§ 18.1504. Duties of the responsible party.

(a)

Construction. The responsible party shall construct a multi-used residential sewerage system in accordance with the plans approved by the Maryland Department of the Environment and as required by this subtitle.

(b)

Operator Information. The responsible party shall submit to the Department a copy of the operator's contract.

(c)

Declaration of Covenants. The responsible party shall execute a declaration of covenants, or similar document, to run with the land as required under section 18.1506 of this subtitle.

(d)

Required Disclosures. Prior to the initial sale of a residential unit, the responsible party shall disclose to a prospective purchaser:

(1)

The estimated annual cost of the operation, maintenance, repair, and replacement of the multi-used residential sewerage system for the residential unit served by the system; and

(2)

Terms, covenants, and restrictions in any declaration of covenant, or similar document, as required under section 18.1806 of this subtitle.

(e)

Financial Management Plan and Financial statements. The responsible party shall provide to the Health Department and the Department:

(1)

Before the Health Department signs the final plat, the financial management plan; and

(2)

Annually, financial statements in a form acceptable to the Department that may include, without limitation, a balance sheet, income statement, statement of cash flow, and statement of capital reserves in order to show compliance with the financial management plan.

(f)

Financial Security. The responsible party shall provide financial security in the form of a bond, cash deposit, irrevocable letter of credit, or other security approved by the Department to guarantee the cost of completing and maintaining the multi-used residential sewerage system:

(1)

Before the homeowners' association or condominium association becomes the responsible party for the system, if construction of the system begins on or before September 8, 2008; or

(2)

Before beginning construction of the system, if construction of the system begins after September 8, 2008.

(g)

Financial security required by subsection (f) of this section shall:

(1)

Guarantee the construction of the multi-used residential sewerage system in accordance with all applicable regulations and standards of the Maryland Department of Environment and the County; and

(2)

Include guarantees by the responsible party that shall include the following:

(i)

Performance financial security in a form acceptable to the County in an amount that:

a.

Is equal to 100 percent of the estimated cost of construction;

b.

Guarantees timely and satisfactory completion of the multi-used septic system; and

c.

Guarantees the operation of the multi-used septic system in accordance with the permit; and

(ii)

Payment financial security in a form acceptable to the County in an amount that:

a.

Is equal to 50 percent of the estimated cost of construction; and

b.

Guarantees the payment of debts owed for labor and materials used in the construction of the multi-used septic system; and

(iii)

A maintenance and repair financial security in a form acceptable to the County and in an amount that:

a.

Is equal to 50 percent of the original amount of the performance security; and

b.

Guarantees the responsible party's obligation to complete repairs to the multi-used sewerage system and to remedy damages.

(h)

Financial security required by subsection (f) of this section shall be released as follows:

(1)

The approving authority shall retain the performance financial security until the later of:

(i)

One year after the date of issuance of a use and occupancy permit for the residential lots which establishes occupancy of 80 percent of the residential lots served by the system, if during the year after issuance of the use and occupancy permit the reports for the system's operation complied with effluent requirements of the groundwater discharge permit; or

(ii)

One year after the date the responsible party has operated the system in compliance with the permit for 12 consecutive months;

(2)

The approving authority shall retain the payment financial security until the later of:

(i)

The date the performance financial security is released; or

(ii)

Any claims against the payment financial security have been resolved; and

(3)

The approving authority shall retain the maintenance and repair financial security until the later of:

(i)

One year after the date the performance financial security is released; or

(ii)

One year after the date the responsible party has operated the system in compliance with the permit for 12 consecutive months.

(C.B. 49, 2008, § 1)