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Council debates HOA reform bill to strengthen owners' rights but flags operational concerns
Summary
Leslie Frey briefed the Council on MC 11-25, a package of reforms for common ownership communities that won broad support in principle but drew questions about how independent election officials and attorney-fee limits would work in practice; the Council held the measure with intent to advance pending clarifications.
The Montgomery County Council spent significant time reviewing MC 11-25, legislation intended to strengthen transparency and rights for owners in common-ownership communities including co-ops, condominiums and homeowners associations.
Leslie Frey of the Department of Health and Human Services summarized the bill: owners who request minutes and meeting materials must receive them promptly; elections should be conducted by independent parties without conflicts of interest; HOAs could not unreasonably restrict payment methods and must provide receipts and annual statements; associations could not restrict an owner's use of amenities if the owner continues to pay fees; and in disputes an HOA could not pass attorney's fees on to a member owner unless a court or alternative-dispute-resolution body awarded them. The bill also allows, in some cases, award of damages to members who prevail in disputes.
Councilmembers praised the intent but asked detailed questions about execution. "I support the bill," Councilmember Balcom said, but added the independent-party requirement is "vague" and could impose expenses on associations. Frey replied that the bill defines an independent party as anyone not a candidate, without conflicts of interest, and not subject to objection by more than 25% of eligible voters.
Councilmember Katz asked how attorney-fee provisions would work in practice; Frey clarified that an HOA would ultimately pay fees only if a court ordered it and could not simply assess those costs back to a member absent a court or ADR award.
Members acknowledged that many residents call the Council with HOA concerns and expressed support for the bill's goals while asking staff and sponsors to tighten definitions and administration. The Council recorded an amendment to hold the bill with support pending those clarifications and additional information to minimize unintended administrative burdens on community associations.
Next steps: staff will work with sponsors on clearer language defining "independent parties," how elections will be administered, and the fiscal or administrative impacts for small associations.
Representative quotes from the meeting:
- "So the definition of independent party in the bill is anyone who is not a candidate in the election... and is not subject to an objection by more than 25% of the eligible voting members," Leslie Frey said.
- "I support the bill. I have a question about the utilizing independent parties. I think that's vague," Councilmember Balcom said.
- "This is also something that we hear from constituents quite a bit about," Councilmember Mink said, voicing broad support for the intent.
