SECTION 1. Chapter 62 of the General Laws, as appearing in the 2012 Official Edition, is hereby amended by adding the following section:-

Section 5D. (a) As used in this section, the following words shall have the following meanings:-

“Common areas and facilities”, all real property and facilities within a community which is owned or leased by an association or dedicated for use or maintenance by the association or its members.

"Homeowners' association", an incorporated or unincorporated entity responsible for the operation of a community in which the voting membership is made up of parcel owners or their agents, or a combination thereof, and in which membership is a mandatory condition of parcel ownership, and which is authorized to impose assessments that, if unpaid, may become a lien on the parcel.

“Parcel”, a platted or unplatted lot, tract, unit, or other subdivision of real property within a community, as described in the declaration:

(i) Which is capable of separate conveyance; and

(ii) Of which the parcel owner, or an association in which the parcel owner must be a member, is obligated:

(1) By the governing documents to be a member of an association that serves the community; and

(2) To pay to the homeowners’ association assessments that, if not paid, may result in a lien.

(b) Each parcel of a homeowners’ association and its interest in the common areas and facilities shall be considered an individual parcel of real estate for the assessment and collection of real estate taxes but the common areas and facilities shall not be deemed to be a taxable parcel.  Betterment assessments or portions thereof, annual sewer use charges, water rates and charges and all other assessments, or portions thereof, rates and charges of every nature due to a city, town or district with respect to the homeowners’ association or any part thereof, other than real estate taxes, may be charged or assessed to the homeowners’ association; provided, however, that any lien of the city, town or district provided by law therefor shall attach to the parcels in proportion to the percentages, set forth in the master deed on record, of the undivided interests of the respective parcels in the common areas and facilities.

SECTION 2. This act shall take effect upon passage.