Sec. 10B-5. Duties of the Department of Housing and Community Affairs.

   The Department, in consultation with the Commission, must:

   (a)   research, assemble, analyze and disseminate pertinent data and educational materials about activities and programs which assist common ownership communities; plan and conduct educational and other programs, meetings and conferences to promote the operation of common ownership communities;

   (b)   maintain a master roster of homeowners' associations, condominiums, and cooperatives, their leadership, and their professional management companies if applicable;

   (c)   develop and maintain an information and referral system for all services in the County related directly to common ownership communities, and recommend other services when needed;

   (d)   maintain a collection of common ownership community association documents for use as a model and for reference;

   (e)   provide technical assistance to association governing bodies on matters such as transition, elections, rules adoption and enforcement, selection of association managers, storm water management and other services;

   (f)   develop and maintain a manual for the mutual benefit of common ownership communities and government agencies;

   (g)   develop and maintain an operations manual which will serve as a guide on operations to common ownership community leadership;

   (h)   advise common ownership communities and professional association managers of changes in the laws and regulations that affect their communities or operations;

   (i)   operate a dispute resolution process to furnish mediation and administrative hearings; and

   (j)   assist the Commission in carrying out its duties and in implementing Commission decisions under Article 2. (1990 L.M.C., ch. 33, § 1; 1994 L.M.C., ch. 9, § 1; 1996 L.M.C., ch. 13, § 1; 2005 L.M.C., ch. 26, § 1; 2010 L.M.C., ch. 49, § 1; 2016 L.M.C., ch. 10, § 1.)

   Editor’s note—2005 L.M.C., ch. 26, §§ 2 and 3, state:

   Sec. 2. Regulations. A regulation which implements a function transferred to the Office of Consumer Protection by this Act continues in effect until otherwise amended or repealed, but any reference to any predecessor department or office must be treated as referring to the Office of Consumer Protection.

   Sec. 3. Transition. This act does not invalidate or affect any action taken by the Department of Housing and Community Affairs before this Act took effect. Any responsibility or right granted by law, regulation, contract, or other document, and which is associated with a function transferred by this Act from the Department of Housing and Community Affairs, is transferred to the Office of Consumer Protection.

Sec. 10B-6. Duties of the Commission on Common Ownership Communities.

   The Commission must:

   (a)   adopt rules and procedures as necessary to carry out the purposes of this Chapter;

   (b)   keep a record of its activities and minutes of all meetings, which must be kept on file and open to the public at reasonable business hours upon request;

   (c)   cooperate with the County Executive and all government agencies concerned with matters within the jurisdiction of the Commission;

   (d)   examine by means of public or private meetings, conferences, and public hearings, conditions in common ownership communities which may result in unmet community, resident, or public needs;

   (e)   advise the citizens of the County, the County Council, and the County Executive, and County, state, and federal agencies on matters involving common ownership communities, and recommend such programs, procedures, or legislation as it finds necessary;

   (f)   provide training on the responsibilities of a board member for members of the governing body of a common ownership community by:

      (1)   developing an educational curriculum for new members;

      (2)   offering training for Board members, either in person, on-line, or by other electronic means; and

      (3)   approving an alternative educational curriculum for new members administered by other organizations;

   (g)   establish hearing panels to adjudicate cases on which the Commission accepts jurisdiction. (1990 L.M.C., ch. 33, § 1; 2015 L.M.C., ch. 2, § 1; 2023 L.M.C., ch. 7, §1.)

   Editor’s note—2015 L.M.C., ch. 2, § 2, states: Each member of the governing body of a common ownership community who was appointed or elected before this law takes effect must successfully complete the training requirements contained in Section 1 within 90 days after being elected for a new term of office that begins after this law takes effect.

   2015 L.M.C., ch. 2, § 3 states: The amendments made in Section 1 of this Act take effect on January 1, 2016.

Sec. 10B-7. Requirements for registration; fees, and board training.

   (a)   Association registration.

      (1)   Each common ownership community must register with the Commission annually, and submit the information required on the registration form provided by the Commission.

      (2)   Failure to register, or making a false statement on a registration form, is a class A violation and also makes the community ineligible to file a dispute under Article 2.

      (3)   The governing body of a homeowners’ association, the council of unit owners of a condominium, and the board of directors of a cooperative housing corporation are responsible for compliance with this subsection, including the payment of any registration fee.

   (b)   The County Executive by regulation adopted under method (2) may establish reasonable fees in amounts sufficient to fund the provision of dispute resolution and technical assistance by the Commission and the Department. These fees may include:

      (1)   a per unit annual charge to common ownership communities to renew registration;

      (2)   fees for service, that seek to recover the actual cost of the service, for technical assistance and dispute resolution; and

      (3)   a per unit charge to developers when documents are recorded.

   (c)   Training.

      (1)   Within 90 days after being elected or appointed to the governing body for the first time, a member of the governing body of a common ownership community must successfully complete the educational curriculum approved by the Commission. The governing body must:

         (A)   certify that each member has successfully completed this training to the Commission;

         (B)   retain a copy of the training certificate for inspection by the members of the association for the duration of the governing body member’s service; and

         (C)   report to the Commission that each member has successfully completed the training within 90 days after each member has been appointed or elected.

      (2)   Each member of the governing body must maintain a training certificate. A training certificate issued under this Section is valid for 3 years.

      (3)   A failure to satisfy the training requirement in this subsection does not:

         (A)   remove the member from the governing body; or

         (B)   invalidate a vote made by the member.

   (d)   A hearing panel or a hearing examiner may consider a board member’s failure to complete the training required under this Section, if relevant, in deciding a dispute under Section 10B-13. (1990 L.M.C., ch. 33, § 1; 1996 L.M.C., ch. 13, § 1; 2023 L.M.C., ch. 7, §1.)

   Editor's note-In Dumont Oaks Community Ass’n., et al. v. Montgomery County, 333 Md. 202, 634 A.2d 459 (1993), the Court of Appeals held that the County could validly impose under § 10B-7 a per-unit fee. Section 10B-7 does not impose a discriminatory burden on common ownership communities in violation of State law.

Sec. 10B-7A. Notification requirements.

   The governing body of a community association must, at least annually, distribute information to all owners about the availability of dispute resolution, education, and other services to owners and residents of common ownership communities through the Department and the Commission. The governing body may satisfy this requirement by including with any annual notice or other mailing to all members of the community association the form developed by the Department to describe the Commission’s services. (2010 L.M.C., ch. 10, § 1; 2016 L.M.C., ch. 10, § 1; 2023 L.M.C., ch. 7, §1.)

Article 2. Dispute Resolution.

Sec. 10B-8. Defined terms.

   In this Article and Article 3, the following terms have the following meanings:

   (1)   Association document means:

      (A)   the master deeds, declaration, incorporation documents, bylaws, and rules of any common ownership community;

      (B)   any written private agreement between any parties concerning the operation of the community or maintenance or control of common or limited common property; and

      (C)   any similar document concerning the operation or governance of a common ownership community. Association document does not include a lease covered by Chapter 29 unless the lease provides that it may be enforced under this Chapter.

   (2)   Common element includes:

      (A)   in a condominium or cooperative, all portions of the common ownership community other than the units; or

      (B)   in a homeowners’ association, any real estate in a homeowners’ association community that is owned or leased by the association, other than a unit; and

      (C)   in all common ownership communities, any other interest in real estate for the benefit of owners which is subject to the declaration.

   (3)   Community association means the legal entity, incorporated or unincorporated, that is responsible for the governance or common property of a common ownership community.

   (4)   Dispute means any disagreement between 2 or more parties that involves:

      (A)   the authority of a governing body, under any law or association document, to:

         (i)   require any person to take any action, or not to take any action, involving a unit or common element;

         (ii)   require any person to pay a fee, fine, or assessment;

         (iii)   spend association funds; or

         (iv)   alter or add to a common element; or

      (B)   the failure of a governing body, when required by law or an association document, to:

         (i)   properly conduct an election;

         (ii)   give adequate notice of a meeting or other action;

         (iii)   properly conduct a meeting;

         (iv)   properly adopt a budget or rules;

         (v)   maintain or audit books and records;

         (vi)   allow inspection of books and records;

         (vii)   properly maintain or repair a common element if the failure results in significant personal injury or property damage; or

         (viii)   exercise its judgment in good faith concerning the enforcement of the association documents against any person that is subject to those documents.

   (5)   Dispute does not include any disagreement that only involves:

      (A)   title to any unit or any common element;

      (B)   the percentage interest or vote allocable to a unit;

      (C)   the interpretation or enforcement of any warranty;

      (D)   the collection of an assessment validly levied against a party; or

      (E)   the exercise of a governing body’s judgment or discretion in taking or deciding not to take any legally authorized action.

   (6)   Governing body of a community association means the council of unit owners, board of directors, or any other body authorized by an association document to adopt binding rules or regulations.

   (7)   Owner includes:

      (A)   a unit owner in a condominium;

      (B)   a lot owner in a homeowners' association, and

      (C)   a member of a cooperative housing corporation.

   (8)   Party includes:

      (A)   an owner;

      (B)   a governing body; and

      (C)   an occupant of a dwelling unit in a common ownership community.

   (9)   Unit or lot includes:

      (A)   any physical portion of a common ownership community with distinct property boundaries that:

         (i)   provides complete, independent living facilities for one or more individuals,

         (ii)   contains permanent provisions for living, sleeping, eating, cooking, and sanitation, and

         (iii)   is designated for exclusive ownership, control, or occupancy by those individuals; and

      (B)   all legally enforceable rights and interests incidental to individual ownership of real property in a common ownership community. (1990 L.M.C., ch. 33, § 1; 2010 L.M.C., ch. 10, § 1; 2023 L.M.C., ch. 7, §1.)

Sec. 10B-9. Filing disputes; exhaustion of association remedies.

   (a)    The Commission may hear any dispute between or among parties.

   (b)    A party must not file a dispute with the Commission until the party makes a good faith attempt to exhaust all procedures or remedies provided in the association documents.

   (c)    However, a party may file a dispute with the Commission 60 days after any procedure or remedy provided in the association documents has been initiated before the association.

   (d)    After a community association finds that a dispute exists, the association must notify the other parties of their rights to file the dispute with the Commission. The association must not take any action to enforce or implement its decision for 14 days after it notifies the other parties of their rights.

   (e)    Except as provided in Section 10B-9A, when a dispute is filed with the Commission, a community association must not take any action to enforce or implement the association's decision, other than filing a civil action under subsection (f), until the process under this Article is completed.

   (f)    Any party may file a civil action arising out of an association document or a law regulating the association's powers and procedures at any time. The court may stay all proceedings for at least 90 days after the court is notified that a dispute has been properly filed under this Article so that a hearing under Section 10B-13 may be completed. Whether or not a stay is issued, the court may hear the action de novo only if a hearing panel assigned to the dispute has not issued a decision under Section 10B-13(e). (1990 L.M.C., ch. 33, § 1; 2010 L.M.C., ch. 10, § 1.)

   Editor's note—Section 10B-9 is quoted in Campbell v. Lake Hallowell Homeowners Association, 831 A.2d 465 (2003).