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Of Interest

Of Interest to Residents
WHEREAS, Article VIII of the Bylaws establishes assessment payment obligations for owners and authorizes the Council of Co-Owners ("Council") to impose charges for late payments, to enforce the Council's liens on condominium units for delinquent assessments, interest and costs of collection, and to accelerate the entire balance of any assessment upon default in the payment of any two or more monthly installments;
WHEREAS, Article V, Section 3(b) of the Bylaws requires the Board of Directors ("Board") to establish and provide for the collection of assessments; and
WHEREAS, there is a need to establish an orderly procedure for the billing and collection of assessments and for the collection of assessments which remain unpaid past their due dates;
NOW, THEREFORE, the Board hereby repeals any and all previously-adopted assessment collection procedures and adopts the following assessment collection procedure:
A. The Council's fiscal year runs from January first to December 31st of each year. Each fiscal year's annual assessment shall be due and payable in equal monthly installments, on or before the first (rt) day of every month ("Due Date"). Unless otherwise determined by the Board, any special or additional assessment, shall, unless otherwise specified in the notice of such assessment, be payable in full on the Due Date of the next periodic installment which is due more than ten (10) days after the date of such notice.
B. All documents, correspondence, and notices relating to assessments or charges shall be mailed or delivered to the address which appears on the books of the Council, and it is the responsibility of non-resident Owners to provide current mailing addresses to the Council's Managing Agent in writing.
C. Non-receipt (or late receipt) of an assessment invoice, coupon booklet, notice or other form of reminder shall in no way relieve the Owner of the obligation to pay the amount due by the due date.
D. Except for delinquent accounts that have been referred to counsel for collection, Owners must make their assessment payments to the Condominium's Managing Agent, at the address and in the manner specified from time to time by the Managing Agent.
E. Payment coupons shall be provided by the Managing Agent as a convenience but ate· not necessary for proper payment of the monthly assessment. However, owners must write their unit numbers on their checks.
F. The term “charges" shall include, without limitation, late fees, interest, returned check fees, administrative costs associated with mailing and serving notices, charges for damage repair costs or other costs incurred by the Council, fines imposed for violations of the Condominium's Master Deed, Bylaws or Rules, and all costs and attorney's fees relating to collection efforts. Unpaid charges shall be collected in the same manner as delinquent assessments, or in such manner as shall be determined from time to time by the Board.
A. Late Fees and Interest. If payment of the total amount of any assessment payment is not received by the Council within fifteen (15) days after the Due Date, the Owner's assessment account shall be delinquent, and a late fee of fifteen dollars ($15.00) or one-tenth (10th) of the late payment, whichever is greater, shall automatically be added to the amount due and shall be a part of the continuing lien and personal obligation of the Owner, as provided in the Bylaws, until all sums due and owing shall have been paid in full. Additionally, any assessment payment that is not received within fifteen (15) days after the Due Date shall bear interest at a rate of eight: percent (8 %) per annum until the full
amount owed is paid, and such late fees and interest shall be part of the continuing lien and personal obligation for assessments.
B. Acceleration: If any two (2) consecutive assessment installments remain unpaid after the Due Date of the second installment, the entire balance of the unpaid assessment for the remainder of the fiscal year may, at the Board's discretion, be accelerated and be declared due and payable in full.
C. Returned Checks. If a check is returned for insufficient funds, a fifty dollar ($50.00) returned check fee, or the maximum amount allowed by Maryland law, shall be applied to the Owner's account. If the Condominium receives two or more checks returned for insufficient funds in any single fiscal year from an Owner, the Board of Directors may require all future payments to be made by certified check, cashier's check or money order for the remainder of the fiscal year.
D. Late Notices: A Late Notice shall be sent to Owners who have not paid any assessment installment or charge, in full, by the fifteenth (15th) day after the Due Date. Non-receipt of such notice does not relieve the Owner of the obligation to pay all amounts due, including without limitation assessments, charges late fees, interest, attorney's fees and other costs of collection.
E. Legal Referral: If payment in full of any assessment or charge is not received by the Council by the sixtieth (60th) day after the Due Date, the Owner's account may be referred to legal counsel for collection action. Nothing herein shall prevent the Managing Agent or the Board of Directors from referring a delinquent account to legal counsel at any time deemed appropriate.
F. Lien: In accordance with the Maryland Contract Lien Act, if an Owner's account is referred to legal counsel for collection, legal counsel shall send a Notice of Intention to Record a Lien to the delinquent Owner. If payment in full of the amount due is not received within thirty (30) days after the Notice of Intention to Record a Lien has been served on the Owner, a Statement of Lien shall be recorded in the county land records, for all assessments (including accelerated assessments) and charges owed, including all costs and attorney's fees incurred by the Council.
G. Civil Suit: If payment in full of all amounts owed to the Council, including all delinquent and accelerated assessments, and all charges and costs, is not received by the time the Statement of Lien is recorded, the Board may direct legal counsel to file a lawsuit against the delinquent Owner, seeking recovery of all amounts owed to the Condominium, including all delinquent and accelerated assessments and all charges, costs and attorney's fees.
H. Foreclosure. If payment in full of all amounts owed to the Council, including all. delinquent and accelerated assessments, and all charges and costs, is not received by the time the Statement of Lien is recorded, the Board of Directors also may direct legal counsel to initiate action to foreclose the lien and sell the Owner’s unit.
I. Application of Payments. Payments received by the Council shall be credited in the following order, and the amount owed for each category below shall be paid in full before payment is applied to the next category :
1. Attorney's fees and court costs.
2. Returned check charges, postage, and other collection costs.
3. Charges, as defined in this Resolution.
4. Late fees and interest.
5. Annual and special assessments, applied first to the oldest amount owed.
We Want You to Know About

Montgomery County recognizes that a substantial proportion of all its citizens now live in condominium and homeowner associations and in housing cooperatives, generally called" common ownership communities." In order to serve better the special needs of these communities, to act as their advocate, and to maintain and improve the quality of life in these communities, the County created the Commission on Common Ownership Communities. The Commission operates under the authority of Chapter lOB of the County Code.
The Commission has 3 basic duties:
Education: the Commission provides free information to both members and to governing bodies about their rights and duties under Maryland law, as well as advice on how to properly operate the association and to avoid complaints. Among other tools, it offers a "Manual and Resource Guide" for boards of directors, and detailed information on architectural control, assessments, and meetings. It publishes a newsletter summarizing recent developments affecting common ownership communities. Commissioners will also speak to communities and their boards on request and welcome invitations to do so.
Legislation: the Commission advocates for common ownership communities concerning proposed laws and regulations at the local and State level.
Dispute resolution: the Commission can hear and resolve certain disputes between members of the communities and their governing bodies, and its decisions are legally binding on the parties. Copies and easy-to-read summaries of its decisions are posted on its website and reviewed in its newsletter.
The Commission is composed of 15 volunteers who are appointed for 3-year terms. 8 members must be residents of common ownership communities and the other 7 must be professionals who work with the communities, such as property managers, lawyers, developers and realtors. Every Fall, the County publishes a request for applicants to the Commission to replace those whose terms are due to expire.
For more information on the Commission and the services it offers, visit its website at