MD SB615

Governing bodies of cooperative housing corporations, condominiums, and homeowners associations must adopt annual budgets that include calculations for repair/replacement costs of capital components identified in reserve studies, and must deposit funds to reserve accounts accordingly

Financial hardship determinations allowing communities to deviate from reserve funding requirements must now be made by a two-thirds majority vote of members/unit owners/lot owners, rather than by the governing body alone

Financial hardship determinations may be extended by one fiscal year at a time through additional two-thirds majority votes of the membership

When a community deviates from reserve funding requirements for a capital component, the estimated annual reserve contribution must be recalculated to ensure sufficient funds will be available when the component reaches the end of its useful life

The bill takes effect October 1, 2026