Real Property - Regulation of Common Ownership Community Managers
HB303 creates a new state regulatory framework for common ownership community managers in Maryland, including condominium managers, cooperative housing corporation managers, and homeowners association managers. The bill establishes the State Board of Common Ownership Community Managers within the Department of Labor to license community managers and associate community managers, set training and examination standards, adopt regulations and professional conduct rules, and discipline licensees. It also creates a special fund to support the Board’s operations and authorizes the Board to charge fees, maintain a public list of licensees, and pursue enforcement actions.
The bill requires common ownership communities to register annually with the Board, and it imposes related obligations on management companies and contracting parties. Among other things, it requires proof of fidelity bond or theft insurance, requires separate custodial accounts for community funds, prohibits commingling of funds, and mandates that certain contracts include provisions ensuring that only licensed individuals provide management services. It also sets out criminal and civil penalties for unlicensed practice, false representations, misuse of licenses, and financial misconduct, while providing for hearings, judicial review, reciprocity, renewals, reinstatement, and waivers for experienced practitioners during the transition period.
HB303 would add a new Title 22 to the Business Occupations and Professions Article and make conforming changes in the Business Regulation, Corporations and Associations, Real Property, State Finance and Procurement, and State Government articles. It would formally regulate community association management as a licensed profession, require annual registration of residential condominiums, homeowners associations, and cooperative housing corporations, and create a dedicated fund and fee structure to finance the new Board. The bill also changes state budget and procurement-related provisions so interest earnings on the new fund do not revert to the General Fund, and it sets a sunset date subject to the Maryland Program Evaluation Act.
The bill appears to have broad legislative support, passing the House on third reading by a vote of 101-32. The available record shows no committee transcript debate, but the favorable committee report and strong floor vote suggest general agreement with the goal of professionalizing and regulating community association management. The bill’s structure also reflects an effort to phase in the new licensing system gradually, including waivers for experienced managers and delayed implementation of some requirements.
The main points of potential contention are the new licensing mandate, the annual registration requirement for common ownership communities, and the added compliance costs associated with fees, insurance, training, and accounting controls. Management companies and community associations may be concerned about administrative burden, while supporters are likely focused on consumer protection, financial accountability, and professional standards. The bill also creates enforcement authority and penalties, including misdemeanor liability and fines, which may be viewed as necessary safeguards by supporters but as burdensome regulation by opponents.