Cambridge Seeks HOA Alternative to Cover Habitat Maintenance Costs at Cardin Way

Cambridge city commissioners directed staff Monday to find a way to avoid requiring a homeowner’s association for a 12-home Habitat for Humanity development, after representatives for the nonprofit said an HOA would burden low-income, first-time homebuyers.

The issue centers on who should maintain a stormwater management area and small open space required for the Cardin Way project, and whether homeowners should pay through a city-managed fee, a tax overlay district or a homeowner’s association.

Chase Powell, a Habitat Choptank board member, said the nonprofit had spent nearly three years discussing alternatives with city staff before recently learning the city would not support a fee arrangement.

“The creation of an HOA will not be in the best interest of the homeowners in this community or the City of Cambridge,” Powell said.

Habitat Choptank is building 12 homes in the neighborhood for families earning below the area median income.

Powell said the homes will create about $18,000 a year in city property tax revenue, compared with about $307 a year before the vacant parcels were redeveloped.

“The lack of response from the city until now does not merit the years of good faith and conversations that have taken place,” Powell said.

Habitat representatives proposed that each homeowner pay about $30 a month to the city for maintenance of the stormwater facility and open space.

Bill Stagg, a retired land planner and Habitat volunteer, said the stormwater feature was required by city code and also benefits surrounding properties by improving drainage.

“The only reason that we might have to have an HOA is to manage and maintain the stormwater management facility and the park open space facility,” Stagg said.

Stagg said the $30 monthly fee would raise about $4,300 to $4,500 a year, enough to cover mowing and build a reserve for future maintenance.

Commissioner Frank Stout said Habitat homeowners should not be forced into an HOA when the city may be able to find another way to handle the maintenance issue.

“We need to solve this problem tonight,” Stout said.

Mayor Lajan Cephas-Bey said she was not opposed to finding a solution but wanted buyers to know clearly what they would be required to pay.

“I just want the record to reflect that I’m requesting for the body to adjust the motion,” Cephas-Bey said.

City Manager Glenn Steckman said the city has legal, insurance and collection questions to resolve before assuming responsibility for the property.

“We’re going to be dealing with this for a couple decades at least,” Steckman said.

Steckman said one possible solution would be a tax overlay district, which could collect maintenance costs through property taxes instead of a separate monthly bill.

Commissioners ultimately voted to direct city staff and the city attorney to work with Habitat on a proposal, with the tax overlay district as the preferred option.

The proposal is expected to return May 11, possibly with an ordinance for first reading.