We have one of the largest and best-regarded community association practices in the mid-Atlantic region, representing more than 1,300 condominiums, planned communities and housing cooperatives, of all sizes and types, in Maryland, Virginia, the District of Columbia and Delaware. Our firm’s Community Association Section, made up of approximately 30 attorneys and an experienced professional support staff, includes nationally-known lawyers with extensive experience in this field, including two past Chapter presidents of the Community Associations Institute, two Charter Members of the national College of Community Association Lawyers, and Community Associations Institute board, committee and faculty members.
We provide comprehensive legal advice and guidance to our community association clients, including review, revision and advice with respect to governing documents and rules, as well as guidance on contracts, finance, board operations, and the human dynamics of community association governance. We represent our community association clients in all types of litigation and alternative dispute resolution, and we serve as our clients’ advocates in dealings with homeowners, contractors, financial institutions, developers and government agencies. We have extensive experience with rule and covenant enforcement, delinquent assessment collection, employment law, fair housing law, environmental law, construction litigation, and many other legal disciplines.
Since we understand the time pressures and economic realities faced by community association boards, our goal always is to provide responsive, practical and cost-effective legal advice and assistance whenever our clients need it. Our attorneys and staff utilize the latest technology to provide efficient and timely service, and prompt, effective communication with our clients.
Our firm is one of the leaders in the practice and development of community association law, both regionally and nationally. Our experience, resources and insight allow us to give our clients the latest and most effective problem-solving approaches and the best-informed advice and assistance in this new and rapidly changing area of the law. Beyond that, our firm’s broad and diverse legal experience and resources can assist our community association clients in almost any substantive legal field.
Community Association Litigation
We represent our community association clients in all types of litigation. Our litigation attorneys have decades of experience representing clients in all types of construction litigation from multi-million dollar commercial projects to disputes between homeowners and contractors. We regularly handle litigation involving wrongful termination, breach of contract, rule violations and defective work claims. We have the experience and resources to prosecute or defend your litigation matters in the state and federal courts in Maryland, Virginia and Washington D.C.
Community Association clients should be familiar with the background and requirements for the law known as the Corporate Transparency Act (“CTA”). Congress recently enacted this law to address and curb money-laundering and terrorist financing. Unfortunately, it has ensnared a broad range of businesses within its requirements, including condominiums, cooperatives and homeowner’s associations. Upon realizing the extent of its requirements, various small businesses as well as Community Associations Institute (“CAI”) have taken steps to address it. However, unless the law is enjoined by a court or action is taken by Congress to delay its effective date, incorporated condominiums, cooperatives, and homeowner’s associations must complete a filing as further detailed below no later than December 31, 2024, or face significant monetary penalties.
The Virginia General Assembly approved a number of bills during its 2024 legislative session. Some of the bills impact, directly or indirectly, common interest communities. The Governor of Virginia signed the following bills into law and the new laws will take effect on July 1, 2024. We have outlined the legislative action taken by the Virginia General Assembly that we believe most directly affect both homeowners and condominium associations.
The Corporate Transparency Act’s (the “CTA”) reporting requirements are effective as of January 1, 2024. As a result, many companies in the United States will have to report information about their beneficial owners, i.e., the individuals who ultimately own or control the company. They will have to report the information to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.
The goal of the U.S. Corporate Transparency Act (CTA) is to strengthen reporting and transparency of business entity ownership and control in the United States for law enforcement purposes, such as to reduce instances of money laundering, tax fraud, and other evils, by requiring reporting of certain information to the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”). Unfortunately, the statute’s broad definition of companies includes any community association that is registered with its state corporation commission. Many community associations are formed as nonstock corporations and are therefore covered by the statute, unless a specifically enumerated exemption applies.
As of February 2023, a total of seventy-six (76) high rise buildings in Montgomery County do not have sprinklers in each unit. The National Fire Protection Association (NFPA) reports that more than 2,500 people die in home fires each year. Yet, the risk of dying in a home fire decreases by about 80% when a home is equipped with a fire sprinkler system.
During the most recent Maryland legislative session, House Bill 151 “Real Property- Residential Leases- Notification of Rent Increases” was adopted which requires landlords to provide notification of rent increases to tenants. Cooperative housing corporations are perceived as landlords under the law. In addition, a condominium association or homeowners association that assumes a lease to a property either through foreclosure or some other means, can also be considered a landlord. As such, this law, which is effective October 1, 2023, is applicable to community associations.
The 2023 legislative session has produced several changes to the Maryland laws applicable to community associations. This article provides a brief summary of these community association related bills recently passed by the Maryland General Assembly. Please note: All new laws set forth below will take effect on October 1, 2023.
As of April 23, 2023, and July 1, 2023, Delaware and Maryland, respectively, have legalized the personal use of marijuana. In light of the recent laws, common interest communities across these two states may soon (if not already), contemplate how to appropriately address an uptick in complaints related to marijuana smoke.
Delaware has experienced some noteworthy legislative activity at both the county and state level. While new legislation has not been adopted in the current legislative session, below is a brief summary of the activity transpiring over the last few months that foreshadows what is coming in the future.
On January 1, 2021, heightened entity and beneficial ownership reporting arrived in the United States with the enactment of the Corporate Transparency Act (the “CTA”), part of the National Defense Authorization Act for Fiscal Year 2021. The policy behind the CTA is to strengthen reporting and transparency as to who the beneficial economic owners are of business enterprises doing business in the United States. Prior to the passage of the CTA, the United States was viewed by some in the international marketplace as a tax haven for those looking to create shell companies to hide their assets through the formation of business entities in jurisdictions like Delaware or Florida, for instance.
The Virginia General Assembly approved a number of bills during its 2023 legislative session. Some of the bills impact, directly or indirectly, common interest communities. The Governor of Virginia signed the following bills into law and the new laws will take effect on July 1, 2023. We have outlined the legislative action taken by the Virginia General Assembly that we believe most directly affect both homeowners and condominium associations.
The following bills amend the Property Owners’ Association Act (Va. Code Ann. 55.1-1801, et seq., as amended (1950)), the Virginia Condominium Act (Va. Code Ann. 55.1-1900, et seq., as amended (1950)), and other statutes that may affect common interest communities. Please feel free to contact us if you have questions regarding any of the following legislative changes.
Two recent decisions from the Court of Appeals of Virginia underscore the need to closely review an association’s governing documents for recorded covenants, either monetary or nonmonetary, that association boards wish to enforce. In particular, the Court of Appeals has now addressed boards spending associations’ assessments on services unrelated to common areas (or presumptively common elements), and assigning parking spaces to unit owners using revocable licenses.
As of 2021, all Buildings in DC over 25,000 square feet are required to track their energy and water efficiency to determine if they meet the Building Energy and Performance Standards (“BEPS”). Buildings must submit a report with these numbers by April 1 each year. If the building does not meet BEPS, the building must select an alternative compliance pathway by April 1, 2023. In 2024, all Buildings in DC over 10,000 square feet will be required to track their energy and water efficiency.
The 2022 legislative session has produced several changes to the Maryland laws applicable to community associations. This article provides a brief summary of these community association related bills recently passed by the Maryland General Assembly. Please note: All new laws set forth below will take effect on October 1, 2022.
The Virginia General Assembly only approved a few bills during its 2022 legislative session that impact, directly or indirectly, common interest communities. The Governor of Virginia signed the following bills into law in March and the new laws will take effect on July 1, 2022. We have outlined the legislative action taken by the Virginia General Assembly that most directly affect both homeowners and condominium associations. We also summarize the piece of federal legislation recently introduced following the Surfside condominium collapse that, if passed by Congress, will have a direct impact on condominium associations nationwide.
Community pools require an extensive amount of attention and care. In order to achieve the high level of care all pools require, community association often employ professional companies to operate and perform the day-to-day upkeep such as cleaning the amenities, treating the pool, staffing lifeguards, and ensuring the pool is closed and secured at the end of each day. Just as the association’s members trust their community association to keep the pool safe for use, community associations entrust their pool-related responsibilities to professional pool companies. This entrustment is embodied by the terms of the service contract between the association and the pool company of choice.
With the rise of short-term rentals through services such as Airbnb, legislation providing regulations and restrictions on how short-term rentals are regulated and managed has become essential. With concerns over public access to buildings, guest misconduct, and insurance, it is vital for cooperative, condominium, and home owner associations (collectively, “Associations”) to stay updated on legislation pertaining to short-term rentals.
On January 6, 2022, D.C. issued additional guidance regarding Mayor Muriel Bower's Order 2021-148 (the "Order"), providing clarity for community associations. Specifically, the D.C. Department of Health clarified that the Order does not apply to gyms, fitness studios, any facilities used for group fitness classes, and recreation centers in private residential buildings such as condominium associations and housing cooperatives that are not open to the public. For example, if your gym, fitness studio, facility used for group fitness classes, and/or recreation center sells memberships to the public or otherwise accepts members of the public, the Order and its requirements do apply. The additional guidance issued by D.C. also confirms that private meeting spaces in residential buildings do not require verification of vaccination status, further differentiating most D.C. community associations from the businesses subject to the Order.
The holiday season is upon us. Holiday lights and decorations now adorn both the inside and outside of residents’ homes. Perhaps now more than ever, homeowners yearn for a festive atmosphere to brighten their spirits and to assist in spreading joy to their family and neighbors. Associations are also putting up holiday decorations in their common areas - lobbies, libraries, etc. Simultaneously, Association boards are raising questions regarding rules and regulations for holiday displays. Why would associations want to regulate holiday decorations? Does the Board have the authority to regulate a homeowner’s exterior holiday display? What should be taken into consideration when developing and enforcing these regulations? How can owners and associations bring observance to the holidays while keeping the community safe, clean and harmonious?
The 2021 legislative session has produced several changes to Maryland Community Associations law. This article provides a brief summary of six bills passed by the Maryland General Assembly.
The approval of expensive work on the common area of a Virginia Property Owners’ Association (“POA”) can be a daunting decision for a Board to make, especially when an Association’s reserves must be used to pay for that work. There is always an element of trust by a Board that the work will be done well by its chosen contractor. But, when that work is not done well by a contractor licensed in Virginia, and far worse, that contractor is also insolvent or simply “gone,” the chances are bleak that a POA will actually recover its money from that contractor. Fortunately, there is a fund administered by the Board of Contractors for Virginia’s Department of Professional and Occupational Regulation for a POA to make a claim. While making a claim may be document intensive, a properly prepared claim may be a POA’s last and best hope for recovery. This article details the use of the Virginia Contractor Transaction Recovery Act, Virginia Code Ann. § 55.1-1118, et seq., by POAs.
In any lawsuit, the defendant starts at a disadvantage. The plaintiff has had all the time needed to formulate his case; the defendant, however, starts from scratch. When your association is sued, therefore, you need to work immediately on a planned response regardless of how you feel about the lawsuit’s merits, or lack thereof. The first steps are fairly obvious: (1) contact the association’s lawyer; and (2) notify the association’s insurer of the lawsuit. That, however, is just the start: in this article, we will discuss the next steps for you to take when your association is the named defendant in a lawsuit.
The pandemic has presented many challenges for condominium unit owners’ associations, including how meetings can be conducted and making sure all voting and quorum requirements are met. On October 25, 2021, D.C. City Council and Mayor Muriel Bowser enacted new emergency legislation that, in relevant part, amends subsection (f) of Sec. 2. Section 303 of the Condominium Act of 1976 (D.C. Code § 42-1903.03) and authorizes unit owners’ associations to conduct virtual meetings and clarifies voting and quorum requirements for such meetings.
Delaware House Bill 112 was signed by Governor Carney on September 20, 2021 and will become effective on October 20, 2021. HB 112 makes modifications to the Delaware Common Interest Ownership Act (the “DUCIOA”) and the Unit Property Act. The Bill makes changes recommended by the Common Interest Community Advisory Council after consultation with representatives of home builders, real estate sales professionals, association managers, and owners in common interest communities.
In 2016, HUD adopted new guidelines acknowledging the obligation of housing providers, such as community associations, to prevent severe or pervasive offensive remarks or hostile behavior based on a person’s race, color, religion, sex, disability, familial status, or national origin. See 81 FR 63054 (2016). Under the new guidelines, community association boards must exercise proper care when they receive complaints that residents are being discriminatorily harassed in the community.
The use and popularity of electric vehicles is on the rise, and with it, the increased need for electric vehicle charging stations. Both Maryland and D.C. have recently passed legislation establishing standards and guidelines for electric vehicle charging equipment in Community Associations. Although the jurisdictions are addressing the same issue, they have taken very different approaches. Maryland’s law is modeled after “right-to-charge” laws that have been enacted in several states across the country (including Virginia in 2020). The District, on the other hand, has focused on requiring building owners to accommodate electric vehicle infrastructure in future planning.
An SMP, or “Stormwater Management Plan,” is the broad term for an association’s documented plan for complying with local ordinances regarding stormwater management. A BMP, or “Best Management Practice,” is a type of SMP that includes those activities, prohibited practices, and maintenance that an association has adopted to prevent or at least reduce the pollution of surface waters on its property.
Governor Carney signed the Twenty-Ninth Modification of the Declaration of a State of Emergency for the State of Delaware Due to a Public Health Threat (the “29th Modification”), eliminating Delaware’s mask mandate under most circumstances and reducing social distancing requirements effective May 21, 2020. You can find the full 29th Modification here. The 29th modification brings Delaware in line with the new guidance from the Centers for Disease Control and Prevention (“CDC”).
In response to the new CDC guidance, Governor Northam entered Seventh Amended Executive Order Seventy-Two, which became effective on May 15, 2021, as well as Executive Order Seventy-Nine, which becomes effective midnight on May 28, 2021. These orders bring Virginia in line with the new CDC mask guidance by directing that individuals in Virginia are to follow the CDC guidance, meaning that fully vaccinated people no longer need to wear masks under most circumstances. People who are not fully vaccinated are still encouraged to wear masks.
During the pandemic, many associations were required to resort to virtual meetings in order to conduct business. Now, the Maryland General Assembly has acted to make virtual meetings a permanent option for condominiums, homeowners associations, and housing cooperatives. The law, known as House Bill 1023/Senate Bill 686, creates the following new virtual meeting provisions: § 11-139.3 of the Maryland Condominium Act, § 11B-113.6 of the Maryland Homeowners Association Act, and § 5-6B-25.1 of the Maryland Cooperative Housing Corporation Act. These laws become effective June 1, 2021.
The Virginia General Assembly approved a number of bills during its 2021 legislative session. Several of the bills impact, directly or indirectly, common interest communities. The Governor of Virginia signed the following bills into law in March and the new laws will take effect on July 1, 2021. We have outlined the legislative action taken by the Virginia General Assembly that we believe most directly affect both homeowners and condominium associations.
A growing interest in a clean and alternative energy source led the Virginia General Assembly to adopt the "Virginia Clean Economy Act" in 2020. Due to the Act's adoption, companies selling solar energy collection devices have increased solicitations in community associations. Boards of directors are seeing a resulting increase in the number of applications for solar panel installations in their communities. Therefore, this is a good time for associations to review their existing policies that relate to solar panels and consider what, if any, reasonable regulations they should adopt given the strictures of the Act.
In 2017, Fairfax County started an initiative known as the Fairfax County Zoning Ordinance Modification Project “zMod”, in an effort to modernize the existing zoning ordinance that was established in 1978. While many of the proposed changes will make the Zoning Ordinance easier to understand and navigate, there are two proposed substantial changes for Accessory Living Units and Home-Based Businesses that may greatly affect community associations across the County. We encourage you to review the summary of proposed Accessory Living Units and Home-Based Businesses changes and the FAQs here. In this article, we will briefly discuss some of the critical changes.
The pandemic has foisted upon us a reality in which a virtual meeting is a necessary expediency to conduct the business of community associations. The Governor’s Executive Orders have waived the statutory requirement that board meetings have at least two of an association’s directors physically present at the place of the meeting. When the pandemic mercifully subsides and consequently the Governor’s Executive Orders expire, his waiver of the physical presence requirement is due to expire too. However, several useful parts of a virtual meeting, as we now know them, will remain.
The COVID-19 pandemic and its social distancing mandates have imposed multiple challenging issues for our community association clients. One of the pandemic’s most significant side effects for community associations has been the move towards a virtual platform for meetings. Many of our community association clients are facing the logistical challenge of conducting these remote meetings by electronic means in order to conduct their business while also minimizing their legal and health risks. Certainly, a virtual meeting will make it easier for the members to participate, but if the substantive and procedural requirements of the associations’ governing documents and the legal mandates of the states’ statutes are not satisfied, then the meetings may be invalid and any actions taken during the meetings may be void. Community association board members should consult with their legal counsel on how to best prepare for and handle their annual virtual meetings.
The 2020 legislative session has produced several changes to Maryland Community Association law. This article provides a brief summary of three bills passed by the Maryland General Assembly, which will become effective October 1, 2020.
With COVID-19 and its economic impact dominating both news cycles and Community Association agendas, it is important not to lose sight of other developments in the field. One important development is the passage of Maryland House Bill 254, which will take effect October 1, 2020 and will affect the budgets of Condominiums, Homeowners’ Associations and Co-operatives Housing corporations in Prince George’s County. HB-254 modifies the Real Property Article and the Corporations and Associations Article of the Maryland Code.
On Wednesday, July 15, 2020, the Virginia Safety and Health Codes Board (“Board”) of the Virginia Department of Labor and Industry (“VDOLI”) met to discuss and adopt workplace safety regulations (16 VAC 25-220) proposed by VDOLI on June 12, 2020 in response to the SARS-CoV-2 virus (“Virus”) that causes COVID-19. This meeting was the final meeting in a series of meetings held by the Board to discuss the originally-proposed regulations. During this time, multiple amendments to these regulations were proposed by Board members.
As we know, during this COVID-19 pandemic, community associations are facing new and difficult challenges and uncertainties. Most jurisdictions are under Phase 2 of their reopening process. As a result, members of association Boards, as well as their managers, are confronted with the question of whether or not to open amenities. A major factor in this decision-making process relates to insurance coverage for the amenities should a resident contract the virus. These are new times and the future is uncertain. Accordingly, the goal for all Boards is to minimize the risks that are confronting associations during this pandemic.
Montgomery County, Mayland has set forth a reopening plan that is not only slower than the state as a whole, but that also imposes more stringent regulations. The county has issued advanced notice of what will be required for public pools to operate within the county in 2020. The county’s announcement bulletin regarding all public pools can be found here. The following is a non-exhaustive list of requirements that will be most important and pertinent to Community Association facilities.
The Virginia General Assembly approved a number of bills during its 2020 legislative session. Several of the bills, directly or indirectly, impact common interest communities. The Governor of Virginia signed the following bills into law in March, which will take effect on July 1, 2020. We have outlined the legislative action taken by the Virginia General Assembly that we believe most directly affects both homeowners and condominium associations.
Emergency legislation has been passed in Virginia to allow common interest community boards of directors to meet electronically during a declared state of emergency. Under current Virginia law, at least two directors must be physically present in the meeting room even during meetings in which the rest of the board participates remotely. Under the new legislation, however, no one needs to be physically present in a central meeting location during a declared state of emergency. This legislation will not become law until signed by the Governor, but we expect that he will do so in the near future.
In light of the current state of affairs surrounding COVID-19, community association managers and boards of directors are facing challenges not typically encountered in their day-to-day roles. Our Whiteford professionals have addressed the following questions for our clients in hopes these answers will assist in easing how to deal with this particularly difficult, ever-changing situation.
The Coronavirus has impacted and changed business operations for community associations. The changes continue to occur on a daily basis and are affected based on new orders and guidance issued by federal, state, and local government. Accordingly, the below guidance is applicable as of March 30, 2020, until and unless further orders are issued impacting this guidance.
On January 28, 2020, the U.S. Department of Housing and Urban Development issued an FHEO Notice, which provides additional guidance to housing providers in assessing a person’s request to have an animal as a reasonable accommodation under the federal Fair Housing Act (“FHA”). The full text of the notice can be found here.
This document replaces HUD’s prior guidance on assistance animals from 2013 and includes particularly detailed direction to housing providers, such as community associations, regarding protocols they should use in assessing a reasonable accommodation request for an animal and specific questions they can ask of disabled persons and their health care providers. Further, HUD addresses the information from a disabled owner that does and does not reasonably support a request for an accommodation, and dismisses as insufficiently reliable documentation from websites that sell certificates, registrations, and licensing documents to anyone who answers certain questions or participates in a short interview and pays a fee.
Almost invariably, a limitation on use of units or lots for “residential purposes only” is one of the first covenants found in governing documents. But, where should one look to in determining what qualifies as permissible “residential purposes” when your association’s restrictive covenants say nothing more? Virginia courts do not favor restrictions on the use of real property and construe restrictive covenants strictly, resolving substantial doubt or ambiguity in favor of the free use of property and against restrictions.
Community associations, as a general rule, have greater success in collecting delinquent assessments if they act promptly to collect such amounts from the delinquent owner. Federal law, however, makes this more difficult and time consuming when the delinquent owner is a military service member. The same law can delay any lawsuit involving a service member, including those brought for covenant enforcement. Associations are not without enforcement options when dealing with service member owners, but should prepare themselves for legal proceedings to take longer and involve greater cost. To avoid or reduce these difficulties, associations should consider using their internal procedures to resolve delinquencies and covenant disputes with service members before proceeding with a lawsuit.
The Virginia General Assembly approved a number of bills during its 2019 legislative session. Several of the bills impact, directly or indirectly, common interest communities. The Governor of Virginia signed the following bills into law in March and the new laws will take effect on July 1, 2019, except as otherwise noted herein. We have outlined the legislative action taken by the Virginia General Assembly that we believe most directly affect both homeowners and condominium associations.
A new law effective October 1, 2018 makes it easier for a Maryland Condominium Association to suspend use of common element parking and recreational facilities by delinquent owners.
Mold, technically, is everywhere, in some form or another; it is in the dust on the furniture, in the crumbs left on the counter, and in the air that drifts in from the outside. It is why bread turns green-gray, and why coffee left in the mug on the desk over the weekend will look tan on top. Visible mold, however, is usually a by-product of some other maintenance problem–and usually a sign that that maintenance problem has been going on too long. When mold is given a damp environment and some form of nutrient – either wood, or drywall, or some other building material–it will flourish and grow, creating splotchy discoloration on walls, ceilings and personal property.
Foreclosure is a matter of last resort. Whether an owner is unable to or neglectful in paying assessments owed to an association, the last remedy that should be considered to get paid is foreclosure. A foreclosure takes time, it is costly, and it is designed to displace an association member who cannot or will not fulfill his or her obligation to pay assessments like the other members do. On the other hand, a foreclosure against a property that has sufficient equity in it (meaning the value of the property exceeds the amount of debt owed on it) can be a complete remedy that recovers unpaid assessments, the cost of foreclosure, and eliminates the ongoing hassle for an association by replacing a nonpaying owner with (hopefully) a paying one.
The Virginia General Assembly approved a number of bills during its 2018 legislative session. Several of the bills impact, directly or indirectly, common interest communities. The Governor of Virginia signed the following bills into law in March and the new laws will take effect on July 1, 2018, except as otherwise noted herein. We have outlined the substantive legislative action taken by the Virginia General Assembly that impacts both homeowners and condominium associations.
Chad Toms is speaking at event on March 1 with State Sen. Gerald Hocker Sr. (R-20th) and state Rep. Ron Gray (R-38th). They hope to educate residents on common-interest communities (CICs) at a public workshop in Frankford, Delaware.
In the opening days of the 2018 legislative session, Maryland’s General Assembly overrode Governor Larry Hogan’s veto of the paid sick leave bill passed in 2017. Use of the veto override procedure meant that the law would take effect only 30 days after it was enacted, meaning that the law will become effective on February 11, 2018. During the final days before the law’s effective date, the General Assembly considered a bill to delay its effective date to July 1st, but the legislation appears unlikely to pass in the House of Delegates. As a result, mandatory sick leave will shortly become a reality in Maryland.
Every condominium association is required, by statute and by governing document, to carry a master insurance policy on the building. Such policies cover the common elements and – in multi-story buildings at least – the individual units as well. The question has often arisen, however, whether unit owners themselves should carry homeowners’ insurance, generally known as “HO-6 policies.” The answer is, resoundingly, YES. It is risky not to do so.
An owner’s zealous search for information may involve a request to review the association’s books and records. The District of Columbia, Maryland, and Virginia have statutes detailing the books and records available for examination and copying by owners. Accordingly, the board of directors and managers should be informed of what books and records owners have a statutory right to inspect. This article will set forth the highlights of the relevant statutes in the District of Columbia, Maryland, and Virginia.
Many communities, especially those in the beach and resort areas, are noticing an increase in vest wearing dogs being brought on vacation despite rules that prohibit pets. Numerous internet companies advertise that with a “no questions asked” registration an owner can take their dog anywhere “legally” so long as it is wearing a service animal vest and has a certificate. Communities that see a large volume of vacation rentals are being inundated with vest wearing dogs on vacation that they believe are fake service dogs. As a result, communities should arm themselves with a working knowledge of the differences between the categories of these animals and know the questions an association may lawfully ask to validate a dog’s status.
The Maryland Court of Appeals (Maryland’s highest court) has specified that in order for a lien to be effective, the procedures of the Maryland Contract Lien Act (§14-201 et seq. of the Maryland Code, Real Property Article) (the “Act”) must be followed. In Select Portfolio Servicing, Inc. v. Saddlebrook West Utility Company, LLC, et al., No. 71, September Term 2016, the main issue the Court reviewed was whether a lien could be created on a property by a declaration without following the procedures of the Act.
An association’s governing documents (i.e. declaration, bylaws, etc.) are the legal documents that guide the board of directors on how the association is being operated and managed. As time goes by, it is not unusual to find these documents are outdated and need to be amended from time to time. Amending covenants in governing documents for an association can be a challenging and time-consuming task, however, but may be necessary for a building to thrive, as well as to address current changes in building operations, legislation, etc. Below are some helpful tips for planning and surviving the covenant amendment process.
Community associations, their managers, board members, and members are justifiably concerned about security. Whiteford, Taylor & Preston, LLP serves community associations in Delaware, Maryland, the District of Columbia, and Virginia. Attorneys licensed to practice in each of the these jurisdictions discuss specific security concerns for each below.
As of June 9, 2017, new rules and regulations for Aquatic Facilities, including Swimming Pools, Spa Pools, and Saunas, went into effect in the District of Columbia for the purpose of updating existing regulations to reflect new industry standards and District regulations. Most significantly, the proposed rulemaking incorporates industry standards that are included in the second edition of the “Model Aquatic Health Code” published by the U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, as well as other industry standards.
Summer is officially here and we just celebrated the Fourth of July. Along with pools and other activities, grilling and hosting barbecues are two of America’s favorite summer pastimes. These activities present great opportunities for owners to get outside on their own properties or the common elements/areas, for the association to host social gatherings, and for residents to enjoy themselves. Community associations, their boards of directors, and their managers, however, need to be aware of the restrictions contained in state and local law, and their respective community association’s governing documents relating to grilling. Most often, these restrictions relate to fire safety. To ensure compliance with legal obligations and to keep residents and their guests safe, board members and managers must understand and appreciate these restrictions. It is important for owners and residents to understand these restrictions, too.
The Board of Supervisors for Fairfax County has created a working group to draft zoning regulations for Short-Term Rentals in the County and to establish a registry. The working group is seeking input from community members who have a vested interest in this issue.
On June 23, 2017, the Maryland Court of Appeals, Maryland’s highest court, ruled against a condominium association in the case of Elvaton Towne Condominium Regime II, Inc. v. Rose, No. 33, Sept. 2016 in its attempt to enforce a rule that restricted an owner’s privileges in the condominium and right to access to their interest in the condominium property due to their failure to pay delinquent assessments. The subject rule was promulgated by the condominium’s board through its rulemaking authority.
In this article, we have outlined the substantive legislative actions taken by the Maryland General Assembly over the course of the most recent legislative session. We have included legislation that impacts both homeowners and condominium associations for a comprehensive view of the laws affecting community associations in Maryland generally. The referenced legislation takes effect October 1, 2017.
The Virginia General Assembly approved a number of bills during its 2017 legislative session. Several of the bills impact, directly or indirectly, common interest communities. The Governor of Virginia signed the following bills into law in March and the new laws will take effect on July 1, 2017. We have outlined the substantive legislative action taken by the Virginia General Assembly that impacts both homeowners and condominium associations.
Every city or county in Virginia has published ordinances that restrict their residents’ home construction and lot use in a subdivision. Authorized by Virginia Code[1], a city or county may adopt the ordinances it needs to perform its obligations. To assure the orderly subdivision of land in the city or county, achieve the goals of a comprehensive development plan, or implement the Chesapeake Bay Preservation Act, subdivisions have been the subject of countless ordinances. Not surprisingly, so many ordinances cover a wide range of topics, and each is accompanied by a remedy for the local government to ensure compliance, often via an agency that will receive and investigate complaints.
Legislation to amend the D.C. Condominium Act, D.C. Act 21-657, (the “Act”) has been approved by the D.C. Council, signed by the Mayor and is awaiting the end of the mandatory congressional review period. The legislation is currently expected to go into effect on April 7, 2017.
Failure to pay past due amounts may result in legal action, including foreclosure. You may be eligible for free or reduced-cost assistance.
The D.C. Department of Housing and Community Development maintains a list of Community-Based Non-Profit Organizations that provide housing counseling services. The U.S. Department of Housing and Urban Development (“HUD”) sponsors housing counseling agencies that can provide advice on buying a home, renting, defaults, foreclosures, and credit issues.
As the weather starts to warm up, it is time for community associations to start planning for the pool season. Getting ready for the pool season does not just involve making sure that the pool company has removed the cover and filled the pool. For many associations, this is also the time of year that the associations review their pool rules to insure that they meet the association’s needs and that they comply with the applicable fair housing laws. For associations with delinquent owners, it is also a time to contemplate suspending pool privileges for those owners.
With spring upon us, community gatherings are popular events for associations to introduce neighbors to each other, conduct annual meetings, or pass that amendment to governing documents that requires the presence of members who may be otherwise difficult to assemble. As a neighbor and homeowner myself, the answer on whether to serve alcohol at a social gathering is a resounding: “Yes, please.” As a lawyer, however, it is much easier to object: “Perhaps not.” On one hand, there is no doubt that the safest course for an association is simply to resist the service of alcohol. No alcohol, no liability. On the other hand, the appeal of serving a cold beer or a glass of wine can be a well-deserved complement when there is a desire to bring neighbors together or build community spirit. The option to serve alcohol, coupled with a willingness to do so, does not need to be dismissed entirely however, and can be navigated to mitigate the risk of liability for those associations that find the consumption of alcohol, in moderation, a desirable complement to their gatherings.
Among the many issues community associations deal with are disputes between owners regarding trees that encroach upon a neighbor’s property. While each jurisdiction has established law on the issue, as a community, the simplest solutions are usually the best. Therefore before resorting to the courts, residents should consider contacting their neighbors to ask whether they would be willing to fix the problem voluntarily. While the world would be simpler if such property disputes were always amicably resolved between neighbors, in some instances, owners cannot reach an accord. This article will explore the differences between how D.C., Virginia, and Maryland resolve these issues.
A resident filing for bankruptcy can have a serious impact on the financial outlook of a community association. The financial impact on a community association can go well beyond lost dues, however. A fundamental purpose of the Bankruptcy Code (11 U.S.C. § 101 et seq.) is to give a person in bankruptcy (a “debtor”) a “fresh start.” To advance this purpose, the code imposes restrictions on creditors, including community associations, once a resident files for bankruptcy. One of these restrictions is found in Section 362 of the Bankruptcy Code, which imposes an “automatic stay” upon the filing of a bankruptcy case that prohibits certain actions against a debtor in order to give the debtor time to reorganize its financial affairs. The scope of the automatic stay is extremely broad.
Legislation to amend the D.C. Condominium Act ( the “Act”) was approved unanimously at the second reading on December 20, 2016. Originally intended to impose a mandatory mediation process before condominium associations could initiate foreclosure on their liens for unpaid assessments, the final legislation instead enhances the notice requirements before foreclosures may occur.
Whether community associations can regulate the usage of drones on their common area or common elements depends first on where the community association is located and second on the authority contained in community associations’ recorded governing documents.
The U.S. Department of Housing and Urban Development recently adopted new federal rules, pursuant to its authority under the federal Fair Housing Act (“FHA”), which will potentially have a significant impact on community associations. These new rules took effect on October 14, 2016. This alert will outline the new rules, their significance for community associations, and some initial recommendations for actions that associations can take in response.
On October 26, 2016, the Federal Housing Administration (“FHA”) issued a new mortgagee letter regarding new owner occupancy requirements for FHA certification and recertification applications. This mortgagee letter is in response to the Housing Opportunity Through Modernization Act that the President signed the end of July 2016. A copy of the new mortgagee letter 2016-15 can be found in its entirety here: Mortgagee Letter 2016-15. As discussed in more detail below, the mortgagee letter clarifies what is considered an owner-occupied unit and discusses how the standard owner-occupancy requirement of 50% can be lowered to 35% under certain circumstances for existing condominium projects.
With the presidential election fast approaching, political signs featuring names of candidates have covered lawns across Virginia. The placement of political signs on private property within community associations raises competing interests. On the one hand, signs are a form of speech that some residents believe should garner the protection of the First Amendment to the U.S. Constitution. On the other hand, signs may detract from the appearance of a community, invite negative community connotations and detrimentally impact property values. Accordingly, many community associations have governing documents that restrict signage. Some of these restrictions prohibit all signs other than “for sale” or “for lease” signs, while other merely limit the size, number, and placement of signs generally.
“Ham radio” refers to amateur radio operations and antennas, which has a surprisingly large following among local hobbyists and enthusiasts. While the federal Telecommunications Act of 1996 ( “Telecommunications Act”) is the ultimate authority on regulating satellite dishes and television antennas, it does not apply to amateur radio (“ham radio”) antennas. The Telecommunications Act prohibits community associations from restricting a property owner’s right to install a satellite dish or television antenna on property exclusively within the property owner’s control. The Act’s protections, do not, however, extend to ham radio operations. The Federal Communication Commission’s (the “Commission” or “FCC”) PRB-1 document, an 11 page Amateur Radio Memorandum Opinion and Order, provides that local governments must reasonably accommodate amateur operations, but these regulations do not extend to private land-use restrictions such as deed covenants, conditions, and restrictions (“restrictive covenants”).
Effective October 1, 2016, all employers in Montgomery County, Maryland with one or more employees are required to provide employees with paid sick and safe leave. All employees must earn one hour of paid leave for every 30 hours an employee works in Montgomery County, up to 56 hours a year. Employers with 5 or more employees must provide paid sick and safe leave; whereas, employers with less than 5 employees must provide 32 hours of paid sick and safe leave, as well as 24 hours of unpaid sick and safe leave per year.
This past legislative session, the Maryland General Assembly undertook a review of the resale disclosure laws for condominiums and homeowners associations. After input from CAI’s Maryland LAC and other organizations, a limited number of changes were passed and will become effective October 1, 2016.
The U.S. Consumer Product Safety Commission reports that more than 15,000 home fires are caused each year by faulty or improperly maintained dryers. More than half of these fires are caused by dryer vents that have failed to be cleaned. As temperatures begin to rise, it is time for community associations to examine what type of policy is in place regarding dryer vent maintenance.
Through unanimous approval by Congress and then the ultimate approval by the President, the Housing Opportunity Through Modernization Act (the “Act”) potentially opens the door to many condominium associations to obtain FHA certification that were not previously eligible and directs the Secretary of the Department of Housing and Urban Development to streamline the FHA recertification process. Many condominium associations desire to be FHA certified so that condominium units located within the association are available for sale to a much broader pool of potential buyers. In a serious effort to broaden the number of condominium associations eligible for FHA certification, the Act put forth four major changes regarding requirements for FHA mortgage insurance.
The Virginia General Assembly approved a number of bills in the 2016 legislative session which impact, directly or indirectly, common interest communities, and the Governor of Virginia signed the following bills into law.
These new laws amend the Virginia Property Owners’ Association Act (Va. Code Ann. 55-508, et seq., as amended (1950)) (the “POA Act”), the Virginia Condominium Act (Va. Code Ann. 55-79.39, et seq., as amended (1950)) (the “Condominium Act”), and other statutes that may affect common interest communities. These new laws will take effect on July 1, 2016. Below is a brief summary of the legislation that directly or indirectly influences common interest community associations.
Many people move into Community Associations throughout the area due to the many added benefits an Association offers including a more “secure” neighborhood. However, there is a hidden reality that many residents of an Association may be surprised to confront – a sex offender living in their community, amongst them in plain sight. Of course, sex offenders are a real and a major concern to any resident. Common reactions from residents include questions of:
How do we remove sex offenders from our community?
How can the Association prevent sex offenders from residing within the Association moving forward?
Does the Association need to notify its members of the presence of the sex offender, and could it be held liable if it fails to do so?
The use of technology by community associations is a great way to efficiently manage association business and records; however, there are recommended practices that should be followed in order to minimize liability exposure.
The Prince George’s County Council recently adopted new legislation that establishes a Commission on Common Ownership Communities (the “PGCCOC”). The Commission will be composed of nine (9) members appointed by the County Executive. Five (5) of the members will be selected from unit or lot owners who reside in a common ownership community, and four (4) of the members will be selected from professionals associated with common ownership communities, such as property managers, realtors and attorneys.
The Supreme Court of Virginia published an opinion relating to the process of amending the Declaration of a Property Owners Association. The case titled Steven F. Tvardek, Jr., et al. v. Powhattan Village Homeowners Association, Inc., ruled that an Amended Declaration is not effective unless the President’s certificate recorded with the amendment verifies that the required majority of owners signed the amendment or ratification approving the amendment. In this case, the certificate merely stated the owners approved the amendment.
When a condominium project is FHA certified, it means that the units located within the condominium project are eligible for FHA-insured loans. An FHA insured loan is a Federal Housing Administration (“FHA”) mortgage insurance backed-mortgage loan, which is tied to an FHA-approved lender. In other words, FHA does not issue loans; rather it insures loans from private lenders.
Proper classification of employees is critical to avoid potential liability for unpaid overtime. If that did not get your attention, then consider this: In addition to unpaid overtime, misclassification of employees can result in liquidated damages, equitable relief and reimbursement of attorney’s fees. Classification is particularly important now, in light of the proposed changes to the Fair Labor Standards Act (“FLSA”).
The DC Metro area recently endured winter storm Jonas. Many embraced the historic snow, especially kids who got a weeklong vacation. Homeowners, though, ended up spending some quality time with a shovel and were likely rewarded with a sore back. Likewise, Community Associations had to figure out how to remove the large amounts of snow from streets and sidewalks. However, were the hours of labor and snow removal bills necessary? More importantly, if the snow was not removed and someone was injured, who would be liable?
Montgomery County law now requires common ownership community board members to receive training in basic community association management. The Montgomery County Commission on Common Ownership Communities (CCOC) has launched a new online training program that allows board members to comply with the County’s requirements.
New laws will take effect in Montgomery County, Maryland on November 30, 2015 which will impact parking and towing policies in community associations. This article will highlight the new requirements under Chapter 30C of the Montgomery County Code (“Code”) of which all community associations in Montgomery County need to be aware.
The Fair Housing Act (“FHA”) applies to community associations and establishes the regulations with which private “housing providers” must comply. This article will explore the possible responses an association may have to a community association member requesting the use of a service animal under the FHA.
As many of you are already aware, the legalization of the possession and use of marijuana in the District of Columbia went into effect on February 26, 2015. As with every law, of course, there are certain limitations to the possession and use of this substance.
Under the current laws in D.C., it is legal for anyone 21 years of age or older to possess, use, or transfer marijuana.
The Virginia General Assembly approved a number of bills in the 2015 legislative session which impact, directly or indirectly, common interest communities, and the Governor of Virginia signed the following bills into law.
In Montgomery County, Maryland, owners who want to rent their homes must obtain a residential rental license from the County. It is a Class A violation of the County Code for an owner to rent without a rental license, which could result in a fine of up to $500 per day. More often than not, owners are renting their homes and deriving an income from the rental while at the same time failing to pay homeowners, condominium or cooperative fees to the community association. However, the County is attempting to stop this practice.
With the wear and tear from winter weather, and spring cleaning approaching, there may be several projects waiting in the wings for your association. Whether it be routine maintenance or a new construction project you will probably need to execute a contract for the work to be completed. Managers may be tempted to sign contracts for these projects, especially for a lackadaisical board or for a project that simply needs to be done. Managers, as a general rule, however, should avoid signing contracts for work performed for the association.
The District of Columbia has adopted rules requiring residential buildings with eight or more units to provide secure bicycle parking spaces, effective as of November 28, 2014. These rules have been added as sections 1214, 1215, and 1216 to Chapter 12 of Title 18 of the District of Columbia Municipal Regulations. Violations of these rules are civil infractions, punishable by fines.
The transition into the cold and dark of winter offers an excellent opportunity for community associations to analyze safety and security issues. In this article, we will examine some of the routine steps a community association can take in order to minimize the risk of crime and prevent injury in the community. We will also examine the legal issues associated with maintaining or instituting a “neighborhood watch” program.
On August 28, 2014, the District of Columbia Court of Appeals held, in Chase Plaza Condominium Association, Inc. v. JPMorgan Chase Bank, N.A., that a condominium association’s foreclosure of its super-priority lien extinguishes all junior liens -- including the first mortgage or first deed of trust on the condominium unit. The super-priority lien consists of the most recent six months of assessments owed by a unit owner to the association. This decision has a significant impact for mortgage lenders and condominium associations in the District of Columbia, as it establishes that a condominium association’s foreclosure on its lien for six months’ worth of assessments can wipe out the first trust holder’s entire security interest in the property. If there are no significant proceeds left after the association’s lien is paid from the proceeds of the sale, the first trust holder’s lien, along with all other liens with lower priority, is extinguished.
Open Meeting requirements restrict how and when a Board of Directors may discuss Association business. In general, they require that all meetings, including those of any committee or subcommittee, be open to all members of the Association, but provide a limited set of circumstances where a Board may enter an executive or closed session to discuss certain matters in private.
On August 12, 2014, Delaware’s governor signed a bill into law creating an Office of the Common Interest Community Ombudsman within the Department of Justice. What is the Ombudsman charged with doing, and how will it affect your community?
Under the new law, the Ombudsman is empowered to help Delaware communities understand their rights and responsibilities. Equally important, the Ombudsman can also help resolved disputes between a community and its members without recourse to the judicial system.
In November 2008, the District of Columbia enacted the Accrued Sick and Safe Leave Act of 2008 (“ASSLA”) which requires employers to provide paid sick leave to employees, as well as safe leave for absences related to domestic violence or sexual abuse. Effective March 2014, ASSLA was amended by the Earned Sick and Safe Leave Amendment Act of 2013 which broadens the employees covered under ASSLA, provides for additional recordkeeping, and includes stronger remedies for violations of the law.
As a result of the 2014 General Assembly Session, a number of bills were approved by the General Assembly and signed by the Governor, many of which directly or indirectly impact common interest communities in Virginia.
The new laws amend the Virginia Property Owners’ Association Act, the Virginia Condominium Act, and other statutes that may affect common interest communities. These new laws will take effect on July 1, 2014. Below is a brief summary of the legislation that directly or indirectly influences common interest community associations.
Do you know where your association’s important documents are located and how to access them quickly if necessary? Keeping association records organized and safe can be an overwhelming task. When new members join the board, it is vital for associations to have a good set of records so that prior board actions can be reviewed when necessary. Condominium and homeowners associations are also obligated by law in many states, and often by their governing documents, to retain certain documents and make them available for owners to review upon request.
Legislation to amend the District of Columbia Condominium Act was signed by Mayor Gray on April 28, 2014, and will go into effect as soon as the mandatory Congressional review period has expired. Hopefully, that will be sometime before June 15, 2014.
A community association’s ability to suspend an owner’s voting privileges and community privileges, such as parking, pool, and/or fitness center access, is a powerful tool associations can use in getting the attention of owners who are in violation of association governing documents. This tool is typically used when an owner is delinquent in paying his or her assessments and can serve as a deterrent for non-payment as well as an effective means of assessment collection. It is important to note, however, that before an association can proceed with suspending an owner’s voting and/or community privileges, it must carefully review its Declaration, Bylaws, and applicable statutory codes in order to determine whether it has the requisite authority to suspend such privileges, and if so, what procedures must be followed.
A community association’s ability to suspend an owner’s voting privileges and community privileges, such as parking, pool, and/or fitness center access, is a powerful tool associations can use in getting the attention of owners who are in violation of association governing documents. This tool is typically used when an owner is delinquent in paying his or her assessments and can serve as a deterrent for non-payment as well as an effective means of assessment collection. It is important to note, however, that before an association can proceed with suspending an owner’s voting.
A community association’s ability to suspend an owner’s voting privileges and community privileges, such as parking, pool, and/or fitness center access, is a powerful tool associations can use in getting the attention of owners who are in violation of association governing documents. This tool is typically used when an owner is delinquent in paying his or her assessments and can serve as a deterrent for non-payment as well as an effective means of assessment collection. It is important to note, however, that before an association can proceed with suspending an owner’s voting.
A community association’s ability to suspend an owner’s voting privileges and community privileges, such as parking, pool, and/or fitness center access, is a powerful tool associations can use in getting the attention of owners who are in violation of association governing documents. This tool is typically used when an owner is delinquent in paying his or her assessments and can serve as a deterrent for non-payment as well as an effective means of assessment collection. It is important to note, however, that before an association can proceed with suspending an owner’s voting.
No one who becomes a board member for their community association does so with the idea that they want to discriminate against their neighbors. Yet, more and more boards are facing discrimination accusations under the Fair Housing Act and Americans with Disabilities Act. It is critical, therefore, for board members - and the managers and lawyers who assist them – to understand the civil rights laws that apply to them and how these laws can affect the day to day operation of the community association.
Community Associations maintain reserve accounts as a means of funding their long term needs for repair and replacement of major capital items. These Association assets typically include all common property under Association control such as roads, roofs, swimming pools and pool decks, sidewalks and clubhouses. Reserves are not intended to fund the Association’s everyday operating expenses, which are set forth in its annual budget.
There are many circumstances under which litigation can arise between members of a community association and the community association or its board of directors. One tactic employed by members who are litigating with or otherwise adverse to the interests of the community association is to disrupt the open meetings of the association by having the member’s attorney attend the open board meetings as a “designee,” “proxy,” or “representative.” This article addresses how a board of directors responds to the attendance of an attorney representing an adverse party at its board meeting.
Under the Freedom to Display the American Flag Act of 2005 (the “Act”) community associations are not permitted to ban owners from displaying the American flag on the owner's unit, lot or in any area where the owner has exclusive use or possession. However, the Act does permit community associations to place reasonable regulations on the time, place and manner in which the American flag is displayed, including the regulation of flagpoles.
The use of websites and social media by community associations is a great way for communities to keep their membership informed; however, there are recommended practices that community associations should follow in order to avoid, or at least minimize, their potential for liability exposure.
Tax lien certificate sales pose many questions and potential problems for condominium associations in the District of Columbia. They can strip an Association of all its liens on a property, or act as tool to remove a chronically delinquent owner or even net the Association a substantial profit. As such, it is in the best interest of all Associations to monitor tax lien certificate sales and be cognizant of their rights and options.
Evolving community needs and changing legal requirements often present a community association board of directors with a daunting task: amending the association’s governing documents. A well-crafted amendment that complies with applicable law is the obvious objective of any board of directors that is considering proposing revisions to its governing documents. Developing this amendment document itself is generally the easy part of the amendment process if the association is represented by an experienced community association attorney.
In July, the General Assembly of the State of Delaware amended several sections of Title 25 for the stated purpose:
… to permit a real property owner or tenant to display an American flag on a pole attached to the exterior of the property’s structure or on a flagpole located within the property’s boundaries, provided the flagpole does not exceed 25 feet in height and conforms to all setback requirements. Any and all community restrictions to the contrary will not be enforceable.
Under the Delaware Uniform Common Interest Ownership Act (“DUCIOA”), certain community associations are authorized to foreclose liens just like foreclosing a mortgage on real estate. In Delaware, all mortgage foreclosures are by judicial process and typically take more than ten months to complete when initiated by a secured mortgage lender. When a homeowner defaults on a mortgage, a lender or association may begin the foreclosure process with the filing of a complaint in court in the county where the property is located. Once judgment has been granted in the association's favor, the association must first try to recoup the delinquent fees from the homeowner's personal assets (i.e., garnishing wages and attaching personal property). Once those methods have been exhausted and part or all of the judgment remains unpaid, the association, like a mortgage lender, may proceed to foreclosure.
With assessment collections continuing to be problem for many community associations in Maryland, manager and board members alike are exploring alternative methods for collecting delinquent assessments. Here is a summary of the general process and timetable for the lien foreclosure procedure in Maryland.
After the "Great Recession" that began in 2008, many individuals have fallen behind on their mortgage payments and/or condominium or homeowners assessments. However, Boards of Directors have a fiduciary duty to their members to ensure the financial stability of their communities, so they may need to consider the option of foreclosing on a unit in order to get a new owner in the property who will pay the assessments.
On July 1, the 2007 amendments to the Virginia laws related to charges for resale certificates go into effect. During its just concluded session, the Virginia General Assembly amended the Virginia Condominium Act (the “Condominium Act”) and the Virginia Property Owners Associations Act (the “POAA”) provisions related to charges for resale disclosure certificates. This Alert describes the permissible charges for preparing and providing resale disclosure certificates and will also discuss the time at which these charges may be imposed.
The 2013 General Assembly session was recently completed, and it resulted in a number of new laws that directly or indirectly impact common interest communities in Virginia.
The new laws amend the Virginia Property Owners’ Association Act, the Virginia Condominium Act, and other statutes that may affect common interest communities. These new laws take effect on July 1, 2013 except as otherwise noted herein. Below is a brief summary of the changes that you should be aware of.
A recently reported decision issued by the Maryland Court of Special Appeals offers some guidance and support for community associations on two issues that are frequently the subject of homeowner disputes. The case of Randall Reiner, et ux. v. Clifford Ehrlich, et al. involved a homeowners association’s denial of a request to install a new roof on a home using materials not authorized by the bylaws of the association. The Plaintiffs in the case filed suit against the homeowners association and sixteen individual community members. After holding a hearing, the underlying circuit court dismissed the complaint as to the individual homeowners, and entered summary judgment in favor of the homeowners association. On appeal, the Court of Special Appeals held that the granting of summary judgment in favor of the Association and the dismissal of the individual homeowners was proper.
Boards of Directors will find it useful to set up and maintain an email service for the Board members to conduct their business, but should make an effort to educate users to limit their communications to relevant business topics to avoid violating any open meeting requirements.
Over the past year, community boards have faced an increasing number of requests from owners wishing to install electric car charging stations (“ECCS”) in their assigned common element or limited common element parking spots. Given the growing popularity of fuel efficient vehicles, community boards can only expect to receive mounting requests of this nature in the future. In this article, we will explore a number of issues that community boards should consider with respect to the installation and maintenance of ECCS.
FHA certification makes it easier to sell units in your condominium association. Applying for FHA certification has become more straightforward recently.
The good news for District of Columbia residents is that the real estate market is strong, prices of condominiums, in particular, are rebounding, and the foreclosure rate is low. All these things are true, but they do not tell the real story about foreclosures and the underlying effects on community associations in the District of Columbia.
In 2010, D.C., Maryland and Virginia were paralyzed by historic records of snowfall. In addition to the general headaches of traffic jams, school closings, and lack of power and services, community associations had to deal with snow removal. Snowstorms in community associations often result in busted budgets, slippery sidewalks and parking lots, and the possibility of a slip-and-fall lawsuit. So how can a community association protect itself?
Review your declaration and bylaws carefully. The penalties that a board can impose for violations need to be based in those documents, not just your rules and regulations.
The Maryland General Assembly made changes to the Maryland State Transportation Code, effective October 1, 2012, regulating towing procedures for all Maryland community associations.
The 2012 General Assembly resulted in a number of changes that directly or indirectly impact common interest communities in Virginia. The new laws amend the Virginia Property Owners’ Association Act, the Virginia Condominium Act, and the Common Interest Communities. These new laws take effect on July 1, 2012. Below is a brief summary of the legislation that directly or indirectly impacts common interest community associations.
As we approach the summer months, many questions have been raised regarding whether conducting swim meets, in which teams whose members are not residents of a community association, and whether an obligation that the swimming pool where the swim meets occur, be compliant with the American with Disabilities Act's ("ADA") accessibility requirements. Many associations, as a public service, provide their facilities to swim teams for such meets.
One of the most challenging responsibilities for association board members and the association manager is renovation contracts. It is a fact of life that community associations must periodically perform small and large construction renovations—everything from lobby updates to balcony repairs and garage resurfacing, from window and roof replacements to new HVAC system installations. Before signing a construction renovation contract, boards and managers should understand the potential risks and be prepared to minimize them.
In a few months, community associations around the region will be opening up their pools in preparation for the summer season. Running an association pool, of course, comes with a host of issues, including: training and certifying lifeguards; maintaining, repairing and replacing the equipment itself; and enforcing the rules and regulations for using the pool. This article will focus on two separate issues: the Virginia Graeme-Baker Act and the responsibilities of community associations under the federal and state non-discrimination statutes.
The holiday party season is upon us. Whether you're giving a small private party for employees, a large community event, or a private event within the community, questions often arise regarding the sale and service of alcoholic beverages and potential liability issues for community associations. The best way to ensure that your event is a success and your association is protected from liability is through careful planning and knowing the law.
An Association employee comes to the Association Manager complaining that he/she is being discriminated against by another employee. A unit owner complains to the Board that he/she is being harassed by an Association employee. How does the Board or the Manager investigate the complaint?
Members of a Community Association Board are sometimes confronted with an accusation that they have breached their fiduciary duty -- that is, the duty they owe their fellow owners to act impartially in the best interest of the entire community.
Rules development and enforcement are critically important areas for condominiums, homeowner associations and housing cooperatives. In developing and enforcing rules the board must be diligent, careful and resolute, but must keep things in perspective. If an association's rules are not respected by the residents, or if rule enforcement is poorly handled, the result will be a decline in respect for the association, which can translate into greater dissension in the community, increased numbers of rule violations, and increased delinquent assessments.
On June 30, 2011 the United States Department of Housing and Urban Development (“HUD”) released Mortgagee Letter 2011-22, which updates the requirements that condominium association must comply with in order to obtain FHA approval.
Members of community associations must be aware that the U.S. Department of Justice ("DOJ") has recently issued standards for how it interprets the ADA provisions. Under those standards, if a community association's swimming pool is open to other than members of the association and their guests; it will be deemed a place of public accommodation. If it is a place of public accommodation, then the ADA requires that there be at least one means of ingress and egress to the pool for persons with disabilities if the perimeter of the pool is 300 linear feet or less and a second means if the pool perimeter is more than 300 linear feet.
The 2011 General Assembly session was an active one in Virginia. A number of new provisions will directly or indirectly impact common interest communities in Virginia. The new laws amend the Virginia Property Owners' Association Act, the Virginia Condominium Act, the Common Interest Community Management statutes, and the Virginia Nonstock Corporation Act. The sections of the law that are affected by the changes are listed; unless otherwise noted, the references are to the Virginia Code. These new laws took effect on July 1, 2011, unless otherwise noted in the summaries below.
The D.C. Legislative Action Committee is attempting to introduce a bill to amend the D.C. Condominium Act to make certain changes that Boards should be aware of. Although these amendments have not been passed yet, Boards should understand the amendments and prepare for them accordingly. Below is a brief summary of some of the key amendments that have been proposed.
The Delaware Uniform Common Interest Ownership Act ("DUCIOA"), 25 Del. C. § 81-101, et seq., originally effective July 1, 2009, substantially changed the landscape for Delaware communities. The DUCIOA and sections of Delaware's prior statute, the Unit Property Act, were substantially amended prior to the DUCIOA effective date to address input from builder, realtor and association constituencies. Delaware communities have been subject to the strictures of the as-amended DUCIOA since September 30, 2009, with additional revisions effective August 11, 2010 to clarify certain small-community exceptions and make changes to the resale certificate requirements.
After 17 years of pursuing this legislation, Maryland has passed a priority lien bill. Pursuant to this new law, Association liens have a limited priority over the claim of a mortgage holder whose loan is entered into on or after October 1, 2011. The Association's priority is limited to four months of assessments with a cap of $1,200. This priority amount will be paid from the funds of any foreclosure sale prior to the claim of any other creditor, including a mortgage holder. While this law applies only to future mortgages, it will quickly become an important collection tool for Associations, who today often see their liens extinguished by foreclosure with no payment made towards the delinquency.
The 2010 General Assembly session proved to be an active one here in Virginia. While a number of bills were introduced at the beginning of this session that would have directly or indirectly impacted common interest communities in Virginia, only a few bills were actually approved by the General Assembly and signed by the Governor. The new laws amend the Virginia Property Owners' Association Act, the Virginia Condominium Act, the Common Interest Community Management statutes, the Virginia Nonstock Corporation Act, and the Virginia Flood Protection and Dam Safety statutes. These new laws all took effect on July 1, 2010, unless otherwise noted herein. Below is a brief summary of the legislation that directly or indirectly impacts common interest community associations.
On May 4, 2010, Governor O'Malley signed into law Maryland SB 224, the so-called "Right-to-Dry" legislation, which requires condominium associations, homeowner associations, and cooperatives to allow homeowners to install clotheslines on their property. The new law, effective on October 1, 2010, adds section 14-130 to the Real Property Code, "Installation and Use of Clotheslines on Residential Property."
Condominium associations that made improvements to their common areas or common elements in 2009 should consider whether those improvements qualify for either the Non-business Energy Property Credit or the Residential Energy Efficient Property Credit.
Unlike a tax deduction, a tax credit is a dollar-for-dollar credit against any federal income tax owed. For example, a $200 tax credit is deducted from the tax owed, reducing the taxpayer's liability by $200.
The suspension of parking privileges is an attractive self-help tool for community association Boards to include in their association's assessment collection policies. This is true because it can bring quick results with minimal expense.
Select provisions of the Condominium Act, the Property Owners' Association Act, the Residential Property Disclosure Act, and the Nonstock Corporation Act.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.
What Happens When Local Ordinances Conflict with your Governing Documents? – A Survey of the Conflict of Law Provisions for the Northern Virginia & Fredericksburg Areas
Maryland Common Interest Communities 2017 Legislative Changes
Virginia: 2017 Legislative Update for Common Interest Communities
In this brief presentation, Chad Rinard delves into the applicability and requirements of the Corporate Transparency Act (CTA) as it pertains to Community Associations. The reporting deadline for the CTA is set for December 31, 2024. This presentation outlines the necessary information and documents that must be compiled and reported before this deadline, as well as the updates required thereafter. Additionally, the webinar provides practical tips to ensure that once the reporting process is initiated, it can be completed within 60 to 90 minutes.
The Whiteford Piedmont & Tidewater Committee provides tips on running successful member and board meetings taking it step-by-step and breaking down the component parts.
Age restricted communities face unique challenges surrounding Housing for Older Persons Act ("HOPA"). During this presentation, we tackle the specifications in depth and address questions and concerns around the challenges that may arise.
We address the Governor's orders on regulations pertaining to current and future modifications for the State of Delaware that directly effect the Community Association community.
Whiteford is very pleased to note that Ed O'Connell, co-chair of our Business Section and Community Associations group, has been named a fellow of the College of Community Association Lawyers (CCAL). Of the over 4,000 attorneys practicing community association law in the United States, fewer than 175 have been admitted to this prestigious organization. Two other attorneys in the group, Joe Douglass and Drew Terrell, are also CCAL members.
Jane Rogers was presented the Hall of Fame award at the Annual Dinner of the Washington Metropolitan Chapter Community Associations Institute. The award was bestowed in recognition of her many years of dedicated work and service in the industry.
87 lawyers from Whiteford, Taylor & Preston have been selected by their peers for inclusion in The Best Lawyers in America® 2024 (copyright 2023 by Woodward/White, Inc., of Aiken S.C.). New practice areas of recognition include CleanTech Law and Entertainment and Sports Law. The lawyers selected are based in the firm’s Delaware, Maryland, Pennsylvania, Virginia and Washington offices. Client comments are posted on the Best Lawyers website, at bestlawfirms.com.
73 lawyers from Whiteford, Taylor & Preston have been selected by their peers for inclusion in The Best Lawyers in America® 2023 (copyright 2022 by Woodward/White, Inc., of Aiken S.C.). The lawyers selected are based in the firm’s Delaware, Maryland, Pennsylvania, Virginia and Washington, D.C. offices. Client comments are posted on the U.S. News & Best Lawyers web site, at bestlawfirms.com.
A record 75 lawyers from Whiteford, Taylor & Preston have been selected by their peers for inclusion in The Best Lawyers in America® 2022 (copyright 2021 by Woodward/White, Inc., of Aiken S.C.). The lawyers selected are based in the firm’s Delaware, Maryland, Pennsylvania, Virginia and Washington offices. Client comments are posted on the U.S. News & Best Lawyers web site, at bestlawfirms.com.
A record 71 lawyers from Whiteford, Taylor & Preston have been selected by their peers for inclusion in The Best Lawyers in America® 2021 (copyright 2020 by Woodward/White, Inc., of Aiken S.C.). The lawyers selected are based in the firm’s Delaware, Maryland, Pennsylvania, Virginia and Washington offices. Client comments are posted on the U.S. News & Best Lawyers web site, at bestlawfirms.com.
64 lawyers from Whiteford, Taylor & Preston have been selected by their peers for inclusion in The Best Lawyers in America® 2020. The lawyers selected are based in the firm’s Delaware, Maryland, Pennsylvania, Virginia and Washington offices. Client comments are posted on the U.S. News & Best Lawyers web site, at bestlawfirms.com.
Whiteford, Taylor & Preston is pleased to announce that Marla Diaz, a partner in the firm’s Falls Church office, has been named by Virginia Lawyers Weekly to the 2018 Class of “Leaders in the Law.” Now in its 13th year, the Leaders in the Law program recognizes those lawyers across the commonwealth who set the standard for other lawyers in Virginia by changing the law, serving the community, changing practice or improving Virginia’s justice system.
Whiteford, Taylor & Preston is pleased to announce that 41 of its attorneys are listed among the 2017 Super Lawyers and Rising Stars in Maryland and Kentucky joining the sixteen who were listed earlier this year in Delaware, D.C., Pennsylvania and Virginia.
Whiteford is very pleased to note that Drew Terrell, co-chair of our Community Associations group, has been named a member of the College of Community Association Lawyers (CCAL). Of the thousands of attorneys practicing community association law in the United States, fewer than 150 have been admitted to this prestigious organization. Two other partners in the group, Joseph Douglass and Raymond Diaz, are also CCAL members.
Whiteford Taylor & Preston is delighted to announce that our partner, Edward J. O’Connell III has been inducted as the president of the Washington Metropolitan Chapter of the Community Associations Institute.
Washington, DC. On November 1, 2012, the Maryland Court of Special Appeals ruled in favor of the Grosvenor Park Maintenance Trust Association in a lawsuit against 10101 Grosvenor Park Condominium.
Brenda Curtis-Heiken, the President of the Association, said, “I truly believed that we had the very best legal team, and I knew we would win! Thank you and your entire legal team for all the long hours and hard work.”
On April 9, 2012, Judge Lawrence Fletcher-Hill released his opinion granting summary judgment to the unit owners of Harborview Condominium and Zalco Realty, Inc., the condominium’s property management company. The plaintiff had claimed $2.5 million in compensatory damages and an additional $2.5 million in punitive damages.
Whiteford, Taylor & Preston (WTP) announced today that Raymond B. Via, Jr., has joined the firm's Community Associations practice as a partner in the Washington, D.C., office.
Whiteford, Taylor & Preston LLP (WTP) has expanded its Falls Church office - by increasing the number of attorneys and enlarging its office space. Glenn R. Bonard, Eileen Morgan Johnson, Thomas Mugavero, Christy Richardson, and Andrew J. Terrell have joined Raymond J. Diaz, Michael Gartner, Christopher A. Jones, Katherine McCarthy, Edward J. O'Connell, and Eric A. Vendt in WTP's offices at 3190 Fairview Park Drive, Suite 300, Falls Church, VA 22042.
Andrew J. Terrell, a partner and head of Whiteford, Taylor & Preston's Washington, D.C. and Virginia offices, was recently honored as Educator of the Year by the Washington Metropolitan Chapter of the Community Associations Institute (WMCCAI). Terrell was presented with the award at WMCCAI's Red Carpet Affair-themed dinner emceed by broadcast journalist J.C. Hayward on November 3, 2007, at Chantilly's Marriott Westfields Washington Dulles.
Prior to its 75th anniversary, Whiteford, Taylor & Preston (WTP) is proud to announce the opening of its Falls Church office. Located at 3190 Fairview Park Drive, Falls Church, VA 22042, the office officially opened for business on May 31, 2007.
Whiteford, Taylor & Preston (WTP) announced today that Raymond J. Diaz, former President of the Virginia State Bar, and Edward O'Connell III have joined the firm's expanding Community Associations (CA) practice.
