Pending legal action concerning Geodeck
A class action sit has been filled against a local company which built approximately 15 to 20 decks and porches with the manufactured decking material, Geodeck between 2002-2005. A recall was issued on certain lots of the material and the company that owned Geodeck at that time, Kadant Composites, was to inspect all decks installed with the material in question, and did replace material and pay for the labor to reinstall several of those inspected. Kadant Composites sold Geodeck to LDI in 2005 on October 28, 2005. Apparently the proceeds from that sale were to go to service any future warranty claims. In September 30, 2007 those funds ran out. Now several of the decks that were installed have begun to fall apart. The material is cracking, warping, and disintegrating. Neither company will accept responsibility. The Office of Consumer Affairs at the Office of the Attorney General for Maryland was contacted and replied that there were no pending claims through their offices. The material is supposed to have a 20 year warranty, but many customers find themselves with decks and railing systems that must be replaced and a worthless warranty. To remove and replace an existing porch could cost about $15,000. There are customers that spent that much and more who are very angry and are looking for relief. It is unfathomable how a manufacturer can give a 20 year warranty, sell the company, then have all parties claim they are not accountable for the material because the company was sold, and, then still continue sell the Geodeck product with a 20 year warranty. There is a website for a class action suit that has been established, geodeckclassaction.com.

Maryland Energy Administration Strategic Energy Proposal
The Maryland Energy Administration (MEA) has issued a Strategic Energy Plan that includes the following "legislative" recommendations:

The Maryland Strategic Energy Investment Fund is a key part of the Regional Greenhouse Gas Initiative (RGGI), which Maryland joined in April 2006, to address the growing threat of climate change. Under the inter-state agreement between 10 northeastern and Mid-Atlantic states, electricity generators are required to obtain carbon allowances equal to the amount of their annual emissions. At least 25% of each state's allowances must be sold at auction. The proceeds from the auction are to be placed into the Energy Fund.

Forty percent of energy consumption occurs in buildings, but most buyers have little information about a building's energy efficiency. To begin to correct this market failure, the General Assembly should enact legislation requiring disclosure of a household's previous year's energy consumption at the time of listing. Homeowners and builders should also be able to indicate on the MLS a home's HERS rating and if the home earned an ENERGY STAR Homes or LEED Homes certification.

Maryland was one of the first states to adopt a Renewable Portfolio Standard (RPS). As other states subsequently adopted more stringent RPS requirements on their utilities, Maryland's RPS is becoming insufficient to stimulate significant development of new renewable capacity. Maryland's RPS currently requires 9.5% of the power to be generated from renewable resources by 2022, compared to Delaware who recently updated their RPS to 20% by 2019.

Maryland's RPS also allows the renewable electricity to be generated in an extremely broad geographic region and has relatively low penalties for non-compliance. To increase much needed generation while meeting our climate and environmental goals, this plan evaluates strengthening Maryland's RPS. Other options evaluated include entering into long term power purchase agreements, evaluating creation of a Maryland Power Authority and other options to satisfy peak load, and increasing the State of Maryland's Green Power Purchases.

Maryland Strategic Electricity Plan

Strategic Energy Plan Letter

Wastewater Connection Fee Increase
Anne Arundel County Alert!
Effective July 1, 2007
Wastewater Connection Fee Increase
Anne Arundel County has made the decision to increase the wastewater system capital facility connection charge, effective July 1, 2007. On May 31, 2007 the County Council passed Bill No. 36-07 (as part of the County's overall budget) which increases the wastewater connection charge from $3,000 to $7,000 for each EDU.

The new Ordinance takes effect July 1, 2007. Certain projects will be allowed to pre-pay the current charge (i.e. $3,000 plus $80 allocation deferral fee). Those projects must have at least Sketch Plan, Site Development Plan or Final Plan of Subdivision approval ­and must make the payment by close of business on June 29, 2007.

The water connection charge does not have to be paid at the same time the wastewater connection charge is paid. There is a very short window of opportunity to save a substantial number of dollars. Please share this information with your colleagues. Attached is a copy of AA County Council bill 36-07 which authorizes the increase. If you have any questions, please contact Susan Stroud, Director of Operations, Government Affairs Department, HBAM at susan@homebuilders.org or by phone at 410-265-7400x101

View the letter>>>

AA Co. PowerPoint Presentation

Notice of Sales Agent Licensing Law
From the Office of Consumer Protection: an upcoming Sales Agent registration requirement will go into effect on October 1 and new Critical Area law requirements went into effect July 1.

New Regulation
View the amendments to Regulation .07 under COMAR 26.04.04 Well Construction.

Sales Force Registration and the Guarantee Fund
During the 2008 session of the Maryland General Assembly, legislation to overturn the requirement that all new home sales people should be licensed Realtors was enacted. The new process entails a simple registration procedure with the Builder Registration Unit at the Attorney Generals Office of Consumer Protection. The sales person registration has a nominal fee and is bi-annual. There is no continuing education component associated with the new program. In addition, there will be a new $50 per building permit fee requirement, which will go to fund the newly created builder guarantee fund. The legislation will take effect on October 1, 2008. Below is a set information guides to assist in bringing you and your sales staff in line with the new legislation. If you have any questions, please feel free to contact Susan Stroud, HBAM Government Affairs Director at susan@homebuilers.org or call 410-265-7400, ext. 101.

HB 1557 Guranty Fund Process

HB 1557 Registration Process

Proposed regs to implement controlling interest law
The Dept. of Assessments and Taxation has issued proposed regulations on implementation of the tax on transfers of controlling interest. Please review the regs and provide either Katie Maloney or Susan Stroud with any comments/concerns about their assumptions. The deadline for comment submittal is May 27. Thank you.

Government Affairs
The Maryland General Assembly has passed and Governor O’Malley has signed into law HB 1288 - Licensure – Home Builders and Sales Agents. This bill will most likely require new home builders to use a licensed sales agent to sell their product. Builder members should begin preparations to make sure they are able to comply with this new requirement which went into effect on October 1, 2007.

House Bill 1288- Sales Agents for Home Builders Licensure

Update!!!

Maryland Law Licensing Builder Sales Agents - September 14, 2007 Status Report

HB 1288 - AG Advice of Council - Builder -Broker

MD Attorney General New Home Agent Licensing FAQ Revised July, 23

MDP has launched a new website to help educate the public about the comprehensive planning process. View the page here. Be sure to check out the section on what MDP is saying about your town's comp plan.