Special Announcement
Be in the Know: Special Community Benefits District
Why should Shipley's Choice pursue SCBD desgination? Understanding the costs and challenges facing our community.
🤝 Driven by Volunteers
The Shipley's Choice Community Association Board is comprised entirely of volunteers—your friends and neighbors—who generously contribute their own time to maintain and protect our shared community assets.
⚡ SCBD in 30 Seconds: The Essential Math
The "Invisible" Essentials of Our Community
Most of the work the SCCA does operates quietly in the background. Without consistent funding, these essential, everyday benefits are at risk:
Putting It Into Perspective: The True Cost of Participation
Currently, our voluntary collections average just $63 per household because not everyone contributes. To sustain even minimal operations, many households generously donate extra funds, effectively subsidizing those who do not pay.
This dynamic creates an inequitable burden: while the fair annual share to run our community is $75, those who do contribute are often forced to pay an effective cost of $110 or more to cover the shortfall left by non-donating households.
If the SCCA transitioned to a mandatory $75 SCBD assessment, the burden would be shared equally by all 283 households, ensuring sustainable funding of $21,225 without requiring anyone to over-contribute.
Where Does the Money Go?
A breakdown of SCCA's actual expenditures in 2025. It illustrates how unavoidable costs (tree removal and insurance) dominate the budget, leaving little room for enhancements.
The Problem: The Current Funding Model is Unsustainable
The voluntary dues model we rely on today is fundamentally broken. As household participation steadily declines, the SCCA is forced to shoulder skyrocketing insurance premiums and unpredictable emergency maintenance costs—like hazardous tree removals—with a shrinking budget. This persistent funding gap has depleted our cash reserves and left the community struggling to maintain even the most basic neighborhood standards.
1. Challenges with the Voluntary Model
- Loss of Paying Households: Participation has steadily declined from 74% in 2020 down to 68% in 2026.
- Declining Participation Gap: Nearly 32% of the community (90 homes) currently does not contribute to essential maintenance (often simply due to the friction of mailing a physical check).
- Annual Revenue Shortfall: Annual revenue collections have dropped while operating costs continue to outpace income by significant margins.
2. Rising Costs of Essential Services
- Insurance Costs Escalated 151%+: Premiums more than doubled, jumping from $1,700 to $4,279 between 2022 and 2026.
- Fixed Overhead Swallows Revenue: Insurance alone now consumes roughly 29% of total collected dues, severely limiting funds for physical improvements.
- Living Within Our Means: To balance the budget, the SCCA has already had to stretch out the time between mowings, reduce mulching, and cut back on community aesthetics.
3. High Volatility in Common-Ground Liabilities
- Exploding Tree Expenses: Tree care costs escalated from $7,550 in 2020 to $15,050 in 2025, consuming over 100% of collected dues for that year.
- Physical risk to residents and property: Dead trees can fall unexpectedly, causing severe or deadly harm when they do.
- Inability to Plan: Unpredictable emergencies leave zero room for proactive maintenance or long-term enhancements.
4. The Need for Sustainable Reserves
- Operating Deficits: Recent years have seen significant deficits. In 2025, actual expenses ($20,896) exceeded collected dues ($17,625) by over $3,200.
- Depleting Cash: Community unencumbered balances collapsed from over $13,100 at the end of 2024 down to $1,017 by mid-2026, proving the current model is unsustainable.
A Search for Solutions
Faced with these seemingly insurmountable problems, the board recognized that defeatism is not the solution. Instead, it launched an initiative to identify and explore all options for a new funding approach that will best meet the needs of the community. After months of research, investigation, and due diligence, we believe we have accomplished this objective. Work has been underway to assemble the materials to present the facts to our members in time for the October 2026 annual meeting with a strong recommendation to proceed.
The SCBD Solution: Investing in Our Future
An SCBD isn't just about covering costs—it's an upbeat, proactive step toward a beautifully maintained and thriving Shipley's Choice.
- Shared Pride
A fair system where everyone chips in a small amount ($75) so no one carries an unfair burden. - Consistent Beauty
Guaranteed funding means we can afford regular mowing, fresh mulch, and proactive landscaping. - Peace of Mind
Strong reserves to easily handle unexpected tree removal and comprehensive liability insurance.
Special Community Benefit Districts
Have been formed for a variety of purposes, including:
- Maintenance of community property, including community-owned roads
- Special security or special police protection
- Improvements to community facilities
- Insect and pest control
What it is NOT:
- Part of the County Government - the County merely collects and distributes the taxes in a fiduciary role;
- A legal entity - they cannot borrow funds, buy property, be sued
- A Home Owners Association - nor do they “replace the Home Owners Association”
How SCBD Collection Actually Works: A Transparent Billing Service
Some online rumors suggest the SCBD gives Anne Arundel County power over SCCA. In reality, the County's role is strictly administrative and fiduciary—acting as our billing department.
Community Proposes Rate
Every year, the SCCA board (your volunteer neighbors) proposes a budget and flat rate (e.g., $75) based strictly on actual community maintenance needs.
County Prints Bill
The county lists the proposed $75 fee as a flat line-item on your existing annual property tax bill. No separate checks or mailing required.
SCCA Receives Funds
The county collects a 5% administrative fee and returns the other 95% to the SCCA.
SCCA Board Allocates
The SCCA board spends the collected funds exclusively on neighborhood grass, trees, signs, and insurance. The county has zero say in how funds are allocated.
Fact vs. Myth: Debunking the Rumors
Social media is a great tool for staying in touch, but it is often a hotbed for unverified rumors and false claims. Here are the facts regarding the proposed SCBD:
"The SCCA Board is acting in secret and hiding financial records."
The SCCA Board is comprised entirely of unpaid volunteer neighbors who donate their time to keep the community running. The board meets monthly (or more) to discuss community matters, manage finances, and maintain records of board activity. The volunteers on the board make every effort possible to keep clean records and make them available to residents upon request.
"The SCCA has already been approved by the County without the knowledge or participation of property owners."
The SCCA announced last year to our membership that we will be exploring the formation of an SCBD during 2026. At this point all that has occurred is
- 1. the County has confirmed our eligibility
- 2. it approved the wording of our proposed petition.
Approval of the SCBD will not happen until
- 1. two-thirds of our homeowners sign the petitions
- 2. the petitions are reviewed and approved by County.
The SCCA is currently at the point where a full information packet is being prepared for distribution to all property owners in advance of the regular annual meeting at which point the process of trying to obtain signatures will begin.
"This is a sinister new tax imposed on us by the County."
The Board cannot impose this unilaterally; it can only pass with a 2/3 supermajority of households signing a petition in favor. The county acts purely as an administrative billing service, collecting the flat $75/year assessment on your tax bill and returning almost all of it fback to the SCCA.
"The SCCA can't hold or maintain land in Section 2 because the covenants expired."
The SCCA owns 25 acres of common area in Section 2. The expiration of architectural restrictions in Section 2 in 2012 does not change SCCA's deeded ownership of this land, nor does it eliminate SCCA's ongoing legal liability and maintenance duties (mowing, hazardous tree removal, insurance) for it.
"If we don't pay dues, the SCCA will just magically keep finding money."
SCCA unencumbered reserves have been depleted from $13,100 to just $1,017. If dues continue to decline, the association faces insolvency. This would mean canceling landscaping services entirely and dropping liability insurance, opening up individual homeowners to personal litigation risks in the event of an accident on unmaintained common ground.
"The SCCA is subject to Maryland Real Property Law Title 11B - Maryland Homeowners Association Act"
Under Maryland law, the SCCA is considered to be a “Community Association” and not an HOA. Unlike HOAs Community Associations do not have authority to impose mandatory dues or assessments on property owners. Note that HOAs are not permitted to form an SCBD since they already have the ability to fund their needs. During our research into eligibility requirements, the Anne Arundel County Office of Law reviewed our documents and confirmed we are not an HOA. HOAs that fall under Title 11B have extensive regulations regarding governance, record keeping, replacement reserve funds and others. Under Title 11B, the State of Maryland can even step in and take over if it feels the community is unable or unwilling to properly comply exposing property owners to large unexpected assessments. The SCCA does NOT fall under Title 11B and, therefore, cannot be in violations of any of its provisions.
"The community should create an HOA and make assessments mandatory."
The developer of Sections 1 and 2 opted not to establish an HOA. Once a lot has been sold, there is no legal avenue to impose an HOA retroactively without approval of 100% of property owners. This also means that it is impossible to merge the SCCA with the Shipley's Choice HOA which has a mandatory annual assessment of $205 per home at the current time.
Section 2 Covenants & Community Liability Risk
Some online discussions have confused the expiration of Section 2's individual architectural covenants with the SCCA's ongoing physical property ownership. We want to be fully transparent about the legal realities and why this impacts every single homeowner.
1. Property Ownership vs. Architectural Control
The Declaration of Covenants for Section 2 (which allowed SCCA to enforce building and aesthetic guidelines on individual homes) expired in 2012. While this means architectural restrictions are gone, it did not change SCCA's deeded ownership of the 25 acres of common areas inside Section 2.
2. The Legal Obligation to Maintain and Insure
Because SCCA holds the deeds to these 25 acres, the association is legally responsible and strictly liable for any injuries, falling trees, or accidents occurring on that land. The association is legally required to carry comprehensive general liability insurance and perform safety maintenance (like cutting hazardous dead trees) across the entire community.
⚠️ The Devastating Risk of Insolvency
If voluntary collections continue to collapse and we cannot afford the rising $4,200+ annual liability premiums, SCCA faces losing insurance coverage entirely. In that scenario, any slip-and-fall, tree-related injury, or property damage lawsuit on common ground could result in a catastrophic legal judgment. Because the association consists of its individual members, such judgments could result in severe financial liens or legal claims directly impacting SCCA property owners.
The Bottom Line
The expiration of restrictive covenants over a decade ago is completely unrelated to the SCBD proposal. The SCBD is a necessary, practical safety net to ensure SCCA remains solvent, insured, and capable of protecting all residents from legal and physical liability.
A Note on Community Participation
The SCCA Board holds a public annual meeting every October, and all residents are strongly encouraged to attend. These meetings are crucial for discussing the community's financial health, maintenance needs, and future planning.
Active participation is essential for a healthy community association. When only a handful of residents attend out of nearly 300 households, it places the burden of decision-making on a very small group. We welcome and need your voice.
Board Governance & Community Decision-Making
Understanding how meeting notices, preliminary board actions, and resident petitions work under our SCCA By-Laws.
đź“© Meeting Notices & Annual Communication
Under Article VII, Section 3 of the SCCA By-Laws, written notice for annual membership meetings must be provided at least 7 days prior. The Board fulfills this obligation by mailing the date, time, and location directly to every household alongside the annual newsletter, ballots, and dues notices.
🔍 Exploratory Due Diligence & Administrative Actions
Under Article VIII, Section 1, the Board of Directors is tasked with executive administrative duties and operational due diligence. Submitting an initial inquiry to Anne Arundel County to verify SCBD eligibility was a standard, zero-cost fact-finding action (not a binding vote or policy change). It is the Board's duty to gather preliminary facts and county guidelines first so verified data can be presented to the neighborhood.
🗳️ The Choice Rests 100% with Homeowners
An SCBD cannot be established by the Board alone. Verifying county eligibility simply opened the door for a formal petition process. The final decision rests entirely in the hands of the property owners: if a 2/3 majority of households choose to sign the petition, it moves forward; if not, it does not.
Where can I get more information?
- The Anne Arundel County Website has a wealth of helpful information about SCBDs and all residents are encouraged to review.
- As always, the SCCA board is available to field questions through email, in-person, on the phone, or via the Google Group for SCCA residents.
- Note that the Shipley's Choice Facebook page is NOT an authoritative source for community information on SCCA matters.
