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Bill Summary · HB 303

Summary — HB 303: Real Property — Regulation of Common Ownership Community Managers

Status: Hearing 3/27 (Environment & Transportation committee)
Primary topic: Establishes state-level regulation and licensing of community managers who provide services to common ownership communities (COCs) such as condominiums, homeowners associations, and cooperatives.

Purpose

To create a regulatory framework that professionalizes and oversees individuals and firms that provide management services to residential common ownership communities — improving consumer protections, standardizing training/education, and providing an avenue for licensure, discipline, and oversight.

Key provisions

  • Creates the State Board of Common Ownership Community Managers under the Maryland Department of Labor to license and regulate community managers.
    • Board composition: nine gubernatorial appointees, four‑year staggered terms, no member compensation (expense reimbursement allowed).
    • Board duties include adopting professional conduct rules, establishing certification/education criteria and continuing education requirements, keeping records, and (optionally) creating nonjudicial dispute resolution procedures.
    • Board must maintain a public list of licensed and limited‑licensed individuals.
  • Definitions and scope:
    • “Common ownership community” includes residential condominiums, homeowners associations, and cooperative housing corporations (excludes time‑share projects).
    • “Provide management services” is defined broadly (acting with authority of the COC, executing decisions, enforcing covenants, negotiating contracts, collecting/disbursing funds, preparing budgets, arranging meetings, etc.).
  • Licensing structure:
    • Full license for “Licensed Community Manager”; limited license for “Licensed Associate Community Manager” (works under supervision).
    • Full license prerequisites (compact summary): board‑approved training, passing board‑approved exam, and either at least five years’ active service as a licensed associate or an active board‑approved professional designation.
    • Temporary waiver: applicants who can show they provided management services in Maryland for the two years immediately before application may be granted waivers of training/exam requirements if they apply by Oct 1, 2028.
  • Registration and contracting:
    • Certain COCs must register with the Board (details in bill text).
    • Contracts for management services must include specified provisions; parties have specified duties re: fidelity bonds/theft insurance in some situations.
  • Funding and administration:
    • Establishes the State Board of Common Ownership Community Managers Fund (special, nonlapsing fund). The Board sets fees intended to approximately cover direct and indirect costs; fees may not be increased more than 12.5% per year for any established fee.
    • The Secretary of Labor, with the Board, must annually calculate attributable costs. The Department of Budget and Management may advance start‑up funds to enable operations to begin Oct 1, 2026, so licensing can be in place by Oct 1, 2027.
  • Oversight: The Board and program are subject to the Maryland Program Evaluation Act; a statutory termination date appears in fiscal documents (program review/termination provisions through July 1, 2031).

Who is affected

  • Primary: individuals and businesses providing management services to COCs (must obtain license/limited license under the law).
  • Secondary: common ownership communities (condos, HOAs, co‑ops), unit owners and residents, local governments (note: in some counties COCs/managers may be subject to both state and existing local rules).
  • Small businesses (management firms) will face licensing costs and compliance obligations.

Fiscal impact & timeline (Department of Legislative Services summary)

  • No fiscal effect in FY 2026.
  • One‑time General Fund cost of about $199,800 in FY 2027 to establish the board.
  • The board is projected to operate on a special fund (fee revenue) beginning FY 2028; staff and operating costs and anticipated revenues are modeled in the fiscal note (revenues reflect staggered renewals and license growth).
  • Local governments: no direct fiscal effect, but two large counties (Montgomery and Prince George’s) may be regulated at both state and local levels.
  • DBM may advance funds to begin operations Oct 1, 2026; goal is licensing/registration functions ready by Oct 1, 2027.

Potential impacts / considerations

  • Consumer protections: clearer accountability, minimum training/education, public license registry, and disciplinary authority.
  • Industry compliance costs: licensure fees, education/exam costs, bonding/insurance and contract changes, administrative adjustments for firms and COCs.
  • Market effects: potential professionalization and consolidation of management firms; smaller managers may face adjustments or costs that are significant for small businesses.
  • Coordination with local rules: potential overlap or preemption questions where counties already regulate COC managers.

For full requirements, license standards, registration triggers, and the exact contract/fidelity bond provisions, consult the bill text (Title 22 additions to Maryland Business Occupations & Professions and related sections referenced in the bill).

Compiled from official sources — confirm details with the bill’s official record.

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