Legal Question in Real Estate Law in Maryland
Homeowner Association is in Breach of Contract
I live in a new planned community of town houses in the
forestville/suitland area (Colony Square). Since this is a new community, the original homeowners association was made up of a management company and already set up when I bought my home.
The homeowners association bylaws state that once the community was 66% complete, the association would be turned over to us (the residents) to serve on the board and possibly hire our own managemet company. I am
required to pay homeowners association dues like most homeowners. However, I believe that the management company is in breach of contract regarding our attendance on the homeowners association board of directors. The community is 90% complete and the association was never turned over
to us. We have no attendance on the board. The management company never returns our calls or meets with us. I also believe that the dues that our community pays ever year is being misused by the management company. Repairs are not made in the community (falling trees), there are no
stop signs at 4 way intersections, there are no speed bumps after our many requests. Lastly, the building of a community playground was never initiated.
There is more. Please assist.
2 Answers from Attorneys
Re: Homeowner Association is in Breach of Contract
It appears that you and your like-minded fellow association members need to organize to remedy this problem. Your bylaws should call for a general meeting at least annually. If a regularly scheduled meeting is not coming up soon, you may be entitled to request that the board schedule a special meeting. At a general meeting, you should be able to elect new directors under the terms of the bylaws. If the new directors agree with your complaints, you can get new, more responsive management.
If the current management refuses to call a meeting or acknowledge the authority of new directors, you may need to bring a court action against the current directors of the association in order to enforce your rights. A court can uphold the bylaws and order the current management company to comply. If there are enough others who feel as strongly as you do, you should be able to share the legal costs if it comes to that.
Re: Homeowner Association is in Breach of Contract
There are several methods to address matters such as yours.
You can wait until an election and attempt to replace the board through
a general or special vote. You can pursue notice and response/remediation. You can
take the matter to court and seek an injunction or declaratory order. You can escrow your dues and notify
them that action is needed on their part. You can seek alternative dispute resolution. Each alternative has pros and cons and should be carefully considered.
Ultimately the matter will require some attention.
If the management company is ignoring residents then this is an indication that further problems may be down the road.
Where the by-laws and articles of declaration provide for specific actions that are not being applied then a breach exists (e.g. breach of duty or non-performance).
Often these matters become divisive and political in nature.
Much depends on the type of association and the language of the by-laws and articles. Zoning matters may apply to certain issues. Funding requirements and common ownership is also relevant.
An attorney's assistance is advised.
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