MD HB1269

Governing bodies of cooperative housing corporations, condominiums, and homeowners associations must adopt annual budgets that include reserve study calculations for capital component repair/replacement costs, remaining useful life, accumulated reserves, and expected contributions to reserve accounts.

Financial hardship determinations allowing deviation from reserve funding requirements must now be approved by a two-thirds majority vote of the members/unit owners/lot owners rather than the governing body, and may be extended by one fiscal year through renewal votes.

When a community deviates from reserve funding requirements for a capital component, the estimated annual amount required to be added to the reserve account must be recalculated to ensure sufficient funds are available when the component reaches the end of its useful life.

Reserve studies must state the estimated annual reserve amount necessary to be added to the reserve account to repair or replace identified components when they reach the end of their useful life.

The bill takes effect October 1, 2026.