Relative to charges associated with condominiums in tax title
Impact
If enacted, this bill would alter the financial interactions between municipalities and condominium associations by ensuring that municipalities can recover not just taxes but also fees associated with common expenses when foreclosing on a condominium unit. This provision is expected to streamline the recovery process and mitigate the financial losses municipalities face when residents fail to pay their fees, ultimately providing a more comprehensive financial recourse for local governments.
Summary
House Bill 2905 proposes amendments to Chapter 60 of the General Laws concerning municipal handling of condominium units that have been acquired for unpaid taxes. Specifically, it seeks to clarify that when a city or town takes possession of a condominium unit for unpaid municipal charges, the lien imposed for taxes will also cover various common expense fees and special assessments owed to condominium or homeowners’ associations. The intent is to ensure that municipalities are reimbursed for these fees, which would otherwise be the responsibility of the former unit owner.
Contention
Debate surrounding H2905 could center on the implications for condominium associations and unit owners. Supporters may argue this legislation strengthens revenue collection for municipalities, reducing the burden on local taxpayers who do pay their dues. On the contrary, critics might raise concerns that such sweeping liens could further complicate the process for condominium owners facing financial difficulties, potentially leading to unintended consequences such as an increased number of units going to tax title due to uncivil consequences from accumulated fees.