Condominiums - Assessment Late Fees and Liens - Notice and Timing
Impact
The bill alters existing laws concerning the liability of unit owners for assessments while introducing more stringent requirements for notification before enforcement actions. It increases the time allowed for an assessment or installment to be delinquent before a late fee may be applied, effectively providing unit owners with a longer grace period. These amendments suggest a shift towards more equitable treatment of unit owners, particularly in times when financial strains could lead to missed assessments.
Summary
House Bill 1194 is targeted at improving the notification and timing aspects of assessment late fees and liens for condominiums in Maryland. The bill mandates that notice must be given to unit owners at least 30 days prior to any enforcement action related to unpaid assessments. This notice must detail the fees owed, provide contact information for the council of unit owners, and explain that payment enforcement will be enacted under the Maryland Contract Lien Act. This change aims to enhance transparency and ensure that unit owners are fully informed before any action is taken against them.
Contention
While the bill supports the rights of unit owners by making the compliance process clearer, it may face opposition from condominium councils who may feel that the tighter restrictions on enforcing late fees could hinder their ability to manage financial obligations within their communities. The balance between protecting unit owners from overly aggressive collection practices and allowing council authority to collect dues may become a focal point of debate as the bill progresses.