Prince George's County - Deferred Water and Sewer Charges Homeowner Disclosure Act of 2014
The Maryland legislature recently passed the Deferred Water and Sewer Charges Homeowner Disclosure Act of 2014 (the "Act"), which establishes new requirements regarding the disclosure of private water and sewer charges assessed to residential properties in Prince George's County to new and existing homeowners. Under the current law, residential real estate developers often record a declaration prior to the conveyance of a home to impose a deferred private water and sewer charge payable by the homeowner over a term of 30 - 33 years, for the purpose of recouping water and sewer infrastructure development costs. This provides a valuable income stream to developers and to private companies that purchase the private water and sewer charge income rights. Under the new Act, the maximum term to recover private water and sewer charges from homeowners will be reduced to 20 years, which may adversely affect the marketability of the sale of private water and sewer charge income rights. Because the Act will not become effective until October 1, 2014, it is not too late for residential real estate developers to record declarations requiring the payment of private water and sewer charges over a 30 or 33 year term.
If you own or are developing a residential project in Prince George's County, we welcome the opportunity to speak with you regarding the Act, and any questions you may have regarding private water and sewer charges. Please feel free to contact us - we are here to help.
Brian D. Bichy, Partner, email@example.com or at 301.961.5253
Marc DeCandia, Partner, firstname.lastname@example.org or at 301.961.5247
Steven L. Dube, Partner, email@example.com or at 301.961.5209
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