HB1506 • 2026

Condominiums and Homeowners Associations - New Owner Fees - Limitations

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Delegate Ross
Last action: 2026-03-25
Official status: In the Senate - Hearing 4/03 at 1:00 p.m.
Effective date: 2026-10-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Condominiums and Homeowners Associations - New Owner Fees - Limitations

Limiting the amount that a condominium or homeowners association may charge a new unit or lot owner, other than an initial unit or lot owner, as an initial capital contribution or similar fee paid by the new owner at closing to be not more than three times the amount of monthly assessments paid by an existing unit or lot owner at the time of the closing; requiring certain documents to include certain fees; exempting certain condominiums and homeowner associations from a limit on a certain initial capital contribution or similar fee; etc.

What This Bill Does

Limiting the amount that a condominium or homeowners association may charge a new unit or lot owner, other than an initial unit or lot owner, as an initial capital contribution or similar fee paid by the new owner at closing to be not more than three times the amount of monthly assessments paid by an existing unit or lot owner at the time of the closing; requiring certain documents to include certain fees; exempting certain condominiums and homeowner associations from a limit on a certain initial capital contribution or similar fee; etc.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

373928/1

None

Favorable with Amendments { 373928/1 Adopted

Plain English: AMENDMENTS TO HOUSE BILL 1506 (First Reading File Bill) AMENDMENT NO.

AMENDMENTS TO HOUSE BILL 1506 (First Reading File Bill) AMENDMENT NO.
1 On page 1, in line 5, after “fee;” insert “ requiring certain documents to include certain fees; exempting certain condominiums and homeowner associations from a certain limit on a certain initial capital contribution or similar fee;”.
AMENDMENT NO.
2 On page 1, after line 15, insert: “(A) IN THIS SECTION, “MASTER PLANNED COMMUNITY” MEANS A LARGE- SCALE, COMPREHENSIVE RESIDE NTIAL DEVELOPMENT TH AT INTEGRATES HOMES, COMMERCIAL SPACES, AND AMENITIES SUCH AS DOG PARKS, HIKING AND BIKING TRAILS , POOLS, AND SPORT COURTS AND FUNCTION S IN A SIMILAR MANNER TO MUNICIPALITIES.

Bill History

2026-03-25 Senate
Hearing 4/03 at 1:00 p.m.
2026-03-21 House
Favorable with Amendments Report by Economic Matters
2026-03-11 House
Third Reading Passed (136-0)
2026-03-09 House
Favorable with Amendments { 373928/1 Adopted
2026-03-09 House
Second Reading Passed with Amendments
2026-03-07 Senate
Referred Judicial Proceedings
2026-02-17 House
Hearing 3/12 at 1:00 p.m.
2026-02-13 House
First Reading Economic Matters
Maryland General Assembly
Text - First - Condominiums and Homeowners Associations - New Owner Fees - Limitations
Maryland General Assembly
Vote - House - Committee - Economic Matters
Maryland General Assembly
Text - Third - Condominiums and Homeowners Associations - New Owner Fees - Limitations

Official Summary Text

Limiting the amount that a condominium or homeowners association may charge a new unit or lot owner, other than an initial unit or lot owner, as an initial capital contribution or similar fee paid by the new owner at closing to be not more than three times the amount of monthly assessments paid by an existing unit or lot owner at the time of the closing; requiring certain documents to include certain fees; exempting certain condominiums and homeowner associations from a limit on a certain initial capital contribution or similar fee; etc.

Current Bill Text

Read the full stored bill text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb1506*

HOUSE BILL 1506
N1 6lr3464

By: Delegate Ross
Introduced and read first time: February 13, 2026
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 9, 2026

CHAPTER ______

AN ACT concerning 1

Condominiums and Homeowners Associations – New Owner Fees – Limitations 2

FOR the purpose of limiting the amount that a condominium or a homeowners association 3
may charge a certain new unit or lot owner as an initial capital contribution or 4
similar fee; requiring certain documents to include certain fees; exempting certain 5
condominiums and homeowner associations from a certain limit on a certain initial 6
capital contribution or similar fee; and generally relating to condominium and 7
homeowners association assessments and fees. 8

BY adding to 9
Article – Real Property 10
Section 11–135.1 and 11B–120 11
Annotated Code of Maryland 12
(2023 Replacement Volume and 2025 Supplement) 13

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15

Article – Real Property 16

11–135.1. 17

(A) IN THIS SECTION , “MASTER PLANNED COMMU NITY” MEANS A 18
LARGE–SCALE, COMPREHENSIVE RESIDENTIAL DEVELOPMENT TH AT INTEGRATES 19
HOMES, COMMERCIAL SPACES, AND AMENITIES SUCH A S DOG PARKS , HIKING AND 20
2 HOUSE BILL 1506

BIKING TRAILS, POOLS, AND SPORT COURTS AND FUNCTIONS IN A SIMILAR MANNER 1
TO MUNICIPALITIES. 2

(B) THIS SECTION DOES NOT APPLY TO A MASTER PL ANNED COMMUNITY, 3
INCLUDING A SENIOR A GE–RESTRICTED COMMUNITY , THAT PROVIDES SERVIC ES 4
SIMILAR TO THOSE OFF ERED BY MUNICIPALITI ES FOR MULTIPLE INDI VIDUAL 5
CONDOMINIUMS. 6

(C) AN INITIAL CAPITAL CO NTRIBUTION OR SIMILA R FEE TO BE PAID AT 7
CLOSING BY A NEW UNI T OWNER OTHER THAN A N INITIAL UNIT OWNER MAY NOT 8
EXCEED THREE TIMES THE AMOUNT OF MONTHL Y ASSESSMENTS PAID B Y AN 9
EXISTING UNIT OWNER AT THE TIME OF THE CLOSING. 10

(D) THE RESA LE CERTIFICATE , PACKAGE, OR DISCLOSURE STATEM ENT 11
SHALL INCLUDE: 12

(1) THE FEE DESCRIBED IN SUBSECTION (C) OF THIS SECTION 13
LABELED AS: 14

(I) A NEW OWNER FEE; 15

(II) AN INITIATION FEE; OR 16

(III) A CAPITAL CONTRIBUTION FEE; 17

(2) THE AMOUNT OF THE FEE DESCRIBED UNDER SUBSECTION (C) OF 18
THIS SECTION; AND 19

(3) ANY OTHER FEE REQUIRED FOR SETTLEMENT. 20

11B–120. 21

(A) IN THIS SECTION , “MASTER PLANNED COMMU NITY” MEANS A 22
LARGE–SCALE, COMPREHENSIVE RESIDENTIAL DEVELOPMENT TH AT INTEGRATES 23
HOMES, COMMERCIAL SPACES, AND AMENITIES SUCH A S DOG PARKS , HIKING AND 24
BIKING TRAILS, POOLS, AND SPORT COURTS AND FUNCTIONS IN A SIMILAR MANNER 25
TO MUNICIPALITIES. 26

(B) THIS SECTION DOES NOT APPLY TO A MASTER PL ANNED COMMUNITY, 27
INCLUDING A SENIOR A GE–RESTRICTED COMMUNITY , THAT PROVIDES SERVICES 28
SIMILAR TO THOSE OFF ERED BY MUNICIPALITI ES FOR MULTIPLE INDI VIDUAL 29
CONDOMINIUMS. 30

HOUSE BILL 1506 3

(C) AN INITIAL CAPITAL CO NTRIBUTION OR SIMILA R FEE TO BE PAID AT 1
CLOSING BY A NEW LOT OWNER OTHER THAN AN INITIAL PURCHASER OF THE LOT 2
MAY NOT EXCEED THREE TIMES THE AMOUNT OF MONTHLY ASSESSMENTS PAID BY 3
AN EXISTING LOT OWNER AT THE TIME OF THE CLOSING. 4

(D) THE RESALE CERTIFICAT E, PACKAGE, OR DISCLOSURE STATEM ENT 5
SHALL INCLUDE: 6

(1) THE FEE DESCRIBED IN SUBSECTION (C) OF THIS SECTION 7
LABELED: 8

(I) A NEW OWNER FEE; 9

(II) AN INITIATION FEE; OR 10

(III) A CAPITAL CONTRIBUTION FEE; 11

(2) THE AMOUNT OF THE FEE DESCRIBED UNDER SUBSECTION (C) OF 12
THIS SECTION; AND 13

(3) ANY OTHER FEE REQUIRED FOR SETTLEMENT. 14

SECTION 2. AND BE IT FURTHER ENACTED, Tha t this Act shall take effect 15
October 1, 2026. 16

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.