Real Property - Governing Bodies of Common Ownership Communities - Member Training
Summary
HB502 requires certain governing-body members of Maryland common ownership communities to complete training on their duties. The bill applies to members of condominium councils of unit owners and homeowners association governing bodies in residential for-sale communities, but excludes developer-appointed or developer-representative members. Training must be completed within 90 days of election or appointment, or by current members starting a new term on or after October 1, 2026. The curriculum must cover Maryland’s condominium, homeowners association, and cooperative housing laws, fiduciary duties, meeting procedures, reserves and audits, dispute handling, insurance, recordkeeping, and related governance topics.
The bill also requires the governing body to certify completion, keep copies of certificates, and report certifications to the Common Ownership Commission. Certificates are valid for three years, after which members must renew by retaking the training. If a member does not complete the training, the governing body may remove that person from office or invalidate that person’s vote. The bill further provides that inconsistent governing-document provisions on this topic are unenforceable, and it preserves existing remedies allowing aggrieved unit or lot owners to bring disputes to the Attorney General’s Division of Consumer Protection when developers or declarants fail to comply with transition requirements.
Impact
HB502 amends the Real Property Article, specifically § 11-109 governing condominiums and § 11B-106.1 governing homeowners associations, to create a new statutory training requirement for post-transition board and governing-body members in qualifying common ownership communities. It adds compliance, recordkeeping, and reporting obligations for condominium councils and HOA governing bodies, and it authorizes internal enforcement through removal or vote invalidation for noncompliant members. The bill takes effect October 1, 2026, and it does not alter the existing developer-transition framework except to reinforce owner remedies and make conflicting governing-document provisions void.
Sentiment
The bill appears to have been generally favorable in the House, where it passed third reading 88-29 after a rejected floor amendment. The committee report was favorable with amendments, suggesting support for the policy with some refinement. Overall, the measure reflects a legislative preference for stronger education and accountability for condominium and HOA leaders, with no recorded committee transcript opposition in the provided materials.
Contention
The main point of contention is the scope and enforceability of the training mandate. Potential concerns include the administrative burden on volunteer board members, the cost and availability of approved training providers, and whether removal or vote invalidation is an appropriate penalty for noncompliance. Another likely issue is the exclusion of developer-appointed members, which preserves the developer-controlled transition period while imposing obligations only after owner control begins. The rejected floor amendment indicates at least some disagreement over the bill’s details, though the available record does not show the substance of that amendment.