What is a Special Community Benefits District?

Annapolis Roads is a Special Community Benefit District (SCBD), not a homeowners’ association. This means that homeowners in our community pay an additional tax, administered by the County, that provides the funds needed to maintain community-owned properties, clear snow on non-county roads, control pests and provide security. This is different than a homeowners association (HOA) in that SCBD?funds are collected through property owners’ annual taxes.

There are three types of special taxing districts in Anne Arundel County. Each type of district is established by legislation of the County Council.

  1. Special Community Benefit Districts
  2. Shore Erosion Control Districts
  3. Waterways Improvement Districts

The County Code specifies certain requirements that must be met by taxing districts and certain obligations that go along with taxing district status:

  • Each taxing district must be administered by a community association that is incorporated, that is open to all property owners in the district, and that represents a majority of property owners in the district.
  • Each district must prepare and submit to the County a yearly budget detailing how tax funds collected will be spent and the tax rate necessary to support the budget.
  • Each district must pay to the County a yearly administrative fee that is a percentage of the special taxes assessed on the properties in the district.
  • Special Community Benefit Districts must submit yearly financial reports that are reviewed by the County Auditor and are subject to stringent State of Maryland regulations.

The law concerning Special Community Benefit Districts appears in the Anne Arundel County Code.

From the code:

Annapolis Roads Special Community Benefit District.      

(1)   The limits of the Annapolis Roads Special Community Benefit District are the subdivision known as Annapolis Roads as shown on the plats of Annapolis Roads recorded among the plat records of the County in Plat Book No. 6, Folio Nos. 2 and 31; Plat Book No. 18, Folio No. 32; Plat Book No. 22, Folio No. 26; and Plat Book No. 23, Folio Nos. 10, 19, 21, 22, 23, and 33, and recorded among the land records of the County in Liber LNP 1631, Folio No. 190; Liber LNP 1645, Folio No. 221; Liber LNP 1693, Folio No. 373; and Liber LNP 1745, Folio No. 516, except for those lands within the limits of the City of Annapolis.      

(2)   The district is established for the purpose of construction, maintenance, improvement of, and snow removal from, non-County-owned roads, streets, alleys, sidewalks, curbs, street or road signs and lights, bulkheads, drainage ditches, and culverts; acquiring, improving, and maintaining community real and personal property or any interest in real property necessary to accomplish community-wide projects; providing special police protection; providing recreational activities directly related to the community; and funding the administrative expenses to carry out these purposes, including mailing expenses, secretarial costs, insurance costs, audit fees, attorney’s fees, and the repayment of any loan.      

(3)   The Annapolis Roads Property Owners Association, Inc., a civic or community association that meets the requirements of § 4-7-101(d), shall be responsible for the expenditure of the special assessments collected from the Annapolis Roads Special Community Benefit District.

Click here to view the complete law regarding ARPOA’s SCBD.