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45
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1982
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SENATE
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Third, the bill in § 9-201 requires that the bylaws or
declaration of covenants of the association must provide for
the assessment of specified charges and that the assessment
is a lien. However, in §§ 9-202(B)(2) and 9-203(A) the bill-
refers only to the bylaws.
Fourth, the bill does not define "homeowner's
association". Homeowner's associations, unlike condominium
regimes, are a product of the common law and are not
regulated by statute. The absence of a definition could
result in the provisions of the bill applying to any
incorporated voluntary community association and other types
of organizations. Moreover, unlike the provisions of the
Horizontal Property Act, Real Property Article, § 11-101 et
seq., there is no restriction whatsoever placed upon what
can be included within the assessments. Finally, unlike the
declaration of covenants, the bylaws of an organization
often provide for amendment by a small minority of the
membership. Thus, there could be a majority of existing
property owners who have not consented to the imposition of
various charges or to the lien provisions and who oppose
them. By contrast, in the Horizontal Property Act, either
when the regime is created or when a person purchases the
unit, notice of the assessments authorized by statute are in
the bylaws and in the declaration which must be recorded in
the land records. §§ 11-102 and 11-104. Moreover, the
bylaws cannot be amended by less than the "affirmative vote
of unit owners having 66 2/3 percent or more of the votes."
§ ll-104(e)(l).
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Very truly yours,
Stephen H. Sachs
Attorney General
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Senate Bill No. 473
AN ACT concerning
Real Property Liens - Homeowners' Association
FOR the purpose of providing that under certain
circumstances certain assessments by homeowners'
associations are liens on members' homes; requiring
that a certain statement be filed to render these liens
effective; requiring the recordation of these liens;
entitling a homeowner to a recordable satisfaction of
lien if a lien is satisfied; providing for the
assessment of late charges and interest; providing for
foreclosure of liens by a homeowners' association;
setting certain time limitations on filing of
statements and on foreclosure of liens; and generally
relating to liens by homeowners' associations.
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