Bill > HB1201

This bill exempts certain condominiums and homeowners associations from the requirement to conduct reserve studies, which are detailed assessments of funds needed for future major repairs and replacements of common elements or areas. Specifically, condominiums are exempt if their council of unit owners votes with at least 80% of the eligible owners to fund repairs through a special assessment, and certain homeowners associations are also exempted under specific conditions, including those that issue bonds for capital expenditures, comprise 50 or fewer homes, consist only of single-family homes on non-subdividable lots, or are only responsible for maintaining common private roads. The bill defines a "reserve study" as a comprehensive evaluation of components, their useful lives, estimated repair or replacement costs, and the necessary annual reserve amounts, and an "updated reserve study" as a review of these estimates and work performed within the last five years. This legislation aims to provide relief from reserve study mandates for associations that have alternative, robust funding mechanisms in place.

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https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1201?ys=2026RS