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HB 1506

Condominiums and Homeowners Associations - New Owner Fees - Limitations

2026 Regular Session Introduced by Kim Ross

Maryland bill restricts fees homeowners associations can charge when properties are sold, aiming to reduce transfer costs and improve housing affordability in HOA communities.

First Reading Economic Matters
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WeVote Research Nonpartisan
Bill Summary · HB 1506

Legislative bill overview

HB 1506 proposes to limit fees that condominium and homeowners associations (HOAs) can impose on new owners or property purchasers in Maryland. The bill restricts what are commonly called "transfer fees," "flip taxes," or "resale fees" that associations currently charge when properties change hands. This creates a cap or prohibition on these additional costs beyond standard membership dues.

Why is this important

HOA transfer fees can range from hundreds to thousands of dollars per transaction, effectively increasing the cost of buying property and making homes less affordable. These fees directly impact real estate marketability and affordability in communities with mandatory HOA membership, affecting both buyer economics and the broader housing market in Maryland.

Potential points of contention

  • Association funding concerns: HOAs may argue that transfer fees help fund reserves, maintenance, and services; limiting these revenues could force associations to increase regular dues on existing homeowners or defer necessary repairs
  • Property rights clash: Some view HOA fee limitations as government overreach into private contractual arrangements between property owners and associations, while others see it as consumer protection
  • Market competitiveness: Developers and HOA boards may claim fee restrictions disadvantage their communities compared to those without restrictions, potentially affecting property values or attractiveness

Compiled from official sources — confirm details with the bill’s official record.

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