Bill > HB1269

This bill requires governing bodies of cooperative housing corporations, condominiums, and homeowners associations to adopt annual budgets that include specific calculations for the cost of repairing or replacing common capital components, based on regular "reserve studies" which are detailed assessments of the condition, useful life, and replacement costs of these components. The bill also allows for a two-thirds majority vote by members to determine if the community is facing financial hardship, which could permit a temporary deviation from required reserve funding, provided that efforts are made to resolve the hardship and the reserve amounts are recalculated to ensure future sufficiency. These provisions aim to ensure that common ownership communities are better prepared financially for necessary repairs and replacements of shared infrastructure and facilities.

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https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1269?ys=2026RS