Maintenance Corporation Work-Shop 1PM June 11th And New AG Homeowner Organization Ombudsman Position In The Works

New Castle County Executive Office

Maintenance Corporation Work-Shop

Please take notice that the New Castle County Executive Office will hold a work-shop onWednesday, June 11, 2014, 1:00 pm (SHARP) at the Gilliam Building Multipurpose Room.

Agenda

Introduction: Inform the roles and responsibilities of Maintenance Corporations in New Castle County. 

Transferring Control of the Maintenance Corporation to the Homeowners 

Transferring title of the open space 

Governing Documents 

Assessments (Maintenance dues) 

Legal Transfer 

BREAK 

Tax Status 

Finances 

Members’ Rights 

Corporate Resolutions 

Liability for Acts or Omissions of the Governing Body 

Governing Body: Power and Duties; Authority 

BREAK 

Open Space 

Maintenance Responsibilities 

Storm water Management Facilities 

Community Maintenance Responsibilities 

Organization Annual Registration 

If there are any questions regarding this agenda, please contact Steve Burg Executive Office at 395-5057.

Also, Melanie George Smith's HB 308 (House Bill # 308 w/HA 1, HA 2, HA 3, HA 4) is fast-tracking itself through the General Assembly without much attention. It sailed through two House committees and drew a floor vote before the break and is scheduled to be heard in tomorrow's Senate Community/County Affairs Committee hearing at 1:30PM. 

Meanwhile, Paul Baumbach sent this along ~ 

MEMORANDUM
To: Members of the House Housing and Community Affairs Committee
From: Mark J. Cutrona, Deputy Director of the Division of Research
Date: May 14, 2014
Re: Definition of Common Interest Community 

QUESTIONS PRESENTED
1. Is there a uniform definition of a common interest community?
2. What qualifies as a common interest community? 

DISCUSSION
The definition of the term “common interest community” contained within House Bill
308 is taken from the Delaware Uniform Common Interest Ownership Act (DUCIOA). In
DUCIOA, “common interest community” is defined as follows:
“real estate described in a declaration with respect to which a person, by virtue of
that person's ownership of a unit, is obligated to pay for a share of real estate
taxes, insurance premiums, maintenance, or improvement of or services or other
expenses related to common elements, other units or other real estate described in
that declaration. Common interest community does not include a campground
which is subject to Chapter 28 of Title 6 or those arrangements described in § 81-
224 of this title. „Ownership of a unit‟ does not include holding a leasehold
interest in a unit of a stated term of less than 20 years in a unit, including renewal
options.”1
The definition is all encompassing and is intended to apply to any real estate referenced in a
declaration2 and for which the owner has to pay their share of real estate taxes, insurance
premiums, maintenance, or other expenses related to common elements, including open space,
pools, and storm water management systems, described in a declaration.
1 § 81-103(11), Title 25 of the Delaware Code.
2 A declaration is defined by § 81-103(17), Title 25 of the Delaware Code. Essentially, it is a contractual document that creates a common interest community by referencing the real estate subject to the declaration and setting out that owners are required to pay for common elements.
This definition creates uniformity by including all entities that are (1) created by declaration and (2) obligate an owner to pay for expenses related to common elements referenced within the declaration. Furthermore, this definition allows for a concept that can be applied statewide, despite other names given to these entities by county or municipal governments or the terms of the declaration itself.
As a result, this definition includes condominiums,3 maintenance corporations, and home owners associations provided that these entities are (1) created by declaration and (2) obligate an owner to pay for expenses related to common elements referenced within the declaration. This definition would not include a civic organization, as civic organizations are generally not created by declarations and intended to obligate owners of property to pay for common elements. 

CONCLUSION
In conclusion, the term “common interest community” in House Bill 308 is connected to a definition in DUCIOA. This term uniformly applies to those entities, however named, that are (1) created by declaration and (2) obligate an owner to pay for expenses related to common elements referenced within the declaration.
3 Condominiums are specifically defined as a common interest community by § 81-103(12), Title 25 of the Delaware Code.