SB 144
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 144 (Senator Guzzone)
Judicial Proceedings Environment and Transportation
Electric Vehicle Recharging Equipment for Multifamily Units Act
This bill establishes standards relating to the installation and use of electric vehicle
recharging equipment in condominiums and homeowners associations (HOAs).
Fiscal Summary
State Effect: The bill is not anticipated to materially affect State government operations
or finances.
Local Effect: The bill’s requirements are not anticipated to materially impact local
finances or operations. Any increase in permit requests can likely be handled with existing
resources.
Small Business Effect: Potential minimal.
Analysis
Bill Summary: The bill defines “electric vehicle recharging equipment” as property in the
State that is used for recharging motor vehicles propelled by electricity. Requirements for
owners of condominium units or HOA lots and governing bodies are shown in Exhibit 1.
Exhibit 1
Installation of Electric Vehicle Recharging Equipment by Owners
In Condominiums and Homeowners Associations
Condo HOA Condo HOA
Owner Homeowner Board Board
Bylaws, covenants, or other restrictions against Yes Yes
recharging equipment are void
Must use process for approval of architectural Yes Yes
modifications
Must provide approval or denial in writing Yes Yes
Must approve installation in a unit or lot owner’s Yes Yes
deeded or designated parking space if installation
does not unreasonably impede normal use of the area
and is reasonably possible and if the owner agrees, in
writing, to comply with specified restrictions and
standards
May grant a license for up to three years, renewable Yes Yes
at the discretion of the governing body, on any
common element necessary for installation of
equipment or supply of electricity
Request is deemed approved after 60 days unless Yes Yes Yes Yes
reasonably delayed for additional information
Must agree, in writing, to comply with relevant Yes Yes
building codes and with safety standards to maintain
the safety of all users of the common area and
architectural standards, engage a licensed contractor,
and pay for separately metered electricity usage
Must obtain necessary permits Yes Yes
Must pay costs associated with installation, Yes Yes
maintenance, damage, repair, replacement, removal,
and electricity
Must provide certificate of insurance naming Yes Yes
association as an additional insured or reimburse
association for cost of an increased insurance
premium attributable to equipment
HOA: homeowners association
Note: “Board” refers to the governing body of a condominium or homeowners association.
Source: Department of Legislative Services
SB 144/ Page 2
Current Law: No existing statutory provision specifies the manner in which
condominiums and HOAs may install and manage electric vehicle recharging equipment.
For more information on condominiums and HOAs, commonly known as common
ownership communities, see the Appendix – Common Ownership Communities.
Additional Information
Prior Introductions: HB 111 of 2020, a similar bill, passed the House with amendments
and was referred to the Senate Judicial Proceedings and Finance committees, but no further
action was taken. Its cross file, SB 734 received a hearing in the Senate Judicial
Proceedings Committee, but no further action was taken. HB 826 of 2019, a similar bill,
passed the House with amendments and was referred to the Senate Judicial Proceedings
Committee, but no further action was taken. Similar bills were also introduced in 2018,
2017, 2016, and 2015.
Designated Cross File: HB 110 (Delegate Korman) - Environment and Transportation.
Information Source(s): Maryland Energy Administration; Judiciary (Administrative
Office of the Courts); Department of Legislative Services
Fiscal Note History: First Reader - January 22, 2021
rh/jkb Third Reader - March 29, 2021
Revised - Amendment(s) - March 29, 2021
Analysis by: Donavan A. Ham Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 144/ Page 3
Appendix – Common Ownership Communities
When a person purchases a single-family home, condominium, or an interest in a
cooperative housing corporation, he or she may also be required to join an association of
owners, which is intended to act in the common interests of all the homeowners,
condominium unit owners, or cooperative owners in the community. Collectively, these
associations are often referred to as common ownership communities (COCs). In
Maryland, a growing number of newly constructed or newly converted residences are
located in some form of a COC.
The affairs of a condominium are governed by a council of unit owners, which comprises
all unit owners. Among other powers, the council of unit owners has the power to impose
assessments on the unit owners to pay common expenses. A council of unit owners may
delegate its powers to a board of directors, officers, or a managing agent. Condominiums
are governed under Title 11 of the Real Property Article.
Many new housing developments are subject to a homeowners association (HOA) that is
created by a governing document and has the authority to impose mandatory fees on lots
in the development in connection with the provision of services or for the benefit of the
lots, the lot owners, or the common areas. HOAs are governed under Title 11B of the Real
Property Article.
A cooperative housing corporation or “cooperative” is a corporation that owns real
property. A resident of a cooperative does not own his or her unit; rather, the person owns
an interest in the corporation, which leases the unit to the person for residential use.
Cooperatives are governed by the laws in Title 5, Subtitle 6B of the Corporations and
Associations Article.
Condominiums and HOAs may be authorized by their governing documents to impose
liens on units or lots to collect unpaid assessments or fees. In a cooperative, the governing
documents usually provide for the collection of delinquent fees, and evictions for unpaid
fees are generally pursued by way of a landlord-tenant action.
Since registration of the various COCs is not required statewide, the exact number of COCs
in Maryland is unknown. However, public offering statements for condominium regimes
are required by law to be registered with the Secretary of State (SOS). SOS registration
records show that, as of December 2020, 2,739 condominium regimes have been registered
with the State. The State Department of Assessments and Taxation, which maintains
assessment records based on class of property, reports that there are 221,999 condominium
units in the State as of July 2020. The Foundation for Community Association Research
SB 144/ Page 4
estimated that there were 6,785 community associations with an estimated 1 million
residents in these associations in the State in 2019, the most recent information available.
Task Force on Common Ownership Communities
With a growing number of Marylanders residing in COCs, and evidence that some COCs
had issues with governance, dispute resolution, and financial stability, the
General Assembly created the Task Force on Common Ownership Communities in 2005
(Chapter 469 of 2005). The issues addressed by the task force included the education and
training needs of COC boards and prospective buyers, availability of alternative dispute
resolution services, special considerations of aging COCs, collection of assessments, and
resale of homes within COCs. The task force met 10 times, held five public hearings, and
submitted its final report in December 2006. The report’s findings and recommendations
have served, in subsequent years, as the basis for numerous pieces of legislation intended
to improve the operation of COCs. This legislation, enacted from 2007 through 2020:
authorized a group of three or more unit or lot owners in a condominium or HOA
to petition a circuit court to appoint a receiver in specified situations frequently
found in aging communities (Chapter 321 of 2007);
gave the Consumer Protection Division within the Office of the Attorney General
increased authority over violations of the Maryland Homeowners Association Act
(Chapter 593 of 2007);
eased restrictions on the ability of condominiums and HOAs to amend their
governing documents (Chapters 144 and 145 of 2008 and Chapter 480 of 2017);
strengthened the transition process from developer to the governing body of a
condominium or HOA by allowing the governing body to terminate specified
contracts and requiring the developer to provide specified documents (Chapters 95
and 96 of 2009);
required the governing body of a COC to purchase fidelity insurance or a fidelity bond
covering various acts of malfeasance by COC officers, directors, and other specified
employees and agents (Chapters 77 and 78 of 2009 and Chapter 615 of 2010);
granted priority to a specified portion of a lien of a condominium or HOA over the
claim of a holder of a first mortgage or first deed of trust in the event of a foreclosure
on a unit or lot (Chapter 387 of 2011);
SB 144/ Page 5
limited the amount of damages for which the governing body of a condominium or
HOA may foreclose on a lien against a unit owner or lot owner (Chapters 448 and
449 of 2013);
expanded the purposes for which a condominium’s board of directors may hold a
closed meeting, similar to the law for an HOA, by allowing a meeting to be closed
to consider terms or conditions of a business transaction in the negotiation stage if
disclosure could adversely affect the economic interests of the council of unit
owners (Chapter 110 of 2013);
established meeting standards and standards for late charges for delinquent
payments, eviction restrictions, an auditing process for books and records, and a
dispute settlement mechanism for cooperatives under specified circumstances
(Chapter 567 of 2014);
altered the contents of a required disclosure for the resale of a condominium unit,
authorized the assessment of specified fees by a condominium council of unit
owners or an HOA for providing specified information, and required the
Department of Housing and Community Development to adjust the maximum
authorized fees every two years (Chapter 735 of 2016 and Chapter 817 of 2017);
and
increased to $10,000 the maximum amount of the council of unit owners’ property
insurance deductible for which a specific unit owner is responsible if the cause of
any damage to or destruction of the common elements or units of a condominium
originates from an event inside that owner’s unit (Chapters 56 and 57 of 2020).
The task force’s report also featured findings and recommendations relating to the creation
of an ombudsman in local governments. Since the report’s release, Prince George’s County
created its Common Ownership Communities Program in 2007 with the stated purpose of
assisting governing bodies as well as owners and residents of HOAs, residential
condominiums, and cooperative housing corporations with education, training, and
alternative dispute resolution. Charles County and Montgomery County have offices
dedicated to COCs that predate the task force.
Finally, findings and recommendations of the report that have not been codified in statute
pertain to reserves of COCs and the uniformity of COC depository requirements.
SB 144/ Page 6
Statutes affected: Text - First - Electric Vehicle Recharging Equipment for Multifamily Units Act: 11-111.4 Real Property, 14-129 Real Property
Text - Third - Electric Vehicle Recharging Equipment for Multifamily Units Act: 11-111.4 Real Property, 14-129 Real Property