Gaithersburg council signals consensus to begin process to leave Montgomery County's CCOC and explore city alternative

Gaithersburg Mayor and city council members on Jan. 13 indicated consensus to begin steps to withdraw the city from the Montgomery County Commission on Common Ownership Communities (CCOC) and tasked staff with developing options for a replacement program, saying they want greater local accountability and clearer enforcement and reporting.

Neighborhood Services Division Manager Sebastian led a staff presentation that reviewed the CCOC's history, recent staffing and program changes, city case statistics and a menu of options ranging from remaining in the county program to creating a city-run commission. "The CCOC's authority is limited to specific types of disputes, such as governance issues, improper elections, and architectural control matters," Sebastian said, describing the county code framework that governs the CCOC's jurisdiction.

Why it matters: The CCOC offers centralized dispute resolution, training and limited financial assistance to condominium and homeowners associations; Gaithersburg officials said they joined the county program in 2021 to give common ownership communities a low-cost, structured alternative to court. Council members raised concerns about uneven service, low local participation and the program's accessibility for residents seeking remedies. The council asked staff to return with an implementation plan and legal analysis so the city can act before the next county billing cycle if it decides to exit.

What staff presented: Sebastian said the CCOC's FY25 budget is $1,907,783 with seven full-time staff and projected revenue of $998,378 at the county rate of $6.50 per participating household; the county currently charges $6.50 while the city's participation fee remains $5.00 through the end of FY25. Gaithersburg has 112 registered common ownership communities (69 condominium associations and 43 homeowners associations) representing about 485 households. Based on the city's current participation rate of roughly 69.73 percent, Sebastian reported annual city revenue from the CCOC contribution of about $49,770 (theoretical full participation at $5 would be $70,425).

Case statistics and service concerns: City-specific CCOC case counts increased in 2024 to 13 cases, up from a total of 12 cases across 2021–2023. Sebastian broke down the 2024 caseload as: one case with mediation pending, two withdrawn, three closed after investigation found no violation, three resolved by mediation, two unresolved after mediation and two newly opened matters. Topic types in 2024 included election disputes, damage/repair disputes, architectural and maintenance issues, common-area disputes, failures to call required meetings and improper assessment fee complaints. A resident who testified, Saville Parikh of the Park Summit community, told the council the county training materials are "not particularly helpful and... badly organized," and criticized a $50 filing fee and the process's formality.

Options reviewed: Staff outlined four primary approaches: - Remain in the CCOC with ongoing monitoring. - Opt out without a replacement (staff warned this would revert residents to relying on private legal remedies and could increase inequities). - Rely on third-party or state resources (examples: the Community Mediation Center, Maryland Department of Housing and Community Development, Community Associations Institute for training) — these provide partial services (training or mediation) but not a full enforcement mechanism. - Create a Gaithersburg in-house program or new city commission (a "GCCOC") offering a selectable set of services: dispute resolution (investigation, mediation, hearings), training, record maintenance and partial technical assistance, or a comprehensive package that would require a city ordinance and dedicated commission.

Estimated in-house costs: Sebastian presented staff estimates for a selective in-house program at current caseload levels: total annual costs estimated at $44,700–$86,000. Estimated line items (presentation estimates) included one part-time investigator ($35,000–$45,000), an external mediator for 12–15 cases ($2,700–$13,500), an external certified public accountant for limited technical assistance ($4,500–$22,500), and operational/administrative costs ($2,500–$5,000). Sebastian noted those figures assume current caseloads and that costs would scale upward if case volume increased. He also noted some county resources — such as free county training and the county's common-area assistance loan program — might not be available to a city-run program.

Legal and policy issues: Assistant City Attorney Eric Perla and others cautioned the council about statutory and constitutional constraints. Perla described legal distinctions between landlord–tenant processes and common ownership community (COC) disputes under Montgomery County Chapter 10B and Maryland condominium/HOA law; he said a city ordinance aiming to replicate county dispute powers should avoid administrative commingling with landlord–tenant enforcement (COLTA), which could invite legal challenge. Several councilmembers discussed whether parts of the condominium/HOA consumer-protection provisions could be enforced locally through code enforcement rather than by creating a fully new commission.

Council direction and next steps: While councilmembers expressed varying preferences — some favoring a local, city-run model and others open to staff proposals — the mayor said the dais appears to have consensus to begin the process to exit the CCOC and to avoid having local communities billed for another county cycle. The council asked staff to return with: - A legal analysis and draft ordinance options to enable a city program or a consumer-protection/code enforcement approach; - A detailed implementation plan and budget for a selective or comprehensive in-house program (including enforcement options and revenue/fee scenarios); - Clarification on county invoicing timing and potential notice requirements to avoid a mid-cycle charge to local associations; - Outreach options and potential coordination with neighboring municipalities such as Rockville.

Assistant City Manager Tom Anning characterized his view as "cautiously optimistic" about recent county staffing changes but said it is still too soon to judge sustained performance. Sebastian noted staff will meet with the CCOC manager in about two weeks to seek more detailed quarterly reporting and to address outstanding questions before returning to the council with options.

Ending: The council set direction for staff follow-up rather than taking a formal vote. Staff will prepare legal analysis, budget and implementation options and return to the council; the mayor reminded the body of the next meeting on Jan. 21, 2025.