The Maryland General Assembly’s 2025 legislative session saw the introduction of over 3,200 bills, with several new and impactful laws passing that will affect community associations. Here are the key takeaways:
House Bill 1534/Senate Bill 758: Elections, Financial Statements, and Enforcement
Under this new legislation, condominiums and homeowners associations must ensure that their elections, including the collection and counting of ballots and certification of results, are conducted by independent parties who are not candidates in the election themselves and who do not have a conflict of interest regarding any candidate in the election.
Notably, management is not considered an independent party for these purposes. The board of directors has the option to retain a third-party vendor or a commercial technology platform to conduct the election.
Condominiums and homeowners associations must also make reasonable accommodations for the use of common areas by owners for owners to engage in organizing activities related to governance of the condominium/homeowners association.
The new legislation also clarifies that condominiums and homeowners associations may impose a reasonable fee on owners wishing to review or copy the association’s books and records, but may not charge a fee for owners to examine the association’s financial statements or to receive financial statements through electronic transmission (i.e., e-mail, fax).
Effective October 1, 2025. You can review the new legislation in full here.
House Bill 292/Senate Bill 63: Funding of Reserve Accounts and Preparation of Funding Plans
A few years ago, the Maryland General Assembly adopted new laws requiring community associations to obtain a reserve study every five (5) years and then to budget for reserves for the repair and replacement of common elements/areas based on these reserve studies. This new Maryland law aims to provide clarity on funding requirements and establish a mechanism for community associations facing financial hardship. The major points are:
In consultation with a reserve specialist, community associations must create a funding plan to determine how to fund the reserves based on one of the following methods: the component method; the cash flow method; the baseline funding method; the threshold cash flow method; or any other funding method consistent with generally accepted accounting principles.
Community associations must fund the amount recommended in the most recent reserve study (or updated reserve study) and funding plan, and deposit funds in the reserve account on or before the last day of each fiscal year. The community association’s board of directors must also provide an annual update of the progress at each annual meeting.
Reserves may be used for purposes other than those identified in the funding plan, provided the reserve fund is repaid within five (5) years after the funds are used.
A community association’s board of directors may determine, by a 2/3rd vote, that the association and its members are experiencing a financial hardship that limits their ability to fund reserves. If the board of directors finds a financial hardship exists, then it may deviate from the reserve funding requirements for one fiscal year after making the determination. This one-year determination may be renewed for one additional fiscal year. These determinations need to be made at a regular or special meeting of the membership, and owners must be given reasonable notice in advance of a vote on the financial hardship determination.
The board of directors must make good faith efforts to resolve the financial hardship and resume funding the reserves and must maintain detailed documentation of their efforts.
Effective October 1, 2025. You can review the new legislation in full here.
House Bill 785: Operation of Family Child Care Homes
To date, community associations have been able to prohibit family child care homes if their governing documents expressly prohibited such use. This is no longer the case. Under this new legislation, family child care homes and large family child care homes can no longer be prohibited in any community association and any existing restriction in the governing documents is unenforceable.
Community associations may continue to require family child care providers to pay on a pro rata basis any increase in insurance costs that are solely and directly attributable to the operation of the family child care home or large family child care home, impose a fee for use of the common elements/areas in a reasonable amount not to exceed $50 per year, and require notification prior to opening the family child care home or large family child care home. Family child care providers also remain obligated to obtain liability insurance.
Effective October 1, 2025. You can review the new legislation in full here.
House Bill 4/Senate Bill 120: Solar Collector Systems
The law currently states that community associations cannot impose unreasonable limitations on an owner who wants to install a solar collector system on their roof or the exterior walls of improvements exclusive to them, which significantly increases the cost or decreases the efficiency of solar installations. However, the term “significantly” was not precisely defined, leading to varied interpretations and enforcement.
The new law sets an objective standard that a restriction is unreasonable if it would increase the cost of the solar collector system installation by at least 5% over the projected cost of the initially proposed installation, or if the restriction would reduce the energy generated by the solar system by at least 10% below the projected energy generation of the initially proposed installation. To show that the community association’s restriction is unreasonable, the owner needs to provide documentation prepared by an independent solar panel design specialist.
Community associations may prohibit or restrict the installation of a solar collector system in the common elements/areas and regulate its size, number, or placement.
Effective October 1, 2025. You can review the new legislation in full here.
House Bill 360: Prince George’s County Registration Fees for Administrative Hearing Process
Condominiums, homeowners associations, and housing cooperatives located in Prince George’s County must register with the County’s Community Association Registry by January 31st of each year and pay an annual fee.
The County Executive will establish the annual fee in an amount “sufficient to fund” the cost of establishing and governing the administrative hearing process. The registration form will include information related to the community association’s management company, including the length of time the management company has provided management services and a list of all community associations in Prince George’s County for which the management company has provided services.
Effective July 1, 2025. You can review the new legislation in full here.
House Bill 1466/Senate Bill 891: Accessory Dwelling Units
This new legislation prohibits community associations from prohibiting or unreasonably restricting the construction and rental of accessory dwelling units (ADUs) on lots with primary single-family detached dwelling units.
A homeowners association has the authority, but not the obligation, to treat an ADU as a separate lot for purposes of voting and assessments.
Effective October 1, 2025. You can review the new legislation in full here.
House Bill 755/Senate Bill 540: Sensitive Information as Condition for Access
This law prohibits community associations from requiring an owner, member, occupant, or guest from providing sensitive information as a condition for accessing a shared recreational area like a reading lounge, game room, playground, or swimming pool.
Sensitive information that cannot be required includes a person’s social security card or number; individual taxpayer identification number; birth certificate; racial or ethnic origin; national origin; citizenship or immigration status; religious or philosophical beliefs; or medical records.
Community associations may request an individual’s government-issued photo identification (i.e., driver’s license).
Effective October 1, 2025. You can review the new legislation in full here.
Much of the new legislation may prompt additional questions and raise practical concerns. We encourage you to reach out to your community association’s attorney for guidance and insight as to how these new laws apply to your community.
Nura Rafati and Jeremy Tucker are community association attorneys at Lerch, Early & Brewer. For more information, contact Nura Rafati at 301-657-0730 or nrafati@lerchearly.com or Jeremy Tucker at 301-657-0157 or jmtucker@lerchearly.com.
