Maryland House Bill HB1061

Maryland 2022 Regular Session

• Introduced: 2/10/22
• Refer: 2/10/22

Caption

Local Government - Condominium and Homeowners Associations - Repair and Rehabilitation Funds

Impact

The enactment of HB 1061 would shift some financial burdens from associations to local governments, as communities that have been historically responsible for their own infrastructure maintenance seek assistance for repairs. By enabling these associations to receive funding for infrastructure that was traditionally the responsibility of the local governments, the bill aims to address issues of deteriorating infrastructure that can depress property values and negatively impact local property tax revenues.

Summary

House Bill 1061 aims to assist condominium and homeowners associations in Maryland by establishing a fund for the repair and rehabilitation of community infrastructure. The bill allows counties and municipalities to create a local trust fund that utilizes property tax revenues paid by unit and lot owners in these residential communities to finance necessary infrastructure repairs. This initiative is critical as many of these associations, often over 50 years old, face significant repair costs but are financially constrained by their governing documents.

Contention

There are notable discussions surrounding the governance and eligibility for funding. While the bill allows for the prioritization of funding based on the greatest need for infrastructure repair, concerns may arise regarding the allocation process and the potential for unequal distribution of funds among different communities. Opponents may argue that such a system could be ineffective in equitably addressing the varying needs of older communities across the state.