Condo Media - September 2011 - 12

MAINE N e w s

by Joseph Carleton Jr., Esq.

R e g i o n a l

New Condominium Act Amendments
What They Mean to Maine Associations
his spring, the Maine Legislature passed LD 1332, the most significant changes to the Maine Condominium Act in the 28 years since that law was enacted in 1983. The new amendments, largely the result of the efforts of CAI’s Maine Legislative Action Committee (MELAC), take effect on Sept. 28, 2011. The amendments will change the way Maine associations do their business, clarify the duties and obligations of the board of directors, beef up powers to enforce collection of assessments and improve an owner’s ability to know what his or her board is doing.

C A I

T

Associations also may now suspend rights and privileges of delinquent owners, with the exception of denying access to their unit and suspending

that borrowing for repairs, maintenance or improvements requires several steps, the first being an amendment to the declaration, with subsequent

Boards should consider adopting policies about suspending rights and privileges before applying them in a specific case.
rights and privileges that would endanger health, safety or property. Boards will now be able not only to deny the use of obvious amenities, such as swimming pools or tennis courts, but also not-so-obvious uses of the common elements, such as the use of common parking areas. In addition, the association may determine that delinquent unit owners may lose their privilege to vote or serve on the board. No amendment to the declaration or the bylaws is required to suspend these rights, although existing provisions in the declaration may prevent the board from doing so. Suspension of rights and privileges requires board approval by appropriate resolution or rule. Boards should consider adopting policies about suspending rights and privileges before applying them in a specific case. votes or resolutions as required by the lender, a tedious process. The new law does away with the declaration amendment, though it does require consent of a majority of unit owners in addition to any bank requirements for the loan. Many condominium documents specify higher approval percentages for borrowing. These requirements may apply despite the new law, and should be examined carefully.

Assessment Collection Strengthened
The amendments strengthen the ability of the association to collect assessments in two ways, by extending the association’s already existing statutory lien from three years to five years and by allowing associations to deny privileges to owners who are behind in their assessments. Maine’s statutory lien is convenient because it automatically attaches to the unit and stays attached whether or not the unit is transferred to another owner. No recording is required in the Registry of Deeds. No special language is required in the condominium documents. In many circumstances, it speeds up voluntary payment by seriously delinquent owners, who find they cannot sell or refinance their unit until they pay. In extreme cases, the lien can be foreclosed in the same manner as a mortgage, with the proceeds of the auction being used to pay the past due assessments. Extending the lien period to five years has obvious benefits.

Recordkeeping and Record Access Clarified
The new law, based on the Uniform Common Interest Ownership Act of 2008, provides a specific list of records the association must maintain. Existing law about this is incomplete and confusing. For associations that have not previously kept sufficient records, the new law will require some effort. These standards stand independently of any requirements in the documents. The new law also spells out what records associations must make available to unit owners and what records may be withheld, protecting obvious materials such as records of a board’s discussions with its attorney and other specified things.

Borrowing Streamlined
Association borrowing from a bank almost always requires an assignment of the income from condominium assessments as security for the loan, something that must, under existing law, be expressly authorized in the declaration. Most Maine condominium declarations don’t do that, meaning

12

CONDO MEDIA • SEPTEMBER 2011



Condo Media - September 2011

Table of Contents for the Digital Edition of Condo Media - September 2011

Condo Media - September 2011
Table of Contents
From the CED’s Desk
Editorial Board
CAI News
CAI Regional News
Asked & Answered
Homeowner’s Corner
Maintenance
Painting
Environmental
Work in Progress
Vendor Spotlight
Volunteer Spotlight
Technology
2011 CAI New England Fall/Winter Vendor Directory
Advertisers Index
Classified Service Directory
Condo Media - September 2011 - Condo Media - September 2011
Condo Media - September 2011 - Cover2
Condo Media - September 2011 - BB1
Condo Media - September 2011 - BB2
Condo Media - September 2011 - Table of Contents
Condo Media - September 2011 - From the CED’s Desk
Condo Media - September 2011 - 3
Condo Media - September 2011 - Editorial Board
Condo Media - September 2011 - 5
Condo Media - September 2011 - CAI News
Condo Media - September 2011 - 7
Condo Media - September 2011 - 8
Condo Media - September 2011 - 9
Condo Media - September 2011 - 10
Condo Media - September 2011 - 11
Condo Media - September 2011 - CAI Regional News
Condo Media - September 2011 - 13
Condo Media - September 2011 - 14
Condo Media - September 2011 - 15
Condo Media - September 2011 - 16
Condo Media - September 2011 - 17
Condo Media - September 2011 - Asked & Answered
Condo Media - September 2011 - 19
Condo Media - September 2011 - Homeowner’s Corner
Condo Media - September 2011 - 21
Condo Media - September 2011 - Maintenance
Condo Media - September 2011 - 23
Condo Media - September 2011 - 24
Condo Media - September 2011 - 25
Condo Media - September 2011 - Painting
Condo Media - September 2011 - 27
Condo Media - September 2011 - Environmental
Condo Media - September 2011 - 29
Condo Media - September 2011 - 30
Condo Media - September 2011 - 31
Condo Media - September 2011 - Work in Progress
Condo Media - September 2011 - 33
Condo Media - September 2011 - 34
Condo Media - September 2011 - 35
Condo Media - September 2011 - 36
Condo Media - September 2011 - 37
Condo Media - September 2011 - 38
Condo Media - September 2011 - 39
Condo Media - September 2011 - Vendor Spotlight
Condo Media - September 2011 - 41
Condo Media - September 2011 - Volunteer Spotlight
Condo Media - September 2011 - 43
Condo Media - September 2011 - Technology
Condo Media - September 2011 - 45
Condo Media - September 2011 - 2011 CAI New England Fall/Winter Vendor Directory
Condo Media - September 2011 - 47
Condo Media - September 2011 - 48
Condo Media - September 2011 - 49
Condo Media - September 2011 - 50
Condo Media - September 2011 - 51
Condo Media - September 2011 - 52
Condo Media - September 2011 - 53
Condo Media - September 2011 - 54
Condo Media - September 2011 - 55
Condo Media - September 2011 - 56
Condo Media - September 2011 - 57
Condo Media - September 2011 - 58
Condo Media - September 2011 - Classified Service Directory
Condo Media - September 2011 - 60
Condo Media - September 2011 - 61
Condo Media - September 2011 - 62
Condo Media - September 2011 - 63
Condo Media - September 2011 - 64
Condo Media - September 2011 - Cover3
Condo Media - September 2011 - Cover4
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