A cooperative housing corporation needs an independent reserve study at least every five years, follows the same county deadlines as condominiums and HOAs, and must budget the study's recommended reserve contribution.
Where the rule lives
Section 5-6B-26.1 of the Corporations and Associations Article mirrors the condominium and HOA sections: the same definition of a reserve study, the same list of qualified preparers and the same county dates. A co-op board that reads the condominium guidance will find little that differs.
Deadlines
- Prince George's County co-ops set up before October 1, 2020: first study by October 1, 2021, unless one was done on or after October 1, 2016.
- Montgomery County co-ops set up before October 1, 2021: by October 1, 2022, unless one was done on or after October 1, 2017.
- Everywhere else, set up before October 1, 2022: by October 1, 2023, unless one was done on or after October 1, 2018.
A newer co-op needs its first study at least 30 days before the first meeting at which members other than the developer hold a majority of the votes.
Why it weighs more on co-ops
In a co-op the corporation usually owns the whole building, so the study covers more: the structure, the roof, every riser and the heating plant, not just shared amenities. Many co-ops also carry an underlying mortgage, and lenders refinancing it will ask for the reserve picture. A clear study and a funding plan make that conversation shorter.
Funding
The co-op's governing body adopts a funding plan with the preparer, chooses a method from the statute's list, budgets the recommended contribution and has five fiscal years to reach it after an initial study. The same two-thirds hardship vote is available. The law also lets the board raise assessments to fund reserves even where the governing documents limit increases. See funding to the study.