In short: a Maryland community association needs an independent reserve study, prepared by a qualified person, updated at least every five years, and the board must budget the reserve contribution it recommends.
Three statutes, one rule
The law sits in three places, one for each kind of community, with almost identical wording:
- Condominiums: Real Property 11-109.4, limited to residential condominiums.
- Homeowners associations: Real Property 11B-112.3.
- Housing cooperatives: Corporations and Associations 5-6B-26.1.
The county dates, the five-year cycle and the list of qualified preparers are the same in all three. What differs is the trigger for a brand-new community's first study and, for HOAs, a cost threshold.
Which HOAs are covered
An HOA falls under 11B-112.3 when its declaration makes it responsible for maintaining common areas and the components it would have to repair or replace cost at least $10,000 in total. An association that funds capital work by issuing bonds is excluded. For condominiums and co-ops there is no dollar threshold.
The phase-in by county
Prince George's County went first, Montgomery County a year later, and the rest of the state (including Baltimore City) a year after that. For a community that already existed on its county's cutoff date:
| Where | Existing if set up before | A study since this date counted | Otherwise, first study by |
|---|---|---|---|
| Prince George's County | October 1, 2020 | October 1, 2016 | October 1, 2021 |
| Montgomery County | October 1, 2021 | October 1, 2017 | October 1, 2022 |
| All other counties and Baltimore City | October 1, 2022 | October 1, 2018 | October 1, 2023 |
Where a recent study already existed, the next one was due within five years of it. Either way, the cycle from then on is an updated study at least every five years.
New communities
Communities created after their county's cutoff get their first study before owners take control: at least 30 days before the transition meeting for a condominium or co-op, and 30 to 90 days before it for an HOA. The developer's board commissions it, which gives the incoming owner board a starting point rather than a blank page.
What an update is
An updated reserve study revises the cost and life estimates from the last study, reviews the work done and the money spent since, and notes any maintenance contracts in place. It must be prepared by someone with the same qualifications as a first study. See who may prepare one.
After the study
- Any owner may inspect and copy it.
- The board reviews it when preparing the proposed annual budget.
- A summary goes to owners with that proposed budget.
- The board adopts a funding plan with the preparer's input, choosing a funding method the statute lists.
- The budget funds reserves at the recommended level, deposited by the last day of each fiscal year, with five fiscal years to get there after an initial study.
The funding steps changed in October 2025; the detail is on funding to the study.
What the law does not say
It does not name a penalty for a late study, set a minimum percent funded, or tell you which firm to use. It also does not override your governing documents on matters it leaves open. If a question turns on those points, ask the association's attorney.