MD SB576

Cooperative housing corporations and condominiums may use reserve funds for purposes outside their funding plan only in emergency situations, adding a new restriction to existing law that previously allowed off-plan use with just a repayment requirement.

Emergency use of reserve funds requires approval by an affirmative vote of at least two-thirds of members in good standing (for co-ops) or unit owners in good standing (for condominiums).

Funds used for emergency purposes must be repaid to the reserve fund within 5 years after their use, maintaining the existing repayment timeline.

Applies to both cooperative housing corporations (under Corporations and Associations Article §5–6B–26.1) and condominiums (under Real Property Article §11–109.4).

Effective date: October 1, 2026.