The Council finds that there is often unequal bargaining power between governing bodies, owners, and residents of homeowners' associations, residential condominiums, and cooperative housing projects. Owners and residents in these common ownership communities are in effect citizens of quasi-governments, which provide services in lieu of government services, levy assessments, and otherwise have a significant impact on the lives and property of owners and residents. Owners and residents in common ownership communities require the protection of democratic governance. In furtherance of this goal, the Council finds a need to regulate elections, budget adoption, enforcement procedures, and resolution of disputes with adequate due process protections. The Council also finds that the creation of a Commission on Common Ownership Communities will through regulation and education promote an equitable balance between the powers of governing bodies, owners, and residents. The County Council finds that a Commission on Common Ownership Communities is necessary to advise the County Council, the County Executive, and offices of County government as necessary on ways to: (a) ensure proper establishment and operation of homeowners' associations, condominium associations, and cooperative housing corporations; (b) promote education, public awareness and association membership understanding of the rights and obligations of living in a common ownership community; (c) reduce the number and divisiveness of disputes, and encourage informal resolution of disputes; (d) maintain property values and quality of life in these communities; (e) assist and oversee in the development of coordinated community and government policies, programs, and services which support these communities; and (f) prevent potential public financial liability for repair or replacement of common ownership community facilities.

In this Chapter, the following words have the following meanings: Commission means the Commission on Common Ownership Communities. Common ownership community includes: (1) a residential development subject to a declaration enforced by a homeowners’ association, as those terms are used in state law; (2) a residential condominium, as that term is used in state law; and (3) a cooperative housing project, as that term is used in state law. Department means the Department of Housing and Community Affairs. Director means the Director of the Department of Housing and Community Affairs or the Director’s designee. Sec. 2. Regulations. A regulation which implements a function transferred to the Office of Consumer Protection by this Act continues in effect until otherwise amended or repealed, but any reference to any predecessor department or office must be treated as referring to the Office of Consumer Protection. Sec. 3. Transition. This act does not invalidate or affect any action taken by the Department of Housing and Community Affairs before this Act took effect. Any responsibility or right granted by law, regulation, contract, or other document, and which is associated with a function transferred by this Act from the Department of Housing and Community Affairs, is transferred to the Office of Consumer Protection.

(a) The County Executive must appoint, subject to confirmation by the Council, a Commission on Common Ownership Communities. The Commission consists of 15 voting members. (1) Eight members should be selected from unit or lot owners or residents of self-managed and professionally managed condominiums, self-managed and professionally managed cooperative housing corporations, and self-managed and professionally managed homeowners' associations, and may include members or former members of governing boards. (2) Seven members should be selected from persons who are members of professions associated with common ownership communities (such as persons involved in housing development and real estate sales and attorneys who represent community associations, developers, housing management or tenants), including at least one person who is a professional community association manager. (b) Designees of the County Council (if the Council selects a designee), Planning Board, Department of Environmental Protection, Department of Permitting Services, Department of Transportation, and Department of Housing and Community Affairs are ex-officio nonvoting members of the Commission. (c) Each voting member serves a 3-year term. Of the members first appointed, one-third must be appointed for 1-year terms, one-third must be appointed for 2-year terms, and one-third must be appointed for 3-year terms. A member must not serve more than 2 consecutive full terms. A member appointed to fill a vacancy serves the rest of the unexpired term. Members continue in office until their successors are appointed and qualified. (d) Prior to participation in any Commission matter, each voting member must complete: (1) training required of common ownership community board members under Section 10B-7(c); and (2) training in the State and local laws on matters within the jurisdiction of the Commission provided or otherwise approved by the County Attorney. (e) The County Executive, with the consent of the Council, may remove a voting member of the Commission for neglect of or inability to perform the duties of the office, misconduct in office, or serious violation of law. Before the Executive removes a member, the Executive must give the member notice of the reason for removal and a fair opportunity to reply. (f) Section 2-148(b) applies only to voting members of the Commission. (g) The Commission must elect one voting member as Chair and another as Vice Chair, to serve at the pleasure of the Commission, and may elect other officers as it determines. (h) Voting members of the Commission receive no compensation for their services. (i) The Commission meets at the call of the Chair as often as required to perform its duties, but at least once each month. A majority of the voting members are a quorum for the transaction of business, and a majority of the quorum present at any meeting may take any official action. (j) The Office must provide the Commission with staff, offices and supplies as are appropriated for it. (k) The Commission must submit an annual report by September 1 to the County Executive and the County Council summarizing its activities, needs, and recommendations, and the extent to which the goals of this Chapter are being met. Sec. 2. Regulations. A regulation which implements a function transferred to the Office of Consumer Protection by this Act continues in effect until otherwise amended or repealed, but any reference to any predecessor department or office must be treated as referring to the Office of Consumer Protection. Sec. 3. Transition. This act does not invalidate or affect any action taken by the Department of Housing and Community Affairs before this Act took effect. Any responsibility or right granted by law, regulation, contract, or other document, and which is associated with a function transferred by this Act from the Department of Housing and Community Affairs, is transferred to the Office of Consumer Protection.

In selecting staff to carry out the Department’s responsibilities under this Chapter, the Director must consider the recommendations of the Commission.

The Department, in consultation with the Commission, must: (a) research, assemble, analyze and disseminate pertinent data and educational materials about activities and programs which assist common ownership communities; plan and conduct educational and other programs, meetings and conferences to promote the operation of common ownership communities; (b) maintain a master roster of homeowners' associations, condominiums, and cooperatives, their leadership, and their professional management companies if applicable; (c) develop and maintain an information and referral system for all services in the County related directly to common ownership communities, and recommend other services when needed; (d) maintain a collection of common ownership community association documents for use as a model and for reference; (e) provide technical assistance to association governing bodies on matters such as transition, elections, rules adoption and enforcement, selection of association managers, storm water management and other services; (f) develop and maintain a manual for the mutual benefit of common ownership communities and government agencies; (g) develop and maintain an operations manual which will serve as a guide on operations to common ownership community leadership; (h) advise common ownership communities and professional association managers of changes in the laws and regulations that affect their communities or operations; (i) operate a dispute resolution process to furnish mediation and administrative hearings; and (j) assist the Commission in carrying out its duties and in implementing Commission decisions under Article 2. Sec. 2. Regulations. A regulation which implements a function transferred to the Office of Consumer Protection by this Act continues in effect until otherwise amended or repealed, but any reference to any predecessor department or office must be treated as referring to the Office of Consumer Protection. Sec. 3. Transition. This act does not invalidate or affect any action taken by the Department of Housing and Community Affairs before this Act took effect. Any responsibility or right granted by law, regulation, contract, or other document, and which is associated with a function transferred by this Act from the Department of Housing and Community Affairs, is transferred to the Office of Consumer Protection.

The Commission must: (a) adopt rules and procedures as necessary to carry out the purposes of this Chapter; (b) keep a record of its activities and minutes of all meetings, which must be kept on file and open to the public at reasonable business hours upon request; (c) cooperate with the County Executive and all government agencies concerned with matters within the jurisdiction of the Commission; (d) examine by means of public or private meetings, conferences, and public hearings, conditions in common ownership communities which may result in unmet community, resident, or public needs; (e) advise the citizens of the County, the County Council, and the County Executive, and County, state, and federal agencies on matters involving common ownership communities, and recommend such programs, procedures, or legislation as it finds necessary; (f) provide training on the responsibilities of a board member for members of the governing body of a common ownership community by: (1) developing an educational curriculum for new members; (2) offering training for Board members, either in person, on-line, or by other electronic means; and (3) approving an alternative educational curriculum for new members administered by other organizations; (g) establish hearing panels to adjudicate cases on which the Commission accepts jurisdiction.

(a) Association registration. (1) Each common ownership community must register with the Commission annually, and submit the information required on the registration form provided by the Commission. (2) Failure to register, or making a false statement on a registration form, is a class A violation and also makes the community ineligible to file a dispute under Article 2. (3) The governing body of a homeowners’ association, the council of unit owners of a condominium, and the board of directors of a cooperative housing corporation are responsible for compliance with this subsection, including the payment of any registration fee. (b) The County Executive by regulation adopted under method (2) may establish reasonable fees in amounts sufficient to fund the provision of dispute resolution and technical assistance by the Commission and the Department. These fees may include: (1) a per unit annual charge to common ownership communities to renew registration; (2) fees for service, that seek to recover the actual cost of the service, for technical assistance and dispute resolution; and (3) a per unit charge to developers when documents are recorded. (c) Training. (1) Within 90 days after being elected or appointed to the governing body for the first time, a member of the governing body of a common ownership community must successfully complete the educational curriculum approved by the Commission. The governing body must: (A) certify that each member has successfully completed this training to the Commission; (B) retain a copy of the training certificate for inspection by the members of the association for the duration of the governing body member’s service; and (C) report to the Commission that each member has successfully completed the training within 90 days after each member has been appointed or elected. (2) Each member of the governing body must maintain a training certificate. A training certificate issued under this Section is valid for 3 years. (3) A failure to satisfy the training requirement in this subsection does not: (A) remove the member from the governing body; or (B) invalidate a vote made by the member. (d) A hearing panel or a hearing examiner may consider a board member’s failure to complete the training required under this Section, if relevant, in deciding a dispute under Section 10B-13.

The governing body of a community association must, at least annually, distribute information to all owners about the availability of dispute resolution, education, and other services to owners and residents of common ownership communities through the Department and the Commission. The governing body may satisfy this requirement by including with any annual notice or other mailing to all members of the community association the form developed by the Department to describe the Commission’s services.