Maryland • Special assessment notice
Special assessment from your Maryland condo — and can the board override the bylaw cap?
Maryland tightened its reserve law hard after Surfside, and the result is a wave of catch-up assessments. The twist many owners miss: the board can now blow past a bylaw assessment cap to fund reserves.
The short answer
Maryland's reserve-funding mandate (HB 107 / HB 292) now forces associations to fund their reserve study — and lets the board raise assessments to do it even past a bylaw cap. Catch-up assessments are common (Ocean City often $5,000–$10,000+). Special assessments are excluded from the small super-lien. CondoSignal reads your notice against Title 11. Free.Maryland at a glance
Reserve funding
Mandatory
Board can override a bylaw cap (HB 107/292).
Catch-up window
5 years
Rising assessments during ramp-up.
Super-lien
4 mo / $1,200
Specials excluded from priority.
Resale cancel
7 days (condo)
5 days for HOAs in some cases.
The reserve mandate that overrides bylaw caps
Since October 1, 2025, Maryland associations must fund their reserve study's plan and deposit it (HB 107, tightened by HB 292) — and the board has authority to raise regular assessments to hit that funding level even if the bylaws cap increases. New or underfunded associations get a five-year catch-up. So a Maryland assessment increase you thought your bylaws prevented may be entirely lawful.
Catch-up shock, especially at the shore
Buildings that kept dues artificially low for years are now catching up, and the assessments can be large — Ocean City's 1970s–1990s high-rises commonly see $5,000–$10,000 per unit, sometimes six figures. A board can declare a two-year financial 'hardship' by a 2/3 vote, but that itself is a distress signal that the community can't fund its reserves.
Specials aren't covered by the super-lien
Maryland's super-lien is small — four months of regular assessments or $1,200, whichever is less — and special assessments are excluded from it. That matters at resale: an approved special assessment runs with the unit, so it must be cleared or accounted for. Condos give you 7 days to cancel after the resale package; HOAs give 5 days in some cases.
Your rights in Maryland
Maryland condo owners get a resale package disclosing approved special assessments and reserve status, with a 7-day cancellation right (§ 11-135); the board may, however, raise assessments past a bylaw cap to fund mandatory reserves. None of this is legal advice — confirm against Title 11/11B and Maryland counsel.
What to check
- Ask whether the association is mid 5-year reserve catch-up.
- Check whether the increase overrides a bylaw cap (now allowed).
- Watch for a declared 2-year reserve 'hardship' (distress signal).
- Confirm any approved special assessment in the resale package.
- For Ocean City, expect catch-up assessment exposure.
- Use your 7-day (condo) cancellation window.
Sources
- Maryland HB 107 (2022) — mandatory reserve study & funding(High)
- Md. Code RP § 11-135 — resale of unit (7-day cancellation)(High)
- Md. Code RP § 11-110 — assessments; liens(High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Maryland-licensed professional.
FAQ
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