SmartProperty® helps Maryland condominiums, HOAs and co-ops stay on the five-year study cycle and follow through on the funding plan. Since October 1, 2025, Maryland law requires boards to fund what the study recommends.
Every 5 yearsA full or updated professional reserve study
Oct 1, 2025HB 292 requires a funding plan and a year-end reserve deposit
Jan 4, 2027Fannie Mae’s 15% reserve minimum takes effect for condo loans
WHAT MARYLAND REQUIRES
Maryland requires the study. Since 2025, it requires the funding.
The Condominium Act, the Homeowners Association Act and the Cooperative Housing Corporation Act all require studies. HB 292 moved the law from disclosure to mandatory funding.
CONDO ACT · HOA ACT · CO-OP ACT
The five-year cycle
A full or updated professional study at least once every five years, with an annual board review of the latest study in connection with the budget.
A compliant study identifies components, their estimated remaining useful life, repair or replacement cost and the annual reserve amount needed.
HOAs are covered when they maintain common areas whose initial purchase and installation costs total at least $10,000.
HB 292 · EFFECTIVE OCTOBER 1, 2025
Funding plan, deposit and qualified preparers
The board must adopt a funding plan with the study author that prioritizes safety, structural integrity and essential systems.
Budgeted reserves must be deposited into the reserve account on or before the last day of each fiscal year.
A study must be prepared by a licensed architect or engineer, an RS or PRA, or someone with at least 30 studies in the prior three calendar years.
Deviating from the funding requirements takes a two-thirds vote and a genuine financial hardship.
Compliance is mandatory. So is the follow-through.
A funding plan without a funded account isn’t compliance
Since HB 292, budgeting reserves isn’t enough. The money has to be in the reserve account by fiscal year-end, and the plan has to put safety and structural components first.
Enforcement and liability both apply
The Attorney General’s Consumer Protection Division enforces the Condominium Act, with fines up to $10,000 and orders to comply. Directors who skip the prioritized plan risk fiduciary claims if a critical component fails.
Owners and lenders see the numbers
A summary of the latest study goes to every owner with the proposed budget, and lenders expect funding that tracks the study. Fannie Mae’s 15% minimum applies to condo loans dated on or after January 4, 2027.
HOW SMARTPROPERTY HELPS
Compliance is the floor. Funding stability is the goal.
Full reserve studies and updates
A site-inspected study to start, then updates as costs and conditions change, so the board always has a current plan.
A plan that stays current
The Living Reserve Study® updates as projects are completed and costs change, so your plan is ready for the next update or budget.
Funding options the board can compare
Model higher contributions, special assessments, loans or lines of credit side by side before you take a recommendation to owners.
Numbers you can explain
Atlas shows the cost data and useful-life assumptions behind every figure, so boards can answer owner questions with confidence.
TALK WITH SMARTPROPERTY ABOUT MARYLAND
Get your Maryland reserve plan on solid ground.
See how the Living Reserve Study® works for your community, or tell us about your association and we’ll put together a proposal.
