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§ 11B-113.4. Annual charges for properties

West's Annotated Code of MarylandReal Property

West's Annotated Code of Maryland
Real Property (Refs & Annos)
Title 11b. Maryland Homeowners Association Act (Refs & Annos)
MD Code, Real Property, § 11B-113.4
§ 11B-113.4. Annual charges for properties
Legislative intent
(a) It is the intent of the General Assembly to prevent unfair treatment of property owners by a homeowners association when annual charges based on the assessed value of property imposed by the homeowners association increase at such a rate that it creates an unexpected windfall for the homeowners association.
Annual charge defined
(b) In this section, the term “annual charge” means a charge based on the current assessed value of property for county and State property taxes that is levied by a homeowners association on property in a development.
Application of section
(c) This section only applies to a development that:
(1) Contains at least 13,000 acres of land and has a population of at least 80,000; and
(2) Is governed by a homeowners association that levies an annual charge on property within the development.
Basis for annual charges of revalued properties
(d)(1) A homeowners association shall base the annual charge for the revalued properties on the phased in value of property as provided under § 8-103 of the Tax--Property Article.
(2) If the value of an improved property has been reduced by the State or county assessments office after, or by reason of, a protest, appeal, credit, or other adjustment, the homeowners association shall reduce the annual charge on the property based on the reduced value.
Revalued properties exceeding prior valuation by more than 10%
(e) Until the annual charge for the revalued property is based on the phased in value of property as required under subsection (d) of this section, if the value of the properties revalued as of the most recent date of finality as provided in § 8-104 of the Tax--Property Article exceeds the prior valuation by more than 10%:
(1) The increase shall be considered an unexpected windfall to the homeowners association that should be offset; and
(2) Beginning with the first year following the revaluation of the property for State property tax purposes, the homeowners association shall provide to the owner of the revalued property a rebate or credit in an amount equal to the portion of the annual charge that is attributable to the growth in the value of the revalued property in excess of 10%.
Revenues from annual charges insufficient to meet debt service requirements
(f) Subsections (d) and (e) of this section do not apply if a governing body certifies on or before April 1 in the first year following the revaluation of property values for State property tax purposes that the revenues from the annual charges are insufficient to meet the debt service requirements during the next taxable year on all bonds that the governing body anticipates will be outstanding during that year.
Calculation of annual charge
(g) Notwithstanding any provision of the law to the contrary, when calculating an annual charge, a homeowners association may not consider the rate of assessed value of property to have increased by more than 10% in a taxable year.


Added by Acts 2004, c. 507, § 1, eff. June 1, 2004. Amended by Acts 2005, c. 55, § 1, eff. June 1, 2005.

Editors' Notes

2004 Legislation
Acts 2004, c. 286; Acts 2004, c. 478; Acts 2004, c. 507 each added new § 11B-113.1. The section added by Acts 2004, c. 286, relating to notice and delivery by electronic transmission, has been designated as Real Property § 11B-113.1. The section added by Acts 2004, c. 478, relating to recorded covenants and restrictions that restrict ownership based on race, religious belief, or national origin, has been designated as Real Property § 11B-113.3. The section added by Acts 2004, c. 507, relating to annual charges, has been designated as Real Property § 11B-113.4.
Acts 2004, c. 507, § 2, provides:
“SECTION 2. AND BE IT FURTHER ENACTED, That, notwithstanding the provisions of Section 1 of this Act, the valuation of real property for the purposes of any private contract or covenant that was entered into or imposed prior to July 1, 1978, the effective date of Chapter 175 of the Acts of the General Assembly of 1978, for the purpose of providing funds for public facilities or services through the imposition of payments or charges based on valuations made by the State for real estate tax purposes shall be 50% of the phased in value of property as provided under § 8-104 of the Tax--Property Article.”
Acts 2004, c. 507, § 3, provides:
“SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall be construed to apply retroactively and shall be applied to and interpreted to affect all annual charges imposed by a homeowners association made on or after January 1, 2003.”
Acts 2004, c. 507, § 4, provides:
“SECTION 4. AND BE IT FURTHER ENACTED, That if any provision of this Act or the application thereof to any person or circumstance is held invalid for any reason in a court of competent jurisdiction, the invalidity does not affect other provisions or any other application of this Act which can be given effect without the invalid provision or application, and for this purpose the provisions of this Act are declared severable.”
MD Code, Real Property, § 11B-113.4, MD REAL PROP § 11B-113.4
Current through legislation effective June 1, 2019, from the 2019 Regular Session of the General Assembly.
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