EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
[Brackets] indicate matter deleted from existing law.
*hb0581*
HOUSE BILL 581
N1 5lr2587
CF SB 464
By: Delegate Wims
Introduced and read first time: January 23, 2025
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Real Property – Condominiums – Assessments 2
FOR the purpose of authorizing the board of directors of a condominium to increase the 3
amount of assessments levied in a fiscal year to cover common expenses other than 4
reserves by not more than a certain amount notwithstanding certain provisions of 5
the declaration, articles of incorporation, or bylaws of the condominium; and 6
generally relating to condominium assessments. 7
BY repealing and reenacting, with amendments, 8
Article – Real Property 9
Section 11–110(b)(1) 10
Annotated Code of Maryland 11
(2023 Replacement Volume and 2024 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Real Property 15
11–110. 16
(b) (1) (i) Funds for the payment of current common expenses and for the 17
creation of reserves for the payment of future common expenses shall be obtained by 18
assessments against the unit owners in proportion to their percentage interests in common 19
expenses and common profits. 20
(ii) The board of directors of a residential condominium has the 21
authority to [increase]: 22
2 HOUSE BILL 581
1. INCREASE the assessment levied to cover the reserve 1
funding amount required under § 11–109.4 of this title, notwithstanding any provision of 2
the declaration, articles of incorporation, or bylaws restricting assessment increases or 3
capping the assessment that may be levied in a fiscal year; AND 4
2. INCREASE THE TOTAL AS SESSMENTS LEVIED IN A 5
FISCAL YEAR TO COVER COMMON EXPENSES OTHE R THAN RESERVES BY NOT MORE 6
THAN 5 PERCENT OF THE TOTAL ASSESSMENTS LEVIED F OR COMMON EXPENSES 7
OTHER THAN RESERVES IN THE PREVIOUS FISC AL YEAR, NOTWITHSTANDING ANY 8
PROVISION OF THE DEC LARATION, ARTICLES OF INCORPOR ATION, OR BYLAWS 9
REQUIRING THAT THE C OUNCIL OF UNIT OWNERS APPROV E THE AMOUNT OF AN 10
ANNUAL ASSESSMENT . 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 12
October 1, 2025. 13