Maryland HOA Reserve Fund Requirements (2026 Guide)

Overview of Maryland reserve study law

Maryland’s reserve study framework is built around three pillars:

• Statewide reserve study mandates for common interest communities under HB 107.
• Detailed condominium requirements in Real Property § 11-109.4.
• Parallel HOA requirements in Real Property § 11B-112.3.

HB 107 expanded earlier county-level rules in Montgomery and Prince George’s Counties to a statewide standard. Condominiums, HOAs, and cooperative housing corporations that meet defined thresholds are now required to obtain reserve studies and to keep them current with updates at least every five years. Later amendments strengthened funding obligations, pushing boards to move beyond simply “having a study on file” toward actually funding reserves in line with professional recommendations. (princegeorgescountymd.gov)

If your community owns significant common elements, Maryland law expects you to understand their long-term replacement costs and budget systematically for them.

Which communities must comply?

Condominiums

Residential condominiums fall under Real Property § 11-109.4. The statute defines a “reserve study” and sets out when studies must be completed, updated, and reviewed. It applies broadly to residential condominiums across Maryland, with specific transition rules depending on when the condominium was established and whether earlier studies were completed.

Homeowners associations (HOAs)

 HOAs are covered by Real Property § 11B-112.3. This section applies to any HOA that:

• is responsible under its declaration for maintaining and repairing common areas; and
• has at least 10,000 dollars in total initial purchase and installation costs for all reserve components identified in the study.

In practice, most planned communities with roads, roofs, clubhouses, pools, or similar shared infrastructure will cross this 10,000-dollar threshold easily. Only very small, limited-common-area HOAs might fall outside the law.

Cooperative housing corporations

Cooperatives are covered under Corporations and Associations § 5-6B-26.1, which mirrors the same core requirements: an initial reserve study and updates at least every five years, with different timing rules depending on when the co-op was established. 

Deadlines and frequency for reserve studies

Maryland uses a combination of one-time catch-up deadlines and ongoing five-year cycles:

• New condominiums and HOAs formed today must obtain an independent reserve study shortly before the owners’ first major meeting (for condos, at least 30 days before the required turnover meeting; for HOAs, within 90 to 30 days before the first budget meeting described in the statute). 
• Existing communities that already had a reserve study on file as of certain dates must get an updated reserve study within five years of that prior study and then every five years thereafter.
• Communities that had not yet obtained a qualifying reserve study were required to do so by dates around October 1, 2021-2023, varying by county and community type, and are now on the same five-year update cycle going forward. 

From a practical standpoint, if you are unsure when your last reserve study was completed, assume you may already be close to or past a five-year deadline and plan accordingly.

What a Maryland-compliant reserve study must include

Maryland law defines “reserve study” in detail for both condominiums and HOAs. At a minimum, a Maryland-compliant study must:

• Identify each structural, mechanical, electrical, and plumbing component of the common elements (or common areas for HOAs), plus any other components that are the association’s responsibility to repair and replace.
• State the estimated remaining useful life for each component.
• State the estimated cost of repair or replacement for each component.
• State the estimated annual reserve contribution needed to fund those future repair and replacement costs. 

The statutes also impose qualification requirements on the preparer. A compliant study must be prepared by either:

• a professional who has prepared or participated in at least 30 reserve studies in the prior three calendar years;
• a Maryland-licensed architect or professional engineer; or
• an individual holding a recognized reserve specialist designation (such as CAI’s Reserve Specialist or APRA’s Professional Reserve Analyst).

Using an uncertified or inexperienced preparer may leave the association technically non-compliant, even if a document labeled “reserve study” exists.

Reserve funding requirements and budget impacts

Initially, Maryland’s framework focused on disclosure: boards had to obtain reserve studies, review them when preparing the budget, and distribute summaries to owners, but were not explicitly required to fully fund reserves. That changed with 2025 legislation.

New amendments to the annual budget sections now require, for both HOAs and (via parallel changes) many condominiums, that:

• the annual budget include reserve contributions in accordance with the funding amount recommended in the most recent reserve study or updated reserve study; and
• those reserve contributions be deposited into the reserve account on or before the last day of each fiscal year, following a funding plan developed in consultation with the reserve study preparer. 

Some bills also contemplate limited hardship or exigent-circumstance relief for associations that genuinely cannot reach the recommended funding level, but the default expectation is now that boards will move toward the study’s recommended funding trajectory rather than ignoring it. (billtrack50.com)

The real-world effect is visible in news coverage: many Maryland communities have increased assessments significantly in recent years to comply with the new reserve study and funding requirements, sometimes leaving homeowners feeling blindsided when communication has been poor. (The Sun)

Consequences of non-compliance

The statutes themselves do not spell out a simple schedule of fines for failing to obtain or update a reserve study. Instead, risk shows up in several areas:

• Governance and enforcement: Not following statutory requirements can be raised in disputes, complaints, or litigation, particularly if structural or financial problems emerge later.
• Disclosure risk: Inadequate reserves or missing reserve studies can affect resale disclosure packages, increasing the risk of buyer disputes or price reductions.
• Financial stability: Without a compliant reserve study and funding plan, an association is far more likely to experience large special assessments or deferred maintenance, which can damage property values and invite regulatory scrutiny.

Given the Surfside collapse in Florida and the nationwide focus on structural safety, Maryland is unlikely to relax these requirements. Boards that ignore reserve obligations are putting both finances and safety credibility at risk. (Wikipedia)

Practical action plan for Maryland boards and managers

For a Maryland HOA or condominium board, a practical compliance plan looks like this:

• Confirm your status: Determine whether your community is a condominium, HOA, or co-op and confirm that you maintain common elements or areas above the 10,000-dollar threshold (for HOAs).
• Locate prior studies: Gather any existing reserve studies and note their completion dates. If your last study is more than five years old - or you have never had one - you should treat obtaining a new study as urgent.
• Hire a qualified preparer: Select a reserve study professional who meets Maryland’s qualification criteria and has experience with similar communities.
• Align your funding plan: Work with the preparer to develop a funding plan that meets statutory expectations while phasing in increases as reasonably as possible. Document your rationale carefully.
• Communicate early and often: Explain to homeowners why assessments may need to increase and how Maryland reserve study law drives those decisions. Clear communication can prevent the “blindsided” reaction seen in some communities. 

How PropFusion helps Maryland communities

Maryland’s HOA reserve requirements are not just a legal checklist; they demand ongoing planning, documentation, and communication. PropFusion’s platform is designed to make this easier by:

• centralizing your reserve study documents, funding plans, and board decisions in one place;
• giving boards and managers clear dashboards that show upcoming capital projects and funding gaps;
• helping you model what-if scenarios when funding requirements tighten or projects get more expensive; and
• connecting you with a network of vetted reserve study professionals who understand Maryland law and can prepare compliant studies for your community. 

Used together, a compliant reserve study and a robust management platform reduce the risk of surprise assessments, strengthen your legal position, and help protect property values over the long term.