Maryland HOA laws govern how homeowners associations operate, manage communities, and protect property values across the state. These laws set clear rules for boards, outline homeowner rights, and ensure financial transparency. Understanding them helps both homeowners and board members avoid conflicts.
What are the Maryland HOA Laws?
Maryland enforces several statutes that regulate the operation of HOAs, condominiums, and cooperatives. Together, these MD HOA laws establish responsibilities for boards, outline homeowner rights, and ensure financial accountability.
Each law serves a unique purpose, but they all work together to maintain fairness and transparency in community associations. Here are the relevant statutes to note.
Maryland Homeowners Association Act (HOA Act)
The Maryland HOA Act falls under Title 11B of the Maryland Statutes. This statute applies to all planned communities that fall under the HOA model.
It requires HOAs to provide disclosures to buyers, follow fair election procedures, hold open meetings, and give members access to records. The Maryland homeowners association law also sets standards for budgets, assessments, and due process when enforcing rules.
Maryland Condominium Act
The Maryland Condominium Act falls under Title 11 of the Maryland Statutes. This law covers the rights of condo owners, board responsibilities, and requirements for managing common elements. It also sets financial safeguards, including mandatory annual budgets and reserve requirements.
Maryland Cooperative Housing Corporation Act
The Maryland Cooperative Housing Corporation Act falls under Title 5, Subtitle 6B of the Maryland Statutes. It governs housing cooperatives, where residents hold shares in the corporation that owns the property. This law details membership rights, voting procedures, and how co-ops must handle their finances.
Maryland Non-Stock Corporation Act
Most HOAs in Maryland are formed as non-stock corporations. These associations must follow the Maryland Non-Stock Corporation Act, which falls under Title 5, Subtitle 2 of the Maryland Statutes.
This law sets corporate governance rules. This includes how board members are elected, how meetings are conducted, and how corporations maintain their legal standing.
Maryland Contract Lien Act
The Maryland Contract Lien Act falls under Title 14, Subtitle 2 of the Maryland Statutes. It allows HOAs to place liens on properties when owners fail to pay their dues and assessments. It also outlines the process for enforcing liens, including foreclosure, and requires written notice before action is taken.
Maryland Discrimination in Housing Law
State-level fair housing protections come from Title 20, Subtitle 7 of the Maryland Statutes. Associations can’t enforce rules or make decisions that discriminate based on race, color, religion, sex, disability, familial status, or national origin. This law ensures fair treatment for all homeowners and residents.
Homeowner Rights Under HOA Laws in Maryland
Homeowners have certain rights under Maryland HOA laws. These rights prevent abuse of power by HOA boards and help maintain trust within the community.
Here are the major rights homeowners have.
1. Access to Records
Under Section 11B-112, homeowners have the right to inspect HOA records. This includes financial documents, meeting minutes, and governing documents. Associations must provide access to these records within a reasonable timeframe.
2. Fair Notice and Meetings
Section 11B-111 requires boards to provide reasonable notice before meetings. Homeowners also have a right to attend annual membership and open board meetings. The HOA board may hold closed sessions for some issues.
3. Voting Rights
Section 11B-111 outlines voting procedures. Every lot owner typically has a vote, and elections must follow fair processes. The association’s governing documents also usually provide additional guidelines on voting and elections.
4. Due Process in Rule Enforcement
Section 11B-111.10 ensures that homeowners receive written notice of alleged violations and have the right to a hearing before the board imposes any fines. This prevents boards from penalizing members arbitrarily or inconsistently.
Maryland HOA Law Questions
Many homeowners have recurring concerns about how Maryland HOA laws apply to everyday community issues. Here are answers to the most commonly asked questions.
Can an HOA in Maryland collect assessments?
Yes. Section 11B-117 authorizes HOAs to collect dues and assessments for maintenance, repairs, and reserves. These funds keep the community functioning.
Can an HOA in Maryland foreclose on your home?
Yes. Under the Maryland Contract Lien Act, Section 14-204, HOAs may foreclose for unpaid dues or assessments. They must first file a lien and provide proper notice.
Can an HOA in Maryland enforce architectural rules?
It is normal for HOAs to have architectural standards that homeowners must uphold. That said, these standards and rules must be clearly defined in the governing documents. Additionally, boards must apply them consistently.
Can homeowners inspect HOA records in Maryland?
Yes. Section 11B-112 grants homeowners access to records. Associations that refuse may face potential liability and legal action from homeowners.
Are HOAs in Maryland required to prepare annual budgets?
Yes. Under Section 11B-112.2, HOA boards must prepare and distribute an annual proposed budget at least 30 days prior to adopting it.
Are HOAs in Maryland required to provide resale packages?
Yes. Section 11B-106 requires HOAs to provide resale disclosure packages to buyers. Without them, buyers may cancel the purchase. This resale package must include the governing documents as well as a statement of any outstanding fees, assessments, or fines.
Can HOAs in Maryland prohibit solar panels?
No. Section 2-119 prohibits HOAs from outright banning solar panels. That said, they may impose reasonable restrictions related to aesthetics or safety.
Is an HOA reserve study required in Maryland?
Yes, for some communities. Section 11B-112.3 requires HOAs in Prince George’s County and Montgomery County to conduct a reserve study every five years.
Are HOAs in Maryland required to hold open meetings?
Yes. Section 11B-111 requires open meetings, which means homeowners can attend them. There are instances when a board can hold a closed meeting, such as to discuss legal issues or contract negotiations.
How can homeowners file a complaint against an HOA in Maryland?
Homeowners can file complaints with the Maryland Office of the Attorney General, Consumer Protection Division. That said, associations should attempt to resolve complaints through internal or alternative dispute resolution methods first.
The Bottom Line
Understanding these Maryland HOA laws is the first step in successful community living. Board members can preserve the association’s reputation while avoiding liability risks. On the other hand, homeowners can protect their rights.
Majerle Management, Inc. provides enforcement assistance to HOAs and condo associations in Maryland. Call us today at (301) 220-1850 or contact us online to get started!
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