State profile
Maryland
Maryland requires every residential condominium, cooperative, and most homeowners associations to obtain a reserve study from a qualified preparer and update it at least every five years — statewide since October 2022, after county mandates in Prince George's (2020) and Montgomery (2021). The budget must include the study's recommended funding, deposited into reserves by the end of each fiscal year, with the recommended level attained within five fiscal years of the initial study. Owners cannot vote reserves away: the only relief is the board's own two-thirds hardship vote, one fiscal year at a time, and never below the funding needed for health, safety, and structural integrity.
Update every
5 yrs
Site visit
Not required
Applies to
Condos & co-ops; HOAs with ≥ $10k components
What your board must do
01Have a reserve study completed by a qualified preparer — someone who has prepared (or participated in preparing) at least 30 studies in the prior 3 years, holds a Maryland architect or professional engineer license, or is a CAI-designated reserve specialist or APRA professional reserve analyst (Md. Real Prop. §11-109.4(e)(1)). In-house board preparation effectively does not qualify.
02Update the study at least every 5 years (§11-109.4(c)–(d)). The statewide catch-up deadline for condos without a recent study was October 1, 2023; HOAs follow the same schedule if their identified components total at least $10,000 (§11B-112.3(b)).
03Budget the study's recommended annual reserve amount and deposit it in the reserve account by the last day of each fiscal year; after an initial study, attain the recommended funding level within 5 fiscal years (§11-109.2(c), as amended effective October 2025 — formerly 3).
04Adopt a funding plan using the component, cash flow, baseline, or threshold cash flow method, prioritizing occupant health and safety, structural integrity, and essential systems; money borrowed from reserves for other purposes must be repaid within 5 years (§11-109.4(f)).
05Review reserve adequacy against the most recent study annually, summarize the study with each annual proposed budget, and keep it available for inspection by any owner (§11-109.4(e), §11-109.2(c)(4)).
06Deviate from the funding requirement only by a two-thirds board vote finding financial hardship — one fiscal year at a time, renewable by a new vote, with documented good-faith efforts and never below the health-safety-structural funding floor (§11-109.2(c)(3)). There is no owner-vote waiver.
Quick answers
- Does Maryland require a reserve study?
- Reserve study required. Yes. Maryland requires every residential condominium, cooperative, and most homeowners associations to obtain a reserve study from a qualified preparer and update it at least every five years — statewide since October 2022, after county mandates in Prince George's (2020) and Montgomery (2021). The budget must include the study's recommended funding, deposited into reserves by the end of each fiscal year, with the recommended level attained within five fiscal years of the initial study. Owners cannot vote reserves away: the only relief is the board's own two-thirds hardship vote, one fiscal year at a time, and never below the funding needed for health, safety, and structural integrity.
- How often must a Maryland reserve study be updated?
- Update interval: 5 yrs. Site visit: Not required.
- What must a Maryland association disclose about reserves?
- Study summary with annual budget. Applies to: Condos & co-ops; HOAs with ≥ $10k components.
Statutes
Md. Real Prop. §11-109.4Condo reserve study — preparer, contents, five-year cycleMd. Real Prop. §11-109.2(c)Condo reserve funding, deposit deadline, hardship deviationMd. Real Prop. §11B-112.3HOA reserve study and the $10,000 component thresholdMd. Real Prop. §11B-112.2(d)HOA reserve fundingMd. Corps. & Ass'ns §5-6B-26.1Cooperative housing — study and funding in one section
Last statutory change Oct 2025 · Page reviewed Sep 2026 · Not legal advice