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Montgomery Council Vice President Leventhal to Introduce 2 Bills to Protect County HOAs and Condominium Associations Bills to be Introduced on Tuesday, Sept. 23, Would Provide Protection of Financial and Operational Viability

For Immediate Release: Friday, September 19, 2014

Montgomery County Council Vice President George Leventhal on Tuesday, Sept. 23, will introduce two bills that would protect the financial and operational viability of the County’s homeowners’ and condominium associations.

“Homeowners’ and condominium associations make up more than one-third of all homes in Montgomery County so their continued success is vital to the future of our County,” said Council Vice President Leventhal. “These bills represent two small ways we can help protect the fiscal and operational integrity of our County’s common ownership communities and ensure that they remain great places to live for years to come.”

One bill would condition the issuance of a rental license for a property in a homeowners’ or condominium association on being no more than 30 days past due with the association dues or fees. This would aid the growing number of associations that are already financially distressed due in part to negligent property owners who rent their units, but fail to pay their dues.

The County’s Department of Housing and Community Affairs (DHCA) recently began including a checkbox on rental license applications that ask if the owner is current on their dues or fees. False answers are subject to prosecution.

The legislation, which is co-sponsored by Councilmember Nancy Floreen, would make a violation subject to a potential fine as well.

The second bill would require members of a HOA’s board of directors to complete an educational course on the responsibilities of directors. Individuals would be required to complete the course within 90 days of their election or appointment to the board.

The bill allows for a variety of different forms of training, including training by the association’s attorney; online training; or training offered by the County’s Commission on Common Ownership Communities (CCOC).

The CCOC also will be charged with creating an educational curriculum that would serve as one potential means of meeting the requirement.

The training requirement would not be required of sitting board members, but it would apply to them if they were to be re-elected to the same position.
The bill is modeled after legislation that the State of Florida enacted in 2013 as part of a larger HOA reform act.

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Release ID: 14-261
Media Contact: Neil Greenberger 240-777-7939, Delphine Harriston 240-777-7931