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Bill

SB 63

Cooperative Housing Corporations, Condominiums, and Homeowners Associations – Funding of Reserve Accounts and Preparation of Funding Plans

2025 Regular Session Introduced by Anthony Muse

Maryland requires housing associations and condominiums to establish adequate reserve funds through professional studies and funding plans to prevent unexpected resident assessments.

Approved by the Governor - Chapter 518
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Bill Summary · SB 63

Legislative bill overview

SB 63 establishes new requirements for cooperative housing corporations, condominiums, and homeowners associations in Maryland to create and maintain adequate reserve funding plans. The bill mandates these organizations conduct regular reserve studies and develop funding schedules to ensure sufficient financial resources for future capital repairs and replacements.

Why is this important

Underfunded reserves in housing communities have historically led to special assessments that burden residents with unexpected large bills, sometimes reaching thousands of dollars per unit. This law aims to prevent financial crises by requiring proactive reserve planning, protecting property values and residential stability while improving transparency in community finances.

Potential points of contention

  • Financial burden on associations: Requiring higher reserve contributions could increase monthly fees for residents, particularly in older communities with significant deferred maintenance
  • Implementation complexity: Smaller associations may lack resources to conduct professional reserve studies and develop compliant funding plans without external consultants
  • Funding flexibility constraints: Mandatory reserve levels might limit associations' ability to address immediate operational needs or pursue other community improvements prioritized by residents

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

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