New Laws relating to HOA's
Listed below are summaries of new legislation. Go to the bill text for details. These laws supersede anything in existing documents and there is no need to update governing documents.
1. HB137:
Association Books and Records. This legislation requires associations to provide homeowners copies of books and records, including board minutes, financial statements and employee salaries within 21 days of receiving a written request. The charge for copying and mailing books and records may not exceed the amount charged by Maryland courts (50 cents per page for copies made by a court clerk and 25 cents per page for copies made by a customer.) This will take effect October 1, 2009.
2. HB552/SB171:
Closed Meetings of Board of Directors. This legislation repeals the provision that boards may hold a closed meeting on a two-thirds vote of the board members. Meetings can be closed only for consultation and discussion of legal matters and for discussion of delinquencies. It is still MD law that "a statement of the time, place, and purpose of any closed meeting, the record of the vote of each board member by which any meeting was closed, and the authority under this section for closing any meeting shall be included in the minutes of the next meeting of the board of directors." This takes effect October 1, 2009.
3. HB287/SB201:
Condominium Master Policy Insurance. This legislation provides that condominium master policy insurance policies must cover both general common elements and common elements in units. Up to $5000 of the deductible will be the responsibility of the unit owner where the damage originated. Each unit owner must be informed in writing each year as to the amount of the deductible. This will take effect June 1, 2009.
4. HB687/SB541:
Fidelity Insurance. This requires an association to purchase fidelity insurance to provide for the indemnification of the community against loss resulting from fraud or criminal acts by any officer, managing agent or employee who disburses funds for the community. This insurance should be in place by October 1, 2009.
5. HB667/SB742:
Developer to Homeowner Transition. This legislation describes what documents must be transferred to owners upon the transition to owner control as well as sets requirements for the election of the first board. This takes effect October 1, 2009.
