2023 Maryland Statutes › Real Property › Title 11B - Maryland Homeowners Association Act › Section 11B-106.1 - Responsibility for Maintenance, Repair, and Replacement of Common Elements

(a)    A meeting of the members of the homeowners association to elect a governing body of the homeowners association shall be held within:
(1)    60 days from the date that at least 75% of the total number of lots that may be part of the development after all phases are complete are sold to members of the public for residential purposes; or
(2)    If a lesser percentage is specified in the governing documents of the homeowners association, 60 days from the date the specified lesser percentage of the total number of lots in the development after all phases are complete are sold to members of the public for residential purposes.
(b)    (1)    Before the date of the meeting held under subsection (a) of this section, the declarant shall deliver to each lot owner notice that the requirements of subsection (a) of this section have been met.
(2)    The notice shall include the date, time, and place of the meeting to elect the governing body of the homeowners association.
(c)    The term of each member of the governing body of the homeowners association appointed by the declarant shall end 10 days after the meeting under subsection (a) of this section is held, if a replacement board member is elected.
(d)    Within 30 days from the date of the meeting held under subsection (a) of this section, the declarant shall deliver the following items to the governing body at the declarant’s expense:
(1)    The deeds to the common areas;
(2)    Copies of the homeowners association’s filed articles of incorporation, declaration, and all recorded covenants, plats, restrictions, and any other records of the primary development and of related developments;
(3)    A copy of the bylaws and rules of the primary development and of other related developments as filed in the depository of the county in which the development is located;
(4)    The minute books, including all minutes;
(5)    Subject to the restrictions of § 11B–112 of this title, all books and records of the homeowners association, including financial statements, minutes of any meeting of the governing body, and completed business transactions;
(6)    Any policies, rules, and regulations adopted by the governing body;
(7)    The financial records of the homeowners association from the date of creation to the date of transfer of control, including budget information regarding estimated and actual expenditures by the homeowners association and any report relating to the reserves required for major repairs and replacement of the common areas of the homeowners association;
(8)    A copy of all contracts to which the homeowners association is a party;
(9)    The name, address, and telephone number of any contractor or subcontractor employed by the homeowners association;
(10)    Any insurance policies in effect;
(11)    Any permit or notice of code violations issued to the homeowners association by the county, local, State, or federal government;
(12)    Any warranty in effect and all prior insurance policies;
(13)    The homeowners association funds, including operating funds, replacement reserves, investment accounts, and working capital;
(14)    The tangible property of the homeowners association;
(15)    A roster of current lot owners, including their mailing addresses, telephone numbers, and lot numbers, if known;
(16)    Individual member files and records, including assessment account records, correspondence, and notices of any violations; and
(17)    Drawings, architectural plans, or other suitable documents setting forth the necessary information for location, maintenance, and repairs of all common areas.
(e)    The replacement reserves delivered under subsection (d)(13) of this section shall be equal to at least the reserve funding amount recommended in the reserve study completed under § 11B–112.3 of this title as of the date of the meeting.
(f)    (1)    This subsection does not apply to a contract entered into before October 1, 2009.
(2)    (i)    In this subsection, “contract” means an agreement with a company or individual to handle financial matters, maintenance, or services for the homeowners association.
(ii)    “Contract” does not include an agreement relating to the provision of utility services or communication systems.
(3)    Until all members of the governing body are elected by the lot owners at a transitional meeting under subsection (a) of this section, a contract entered into by the governing body may be terminated, at the discretion of the governing body and without liability for the termination, not later than 30 days after notice.
(g)    If the declarant fails to comply with the requirements of this section, an aggrieved lot owner may submit the dispute to the Division of Consumer Protection of the Office of the Attorney General under § 11B–115(c) of this title.