Maryland Reserve Study Requirements

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The law applies to:

• Condominium Associations (Title 11 of the Real Property Article)
   
• Homeowners Associations (HOAs) (Title 11B)
   
• Cooperatives (Title 5 of the Corporations and Associations Article)
   

If your community has common elements that will require major repair or replacement in the future — such as roofs, roads, pipes, siding, or amenities — a reserve study is no longer optional. It’s the law.

Initial Reserve Study

If your community had not completed a reserve study on or after October 1, 2018, you were required to have one performed by October 1, 2023.

Funding Plan Compliance

Once the reserve study is complete, the board must begin funding the reserves in accordance with the study’s recommendations within 5 years of the study date. That includes following the schedule and amounts outlined by the reserve provider.

Ongoing Updates

Reserve studies must be updated at least every 5 years, ensuring your plan remains relevant and aligned with actual component conditions and costs.

This legislation was designed to prevent underfunded associations from facing financial crises when major components reach the end of their useful lives. Following the reserve study's funding recommendations helps protect current and future residents from unexpected special assessments or deferred maintenance.

Boards that fail to comply may not only expose their community to legal risk but also create instability in resale values, insurance coverage, and overall confidence from homeowners.

Do we need a full Level I reserve study?
The law does not specify a study “level,” but it does require a comprehensive assessment of all common elements, a funding plan, and adherence to professional standards. Most properties will need a full visual inspection with quantity verification.

Can we modify the reserve provider’s recommendations?
Boards must follow the funding plan recommended by the provider. While you can run different scenarios internally, the legally required plan is the one provided in the study.

What if our property is new construction?
Newly developed properties must also comply. Developers or declarants should budget for a reserve study prior to turnover, and associations must perform a new one within the legal timeframe.

We’ve completed over 1,000 reserve studies across Maryland and surrounding states. Whether your property is a mid-rise condo, gated HOA, or mixed-use development, our team will walk you through the process and deliver a funding plan that meets the law and supports long-term stability.