EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1215*
HOUSE BILL 1215
N1, C1 5lr2530
By: Delegates Hartman, Arentz, Baker, Griffith, Hornberger, Hutchinson, Jacobs,
Miller, M. Morgan, T. Morgan, Nawrocki, Otto, Pippy, Rose, Schmidt, and
Wivell
Introduced and read first time: February 6, 2025
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Common Ownership Communities – Time to Attain Reserve Funding Level – 2
Extension 3
FOR the purpose of extending the time in which the governing body of a cooperative housing 4
corporation, condominium, or homeowners association is required to attain a certain 5
recommended annual reserve funding level following an initial reserve study; and 6
generally relating to reserve studies for cooperative housing corporations, 7
condominiums, and homeowners associations. 8
BY repealing and reenacting, with amendments, 9
Article – Corporations and Associations 10
Section 5–6B–26.1(f) 11
Annotated Code of Maryland 12
(2014 Replacement Volume and 2024 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Real Property 15
Section 11–109.2(c) and 11B–112.2(d) 16
Annotated Code of Maryland 17
(2023 Replacement Volume and 2024 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Corporations and Associations 21
5–6B–26.1. 22
(f) (1) (i) Subject to subparagraph (ii) of this paragraph, the governing 23 2 HOUSE BILL 1215
body of a cooperative housing corporation shall provide funds to the reserve in accordance 1
with the most recent reserve study and shall review the reserve study annually for 2
accuracy. 3
(ii) If the most recent reserve study was an initial reserve study, the 4
governing body shall, within [3] 5 fiscal years following the fiscal year in which the initial 5
reserve study was completed, attain the annual reserve funding level recommended in the 6
initial reserve study. 7
(2) The governing body of a cooperative housing corporation has the 8
authority to increase an assessment levied to cover the reserve funding amount required 9
under this section, notwithstanding any provision of the articles of incorporation, bylaws, 10
or proprietary lease restricting assessment increases or capping the assessment that may 11
be levied in a fiscal year. 12
Article – Real Property 13
11–109.2. 14
(c) (1) Subject to paragraph (2) of this subsection, the reserves provided for in 15
the annual budget under subsection (b) of this section for a residential condominium shall 16
be the funding amount recommended in the most recent reserve study completed under § 17
11–109.4 of this title. 18
(2) If the most recent reserve study was an initial reserve study, the 19
governing body shall, within [3] 5 fiscal years following the fiscal year in which the initial 20
reserve study was completed, attain the annual reserve funding level recommended in the 21
initial reserve study. 22
11B–112.2. 23
(d) (1) Subject to paragraph (2) of this subsection, reserves provided for in the 24
annual budget under subsection (c) of this section shall be the funding amount 25
recommended in the most recent reserve study completed under § 11B–112.3 of this title. 26
(2) If the most recent reserve study was an initial reserve study, the 27
governing body shall, within [3] 5 fiscal years following the fiscal year in which the initial 28
reserve study was completed, attain the annual reserve funding level recommended in the 29
initial reserve study. 30
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 31
October 1, 2025. 32