Maryland law provides multiple paths for resolving HOA disputes, including internal hearings, the Montgomery County Office of Consumer Protection, MHIC mediation, and court action. The Maryland HOA Act requires fair hearing procedures before fines can be imposed on homeowners.
Homeowners in Montgomery County HOAs have several options for resolving disputes with their association. Under the Maryland HOA Act (Real Property Article 11B), homeowners must receive written notice of any alleged violation and an opportunity for a hearing before the board can impose fines or other sanctions. The hearing must be conducted fairly with the homeowner given the chance to present their case. If the internal process fails, homeowners can file a complaint with the Montgomery County Office of Consumer Protection, which mediates disputes between homeowners and HOAs. The Maryland Attorney Generals Office also provides resources for HOA disputes. For more formal resolution, the Maryland Homeowners Association Act includes provisions for alternative dispute resolution (ADR), including mediation and arbitration. Homeowners can also file suit in the District Court of Maryland or the Circuit Court for Montgomery County for violations of the governing documents or the Maryland HOA Act. Courts can award actual damages and attorney fees to prevailing parties. The Maryland Real Property Article 11B-111.8 specifically establishes a dispute settlement mechanism that requires the parties to attempt resolution before litigation in certain cases.
HOAs that impose fines without proper notice and hearing can have the fines voided by a court. Homeowners who prevail in court actions against the HOA may recover attorney fees and costs.
See how Montgomery County's dispute resolution rules stack up against other locations.
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