Current with changes from the 2024 Legislative Session
Section 11B-117 - Liability for homeowners association assessments and charges on lots(a)(1) As provided in the declaration, a lot owner shall be liable for all homeowners association assessments and charges that come due during the time that the lot owner owns the lot.(2) The governing body of a homeowners association has the authority to increase an assessment levied to cover the reserve funding amount required under § 11B-112.3 of this title, notwithstanding any provision of the declaration, articles of incorporation, or bylaws restricting assessment increases or capping the assessment that may be levied in a fiscal year.(b) In addition to any other remedies available at law, a homeowners association may enforce the payment of the assessments and charges provided in the declaration by the imposition of a lien on a lot in accordance with the Maryland Contract Lien Act.(c)(1) This subsection does not limit or affect the priority of: (i) A lien for the annual charge provided first priority over a deed of trust or mortgage by the deed, agreement, and declaration of covenants, easements, charges, and liens dated December 13, 1966, and recorded in the land records of Howard County (the Columbia Association Declaration); or(ii) Any lien, secured interest, or other encumbrance with priority that is held by or for the benefit of, purchased by, assigned to, or securing any indebtedness to:1. The State or any county or municipal corporation in the State;2. Any unit of State government or the government of any county or municipal corporation in the State; or3. An instrumentality of the State or any county or municipal corporation in the State.(2) In the case of a foreclosure of a mortgage or deed of trust on a lot in a homeowners association, a portion of the homeowners association's liens on the lot, as prescribed in paragraph (3) of this subsection, shall have priority over a claim of the holder of a first mortgage or a first deed of trust that is recorded against the lot on or after October 1, 2011.(3) The portion of the homeowners association's liens that has priority under paragraph (2) of this subsection: (i) Shall consist solely of not more than 4 months, or the equivalent of 4 months, of unpaid regular assessments for common expenses that are levied by the homeowners association in accordance with the requirements of the declaration or bylaws of the homeowners association;(ii) May not include: 6. Special assessments; or7. Any other costs or sums due under the declaration or bylaws of the homeowners association or as provided under any contract, law, or court order; and(iii) May not exceed a maximum of $1,200.(4)(i) Subject to subparagraph (ii) of this paragraph, at the request of the holder of a first mortgage or first deed of trust on a lot in a homeowners association, the governing body shall provide to the holder written information about the portion of any lien filed under the Maryland Contract Lien Act that has priority as prescribed under paragraph (3) of this subsection, including information that is sufficient to allow the holder to determine the basis for the portion of the lien that has priority.(ii) At the time of making a request under subparagraph (i) of this paragraph, the holder shall provide the governing body of the homeowners association with the written contact information of the holder.(iii) If the governing body of the homeowners association fails to provide written information to the holder under subparagraph (i) of this paragraph within 30 days after the filing of the statement of lien among the land records of each county in which the homeowners association is located, the portion of the homeowners association's liens does not have priority as prescribed under paragraph (2) of this subsection.Amended by 2022 Md. Laws, Ch. 664, Sec. 1, eff. 10/1/2022.Amended by 2021 Md. Laws, Ch. 433, Sec. 1, eff. 10/1/2021.Amended by 2020 Md. Laws, Ch. 138, Sec. 1, eff. 10/1/2020.