Maryland HOA Act (Real Property 11B) governs assessment collection in Montgomery County HOAs. Regular assessments must be established by the budget adopted by the board. Special assessments may require membership approval depending on the governing documents. HOAs can lien and foreclose for unpaid assessments.
Under the Maryland HOA Act (Real Property Article 11B), HOA boards set annual assessment amounts based on the adopted operating budget. The board must distribute the budget and assessment schedule to homeowners annually. Special assessments for major repairs, improvements, or unexpected expenses may require a membership vote depending on the communitys declaration and bylaws, though some governing documents grant the board authority to levy special assessments up to a specified amount without a vote. When a homeowner fails to pay assessments, the HOA may charge late fees and interest as specified in the governing documents. Maryland law gives HOAs the authority to file a lien against the property for unpaid assessments, including late fees, interest, and collection costs. If the delinquency continues, the HOA can foreclose on the lien through the courts. Maryland requires HOAs to provide a written statement of account to a homeowner or prospective buyer upon request, showing all outstanding balances. In Montgomery County, many large communities have assessments ranging from $50 to $300 per month, with higher fees in communities offering amenities like pools, fitness centers, and community centers common in Clarksburg, Kentlands, and King Farm.
Late payments incur fees and interest per the governing documents. After a specified delinquency period, the HOA may file a lien against the property. Continued nonpayment can lead to foreclosure proceedings in Maryland circuit court.
See how Montgomery County's assessment & dues rules stack up against other locations.
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