Maryland Condominium Act — Reserve Study

Md. Code, Real Prop. §11-109.4. (a) (1) In this section the following words have the meanings indicated. (2) "Reserve study" means a study of the reserves required for future major repairs and replacement of the common elements of a condominium that: (i) Using an itemized list, identifies each structural, mechanical, electrical, and plumbing component of the common elements and any other components that: 1. Are the responsibility of the council of unit owners to repair and replace; and 2. If applicable, meet a minimum cost of repair or replacement, as determined by the governing body, that is: A. Reasonably based on the expenses of the condominium; and B. Not a minor expense that is otherwise addressed by the budget of the condominium; (ii) States the normal useful life and the estimated remaining useful life of each identified component; (iii) States the estimated cost of repair or replacement of each identified component; (iv) States the estimated annual reserve amount necessary to accomplish any identified future repair or replacement; and (v) States the quantity or size of each identified component using the appropriate measurement, such as unit amount, square footage, or cubic feet. (3) "Updated reserve study" means, for the common elements since the prior reserve study was completed within the previous 5 years, a study that: (i) Revises replacement cost, remaining life, and useful life estimates; (ii) Analyzes work performed and amounts spent; and (iii) Identifies whether any maintenance contracts are in place. (b) This section applies only to a residential condominium. (c) (1) This subsection applies only to a condominium established in: (i) Prince George's County on or after October 1, 2020; (ii) Montgomery County on or after October 1, 2021; or (iii) Any county other than Prince George's County or Montgomery County on or after October 1, 2022. (2) The governing body of the condominium shall have an independent reserve study completed not less than 30 calendar days before the meeting of the council of unit owners required under § 11-109(c)(16) of this title. (3) The governing body shall have an updated reserve study completed within 5 years after the date of the initial reserve study conducted under paragraph (2) of this subsection and at least every 5 years thereafter. (e) Each reserve study and updated reserve study required under this section shall: (1) Be prepared by a person who: (i) Has prepared at least 30 reserve studies within the prior 3 calendar years; (ii) Has participated in the preparation of at least 30 reserve studies within the prior 3 calendar years while employed by a firm that prepares reserve studies; (iii) Holds a current license from the State Board of Architects or the State Board for Professional Engineers; or (iv) Is currently designated as a reserve specialist by the Community Association Institute or as a professional reserve analyst by the Association of Professional Reserve Analysts; (2) Be available for inspection and copying by any unit owner; (3) Be reviewed by the governing body of the condominium in connection …

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