🏘️ Understanding Maryland House Bill 107: What Homeowners Need to Know

If you live in or are thinking about buying a condo or townhome in Maryland, there’s a law you need to understand—House Bill 107 (HB107). While it might not be making national headlines, it’s already creating serious financial pressure for thousands of Maryland homeowners, especially those in communities governed by homeowners associations (HOAs) or condo boards.

So, what is HB107? And how could it affect your bottom line?

📜 What Is House Bill 107?

HB107 was passed in 2022 in response to growing concerns over aging buildings and underfunded HOA and condo reserve accounts. It mandates two major changes:

1. Reserve Studies Are Now Required
   All HOAs, condos, and co-ops in Maryland must conduct a reserve study to assess how much money should be set aside for future major repairs and replacements (like roofs, elevators, siding, etc.).

2. Funding Those Reserves Is Now Mandatory
   Within three years of completing the study, communities must begin fully funding their reserves according to the study’s recommendations—even if that means increasing dues or issuing special assessments.

The goal? Avoiding the kind of deferred maintenance that contributed to the tragic condo collapse in Surfside, Florida. But the ripple effect on Maryland homeowners is real—and expensive.

💸 What Does This Mean for Homeowners?

Many associations were underfunded before this law took effect, so catching up isn’t cheap. Here’s how it’s playing out:

• Monthly Dues Are Going Up
  Many communities are raising dues significantly to meet the new funding mandates.

• Special Assessments Are Hitting Hard
  In some cases, homeowners are being asked to pay thousands (or even tens of thousands) in lump sums to boost reserve accounts.

• Property Values Could Be Impacted
  Buyers are wary of large monthly fees or surprise assessments—meaning properties in these communities may take longer to sell or sell for less.

• Financing May Get Tougher
  Lenders are starting to pay closer attention to HOA finances. If reserves are underfunded or there’s a history of large special assessments, buyers could face more hurdles securing a mortgage.

🧭 What You Should Do Next

If You’re a Current Homeowner:

• Get Involved: Attend association meetings and understand where your community stands.

• Plan Ahead: Adjust your budget for potential increases in fees or assessments.

• Ask Questions: Don’t be afraid to ask your board for transparency on the reserve study and funding plan.

If You’re a Buyer:

• Do Your Homework: Review the association’s financials, reserve study, and recent meeting notes before you buy.

• Work With a Pro: Partner with a Realtor who understands HB107 and can help you evaluate the financial health of a community.

⚖️ Bottom Line

Maryland’s HB107 law was created to ensure safe, well-maintained communities—but it’s causing major financial shake-ups for homeowners. Whether you’re already living in an HOA or considering buying into one, staying informed is critical.

Have questions about how HB107 might affect your next move?
Let’s talk—I’m here to help you navigate your options with clarity and confidence.

Sean Tavalozzi ~ Realtor
Keller Williams
Danmar Properties Group
Personal Cell: 203-233-8445
Main KW Office: 410-729-7700
Work Phone: 301-945-8697