Maryland House Bill 107 -Reserve Studies for Maryland Community Associations –The Maryland General Assembly passed new legislation requiring that community associations obtain a reserve study. This will apply to condominiums and homeowners’ associations.
IMPORTANT:
1) On or after 10-1-18 – must have reserve study updated within 5 years
2) No reserve study – Must comply with a reserve study by 10-1-23
3) HOA with less than $10,000 for maintaining or repairing common area does not need a reserve study
4) Comply with annual funding within three fiscal years. If the most recent reserve study is your initial study, you have three fiscal years following the year in which the study was complete to attain annual funding level set forth in the study
Under HB 107, the Reserve Study requirement applies across the State.
If the most recent reserve study is your initial study, you have three fiscal years following the year in which the study was complete to attain annual funding level set forth in the study.
There are a lot of unanswered questions within HB107. How will the funding requirements be monitored or enforced? We expect clarification from our legislators in the near future.