AGENDA ITEM 7
July 18, 2017
Public Hearing
MEMORANDUM
July 14, 2017
TO:
FROM:
County Council
Glenn Orlin, Deputy Council Administrator
~
.
Amanda Mihill, Legislative Attorney
d(N\JriJ.,U
SUBJECT:
Public Hearing:
Bill 22-17, Homeowners' Associations - Roadway Maintenance -
Repeal
Bill 22-17, Homeowners' Associations - Roadway Maintenance - Repeal, sponsored by Lead
Sponsor Transportation, Infrastructure, Energy and Environment Committee (Council President
Berliner and Councilmembers Floreen and Rucker) and Co-Sponsors, Councilmembers Katz, Rice,
Navarro, Vice President Riemer and Eirich, was introduced on June 27, 2017. A Transportation,
Infrastructure, Energy and Environment Committee worksession is tentatively scheduled for
September 14.
Bill 22-17 would repeal County law that provides for assistance to certain homeowners'
associations to maintain certain association roadways or private maintenance roads. This program
is supposed to reimburse HOAs for eligible roads at roughly the cost that the County spends to
maintain its own roads, subject to the availability of appropriations. However, for two decades the
Council has limited the reimbursement to around $1,000 per eligible mile, a fraction of the cost of
maintaining a County road. For the FYl0 budget, the Council reduced the appropriation to only
about $250 per eligible mile, and for FYl 1 through FYI 8 funding for this program has been
suspended altogether. During the FYI 8 budget deliberations, the Committee recommended
legislation be enacted to eliminate this program.
This packet contains:
Bill 22-17
Legislative Request Report
Circle#
1
7
F:\LAW\BILLS\1722 HOA Roads\PH Memo.Docx
 PDF to HTML - Convert PDF files to HTML files
Bill No.
---=2=2=--1-'-'7 _ _ _ _ _ __
_
Concerning: Homeowners' Associations
- Roadway Maintenance - Repeal
Revised:
05/31/2017
Draft No.
_1_
Introduced:
June
27 2017
Expires:
December
27 2018
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: ~N=on~e~------
Ch. _ _ , Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Transportation, Infrastructure, Energy & Environment Committee
AN ACT
to:
(1)
(2)
repeal County law that provides for assistance to certain homeowners' associations
to maintain certain association roadways or private maintenance roads; and
generally amend County law regarding certain homeowners' association roadways
and private maintenance roads.
By repealing
Montgomery County Code
Chapter 24 B, Homeowners' Associations
Sections 24B-1, 24B-2, 24B-3, 24B-4, 24B-5, 24B-6, 24B-7, and 24B-8
Boldface
Underlining
[Single boldface brackets]
Double
underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deleted.from existing law by original bill.
Added by amendment.
.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 22-17
1
Sec.
1.
Chapter 24B (Sections 24B-1, 24B-2, 24B-3, 24B-4, 24B-5, 24B-6,
24B-7, and 24B-8) is repealed as follows:
[Chapter 24B. Homeowners' Associations.]
[24B-1. Definitions.]
2
3
4
5
[The following definitions apply to this Chapter:
(a)
Association
roadway means those paved surfaces, except areas
6
7
designated for parking, which:
(
1)
8
9
provide vehicular access to more than 4 dwelling units; and
are maintained by a homeowners' association.
(2)
(b)
1O
11
Homeowners' association
means a body that has the authority to enforce
a declaration under the state homeowners' association law.
(
c)
12
13
14
Private maintenance road
means a road that:
(1)
(2)
is owned by a homeowners' association;
has a right-of-way at least 30 feet wide (not including any portion
of the right- of-way used for parking), and 2 travel lanes; and
15
16
(3)
provides a direct or indirect general vehicular traffic connection to
the County road system.]
17
18
19
[24B-2. Program of support for roadway maintenance.]
[(a)
There is created a program to assist qualifying homeowners associations
to maintain association roadways that are continuously open to the public
as if they were public roadways.
20
21
22
23
24
(b)
Assistance provided under this Chapter is not subject to Chapter 11 B.]
[24B-3. Qualifying homeowners' associations.]
[A homeowners' association qualifies for assistance under this Chapter if the
homeowners' association:
(a)
has at least one-quarter mile of association roadway;
25
26
0
f:\law\bills\ 1722 hoa roads\bill 1.docx
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BILL
No. 22-17
27
28
(b)
maintains its association roadways at a level of service satisfactory to the
County;
29
30
31
(
c)
finances the maintenance of its association roadways with funds collected
by the homeowners' association;
(
d)
has a financial officer that is bonded or meets the requirements of
financial responsibility that regulations under this Chapter prescribe; and
32
33
34
35
36
(
e)
agrees that eligible disputes to which the homeowners' association is a
party will be submitted by the homeowners' association to either:
(1)
(2)
the dispute resolution process under Article 2 of Chapter
lOB;
or
other meditation or arbitration approved by the Commission on
Common Ownership Communities.]
37
38
39
40
[24B-4. Amount of assistance.]
[(a)
The annual amount that a qualifying homeowners' association may
receive under this Chapter is the number of its association roadway miles
that qualify for assistance under this Chapter, multiplied by the average
locally funded cost to the County of providing maintenance and street
lights for a mile of County roadway during the previous year.
41
42
43
44
45
46
(b)
If
an association roadway that qualifies for assistance under this Chapter
is initially open to the public for only part of a year, the annual amount of
assistance must be prorated for that part of the year for which the
association roadway was open.]
[24B-5. Limitation on expenditure.]
47
48
49
[(a)
All expenditures of County funds under this Chapter are subject to the
limits of the funds appropriated by the County Council.
50
51
(b)
If
the County Council does not appropriate enough funds to cover the
52
number of miles of association roadways that qualify under this Chapter,
f:\law\bills\1722 hoa roads\bill 1.docx
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 22-17
53
54
the amount of assistance for each mile of association roadway is reduced
proportionally.]
[24B-6. Regulations.]
55
56
57
58
59
60
61
62
63
64
[The County Executive must adopt regulations under method (2) to implement
this Chapter.]
[24B-7. Amendment of bylaws.]
[Notwithstanding any association document to the contrary, a homeowners'
association, as defined in state law, may amend its bylaws by a vote of a majority of
the lot owners. This section applies to bylaws adopted before or after this section
became law.]
[24B-8. Private maintenance roads.]
[(a)
Requirements for assistance.
The County may provide maintenance
funding assistance to a homeowners' association for a private
maintenance road if the homeowners' association:
( 1)
grants an easement to the County for the general free public use of
the private maintenance road, which must include a metes and
bounds description of the easement certified by a registered land
surveyor or a record plat or other legal description acceptable to
the County Attorney; and
(2)
signs an agreement with the County that the homeowners'
association must build and maintain the private maintenance road
to standards adopted by executive regulation for private
maintenance roads.
65
66
67
68
69
70
71
72
73
74
75
76
(b)
Contents of agreement.
In each agreement signed under subsection (a)
the homeowners' association must:
(1)
acknowledge that:
77
78
f:\law\bills\ 1722 hoa roads\bill 1.docx
 PDF to HTML - Convert PDF files to HTML files
BILLN0.22-17
79
80
(A)
granting the easement does not relieve the association of the
obligation to maintain the private maintenance road or to
provide any other services, such as snow removal, which the
association is required to provide by any association
document or law; and
81
82
83
84
85
(B)
the easement automatically reverts to the grantor if the
homeowners' association does not comply with all terms of
the easement and the agreement it signs with the County;
86
87
(2)
indemnify the County against all claims arising from the use or
condition of the private maintenance road; and
88
89
(3)
certify that the homeowners' association has obtained and will
continually maintain insurance or other surety, in an amount
acceptable to the County, covering claims arising from the use or
condition of the private maintenance road, and acknowledge that
the County may withdraw funds allocated under this section if the
insurance coverage lapses.
90
91
92
93
94
95
96
97
98
99
(
d)
(
c)
Documents to be recorded.
Any easement and agreement signed under
this section must be recorded in the County land records.
Costs of documents.
The homeowners' association must pay all costs of
preparing and recording any easement, agreement, or other document
required under this section.
(
e)
100
101
102
103
104
Amount of assistance to homeowners' association.
The County may
allocate to a homeowners' association for maintenance of a private
maintenance road an amount that does not exceed the net amount, less
any inspection fee or any other County expense, of highway user
revenues received by the County as a result of the inclusion of that private
maintenance road in the State Highway Administration mileage
105
0
f:\law\bills\1722 hoa roads\bill 1.docx
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 22-17
106
107
inventory. The homeowners' association must use these funds to maintain
that private maintenance road or place them in a reserve fund which can
be used only to maintain that road. The County must not assist under this
section any road for which it provides assistance under Section 24B-2
through 24B-5.
(f)
Termination of easement.
If
the County finds that an easement granted
under this section is not in the public interest, or that a homeowners'
association has not complied with the terms of an easement or other
agreement under this section, the County may, in its sole discretion,
withhold or withdraw maintenance funds or reject and terminate the
easement, and record documentation of the termination in the County
land records. The abandonment procedures in Chapter 49 do not apply to
the termination of an easement under this section.
(g)
No County obligation.
Granting an easement under this section does not
obligate the County to maintain or pay for the maintenance of any private
maintenance road.]
Approved:
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
Roger Berliner, President, County Council
Date
124
Approved:
125
Isiah Leggett, County Executive
Date
126
This is a correct copy ofCouncil action.
127
Linda M. Lauer, Clerk of the Council
Date
f:\law\bills\ 1722 hoa roads\bill 1.docx
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LEGISLATIVE REQUEST REPORT
Bill 22-17
Homeowners' Associations
-
Roadway Maintenance
-
Repeal
DESCRIPTION:
Bill 22-17 would repeal County law that provides for assistance to
certain homeowners' associations to maintain certain association
roadways or private maintenance roads and generally amend County
law regarding certain homeowners' association roadways and private
maintenance roads.
This program is supposed to reimburse HOAs for eligible roads at
roughly the cost that the County spends to maintain its own roads,
subject to the availability of appropriations. However, for two decades
the Council has limited the reimbursement to around $1,000 per
eligible mile, a fraction of the cost of maintaining a County road. For
the FYI
O
budget, the Council reduced the appropriation to only about
$250 per eligible mile, and for FYI I through FY18 the Council
suspended funding for this program altogether.
To repeal the program.
Department of Transportation
To be requested.
To be requested.
To be requested.
To be researched.
Glenn Orlin, Deputy Council Administrator, 240-777-7936
Amanda Mihill, Legislative Attorney, 240-777-7815
To be researched.
PROBLEM:
GOALSAND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
NIA
f:\law\bills\ 1722 hoa roads\legislative request report.docx
 PDF to HTML - Convert PDF files to HTML files
AGENDA ITEM 7
July 18, 2017
Public Hearing
MEMORANDUM
July 14, 2017
TO:
FROM:
County Council
Glenn Orlin, Deputy Council Administrator
~
.
Amanda Mihill, Legislative Attorney
d(N\JriJ.,U
SUBJECT:
Public Hearing:
Bill 22-17, Homeowners' Associations - Roadway Maintenance -
Repeal
Bill 22-17, Homeowners' Associations - Roadway Maintenance - Repeal, sponsored by Lead
Sponsor Transportation, Infrastructure, Energy and Environment Committee (Council President
Berliner and Councilmembers Floreen and Rucker) and Co-Sponsors, Councilmembers Katz, Rice,
Navarro, Vice President Riemer and Eirich, was introduced on June 27, 2017. A Transportation,
Infrastructure, Energy and Environment Committee worksession is tentatively scheduled for
September 14.
Bill 22-17 would repeal County law that provides for assistance to certain homeowners'
associations to maintain certain association roadways or private maintenance roads. This program
is supposed to reimburse HOAs for eligible roads at roughly the cost that the County spends to
maintain its own roads, subject to the availability of appropriations. However, for two decades the
Council has limited the reimbursement to around $1,000 per eligible mile, a fraction of the cost of
maintaining a County road. For the FYl0 budget, the Council reduced the appropriation to only
about $250 per eligible mile, and for FYl 1 through FYI 8 funding for this program has been
suspended altogether. During the FYI 8 budget deliberations, the Committee recommended
legislation be enacted to eliminate this program.
This packet contains:
Bill 22-17
Legislative Request Report
Circle#
1
7
F:\LAW\BILLS\1722 HOA Roads\PH Memo.Docx
 PDF to HTML - Convert PDF files to HTML files
Bill No.
---=2=2=--1-'-'7 _ _ _ _ _ __
_
Concerning: Homeowners' Associations
- Roadway Maintenance - Repeal
Revised:
05/31/2017
Draft No.
_1_
Introduced:
June
27 2017
Expires:
December
27 2018
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: ~N=on~e~------
Ch. _ _ , Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Transportation, Infrastructure, Energy & Environment Committee
AN ACT
to:
(1)
(2)
repeal County law that provides for assistance to certain homeowners' associations
to maintain certain association roadways or private maintenance roads; and
generally amend County law regarding certain homeowners' association roadways
and private maintenance roads.
By repealing
Montgomery County Code
Chapter 24 B, Homeowners' Associations
Sections 24B-1, 24B-2, 24B-3, 24B-4, 24B-5, 24B-6, 24B-7, and 24B-8
Boldface
Underlining
[Single boldface brackets]
Double
underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deleted.from existing law by original bill.
Added by amendment.
.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 22-17
1
Sec.
1.
Chapter 24B (Sections 24B-1, 24B-2, 24B-3, 24B-4, 24B-5, 24B-6,
24B-7, and 24B-8) is repealed as follows:
[Chapter 24B. Homeowners' Associations.]
[24B-1. Definitions.]
2
3
4
5
[The following definitions apply to this Chapter:
(a)
Association
roadway means those paved surfaces, except areas
6
7
designated for parking, which:
(
1)
8
9
provide vehicular access to more than 4 dwelling units; and
are maintained by a homeowners' association.
(2)
(b)
1O
11
Homeowners' association
means a body that has the authority to enforce
a declaration under the state homeowners' association law.
(
c)
12
13
14
Private maintenance road
means a road that:
(1)
(2)
is owned by a homeowners' association;
has a right-of-way at least 30 feet wide (not including any portion
of the right- of-way used for parking), and 2 travel lanes; and
15
16
(3)
provides a direct or indirect general vehicular traffic connection to
the County road system.]
17
18
19
[24B-2. Program of support for roadway maintenance.]
[(a)
There is created a program to assist qualifying homeowners associations
to maintain association roadways that are continuously open to the public
as if they were public roadways.
20
21
22
23
24
(b)
Assistance provided under this Chapter is not subject to Chapter 11 B.]
[24B-3. Qualifying homeowners' associations.]
[A homeowners' association qualifies for assistance under this Chapter if the
homeowners' association:
(a)
has at least one-quarter mile of association roadway;
25
26
0
f:\law\bills\ 1722 hoa roads\bill 1.docx
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 22-17
27
28
(b)
maintains its association roadways at a level of service satisfactory to the
County;
29
30
31
(
c)
finances the maintenance of its association roadways with funds collected
by the homeowners' association;
(
d)
has a financial officer that is bonded or meets the requirements of
financial responsibility that regulations under this Chapter prescribe; and
32
33
34
35
36
(
e)
agrees that eligible disputes to which the homeowners' association is a
party will be submitted by the homeowners' association to either:
(1)
(2)
the dispute resolution process under Article 2 of Chapter
lOB;
or
other meditation or arbitration approved by the Commission on
Common Ownership Communities.]
37
38
39
40
[24B-4. Amount of assistance.]
[(a)
The annual amount that a qualifying homeowners' association may
receive under this Chapter is the number of its association roadway miles
that qualify for assistance under this Chapter, multiplied by the average
locally funded cost to the County of providing maintenance and street
lights for a mile of County roadway during the previous year.
41
42
43
44
45
46
(b)
If
an association roadway that qualifies for assistance under this Chapter
is initially open to the public for only part of a year, the annual amount of
assistance must be prorated for that part of the year for which the
association roadway was open.]
[24B-5. Limitation on expenditure.]
47
48
49
[(a)
All expenditures of County funds under this Chapter are subject to the
limits of the funds appropriated by the County Council.
50
51
(b)
If
the County Council does not appropriate enough funds to cover the
52
number of miles of association roadways that qualify under this Chapter,
f:\law\bills\1722 hoa roads\bill 1.docx
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 22-17
53
54
the amount of assistance for each mile of association roadway is reduced
proportionally.]
[24B-6. Regulations.]
55
56
57
58
59
60
61
62
63
64
[The County Executive must adopt regulations under method (2) to implement
this Chapter.]
[24B-7. Amendment of bylaws.]
[Notwithstanding any association document to the contrary, a homeowners'
association, as defined in state law, may amend its bylaws by a vote of a majority of
the lot owners. This section applies to bylaws adopted before or after this section
became law.]
[24B-8. Private maintenance roads.]
[(a)
Requirements for assistance.
The County may provide maintenance
funding assistance to a homeowners' association for a private
maintenance road if the homeowners' association:
( 1)
grants an easement to the County for the general free public use of
the private maintenance road, which must include a metes and
bounds description of the easement certified by a registered land
surveyor or a record plat or other legal description acceptable to
the County Attorney; and
(2)
signs an agreement with the County that the homeowners'
association must build and maintain the private maintenance road
to standards adopted by executive regulation for private
maintenance roads.
65
66
67
68
69
70
71
72
73
74
75
76
(b)
Contents of agreement.
In each agreement signed under subsection (a)
the homeowners' association must:
(1)
acknowledge that:
77
78
f:\law\bills\ 1722 hoa roads\bill 1.docx
 PDF to HTML - Convert PDF files to HTML files
BILLN0.22-17
79
80
(A)
granting the easement does not relieve the association of the
obligation to maintain the private maintenance road or to
provide any other services, such as snow removal, which the
association is required to provide by any association
document or law; and
81
82
83
84
85
(B)
the easement automatically reverts to the grantor if the
homeowners' association does not comply with all terms of
the easement and the agreement it signs with the County;
86
87
(2)
indemnify the County against all claims arising from the use or
condition of the private maintenance road; and
88
89
(3)
certify that the homeowners' association has obtained and will
continually maintain insurance or other surety, in an amount
acceptable to the County, covering claims arising from the use or
condition of the private maintenance road, and acknowledge that
the County may withdraw funds allocated under this section if the
insurance coverage lapses.
90
91
92
93
94
95
96
97
98
99
(
d)
(
c)
Documents to be recorded.
Any easement and agreement signed under
this section must be recorded in the County land records.
Costs of documents.
The homeowners' association must pay all costs of
preparing and recording any easement, agreement, or other document
required under this section.
(
e)
100
101
102
103
104
Amount of assistance to homeowners' association.
The County may
allocate to a homeowners' association for maintenance of a private
maintenance road an amount that does not exceed the net amount, less
any inspection fee or any other County expense, of highway user
revenues received by the County as a result of the inclusion of that private
maintenance road in the State Highway Administration mileage
105
0
f:\law\bills\1722 hoa roads\bill 1.docx
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 22-17
106
107
inventory. The homeowners' association must use these funds to maintain
that private maintenance road or place them in a reserve fund which can
be used only to maintain that road. The County must not assist under this
section any road for which it provides assistance under Section 24B-2
through 24B-5.
(f)
Termination of easement.
If
the County finds that an easement granted
under this section is not in the public interest, or that a homeowners'
association has not complied with the terms of an easement or other
agreement under this section, the County may, in its sole discretion,
withhold or withdraw maintenance funds or reject and terminate the
easement, and record documentation of the termination in the County
land records. The abandonment procedures in Chapter 49 do not apply to
the termination of an easement under this section.
(g)
No County obligation.
Granting an easement under this section does not
obligate the County to maintain or pay for the maintenance of any private
maintenance road.]
Approved:
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
Roger Berliner, President, County Council
Date
124
Approved:
125
Isiah Leggett, County Executive
Date
126
This is a correct copy ofCouncil action.
127
Linda M. Lauer, Clerk of the Council
Date
f:\law\bills\ 1722 hoa roads\bill 1.docx
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Bill 22-17
Homeowners' Associations
-
Roadway Maintenance
-
Repeal
DESCRIPTION:
Bill 22-17 would repeal County law that provides for assistance to
certain homeowners' associations to maintain certain association
roadways or private maintenance roads and generally amend County
law regarding certain homeowners' association roadways and private
maintenance roads.
This program is supposed to reimburse HOAs for eligible roads at
roughly the cost that the County spends to maintain its own roads,
subject to the availability of appropriations. However, for two decades
the Council has limited the reimbursement to around $1,000 per
eligible mile, a fraction of the cost of maintaining a County road. For
the FYI
O
budget, the Council reduced the appropriation to only about
$250 per eligible mile, and for FYI I through FY18 the Council
suspended funding for this program altogether.
To repeal the program.
Department of Transportation
To be requested.
To be requested.
To be requested.
To be researched.
Glenn Orlin, Deputy Council Administrator, 240-777-7936
Amanda Mihill, Legislative Attorney, 240-777-7815
To be researched.
PROBLEM:
GOALSAND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
NIA
f:\law\bills\ 1722 hoa roads\legislative request report.docx