The Maryland HOA laws update in 2025 brings significant changes that will affect how community associations operate across the state. Several new bills were passed during the legislative session, covering elections, financial transparency, reserve funding, property rights, and more.
Maryland HOA Laws Update: What’s New in 2025?
The Maryland HOA laws updates for 2025 include several new laws that modify governance rules, reserve funding requirements, and owners’ rights. Legislative changes typically occur from time to time, and they can significantly influence how HOAs and condominiums in Maryland function.
The bills in question are HB 1534, SB 0758, HB 0292, SB 0063, HB 0004, SB 0120, HB 0785, HB 0755, SB 0540, HB 1466, SB 0891, and HB 0360. The new laws address a variety of topics, including elections, enforcement, reserve funding, solar panels, family child care homes, sensitive information, and accessory dwelling units.
Let’s break them down below.
1. House Bill 1534 / Senate Bill 0758
Elections, Financial Statements, and Enforcement
HB 1534 and SB 0758 make elections more transparent. These bills require independent parties to handle ballot collection, counting, and result certification.
According to these new laws, independent parties can’t be the candidates themselves. They also can’t have a conflict of interest involving any of the candidates. For this purpose, management companies don’t fall under the definition of independent parties.
Boards may hire third-party vendors or use commercial technology platforms to conduct the election. The law also requires reasonable accommodations for owners to use common areas for activities related to association governance.
When it comes to record access, associations can charge a reasonable fee for owners to review or copy books and records. Still, they can’t charge owners for the ability to inspect financial statements or receive them electronically.
These laws will take effect on October 1, 2025.
2. House Bill 0292 / Senate Bill 0063
Funding of Reserve Accounts and Preparation of Funding Plans
The Maryland HOA laws 2025 include new rules for creating and funding reserve accounts. Associations must work with a reserve specialist to develop a funding plan. They must use an accepted accounting method, such as the component method, cash flow method, or other approved methods.
The law requires that an association fund its reserves according to the latest reserve study and funding plan. Associations must also deposit the funds into the reserve account by the end of each fiscal year. Boards must provide progress updates annually at the membership meeting.
Additionally, associations can use reserve funds for other purposes if they repay them within five years. If the board determines that the association is facing a financial hardship, it can temporarily reduce reserve funding for one fiscal year. There is an option to extend this for one more year.
To do this, the association would need a two-thirds board vote. It must also provide advance notice to owners and document the efforts to restore funding.
These laws will take effect on October 1, 2025.
3. House Bill 0004 / Senate Bill 0120
Solar Collector Systems – Alteration
The new HOA laws in Maryland now define what makes a restriction on solar panels unreasonable. A rule is considered unreasonable if:
- It increases installation costs by 5 percent or more compared to the proposed design, or
- It reduces projected energy output by at least 10 percent.
Owners may challenge a solar panel restriction but must provide documentation from an independent solar panel design specialist. Associations may still ban or limit solar panel installations in common areas and regulate the size, number, or placement of systems.
These laws will take effect on October 1, 2025.
4. House Bill 0785
Operation of Family Child Care Homes – Limitations
Previously, an HOA or condominium could prohibit family child care homes if its governing documents said so. Under this new legislation, associations can no longer enforce such restrictions.
Family child care homes, including large ones, are now permitted in all community associations. Associations may still require providers to pay a proportional share of increased insurance costs directly tied to their operation.
Additionally, they can also charge an annual common area usage fee of up to $50 and require advance notification before opening. Providers must maintain liability insurance, too.
This law will take effect on October 1, 2025.
5. House Bill 0755 / Senate Bill 0540
Sensitive Information as Condition for Access
HB 0755 and SB 0540 stop associations from requiring sensitive personal information as a condition for accessing recreational areas such as pools, playgrounds, or lounges.
What is considered sensitive personal information?
- Social Security numbers
- Taxpayer identification numbers
- Birth certificates
- Racial or ethnic data
- Citizenship status
- Religious or philosophical beliefs
- Medical records
Associations may still request government-issued photo identification, such as a driver’s license.
The law will take effect on October 1, 2025.
6. House Bill 1466 / Senate Bill 0891
Accessory Dwelling Units – Requirements and Prohibitions
The Maryland HOA laws changes in 2025 now prevent HOAs from banning or unreasonably restricting accessory dwelling units (ADUs) on lots with single-family detached homes.
While HOAs can’t prohibit ADUs, they may choose to treat them as separate lots for voting and assessment purposes. This gives associations flexibility in governance and financial planning.
These laws will take effect on October 1, 2025.
7. House Bill 0360
Registration Fees for Administrative Hearing Process – Prince George’s County
This law applies to condominiums, HOAs, and housing cooperatives in Prince George’s County. Associations must register annually with the County’s Community Association Registry by January 31. They must also pay a fee set by the County Executive.
The registration form requires details about the management company. These details include:
- How long the management company has been providing its services, and
- A list of other associations it serves in the county.
The fees will fund the county’s administrative hearing process.
This law has already taken effect on July 1, 2025.
Maryland HOA Laws Updates: Explained!
These new laws in Maryland bring changes that boost transparency, protect property rights, and set clearer rules for associations. Homeowners and board members alike must familiarize themselves with these legislative updates. Associations must also amend their policies, educate residents, and adjust operations to ensure compliance and avoid liability.
An HOA management company can help associations navigate Maryland law changes. Start your search with HOA Explore!
