Maryland Headlines
The following are new laws in Maryland that became effective on July 1, 2010:HB 106 and its companion bill SB 248 Civil Cases - Maryland Legal Services Corporation Fund – Surcharges. These bills increase the surcharge on civil cases filed in Circuit Court by $30 and increases the surcharge from $5 to $10 for summary ejectment cases (non-payment of rent); and from $10 to $20 for all other civil cases in the District Court. The money from the surcharge is earmarked for the Maryland Legal Services Corporation (MLSC) Fund, used to finance civil legal services to indigent clients. This new law has a 3-year sunset and legislative oversight of MLSC budget. HB 475 the Sustainable Communities Act of 2010, re-establishes the Heritage Structure Rehabilitation Tax Credit Program as the Sustainable Communities Tax Credit Program. HB 464 extends the termination date of the clean energy incentive tax credit to Dec. 31, 2015. The bill also (1) extends to Jan. 1, 2016, the date by which a facility must begin producing qualified energy in order to claim the credit; (2) prohibits the Maryland Energy Administration from issuing an initial credit certificate for less than $1,000; and (3) makes the credit refundable.
On primary day, Sept. 14, voters will select candidates for all 188 seats in the State Senate and House of Delegates, as well as the races for Governor, County Executive, County Council, Sheriff, and State’s Attorney in most counties. The candidates in Montgomery and Prince George’s Counties are of particular interest to the AOBA membership. METPAC, AOBA’s political action committee, has made its endorsements in several races, and urges all AOBA members to support the endorsed candidates on behalf of our industries. (For a list of endorsed candidates, see Press Release )
The Washington Suburban Sanitary Commission Water (WSSC) has had a record number of water main breaks in the past two years. This past winter exacerbated the number of breaks in an aging infrastructure. Rate increases are likely for the next 10 years to repair, replace and maintain water and sewer lines. In May, the County Councils of Montgomery and Prince George's approved an 8.5 % rate increase recommended by the utility's Commissioners; that rate is one point less than the 9.5 % increase recommended by WSSC’s staff. The new rate increase took effect July 1.
WSSC also projects it will need a 13.6 % hike in 2011 and a 10.2 % increase in 2012, just to make required improvements.
AOBA, working with other interested businesses, helped defeat legislation (SB 844) that would have attempted to partially re-regulate Maryland's electric market. This legislation would have 1) required residential and small commercial customers to give up the right to choose their electricity provider, and 2) authorized the PSC to order utilities to build power plants and charge customers in all rate classes and service territories a non-bypassable surcharge (i.e. an “energy tax”) on their electric bills.
On April 14, Governor O’Malley signed HB 613, which requires an elevator owner to hire a third–party qualified elevator inspector to conduct all periodic annual inspections required by the Safety Code. State inspectors will make all other inspections (e.g. first-time, post-accident, five-year) and perform quality control monitoring of third–party inspectors. AOBA sought the bill because there is currently a backlog of 5,477 units in the State that are overdue for annual inspections, and the Division of Labor and Industry has historically been unable to keep pace with the demands of inspections mandated to insure the riding public’s safety. The bill is effective July 1, 2009.
Special primaries will be held on April 21, and a special general election on May 19. AOBA members have decided to endorse State Delegate Ben Kramer (D - District 19) in his bid for the seat. The primary results will decide this election. Since voter turn out is critical, members are encouraged to participate in the election process.
Special primaries will be held on April 21, and a special general election on May 19. AOBA members have decided to endorse State Delegate Ben Kramer (D - District 19) in his bid for the seat. The primary results will decide this election. Since voter turn out is critical, members are encouraged to participate in the election process.
AOBA strongly opposed SB 672 that would have required each county and municipality establish a stormwater user charge to generate sufficient revenues to fund specified local stormwater management activities. The charge was a flat fee for all residential property owners and, for commercial properties, based on impervious surface area(defined as “structures, buildings, dwelling units, roads, parking lots, driveways, and areas covered with gravel, stone, shell, impermeable decking or pavers, or any other impervious material”). A county or municipality was required to set a commercial stormwater user charge that is greater than the residential stormwater user charge. . After intense lobbying by AOBA and other opponents, the Bill failed 18-29 on third reading. The savings to AOBA members is significant.
Prince George’s County Sen. C. Anthony Muse (D) recently introduced PG 409-09 which grants the tenant the right to reclaim any personal property left in the premises within three full days after the eviction date. (Current law entitles tenants the right to reclaim personal property left in the premises within four hours.) The bill also alters the notice requirement to require the Sheriff, whenever a judgment is entered in favor of the housing provider for possession of leased premises, to: (1) mail the notice by first-class mail at least five business days before the scheduled date of execution or; (2) post on the premises at least two days before the scheduled date of execution. This bill applies to evictions only in Prince George’s County.
Montgomery County Delegate Heather Mizeur (D) recently introduced MC 918-09 which empowers the tenant to unilaterally renew a lease after the lease has ended, notwithstanding the objection of the apartment building landlord or owner. The bill is a back door to rent control since it requires the lease to be renewed at the same or substantially the same terms. This bill severely impairs property rights and essentially creates a rent-controlled environment.
An estimated 90% of residential properties in Montgomery County do not meet the requirements for audibility of the current fire alarm evacuation signal. The Code requires that the alarm signal meets a specific decibel level “at the pillow” in the occupiable area. Most existing systems can not be upgraded and new Fire Alarm systems will have to be installed, which can be very expensive. The County recognizes the impact of enforcing this requirement and will work cooperatively on a case-by-case basis with each address to ensure compliance. A contract between the property owner and the County, in the form of a Fire Protection Agreement, may be used to outline a plan of action and compliance timetable.
Good news for AOBA members! Montgomery County will discontinue all enforcement efforts regarding the use of concession fees arising anytime before Dec. 1, 2008. In June, the County Attorney's office issued a legal opinion accompanying a letter sent to every multi-family rental housing provider demanding that the housing provider self-report, by affidavit, whether it currently, or had in the past, utilized "concession fees" and, if so, to identify and compensate every affected tenant going back three years. The County's decision to halt all enforcement action is the result of a series of successful meetings throughout the summer and into the fall with Montgomery County Executive Ike Leggett, County Attorney Leon Rodriguez and Director of Housing and Community Affairs Rick Nelson.
Delegate Alfred Carr (D – Montgomery County) recently introduced MC 906-09. This bill is likely aimed at enabling the County to shift the tax burden away from residential real property and towards business real and personal property. The bill grants the County an unfettered ability to do the following: 1) Select specific classes of property to be subject to a property tax, and 2) Set the rate of taxation for those classes. The inherent problem created by this Bill is the lack of guidance and/or restrictions on the counties ability to shift tax burdens in an unjust and discriminatory manner. A state-wide version of this bill was introduced and defeated during the 2008 Session of the General Assembly. During AOBA’s Oct. 21, 2008, quarterly meeting with County Executive Ike Leggett (D) he stated that he does not support this bill.
In September, Montgomery County Councilmember At-Large Nancy Floreen (D) floated a draft bill imposing an excise tax in the amount of $250 per space per year on all spaces used for employee parking. The bill boasts an environmental objective aimed at removing commuters from their cars, while also providing funding for mass transit capital improvements. The bill estimates the tax to generate $75 million a year. On Sept. 24, AOBA met with Councilmember Floreen to explain the members’ concerns, particularly the inequitable tax burden the bill places on commercial property owners and presented her with several alternative suggestions to increase County tax revenue to fund mass transit capital improvements.
Councilmember Floreen informed AOBA that she does not plan to introduce this bill until next year. She plans to initiate a working group to explore alternative taxing mechanisms and to address the concerns raised by the business community. AOBA will participate in the work group, which has its first meeting scheduled Oct. 15.
The MD Department of Housing and Community Development is offering a service that provides information on rental housing units and their availability. Housing providers, developers and property managers across the state can use this service to advertise their property listings – free of charge to both housing providers and renters! Those looking to rent a property in Maryland may access the site by going to www.mdhousingsearch.org, or by calling 1-877-428-8844.
U.S. Congresswoman Donna Edwards (D), who defeated 15-year incumbent Albert Wynn (D) in the 2008 Democratic primary, and who also won a special election following Wynn's resignation to fill the remainder of his term, is the keynote speaker at AOBA's Annual Scholarship Program. The Oct. 16th event at the Prince George's County Community College honors eight Prince George's County high school students who will receive scholarships, valued up to $6000, to pay for their tuition at Prince George’s County Community College (PGCC) for a two-year period.
Since its inception in 1996, the AOBA Scholarship program has provided financial, mentoring and internship support to 87 Prince George’s County students. Most of these students have successfully completed two years of study at PGCC, and many AOBA Scholars are currently employed by AOBA member firms.Councilwoman Floreen (D) plans to introduce a bill when the County Council returns to session this month that establishes an excise tax on the use of land for parking spaces of nonresidential property. The revenue from this tax, anticipated to generate $75 million yearly, is to be earmarked for the funding of mass transit capital improvement projects. Tax credits will be available for businesses that implement effective transit and carpooling initiatives.
The University of Maryland’s School of Public Policy recently concluded an update of their 2005 Takoma Park Rent Control study. The updated study: 1) Looks historically at assessment increases in Takoma Park compared to the County as a whole, 2) extrapolates the impact of rent control on assessments over the next couple of decades and 3) develops a better understanding of the percent of income Montgomery County residents are currently paying for rent, as a way to assess the extent of the affordability problem.
Montgomery County Fire Chief Thomas Carr and his staff met with AOBA in early July to evaluate the process that took place between the County and the owners of a residential high-rise who chose to enter into a voluntary fire safety protection systems agreement with the County. The meeting’s goal was to identify the challenges created by the first time agreement, and to develop a more efficient plan for the future. For details, contact Lesa Hoover.
Montgomery County recently stepped up its recycling efforts by expanding the County’s recycling program to accept most plastic items as of July 1, 2008. The beefed up recycling effort is aimed at improving the percentage of overall waste recycled to at least 50 percent. For more information on the program, contact the Division of Solid Waste at 240-777-6400 or visit http://www.montgomerycountymd.gov.
AOBA members met with County Executive Ike Leggett (D) on July 15, 2008 to discuss issues ranging from rent control and concession fees to the creation of a tenant task force. AOBA members meet quarterly with the County Executive and his staff to discuss concerns, ideas and share feedback. AOBA’s next quarterly meeting with the County Executive is scheduled for Oct. 21, 2008 at 3:00pm.
The Housing Opportunities Commission held a ribbon-cutting ceremony to celebrate the opening of two new customer service centers on June 19. The service centers, located in Gaithersburg and Silver Spring , will be fully functional arms of the main office in Kensington.
The State Department of Assessments and Taxation (SDAT) is implementing procedures to enforce the new transfer and recordation tax on transfers of controlling interests in entities that own real property in Maryland. AOBA submitted written comments and met with Department officials to voice concerns that the Department’s proposed regulation exceeded the statute’s intent and gave the Department wide latitude in the interpretation of the intent, clouding the safe harbors established by the statute.
At the request of Montgomery County Executive Ike Leggett, County Council President Mike Knapp introduced Bill 24-08. The Bill attempts to make permanent certain provisions in the landlord-tenant code, set to sunset on August 1, 2008, regarding circumstances in which attorney’s fees may be awarded in a landlord-tenant dispute.
The Court of Special Appeals of MD recently ruled in Jackson v. The Dackman Company that housing providers who have registered affected properties shall “renew the registration of the affected property on or before Dec. 31 of each year.” MD CODE ANN., ENVIR. § 6-812(a)(1) (2007). The Court held that the “mailbox rule,” a principle that when a document is filed, the filing is deemed to have occurred on the date of the mailing, does not apply. Instead, registration renewal is complete not when a property owner sends the form, but when the form is actually marked as “received” and date-stamped by MDE.
Montgomery and Prince George’s County Councils have unanimously approved an 8% increase in water rates, while rejecting WSSC’s proposed rate increase of 9.5% and the infrastructure renewal fee that would have been based on water meter size. The average AOBA member’s property utilizes a 6” meter which would have cost a property.
Montgomery County Fire and Rescue Service Chief Thomas W. Carr, Jr. will not seek the adoption of the National Fire Protection Assn. requirements to mandate retrofitting of sprinklers in residential high-rise buildings during the next code revision cycle. The County will, however, continue to step-up inspections focusing on existing fire protection systems by conducing witness testing of those systems. Chief Carr has agreed to provide property owners and managers with reasonable notice before coming to the property to administer an inspection of fire alarm systems and records. This will save everyone time and money.
Montgomery County Issues Opinion that Certain Concession Fees in Rental Lease Agreements Are Illegal
Montgomery County officials informed rental property owners and managers that offering concession fees in lease agreements is tantamount to an illegal late fee. The letter request any housing providers participating in this practice to cease and desist. The County Attorney and the Director of the Department of Housing and Community Affairs intend to pursue "corrective measures" if a housing provider reports that they utilize "concession fees." For details, see At Issue – Maryland
Prince George's County Council's introduced Resolution 30-2008 pledging to support joining the Cool Capital Challenge to reduce greenhouse gases in the County and in the Metropolitan region and to work with the COG Climate Change Steering Committee to develop an implementation plan and will encourage County residents to meet the Cool Capital Challenge goals. The Cool Capital Campaign was started in 2007 by volunteers from business, civic institutions, government agencies, congregations, and community and environmental organizations in the Metropolitan Washington region.
Montgomery County Councilwoman Nancy Floreen has introduced a resolution to increase the fuel/energy tax rates by 9.13% on gas and electricity, across all classes of property. The Councilwoman intends that any increase on 'dirty' energy sources would be used to offset the County Executive's proposed increase to the property tax.
The Governor's package of energy bills addresses both generation of and demand for electricity. The 'EmPOWER Maryland Energy Efficiency Act of 2008' sets a State goal of achieving a 15% reduction in per capita electricity consumption and peak demand by the end of 2015; the 'Regional Greenhouse Gas Initiative - Maryland Strategic Energy Investment Program' promotes affordable, reliable, and clean energy; and the 'Renewable Portfolio Standard Percentage Requirements - Acceleration' increases to 20% the Renewable Energy Portfolio Standard in 2022 and beyond.
