Real Property - Regulation of Common Ownership Community Managers
HB0853 creates a new licensing and regulatory framework for people who provide management services to common ownership communities in Maryland, including condominiums, residential cooperative housing corporations, and homeowners associations. The bill establishes the State Board of Common Ownership Community Managers within the Department of Labor, defines who must be licensed or hold a limited license, and sets out education, examination, renewal, reciprocity, discipline, and hearing procedures for those credentials. It also creates a separate limited license for associate community managers who work under the supervision of a licensed community manager.
The bill requires common ownership communities to register annually with the Board, with the responsible manager handling registration when the community contracts for management services. It also imposes financial safeguards on contracting parties, including fidelity bond or theft insurance requirements, and requires community managers to keep association funds in separate custodial accounts that are not commingled with other funds. The bill further prohibits unlicensed practice, false representation, misuse of licenses, and other misconduct, and it authorizes civil penalties and criminal penalties for violations. The new title is set to terminate under the Maryland Program Evaluation Act on July 1, 2032, unless reauthorized.
HB0853 would add a new Title 22 to the Business Occupations and Professions Article and make related changes to 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, create a special nonlapsing fund to support the new board, exempt that fund from the general interest-crediting rule, and require annual registration of condominiums, homeowners associations, and cooperative housing corporations with the new board. The bill also establishes reporting, fee-setting, and transition provisions, including temporary waivers for experienced managers and an implementation timeline for the board to begin operations before licensing and registration fully take effect.
The bill appears to be aimed at professionalizing and standardizing management of common ownership communities, with a clear consumer-protection and accountability focus. The text suggests support for stronger oversight, training, and financial controls, and the bill’s introduction by a sizable group of delegates indicates notable legislative interest. No committee transcript or vote record is provided, so there is no direct evidence of floor or committee opposition in the materials supplied.
The main likely points of contention are the new licensing mandate, the annual registration requirement for communities, and the added compliance costs associated with fees, training, examinations, insurance, and fund segregation. Community managers and associations may be concerned about administrative burden, while supporters are likely to emphasize fraud prevention, fiduciary safeguards, and professional standards. The bill also creates a waiver for experienced managers and directs a later report on whether a separate registration fee should be imposed, which suggests lawmakers anticipated questions about implementation costs and the appropriate scope of regulation.