EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1133*
HOUSE BILL 1133
N1, C1 5lr2297
By: Delegate Rosenberg
Introduced and read first time: February 5, 2025
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Common Ownership Communities – Reserve Studies – Annual Revisions 2
FOR the purpose of authorizing the governing body of a cooperative housing corporation, 3
condominium, or homeowners association to revise a required reserve study at the 4
end of each calendar year to reflect any changes made to the common elements that 5
year; and generally relating to reserve studies of cooperative housing corporations, 6
condominiums, and homeowners associations. 7
BY repealing and reenacting, without amendments, 8
Article – Corporations and Associations 9
Section 5–6B–26.1(a) through (c) 10
Annotated Code of Maryland 11
(2014 Replacement Volume and 2024 Supplement) 12
BY adding to 13
Article – Corporations and Associations 14
Section 5–6B–26.1(g) 15
Annotated Code of Maryland 16
(2014 Replacement Volume and 2024 Supplement) 17
BY repealing and reenacting, without amendments, 18
Article – Real Property 19
Section 11–109.4(a) through (d) and 11B–112.3(a) through (d) 20
Annotated Code of Maryland 21
(2023 Replacement Volume and 2024 Supplement) 22
BY adding to 23
Article – Real Property 24
Section 11–109.4(f) and 11B–112.3(f) 25
Annotated Code of Maryland 26
(2023 Replacement Volume and 2024 Supplement) 27 2 HOUSE BILL 1133
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Corporations and Associations 3
5–6B–26.1. 4
(a) In this section, “reserve study” means a study of the reserves required for 5
future major repairs and replacement of the common elements of a cooperative housing 6
corporation that: 7
(1) Identifies each structural, mechanical, electrical, and plumbing 8
component of the common elements and any other components that are the responsibility 9
of the cooperative housing corporation to repair and replace; 10
(2) States the normal useful life and the estimated remaining useful life of 11
each identified component; 12
(3) States the estimated cost of repair or replacement of each identified 13
component; and 14
(4) States the estimated annual reserve amount necessary to accomplish 15
any identified future repair or replacement. 16
(b) (1) This subsection applies only to a cooperative housing corporation 17
established in: 18
(i) Prince George’s County on or after October 1, 2020; 19
(ii) Montgomery County on or after October 1, 2021; or 20
(iii) Any county other than Prince George’s County or Montgomery 21
County on or after October 1, 2022. 22
(2) The governing body of the cooperative housing corporation shall have 23
an independent reserve study completed not less than 30 calendar days before the first 24
meeting of the cooperative housing corporation at which the members other than the owner 25
have a majority of votes in the cooperative housing corporation. 26
(3) The governing body shall have an updated reserve study completed 27
within 5 years after the date of the initial reserve study conducted under paragraph (2) of 28
this subsection, which shall be updated at least every 5 years thereafter. 29
(c) (1) (i) This paragraph applies only to a cooperative housing corporation 30
established in Prince George’s County before October 1, 2020. 31
HOUSE BILL 1133 3
(ii) If the governing body of a cooperative housing corporation has 1
had a reserve study conducted on or after October 1, 2016, the governing body shall have 2
an updated reserve study conducted within 5 years after the date of that reserve study and 3
at least every 5 years thereafter. 4
(iii) If the governing body of a cooperative housing corporation has 5
not had a reserve study conducted on or after October 1, 2016, the governing body shall 6
have a reserve study conducted on or before October 1, 2021, and an updated reserve study 7
at least every 5 years thereafter. 8
(2) (i) This paragraph applies only to a cooperative housing corporation 9
established in Montgomery County before October 1, 2021. 10
(ii) If the governing body of a cooperative housing corporation has 11
had a reserve study conducted on or after October 1, 2017, the governing body shall have 12
an updated reserve study conducted within 5 years after the date of that reserve study and 13
at least every 5 years thereafter. 14
(iii) If the governing body of a cooperative housing corporation has 15
not had a reserve study conducted on or after October 1, 2017, the governing body shall 16
have a reserve study conducted on or before October 1, 2022, and an updated reserve study 17
at least every 5 years thereafter. 18
(3) (i) This paragraph applies to a cooperative housing corporation 19
established in any county other than Prince George’s County or Montgomery County before 20
October 1, 2022. 21
(ii) If the governing body of a cooperative housing corporation has 22
had a reserve study conducted on or after October 1, 2018, the governing body shall have 23
an updated reserve study conducted within 5 years after the date of that reserve study and 24
at least every 5 years thereafter. 25
(iii) If the governing body of a cooperative housing corporation has 26
not had a reserve study conducted on or after October 1, 2018, the governing body shall 27
have a reserve study conducted on or before October 1, 2023, and an updated reserve study 28
at least every 5 years thereafter. 29
(G) IN ADDITION TO AN UPD ATED RESERVE STUDY R EQUIRED UNDER 30
SUBSECTIONS (B) AND (C) OF THIS SECTION , THE GOVERNING BODY OF A 31
COOPERATIVE HOUSING CORPORATION MAY REVISE A COMPLETED RESERVE STUDY 32
AT THE END OF EACH CALENDAR YEAR TO REFLECT ANY CHANGES MADE TO THE 33
COMMON ELEMENTS THAT YEAR. 34
Article – Real Property 35
11–109.4. 36
4 HOUSE BILL 1133
(a) In this section, “reserve study” means a study of the reserves required for 1
future major repairs and replacement of the common elements of a condominium that: 2
(1) Identifies each structural, mechanical, electrical, and plumbing 3
component of the common elements and any other components that are the responsibility 4
of the council of unit owners to repair and replace; 5
(2) States the normal useful life and the estimated remaining useful life of 6
each identified component; 7
(3) States the estimated cost of repair or replacement of each identified 8
component; and 9
(4) States the estimated annual reserve amount necessary to accomplish 10
any identified future repair or replacement. 11
(b) This section applies only to a residential condominium. 12
(c) (1) This subsection applies only to a condominium established in: 13
(i) Prince George’s County on or after October 1, 2020; 14
(ii) Montgomery County on or after October 1, 2021; or 15
(iii) Any county other than Prince George’s County or Montgomery 16
County on or after October 1, 2022. 17
(2) The governing body of the condominium shall have an independent 18
reserve study completed not less than 30 calendar days before the meeting of the council of 19
unit owners required under § 11–109(c)(16) of this title. 20
(3) The governing body shall have an updated reserve study completed 21
within 5 years after the date of the initial reserve study conducted under paragraph (2) of 22
this subsection and at least every 5 years thereafter. 23
(d) (1) (i) This paragraph applies only to a condominium established in 24
Prince George’s County before October 1, 2020. 25
(ii) If the governing body of a condominium has had a reserve study 26
conducted on or after October 1, 2016, the governing body shall have an updated reserve 27
study conducted within 5 years after the date of that reserve study and at least every 5 28
years thereafter. 29
(iii) If the governing body of a condominium has not had a reserve 30
study conducted on or after October 1, 2016, the governing body shall have a reserve study 31
conducted on or before October 1, 2021, and an updated reserve study at least every 5 years 32
thereafter. 33 HOUSE BILL 1133 5
(2) (i) This paragraph applies only to a condominium established in 1
Montgomery County before October 1, 2021. 2
(ii) If the governing body of a condominium has had a reserve study 3
conducted on or after October 1, 2017, the governing body shall have an updated reserve 4
study conducted within 5 years after the date of that reserve study and at least every 5 5
years thereafter. 6
(iii) If the governing body of a condominium has not had a reserve 7
study conducted on or after October 1, 2017, the governing body shall have a reserve study 8
conducted on or before October 1, 2022, and an updated reserve study at least every 5 years 9
thereafter. 10
(3) (i) This paragraph applies only to a condominium established in any 11
county other than Prince George’s County or Montgomery County before October 1, 2022. 12
(ii) If the governing body of a condominium has had a reserve study 13
conducted on or after October 1, 2018, the governing body shall have an updated reserve 14
study conducted within 5 years after the date of that reserve study and at least every 5 15
years thereafter. 16
(iii) If the governing body of a condominium has not had a reserve 17
study conducted on or after October 1, 2018, the governing body shall have a reserve study 18
conducted on or before October 1, 2023, and an updated reserve study at least every 5 years 19
thereafter. 20
(F) IN ADDITION TO AN UPD ATED RESERVE STUDY R EQUIRED UNDER 21
SUBSECTIONS (C) AND (D) OF THIS SECTION , THE GOVERNING BODY OF A 22
CONDOMINIUM MAY REVISE A COMPLETED RESERVE STUDY AT THE END OF EACH 23
CALENDAR YEAR TO REFLECT ANY CHANGES MADE TO T HE COMMON ELEMENTS 24
THAT YEAR. 25
11B–112.3. 26
(a) In this section, “reserve study” means a study of the reserves required for 27
future major repairs and replacement of the common areas of a homeowners association 28
that: 29
(1) Identifies each structural, mechanical, electrical, and plumbing 30
component of the common areas and any other components that are the responsibility of 31
the homeowners association to repair and replace; 32
(2) States the estimated remaining useful life of each identified component; 33
(3) States the estimated cost of repair or replacement of each identified 34
component; and 35 6 HOUSE BILL 1133
(4) States the estimated annual reserve amount necessary to accomplish 1
any identified future repair or replacement. 2
(b) (1) This section applies only to a homeowners association: 3
(i) That has responsibility under its declaration for maintaining and 4
repairing common areas; and 5
(ii) For which the total initial purchase and installation costs for all 6
components identified in subsection (a)(1) of this section is at least $10,000. 7
(2) This section does not apply to a homeowners association that issues 8
bonds for the purpose of meeting capital expenditures. 9
(c) (1) This subsection applies only to a homeowners association established 10
in: 11
(i) Prince George’s County on or after October 1, 2020; 12
(ii) Montgomery County on or after October 1, 2021; or 13
(iii) Any county other than Prince George’s County or Montgomery 14
County on or after October 1, 2022. 15
(2) The governing body of the homeowners association shall have an 16
independent reserve study completed not more than 90 calendar days and not less than 30 17
calendar days before the meeting of the homeowners association required under § 18
11B–106.1(a) of this title. 19
(3) The governing body shall have an updated reserve study completed 20
within 5 years after the date of the initial reserve study conducted under paragraph (2) of 21
this subsection and at least every 5 years thereafter. 22
(d) (1) (i) This paragraph applies only to a homeowners association 23
established in Prince George’s County before October 1, 2020. 24
(ii) If the governing body of a homeowners association has had a 25
reserve study conducted on or after October 1, 2016, the governing body shall have an 26
updated reserve study conducted within 5 years after the date of that reserve study and at 27
least every 5 years thereafter. 28
(iii) If the governing body of a homeowners association has not had a 29
reserve study conducted on or after October 1, 2016, the governing body shall have a reserve 30
study conducted on or before October 1, 2021, and an updated reserve study at least every 31
5 years thereafter. 32
HOUSE BILL 1133 7
(2) (i) This paragraph applies only to a homeowners association 1
established in Montgomery County before October 1, 2021. 2
(ii) If the governing body of a homeowners association has had a 3
reserve study conducted on or after October 1, 2017, the governing body shall have an 4
updated reserve study conducted within 5 years after the date of that reserve study and at 5
least every 5 years thereafter. 6
(iii) If the governing body of a homeowners association has not had a 7
reserve study conducted on or after October 1, 2017, the governing body shall have a reserve 8
study conducted on or before October 1, 2022, and an updated reserve study at least every 9
5 years thereafter. 10
(3) (i) This paragraph applies only to a homeowners association 11
established in any county other than Prince George’s County or Montgomery County before 12
October 1, 2022. 13
(ii) If the governing body of a homeowners association has had a 14
reserve study conducted on or after October 1, 2018, the governing body shall have an 15
updated reserve study conducted within 5 years after the date of that reserve study and at 16
least every 5 years thereafter. 17
(iii) If the governing body of a homeowners association has not had a 18
reserve study conducted on or after October 1, 2018, the governing body shall have a reserve 19
study conducted on or before October 1, 2023, and an updated reserve study at least every 20
5 years thereafter. 21
(F) IN ADDITION TO AN UPD ATED RESERVE STUDY REQ UIRED UNDER 22
SUBSECTIONS (C) AND (D) OF THIS SECTION , THE GOVERNING BODY OF A 23
HOMEOWNERS ASSOCIATI ON MAY REVISE A COMPLETED RESERVE STUDY AT THE 24
END OF EACH CALENDAR YEAR TO REFLECT ANY CHANGES MADE TO THE COMMON 25
ELEMENTS THAT YEAR. 26
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 27
October 1, 2025. 28