House Bill 55, now pending in the Maryland General Assembly, would authorize a county or municipality to “establish a local trust fund or other appropriate fund for the purpose of repairing or rehabilitating infrastructure with communities that are subject to the requirements of the Maryland Condominium Act or the Maryland Homeowners Association Act.” The bill, which would add new Section 1-1318 to the Local Government Article, is expressly intended to address circumstances in communities in which the original developer designated roads and other infrastructure a private components to be owned and maintained by the condominium associations or homeowners associations. A new subsection (e)(2) is also added, which expressly requires that “and owner of a residential detached unit shall carry homeowners coverage on the entirety of the unit.” House Bill Would Authorize Local Governments To Create An Infrastructure Fundīy Raymond Daniel Burke | | Councils of Unit Owners, Homeowner Associations, Statutes Similarly, subsection (d), which provides that insurance proceeds are first to be disbursed to repair the common elements and then the units, is amended to provide that the distribution of insurance proceeds for units is only to be made in the case of “attached” units. Where units are detached, the Council is only required to maintain insurance on the common elements and not any portion of the units. The new law changes subsection (a)(1), which presently provides that the Council is required to maintain “roperty insurance on the common elements and units, exclusive of improvements and betterments installed in units by unit owners other than the developer, insuring against those risks of direct physical loss commonly insured against, in amounts determined by the council of unit owners but not less than any amounts specified in the declaration or bylaws.” The amended provision establishes that the Council is only required to maintain insurance on “attached” units. These changes, which will take effect on October 1, 2023, differentiate between “attached” and “detached” units for insurance purposes. It amends Section 11-=114 of the Condominium Act concerning the mandatory insurance that is required to be maintained by the Council of Unit Owners. House Bill 98, making changes to condominium insurance requirements, was passed during this year’s legislative session and signed into law by Governor Moore.
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