ROBERT L. EHRLICH, JR., Governor

Ch. 507

(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.

(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.

(D)     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.

(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%.

(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

(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

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

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