The Maryland General Assembly is considering House Bill 651. This bill will require condominium and homeowner asosciations to have reserve studies.
Reserve studies will allow associations to identify and plan for long term replacement and repair of major common elements or the infrastructure of the community. The study should be used as a budget tool to make sure the associaiton is fiscally sound when the useful life is depleted out of a common element.
All associations that have more than fifty units or homes will be required to have a reserve study on a five year basis.
There is allowance for older buildings who have never had a study done to have one done by October 1, 2018. Buildings that have had a study done since 2013, would have to follow a five year schedule. New associations would be required to have a study performed within 90 days of the association becoming owner controlled.
The cost of a reserve study would be an expense to unit or homeowners.
We will continue to monitor the legislation in the Maryland General Assembly and let you know how this issue is resolved.
Delaware associations under the Delaware Uniform Common Interest Ownership Act (DUCIOA) are already required to have professional engineers perform reserve studies every five years.
Thanks for reading.