Tuesday, March 12, 2013

ACM Asks Maryland Legislature Not to Charge Community Associations

Efforts by American Community Management (ACM) President, Mel Herzberger, to limit the size and scope of the legislation to establish a licensing department for community managers was rejected by the House Environmental Matters Committee and the Maryland House of Delegates passed the licensing bill, further amending HB576 to remove fee limits after the Department of Licensing and Regulation reported the $2,000,000 estimated cost would be insufficient to operate the new department.

Mr. Herzberger believes there is justification to require the use of contracts that specifically set out the obligation of the company to provide services, especially any process entailing the disposition of community funds. There is no doubt that we must hold anyone who has access to client funds accountable, however it appears the bill’s sponsors publicized recent events to pass in the House a very expensive piece of legislation that has failed in each of the last 4 years.

The legislation now moves on to the Senate Judicial Proceedings Committee where Herzberger hopes that the committee will narrow the scope of the legislation to the services provided by the company and increase the level of protection to the community. Hopefully we can address the issue without inflating management fees and requiring community clients to be penalized for hiring a management firm.