MD
Maryland House Bill HB1133

Maryland 2025 Regular Session

Maryland House Bill HB1133 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *hb1133*
66
77 HOUSE BILL 1133
88 N1, C1 5lr2297
99
1010 By: Delegate Rosenberg
1111 Introduced and read first time: February 5, 2025
1212 Assigned to: Environment and Transportation
1313
1414 A BILL ENTITLED
1515
1616 AN ACT concerning 1
1717
1818 Common Ownership Communities – Reserve Studies – Annual Revisions 2
1919
2020 FOR the purpose of authorizing the governing body of a cooperative housing corporation, 3
2121 condominium, or homeowners association to revise a required reserve study at the 4
2222 end of each calendar year to reflect any changes made to the common elements that 5
2323 year; and generally relating to reserve studies of cooperative housing corporations, 6
2424 condominiums, and homeowners associations. 7
2525
2626 BY repealing and reenacting, without amendments, 8
2727 Article – Corporations and Associations 9
2828 Section 5–6B–26.1(a) through (c) 10
2929 Annotated Code of Maryland 11
3030 (2014 Replacement Volume and 2024 Supplement) 12
3131
3232 BY adding to 13
3333 Article – Corporations and Associations 14
3434 Section 5–6B–26.1(g) 15
3535 Annotated Code of Maryland 16
3636 (2014 Replacement Volume and 2024 Supplement) 17
3737
3838 BY repealing and reenacting, without amendments, 18
3939 Article – Real Property 19
4040 Section 11–109.4(a) through (d) and 11B–112.3(a) through (d) 20
4141 Annotated Code of Maryland 21
4242 (2023 Replacement Volume and 2024 Supplement) 22
4343
4444 BY adding to 23
4545 Article – Real Property 24
4646 Section 11–109.4(f) and 11B–112.3(f) 25
4747 Annotated Code of Maryland 26
4848 (2023 Replacement Volume and 2024 Supplement) 27 2 HOUSE BILL 1133
4949
5050
5151
5252 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
5353 That the Laws of Maryland read as follows: 2
5454
5555 Article – Corporations and Associations 3
5656
5757 5–6B–26.1. 4
5858
5959 (a) In this section, “reserve study” means a study of the reserves required for 5
6060 future major repairs and replacement of the common elements of a cooperative housing 6
6161 corporation that: 7
6262
6363 (1) Identifies each structural, mechanical, electrical, and plumbing 8
6464 component of the common elements and any other components that are the responsibility 9
6565 of the cooperative housing corporation to repair and replace; 10
6666
6767 (2) States the normal useful life and the estimated remaining useful life of 11
6868 each identified component; 12
6969
7070 (3) States the estimated cost of repair or replacement of each identified 13
7171 component; and 14
7272
7373 (4) States the estimated annual reserve amount necessary to accomplish 15
7474 any identified future repair or replacement. 16
7575
7676 (b) (1) This subsection applies only to a cooperative housing corporation 17
7777 established in: 18
7878
7979 (i) Prince George’s County on or after October 1, 2020; 19
8080
8181 (ii) Montgomery County on or after October 1, 2021; or 20
8282
8383 (iii) Any county other than Prince George’s County or Montgomery 21
8484 County on or after October 1, 2022. 22
8585
8686 (2) The governing body of the cooperative housing corporation shall have 23
8787 an independent reserve study completed not less than 30 calendar days before the first 24
8888 meeting of the cooperative housing corporation at which the members other than the owner 25
8989 have a majority of votes in the cooperative housing corporation. 26
9090
9191 (3) The governing body shall have an updated reserve study completed 27
9292 within 5 years after the date of the initial reserve study conducted under paragraph (2) of 28
9393 this subsection, which shall be updated at least every 5 years thereafter. 29
9494
9595 (c) (1) (i) This paragraph applies only to a cooperative housing corporation 30
9696 established in Prince George’s County before October 1, 2020. 31
9797 HOUSE BILL 1133 3
9898
9999
100100 (ii) If the governing body of a cooperative housing corporation has 1
101101 had a reserve study conducted on or after October 1, 2016, the governing body shall have 2
102102 an updated reserve study conducted within 5 years after the date of that reserve study and 3
103103 at least every 5 years thereafter. 4
104104
105105 (iii) If the governing body of a cooperative housing corporation has 5
106106 not had a reserve study conducted on or after October 1, 2016, the governing body shall 6
107107 have a reserve study conducted on or before October 1, 2021, and an updated reserve study 7
108108 at least every 5 years thereafter. 8
109109
110110 (2) (i) This paragraph applies only to a cooperative housing corporation 9
111111 established in Montgomery County before October 1, 2021. 10
112112
113113 (ii) If the governing body of a cooperative housing corporation has 11
114114 had a reserve study conducted on or after October 1, 2017, the governing body shall have 12
115115 an updated reserve study conducted within 5 years after the date of that reserve study and 13
116116 at least every 5 years thereafter. 14
117117
118118 (iii) If the governing body of a cooperative housing corporation has 15
119119 not had a reserve study conducted on or after October 1, 2017, the governing body shall 16
120120 have a reserve study conducted on or before October 1, 2022, and an updated reserve study 17
121121 at least every 5 years thereafter. 18
122122
123123 (3) (i) This paragraph applies to a cooperative housing corporation 19
124124 established in any county other than Prince George’s County or Montgomery County before 20
125125 October 1, 2022. 21
126126
127127 (ii) If the governing body of a cooperative housing corporation has 22
128128 had a reserve study conducted on or after October 1, 2018, the governing body shall have 23
129129 an updated reserve study conducted within 5 years after the date of that reserve study and 24
130130 at least every 5 years thereafter. 25
131131
132132 (iii) If the governing body of a cooperative housing corporation has 26
133133 not had a reserve study conducted on or after October 1, 2018, the governing body shall 27
134134 have a reserve study conducted on or before October 1, 2023, and an updated reserve study 28
135135 at least every 5 years thereafter. 29
136136
137137 (G) IN ADDITION TO AN UPD ATED RESERVE STUDY R EQUIRED UNDER 30
138138 SUBSECTIONS (B) AND (C) OF THIS SECTION , THE GOVERNING BODY OF A 31
139139 COOPERATIVE HOUSING CORPORATION MAY REVISE A COMPLETED RESERVE STUDY 32
140140 AT THE END OF EACH CALENDAR YEAR TO REFLECT ANY CHANGES MADE TO THE 33
141141 COMMON ELEMENTS THAT YEAR. 34
142142
143143 Article – Real Property 35
144144
145145 11–109.4. 36
146146 4 HOUSE BILL 1133
147147
148148
149149 (a) In this section, “reserve study” means a study of the reserves required for 1
150150 future major repairs and replacement of the common elements of a condominium that: 2
151151
152152 (1) Identifies each structural, mechanical, electrical, and plumbing 3
153153 component of the common elements and any other components that are the responsibility 4
154154 of the council of unit owners to repair and replace; 5
155155
156156 (2) States the normal useful life and the estimated remaining useful life of 6
157157 each identified component; 7
158158
159159 (3) States the estimated cost of repair or replacement of each identified 8
160160 component; and 9
161161
162162 (4) States the estimated annual reserve amount necessary to accomplish 10
163163 any identified future repair or replacement. 11
164164
165165 (b) This section applies only to a residential condominium. 12
166166
167167 (c) (1) This subsection applies only to a condominium established in: 13
168168
169169 (i) Prince George’s County on or after October 1, 2020; 14
170170
171171 (ii) Montgomery County on or after October 1, 2021; or 15
172172
173173 (iii) Any county other than Prince George’s County or Montgomery 16
174174 County on or after October 1, 2022. 17
175175
176176 (2) The governing body of the condominium shall have an independent 18
177177 reserve study completed not less than 30 calendar days before the meeting of the council of 19
178178 unit owners required under § 11–109(c)(16) of this title. 20
179179
180180 (3) The governing body shall have an updated reserve study completed 21
181181 within 5 years after the date of the initial reserve study conducted under paragraph (2) of 22
182182 this subsection and at least every 5 years thereafter. 23
183183
184184 (d) (1) (i) This paragraph applies only to a condominium established in 24
185185 Prince George’s County before October 1, 2020. 25
186186
187187 (ii) If the governing body of a condominium has had a reserve study 26
188188 conducted on or after October 1, 2016, the governing body shall have an updated reserve 27
189189 study conducted within 5 years after the date of that reserve study and at least every 5 28
190190 years thereafter. 29
191191
192192 (iii) If the governing body of a condominium has not had a reserve 30
193193 study conducted on or after October 1, 2016, the governing body shall have a reserve study 31
194194 conducted on or before October 1, 2021, and an updated reserve study at least every 5 years 32
195195 thereafter. 33 HOUSE BILL 1133 5
196196
197197
198198
199199 (2) (i) This paragraph applies only to a condominium established in 1
200200 Montgomery County before October 1, 2021. 2
201201
202202 (ii) If the governing body of a condominium has had a reserve study 3
203203 conducted on or after October 1, 2017, the governing body shall have an updated reserve 4
204204 study conducted within 5 years after the date of that reserve study and at least every 5 5
205205 years thereafter. 6
206206
207207 (iii) If the governing body of a condominium has not had a reserve 7
208208 study conducted on or after October 1, 2017, the governing body shall have a reserve study 8
209209 conducted on or before October 1, 2022, and an updated reserve study at least every 5 years 9
210210 thereafter. 10
211211
212212 (3) (i) This paragraph applies only to a condominium established in any 11
213213 county other than Prince George’s County or Montgomery County before October 1, 2022. 12
214214
215215 (ii) If the governing body of a condominium has had a reserve study 13
216216 conducted on or after October 1, 2018, the governing body shall have an updated reserve 14
217217 study conducted within 5 years after the date of that reserve study and at least every 5 15
218218 years thereafter. 16
219219
220220 (iii) If the governing body of a condominium has not had a reserve 17
221221 study conducted on or after October 1, 2018, the governing body shall have a reserve study 18
222222 conducted on or before October 1, 2023, and an updated reserve study at least every 5 years 19
223223 thereafter. 20
224224
225225 (F) IN ADDITION TO AN UPD ATED RESERVE STUDY R EQUIRED UNDER 21
226226 SUBSECTIONS (C) AND (D) OF THIS SECTION , THE GOVERNING BODY OF A 22
227227 CONDOMINIUM MAY REVISE A COMPLETED RESERVE STUDY AT THE END OF EACH 23
228228 CALENDAR YEAR TO REFLECT ANY CHANGES MADE TO T HE COMMON ELEMENTS 24
229229 THAT YEAR. 25
230230
231231 11B–112.3. 26
232232
233233 (a) In this section, “reserve study” means a study of the reserves required for 27
234234 future major repairs and replacement of the common areas of a homeowners association 28
235235 that: 29
236236
237237 (1) Identifies each structural, mechanical, electrical, and plumbing 30
238238 component of the common areas and any other components that are the responsibility of 31
239239 the homeowners association to repair and replace; 32
240240
241241 (2) States the estimated remaining useful life of each identified component; 33
242242
243243 (3) States the estimated cost of repair or replacement of each identified 34
244244 component; and 35 6 HOUSE BILL 1133
245245
246246
247247
248248 (4) States the estimated annual reserve amount necessary to accomplish 1
249249 any identified future repair or replacement. 2
250250
251251 (b) (1) This section applies only to a homeowners association: 3
252252
253253 (i) That has responsibility under its declaration for maintaining and 4
254254 repairing common areas; and 5
255255
256256 (ii) For which the total initial purchase and installation costs for all 6
257257 components identified in subsection (a)(1) of this section is at least $10,000. 7
258258
259259 (2) This section does not apply to a homeowners association that issues 8
260260 bonds for the purpose of meeting capital expenditures. 9
261261
262262 (c) (1) This subsection applies only to a homeowners association established 10
263263 in: 11
264264
265265 (i) Prince George’s County on or after October 1, 2020; 12
266266
267267 (ii) Montgomery County on or after October 1, 2021; or 13
268268
269269 (iii) Any county other than Prince George’s County or Montgomery 14
270270 County on or after October 1, 2022. 15
271271
272272 (2) The governing body of the homeowners association shall have an 16
273273 independent reserve study completed not more than 90 calendar days and not less than 30 17
274274 calendar days before the meeting of the homeowners association required under § 18
275275 11B–106.1(a) of this title. 19
276276
277277 (3) The governing body shall have an updated reserve study completed 20
278278 within 5 years after the date of the initial reserve study conducted under paragraph (2) of 21
279279 this subsection and at least every 5 years thereafter. 22
280280
281281 (d) (1) (i) This paragraph applies only to a homeowners association 23
282282 established in Prince George’s County before October 1, 2020. 24
283283
284284 (ii) If the governing body of a homeowners association has had a 25
285285 reserve study conducted on or after October 1, 2016, the governing body shall have an 26
286286 updated reserve study conducted within 5 years after the date of that reserve study and at 27
287287 least every 5 years thereafter. 28
288288
289289 (iii) If the governing body of a homeowners association has not had a 29
290290 reserve study conducted on or after October 1, 2016, the governing body shall have a reserve 30
291291 study conducted on or before October 1, 2021, and an updated reserve study at least every 31
292292 5 years thereafter. 32
293293 HOUSE BILL 1133 7
294294
295295
296296 (2) (i) This paragraph applies only to a homeowners association 1
297297 established in Montgomery County before October 1, 2021. 2
298298
299299 (ii) If the governing body of a homeowners association has had a 3
300300 reserve study conducted on or after October 1, 2017, the governing body shall have an 4
301301 updated reserve study conducted within 5 years after the date of that reserve study and at 5
302302 least every 5 years thereafter. 6
303303
304304 (iii) If the governing body of a homeowners association has not had a 7
305305 reserve study conducted on or after October 1, 2017, the governing body shall have a reserve 8
306306 study conducted on or before October 1, 2022, and an updated reserve study at least every 9
307307 5 years thereafter. 10
308308
309309 (3) (i) This paragraph applies only to a homeowners association 11
310310 established in any county other than Prince George’s County or Montgomery County before 12
311311 October 1, 2022. 13
312312
313313 (ii) If the governing body of a homeowners association has had a 14
314314 reserve study conducted on or after October 1, 2018, the governing body shall have an 15
315315 updated reserve study conducted within 5 years after the date of that reserve study and at 16
316316 least every 5 years thereafter. 17
317317
318318 (iii) If the governing body of a homeowners association has not had a 18
319319 reserve study conducted on or after October 1, 2018, the governing body shall have a reserve 19
320320 study conducted on or before October 1, 2023, and an updated reserve study at least every 20
321321 5 years thereafter. 21
322322
323323 (F) IN ADDITION TO AN UPD ATED RESERVE STUDY REQ UIRED UNDER 22
324324 SUBSECTIONS (C) AND (D) OF THIS SECTION , THE GOVERNING BODY OF A 23
325325 HOMEOWNERS ASSOCIATI ON MAY REVISE A COMPLETED RESERVE STUDY AT THE 24
326326 END OF EACH CALENDAR YEAR TO REFLECT ANY CHANGES MADE TO THE COMMON 25
327327 ELEMENTS THAT YEAR. 26
328328
329329 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 27
330330 October 1, 2025. 28