Effective October 1, 2025, Maryland law (Senate Bill 63 and House Bill 292) allows homeowners associations (HOAs) to temporarily deviate from reserve funding requirements if they declare a financial hardship. This requires a two-thirds vote by the Board and applies for a maximum of one fiscal year, with a one-time renewal option. The law also requires these associations to conduct regular reserve studies and develop funding plans to be consistent with Generally Accepted Accounting Principles (GAAP).
In accordance with Maryland law SB 63 and HB 292, on October 18, 2025, the MPIA Board determined and declared that a financial hardship exists for its members by a two-thirds vote in its general meeting. Of the eleven member Board, the following voted to affirm a hardship to be present: President, Audrey Price, Financial Secretary, Dorothy Harrod, Secretary, Kim Hood, Treasurer, Karen Brown. Committee Chairs: Leslie Burke, LaVerne Thomas, Karen Byrd and Jody Wildy