Wednesday April 30, 2025
What are Maryland HOA laws?
Maryland HOA laws are the statutes and regulations that govern the formation, operation, and responsibilities of homeowners associations (HOAs) across the state. These laws are primarily outlined in the Maryland Homeowners Association Act. They provide the legal framework that guides how HOAs are managed, how boards operate, and what rights and responsibilities homeowners have:
- Maryland Homeowners Association Act: This act governs how HOAs operate in Maryland. It outlines member rights, board responsibilities, notice requirements, access to records, rule-making procedures, reserve study and budgetary rules, and the disclosure obligations during home sales. It serves as the primary legal foundation for most HOAs.
- Maryland Contract Lien Act: Defines the legal process by which HOAs may place liens on properties in certain cases.
- Maryland Consumer Debt Collection Act: Outlines the process of collecting overdue HOA assessments and fees.
- Federal Fair Housing Act and Maryland’s fair housing provisions: Prohibit discrimination against protected classes. Maryland HOA laws are interpreted alongside these federal regulations to protect residents' rights.
Governing documents, rules, and how they work
Governing documents form the backbone of HOA operations in Maryland and are required by law. This typically includes the declaration (or CC&Rs), bylaws, rules and regulations, and articles of incorporation. Each plays a different role in the structure and daily operation of the association.- Declaration (CC&Rs): This document establishes what homeowners can and cannot do with their property. It outlines restrictions, obligations, and the authority of the HOA.
- Bylaws: These provide the internal operational rules for the HOA, such as board elections, meeting procedures, and officer responsibilities.
- Rules and regulations: These are the day-to-day guidelines adopted by the board to help maintain community standards, covering areas like amenity use, parking, signage, and exterior modifications. They must align with the CC&Rs and be applied fairly and consistently.
- Articles of incorporation: Filed with the Maryland Department of Assessments and Taxation, this document creates the legal existence of the HOA as a nonprofit corporation.
Homeowner rights in Maryland HOAs
Homeowners in Maryland HOAs generally have the right to access records, attend meetings, vote on association matters, and receive notice of changes to rules or assessments. These rights are protected under Maryland HOA laws and reinforced by the governing documents of each association.Homeowners may request to inspect a variety of association records, including financial statements, meeting minutes, and other documents. Maryland law allows reasonable limitations to protect privacy and administrative efficiency, but transparency is a core principle.
Additionally, members have the ability to vote in elections for board positions and, in some communities, on budgets or changes to governing documents. Maryland HOA laws mandate open meetings for the board and often require advance notice to members. Exceptions to open meetings are limited and typically relate to personnel issues, legal consultations, or owner assessment accounts. Before invoking any meeting exceptions, associations should obtain legal guidance to support compliance with Maryland HOA laws.
Financial obligations: budgets and assessments
HOAs must adopt a budget annually. The board must provide lot owners with a copy of (or electronic link to) the proposed annual budget at least 30 days before the meeting where it will be adopted, and they must distribute the adopted budget no later than 30 days after that meeting. Maryland requires any HOA that maintains common-area components whose original cost totaled $10,000 or more to hire an independent reserve study professional and then update that study at least every five years.Maryland HOA laws also authorize associations to levy regular and special assessments on homeowners to fund community expenses. Annual assessments are used to cover operational costs such as maintenance, association insurance, utilities, and reserve contributions. Special assessments may be issued to address unexpected costs or capital improvements.
Delinquent assessments may lead to additional fees and collections proceedings. Under the Maryland Contract Lien Act, HOAs may have the authority to place a lien on a property under certain conditions. Collection procedures must align with both the governing documents and state law. Some associations may offer payment plans or structured options to resolve delinquencies. Because assessment collection is a sensitive legal process, associations should involve their attorney early to avoid procedural missteps.
Maryland board structure and responsibilities
The board of directors manages the day-to-day affairs of the HOA. Typically, HOAs are required to have a board of directors composed of at least one director, though most associations have a multi-member board as specified in their governing documents. The exact number of board members, their term lengths, and election procedures are typically set forth in the association’s bylaws.Rule enforcement and violations
HOAs in Maryland are typically permitted to adopt and enforce community rules to maintain standards and protect property values. Maryland HOA laws require that these rules be reasonable, uniformly applied, and consistent with the association's governing documents.If a homeowner violates a rule, the HOA may issue a notice of violation. Homeowners typically have the right to respond or request a hearing before any penalty, such as a fine, is applied. HOAs are encouraged to document enforcement actions clearly and give homeowners a chance to correct violations before escalating matters further.