Ch. 507

2004 LAWS OF MARYLAND

(b) on or before January 1, 2005, report its findings and recommendations to
the House Health and Government Operations Committee and the Senate Education,
Health, and Environmental Affairs Committee, in accordance with § 2-1246 of the
State Government Article.

SECTION 2. 3. 2. AND BE IT FURTHER ENACTED, That this Act shall take
effect October 1, 2004.

Approved May 26, 2004.

CHAPTER 507
(House Bill 566)

AN ACT concerning

Homeowners Associations - Annual Charges

FOR the purpose of requiring a homeowners association to base a certain annual
charge on a certain phased in value under certain circumstances; requiring the
governing body of a homeowners association to provide a rebate or credit from a
certain annual charge under certain circumstances; providing that, when
calculating a certain annual charge, a homeowners association may not consider
the rate of assessed value of property to have increased by more than a certain
amount in a taxable year under certain circumstances; defining a certain term;
stating the intent of the General Assembly; clarifying that certain valuations of
property for certain purposes shall be a certain percentage of the phased in
value; providing for the application of this Act; making the provisions of this Act
severable; and generally relating to an annual charge imposed by a homeowners
association.

BY adding to

Article - Real Property

Section 11B-113.1

Annotated Code of Maryland

(2003 Replacement Volume and 2003 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Real Property

11B-113.1.

(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.

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