The Maryland Legislature considered various bills regarding the management and operation of condominiums, homeowners associations and housing cooperatives in 2022. Although most were not approved, several significant new laws took effect October 1, 2022.
Reserve Studies Statewide (HB 107). Most Maryland condos, HOAs and coops will now be required to obtain a reserve study of the association common property at least every 5 years to determine the remaining useful life of each major component of the common property and the estimated cost for long-term repair and replacement. The reserve study must also state the estimated annual reserve amount necessary to accomplish any identified future repair or replacement. This extends statewide the reserve study requirements previously enacted for communities in Prince George’s and Montgomery County.
Where a reserve study is required, the recommended annual reserve amount must be included in the annual budget. However, if the most recent reserve study is an initial reserve study, up to 3 years is allowed to attain the annual reserve funding recommendation level.
No reserve study is required for homeowner associations where the initial purchase and installation costs of components which require periodic repair and replacement is less than $10,000. The reserve study law amends the Maryland Condominium Act, Maryland Homeowners Association Act, and Maryland Cooperative Housing Corporation Act.Continue reading