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House Bill 107 – Reserve Studies for Maryland Community Associations

The Maryland Condominium Act and Maryland Homoeowners Association Act

HB107 was passed during the 2022 Maryland legislative session.  This bill is a response to the tragic collapse of the Champlain Tower South condominium in Surfside, Florida.

Under the Maryland Condominium Act and Maryland Homeowners Association Act, the associations are required to go through a reserve study at least once every five years.

Associates Affected By HB107:

  • All Cooperative Housing Associations
  • All Residential Condominium Associations
  • Any HOA which has responsibility to maintain and repair common area elements with a total value of $10,000 or more

Timelines for the study:

  • If an affected association has had a reserve study conducted after October 1, 2018, they must have another one starting within 5 years of their last review date
  • If the affected association has NOT had a reserve study on or after October 1, 2018, they MUST have one done no later than October 1, 2023
  • If the study shows a reserve fund deficiency, the reserves must be fully funded within 3 years of the completion of the study

Who can conduct the reserve study?

A person is deemed qualified to conduct the reserve study if they meet one of the following requirements:

If you need to find a professional to conduct your reserve study, visit on of these sites:

****Please note that we are not affiliated with these sites nor do we have personal knowledge regarding any of their members.  Please take the time to properly research any vendor you may choose

When you hire a vendor for the study, please make sure you get a certificate of insurance.  In addition to their general liability insurance, make sure they have professional liability insurance (E&O insurance).  You are asking them for their professional opinion, so professional liability insurance is a must have in my opinion.

Although this law may seem a bit tough on associations, it is meant to protect them and their residences.  Without the reserve requirements, association residences could face huge assessments if there were a shortage in funds.  It is speculated that a reserve fund deficit was the reason why the needed repairs were not done to the structure of the Champlain Tower South condominium in Surfside, Florida.

So this may be a short term struggle for some associations, but it the legislatures saw it as a necessary step to protect the associations and their residences.

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