Yes. Under House Bill 107 (2022), codified at Md. Real Property § 11-109.4 (condominiums) and § 11B-112.3 (HOAs), Maryland requires a reserve study prepared by a qualified professional, updated at least every five years — statewide since October 1, 2022 (Prince George's County since 2020, Montgomery County since 2021). Annual budgets must fund reserves at the most recent study's recommended level, and associations must attain the recommended annual funding level within five fiscal years of the initial study.
Verified against the statute 2026-07-06
Residential condominiums statewide, homeowners associations that maintain common areas whose reserve components have at least $10,000 in total repair/replacement cost (bond-financing HOAs exempt), and housing cooperatives (via HB 107's parallel amendments to the Cooperative Housing Act). Requirements phased in by county: Prince George's (Oct 1, 2020), Montgomery (Oct 1, 2021), and all other counties (Oct 1, 2022).
An initial reserve study (existing communities had deadlines between 2021 and 2023 depending on county and any post-Oct-2018 study), then updated reserve studies at least every 5 years. Studies must be prepared by someone who has prepared or participated in 30+ reserve studies in the prior 3 years, holds an architecture or engineering license, or holds a CAI or APRA reserve-specialist designation.
Annual budgets must include reserve funding at the amount recommended in the most recent reserve study, deposited in the reserve account on or before the last day of each fiscal year, and the association must attain the recommended annual reserve funding level within 5 fiscal years following the fiscal year in which the initial study was completed. A two-thirds majority vote of the governing body may authorize a financial-hardship deviation limited to one fiscal year at a time (renewable one additional fiscal year at a time), with good-faith efforts to resume required funding.
The reserve study drives the annual proposed budget, which is submitted to unit or lot owners before adoption, so owners see the recommended versus budgeted reserve funding each year. Condominium resale certificates under the Maryland Condominium Act must also include a statement of the status and amount of any reserve or replacement fund, giving buyers visibility into reserve health.
Residential condominiums must obtain an independent reserve study and updated studies at least every 5 years; preparers must meet experience or license/designation criteria; phased in by county (Prince George's Oct 2020, Montgomery Oct 2021, statewide Oct 2022); funding plans may use component, cash flow, baseline, or threshold methods and must prioritize health, safety, and structural integrity.
Applies to HOAs that maintain common areas whose reserve components total at least $10,000 in repair/replacement cost (associations issuing bonds for capital expenditures are exempt); same 5-year update cycle, preparer qualifications, and funding-plan methods as the condominium provision.
Budget must include reserves at 'the funding amount recommended in the most recent reserve study,' deposited in the reserve account on or before the last day of each fiscal year, with the recommended annual level attained 'within 5 fiscal years following the fiscal year in which the initial reserve study was completed'; a two-thirds majority vote allows a financial-hardship deviation of no more than one fiscal year at a time, renewable.
Parallel HOA budget rule: reserves are a mandatory budget item, the study-recommended annual funding level must be attained within 5 fiscal years of the initial study, and hardship deviations require a two-thirds governing-body vote with good-faith efforts to resume full funding.
Re-verified the current statute text of Real Property §§ 11-109.4 and 11-109.2 on the official mgaleg.maryland.gov site, confirming the 5-year update cycle, the 30-studies/license/CAI-APRA preparer qualifications, county phase-in dates (PG Oct 2020, Montgomery Oct 2021, statewide Oct 2022), the five funding-plan methods, the 'within 5 fiscal years' attainment rule, and the two-thirds hardship deviation limited to one fiscal year at a time. Removed a prior claim that borrowed reserve funds must be repaid within 5 years — no such language appears in § 11-109.2 — and an unverified aside about the 2022 law originally setting a 3-year attainment window. §§ 11B-112.3 and 11B-112.2 are the parallel HOA provisions on the same official site. Informational only — not legal advice. Confirm with the primary source and a community-association attorney licensed in Maryland. Report an issue.
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