of cooperative interests held in escrow
• Consumer protection standards and enforcement
• Cooperative interests not security or investment security
• Restraints of trade
• Applicability of general corporation law
• Cooperative interest deemed personal property
• Perfection of security interests and cooperative interests
• Assignment of votes
• No-impact home-based businesses
• Meetings of cooperative housing corporation, governing body, or committee.
• Distribution of written information.
• Location of meetings.
• No-impact home-based businesses
• Election related candidate signs or signs advertising questions or propositions
• Electronic transmission of notice.
• Electronic transmission of votes or proxies
• Examination and copying of books and records of cooperative housing corporations
• Fidelity insurance
• Books and records.
• Late charges.
• Dispute settlements.
• Eviction of member.
• Statewide effect of act
• Applicability of act

Maryland HOA Laws on Corporate Governance

Under Maryland law, most associations incorporate as non-stock corporations. Therefore, these associations must comply with the Maryland Non-Stock Corporation Act in terms of corporate procedure, structure, and management.

You can find this Act under Sections 5-201 through 5-208 of the Maryland Code. It consists of 9 sections, namely:

• Application of Maryland General Corporation Law.
• Provisions in charter or bylaws.
• Calling of organization meeting.
• Directors as members.
• When membership reduced by death or resignation.
• Insufficient number of members present at meeting.
• Consolidation, merger, and transfer of assets.
• Dissolution or forfeiture of charter.
• Disposition of property of charitable or religious corporations by court.

Maryland HOA Laws on Property Use Restrictions

Many homeowners associations have certain restrictions when it comes to how members can use their property. The HOA laws of Maryland, though, prohibit HOAs from adopting some restrictions. Here are a few examples:

• Display of the U.S. Flag. Associations may not prohibit homeowners from respectfully displaying one removable flag of the United States on their property. The manner in which they display the flag, though must coincide with the provisions set forth in the U.S. Code Sections 4 to 10.
• Right to Dry. In Maryland, Section 14-130 protects homeowners’ right to dry. This means HOAs can’t restrict homeowners from installing and using a clothesline.
• Solar Rights. Section 2-119 of the Maryland Code prohibits associations from adopting unreasonable limitations on the installation or use of a solar collector system such as solar panels. According to the law, unreasonable limitations are restrictions that significantly raise the cost or reduce the effectiveness of the system.

Maryland HOA Laws on Liens

Not all states allow homeowners associations and condominiums to attach a lien and foreclose on a property. In Maryland, however, the Maryland Contract Lien Act gives associations that authority. According to this Act, associations can place a lien on a property when a contract is violated. Associations can then foreclose on that lien to collect unpaid dues from delinquent members.

Maryland HOA Laws on Fair Debt Collection

The Maryland Consumer Debt Collection Act offers protection to consumers and regulates debt collection acts. It works similarly to the federal Fair Debt Collection Practices Act. Under Maryland law, debt collectors may not use misleading, abusive, or unfair practices when collecting or attempting to collect a debt.

When a debt collector breaches the law, victims can privately sue them in federal or state court within a year from when the violation took place. Alternatively, victims can also file a complaint with the Federal Trade Commission, the Consumer Financial Protection Bureau, or the Maryland Collection Agency Licensing Board.

Fair Housing

Much like the federal Fair Housing Act, the Maryland Discrimination in Housing Law offers protection to people from discrimination in housing. According to state-level Fair Housing laws, associations may not discriminate against people based on their color, race, national origin, sex, sexual orientation, gender identity, religion, marital status, familial status, or disability.

Housing discrimination victims can take legal action against their association in federal district court. They may also file a formal complaint with the U.S. Department of Housing and Urban Development or Maryland’s Commission on Human Relations.