Homeowners Associations - Reserve Funding, Meeting Notices, Voting, and Records

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1600*

HOUSE BILL 1600
N1 6lr3697
CF SB 919
By: Delegate Fair
Introduced and read first time: February 16, 2026
Assigned to: Rules and Executive Nominations

A BILL ENTITLED

AN ACT concerning 1

Homeowners Associations – Reserve Funding, Meeting Notices, Voting, and 2
Records 3

FOR the purpose of requiring certain books and records kept by or on behalf of certain 4
homeowners associations to be posted on the homeowners association website, online 5
portal, or mobile device application; clarifying that a governing body of a 6
homeowners association may secure a line of credit or loan to fund certain reserves 7
under certain circumstances; requiring that certain homeowners associations 8
provide certain notice of a meeting by electronic transmission; requiring that a 9
governing body of a homeowners association hold a meeting to permit voting by 10
electronic transmission under certain circumstances; and generally relating to 11
reserve funding, meeting, notices, voting, and records. 12

BY repealing and reenacting, with amendments, 13
Article – Real Property 14
Section 11B–112(a), 11B–112.3(f), 11B–113.1, 11B–113.2, and 11B–113.6(a) 15
Annotated Code of Maryland 16
(2023 Replacement Volume and 2025 Supplement) 17

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19

Article – Real Property 20

11B–112. 21

(a) (1) (i) Subject to the provisions of paragraph (2) of this subsection, all 22
books and recor ds kept by or on behalf of the homeowners association shall be made 23
available for examination or copying, or both, by a lot owner, a lot owner’s mortgagee, or 24
their respective duly authorized agents or attorneys, during normal business hours, and 25
after reasonable notice. 26
2 HOUSE BILL 1600

(ii) Books and records required to be made available under 1
subparagraph (i) of this paragraph shall first be made available to a lot owner no later than 2
15 business days after a lot is conveyed by the declarant and the lot owner request s to 3
examine or copy the books and records. 4

(iii) If a lot owner requests in writing a copy of financial statements 5
of the homeowners association or the minutes of a meeting of the governing body of the 6
homeowners association to be delivered, the governing body of the homeowners association 7
shall compile and send the requested information by mail, electronic transmission, or 8
personal delivery: 9

1. Within 21 days after receipt of the written request, if the 10
financial statements or minutes were prepar ed within the 3 years immediately preceding 11
receipt of the request; or 12

2. Within 45 days after receipt of the written request, if the 13
financial statements or minutes were prepared more than 3 years before receipt of the 14
request. 15

(2) Books and recor ds kept by or on behalf of a homeowners association 16
may be withheld from public inspection, except for inspection by the person who is the 17
subject of the record or the person’s designee or guardian, to the extent that they concern: 18

(i) Personnel record s, not including information on individual 19
salaries, wages, bonuses, and other compensation paid to employees; 20

(ii) An individual’s medical records; 21

(iii) An individual’s personal financial records, including assets, 22
income, liabilities, net worth, bank balances, financial history or activities, and 23
creditworthiness; 24

(iv) Records relating to business transactions that are currently in 25
negotiation; 26

(v) The written advice of legal counsel; or 27

(vi) Minutes of a closed meeting of the governing body of the 28
homeowners association, unless a majority of a quorum of the governing body of the 29
homeowners association that held the meeting approves unsealing the minutes or a 30
recording of the minutes for public inspection. 31

(3) (I) THIS PARAGR APH APPLIES ONLY TO A HOMEOWNERS 32
ASSOCIATION WITH AT LEAST 100 LOTS. 33

HOUSE BILL 1600 3

(II) WITHIN 30 DAYS AFTER CREATION OR RECEIPT , AND 1
SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE FOLLOWING BOOKS AND 2
OTHER RECORDS KEPT BY OR ON BEHALF OF A HOMEOWNERS ASSOCIATION SHALL 3
BE POSTED ON THE HOM EOWNERS ASSOCIATION’S WEBSITE, ONLINE PORTAL, OR 4
MOBILE DEVICE APPLICATION: 5

1. THE DECLARATION AND A NY AMENDMENTS TO THE 6
DECLARATION; 7

2. THE BYLAWS AND ANY AMENDMENTS TO THE BYLAWS; 8

3. THE ARTICLES OF INCOR PORATION OF THE 9
HOMEOWNERS ASSOCIATION OR OTHER DOCUMENTS CREATING THE HOMEOWNERS 10
ASSOCIATION AND EACH AMENDMENT TO THE ART ICLES OF INCORPORATI ON OR 11
OTHER DOCUMENTS; 12

4. THE POLICIES , RULES, AND REGULATIONS OF T HE 13
HOMEOWNERS ASSOCIATION; 14

5. THE APPROVED MINUTES OF ALL OPEN MEETINGS OF 15
THE BOARD OF DIRECTO RS OR GOVERNING BODY OF THE HOMEOWNERS 16
ASSOCIATION FOR THE PRECEDING 5 YEARS; 17

6. THE RECORDING OF ALL MEETINGS OF THE 18
HOMEOWNERS ASSOCIATION, THE BOARD OF DIRECTORS OR GOVERNING BODY, OR 19
A COMMITTEE OF THE HOMEOWNERS ASSOC IATION THAT ARE COND UCTED BY 20
TELEPHONE CONFERENCE, VIDEO CONFERENCE, OR SIMILAR ELECTRONIC MEANS 21
OVER THE PRECEDING 12 MONTHS; 22

7. ALL WRITTEN INFORMATION PROVIDED TO OR US ED 23
BY THE BOARD OF DIRECTORS OR GOVERNING BODY AT ALL OPEN MEETINGS OF THE 24
BOARD OF DIRECTORS O R GOVERNING BODY OF THE HOMEOWNERS ASSOCIATION; 25
AND 26

8. ALL BOOKS AND RECORDS KEPT BY OR ON BEHALF OF 27
THE HOMEOWNERS ASSOC IATION THAT MAY BE R EASONABLY REQUESTED FOR 28
POSTING BY A LOT OWNER WHEN THE RECORDS WOULD OTHERWISE BE AVAILABLE 29
TO THE LOT OWNER UNDER PARAGRAPH (1) OF THIS SUBSECTION. 30

(III) A HOMEOWNERS ASSOCIATI ON THAT DOES NOT USE A 31
WEBSITE, ONLINE PORTAL , OR MOBILE DEVICE APP LICATION SHALL DEVEL OP A 32
WEBSITE, ONLINE PORTAL, OR MOBILE DEVICE APPLICATION THAT IS CAPABLE OF 33
4 HOUSE BILL 1600

STORING THE BOOKS AN D RECORDS REQUIRED T O BE POSTED UNDER 1
SUBPARAGRAPH (II) OF THIS PARAGRAPH. 2

(IV) THE WEBSITE , ONLINE PORTAL , OR MOBILE DEVICE 3
APPLICATION DEVELOPED UNDER SUBPARAGRAPH (III) OF THIS PARAGRAPH MUST 4
BE MADE ACCESSIBLE TO THE LOT OWNERS: 5

1. FOR A HOMEOWNERS ASSOCIATION ESTABLISHED ON 6
OR BEFORE OCTOBER 1, 2026, BY OCTOBER 1, 2027; OR 7

2. FOR A HOMEOWNERS ASSO CIATION ESTABLISHED 8
AFTER OCTOBER 1, 2026, WITHIN 1 YEAR AFTER THE ELECT ION OF A GOVERNING 9
BODY OF THE HOMEOWNERS ASSOCIATION REQUIRED UNDER § 11B–106.1 OF THIS 10
TITLE. 11

11B–112.3. 12

(f) (1) The governing body of a homeowners association shall, in consultation 13
with a person identified under subsection (e)(1) of this section, develop a funding plan to 14
determine how to fund the reserves necessary under this section. 15

(2) In developing the funding plan under this subsection, the governing 16
body shall select one of the following methods to achieve the reserve funding under this 17
section: 18

(i) The component method; 19

(ii) The cash flow method; 20

(iii) The baseline funding method; 21

(iv) The threshold cash flow method; or 22

(v) Any other funding method consistent with generally accepted 23
accounting principles. 24

(3) A funding plan developed under this sub section shall prioritize 25
adequate amounts for repair and replacement of common areas of the homeowners 26
association that are necessary for: 27

(i) The health, safety, and well–being of the occupants; 28

(ii) Ensuring structural integrity, such as roofing replacements and 29
maintaining structural systems; 30

HOUSE BILL 1600 5

(iii) Essential functioning, such as plumbing, sewer, heating, cooling, 1
and electrical infrastructure; and 2

(iv) Any other essential or critical purpose, as determined by the 3
governing body. 4

(4) Reserves may be used for purposes other than those specified in the 5
funding plan if the funds are repaid to the reserve fund within 5 years after their use. 6

(5) A governing body of a homeowners association shall review progress 7
toward compliance with the funding plan developed under this subsection at each annual 8
meeting of the homeowners association. 9

(6) A GOVERNING BODY OF A HOMEOWNERS ASSOCIATI ON MAY 10
SECURE A LINE OF CRE DIT OR LOAN TO FUND THE RESERVES NECESSA RY UNDER 11
THIS SECTION BY A VOTE OF LOT OWNERS IN GOOD STANDING HAVING AT LEAST 51% 12
OF THE VOTES IN THE DEVELOPMENT. 13

11B–113.1. 14

(a) Notwithstanding language contained in the governing documents of a 15
homeowners association, the homeowners association [may] SHALL provide notice of a 16
meeting or deliver information to a lot owner by electronic transmission if: 17

(1) [The board of directors or other governing body of the homeowners 18
association gives the homeowners association the authority to provide notice of a meeting 19
or deliver information by electronic transmission; 20

(2)] The lot owner gives the homeowners association prior written 21
authorization to provide notice of a meeting or deliver information by electronic 22
transmission; and 23

[(3)] (2) An officer or agent of the homeowners association ce rtifies in 24
writing that the homeowners association has provided notice of a meeting or delivered 25
material or information as authorized by the lot owner. 26

(B) NOTICE OF A MEETING D ELIVERED BY ELECTRON IC TRANSMISSION 27
SHALL BE GIVEN AT LEAST 14 DAYS BEFORE THE MEETING AND INCLUDE: 28

(1) THE TIME OF THE MEETING; 29

(2) FOR A MEETING HELD IN PERSON, THE LOCATION OF THE 30
MEETING; AND 31

6 HOUSE BILL 1600

(3) FOR A MEETING HELD VIRTUALLY, INSTRUCTIONS ON HOW A LOT 1
OWNER MAY PARTICIPATE, INCLUDING A HYPERLINK OR CALL–IN NUMBER. 2

[(b)] (C) Notice or delivery by electronic transmission shall be considered 3
ineffective if: 4

(1) The homeowners association is unable to deliver two consecutive 5
notices; and 6

(2) The inability to deliver the electronic transmission becomes known to 7
the person responsible for sending the electronic transmission. 8

[(c)] (D) The inadvertent failure to deliver notice by electronic transmission IN 9
ACCORDANCE WITH THIS SECTION does not invalidate any meeting or other action. 10

11B–113.2. 11

(a) (1) Notwithstanding language contained in the governing documents of the 12
homeowners association, the board of directors or other governing body of the homeowners 13
association may authorize lot owners to submit a vote or proxy by electronic transmission 14
if the electronic tr ansmission contains information that verifies that the vote or proxy is 15
authorized by the lot owner or the lot owner’s proxy. 16

(2) (I) LOT OWNERS MAY PETITION THE BOARD OF DIRECTORS OR 17
GOVERNING BODY TO HOLD A MEETING TO AMEND THE GOVERNING DOCUMENTS OF 18
A HOMEOWNERS ASSOCIA TION TO AUTHORIZE VO TING BY ELECTRONIC 19
TRANSMISSION IF AT L EAST 25% OF THE ELIGIBLE VOTI NG MEMBERS OF THE 20
HOMEOWNERS ASSOCIATION SUBMIT A PETITION TO THE BOARD OF DIRECTORS OR 21
GOVERNING BODY. 22

(II) A PETITION DESCRIBED UNDER SUBPARAGRAPH (I) OF THIS 23
PARAGRAPH MUST BE SU BMITTED TO THE BOARD OF DIRECTORS OR GOVE RNING 24
BODY NOT LATER THAN 180 DAYS AFTER THE NEXT SCHEDULED ANNUAL MEETING. 25

(III) A MEETING TO AMEND THE GOVERNING DOCUMENTS OF A 26
HOMEOWNERS ASSOCIATION UNDER THIS PARAGRAPH SHALL: 27

1. BE HELD NOT LATER THA N 21 DAYS AFTER RECEIPT 28
OF A PETITION BY THE BOARD OF DIRECTORS OR GOVERNING BODY; AND 29

2. SATISFY APPLICABLE RE QUIREMENTS FOR A 30
MEETING AND VOTE TO AMEND THE GOVERNING DOCUMENTS OF THE HOMEOWNERS 31
ASSOCIATION. 32

HOUSE BILL 1600 7

(b) If the governing documents of the homeowners association require voting by 1
secret ballot and the anonymity of voting by electronic transmission cannot be guaranteed, 2
voting by electronic transmission shall be permitted if lot owners have the option of casting 3
anonymous printed ballots. 4

11B–113.6. 5

(a) (1) Notwithstanding language contained in the governing documents of the 6
homeowners association, the governing body may authorize meetings of the homeowners 7
association, the governing body, or a committee of the homeowners association to be 8
conducted or attended by telephone conference, video conference, or similar electronic 9
means. 10

(2) If a meeting is conducted by telephone conference, video conference, or 11
similar electronic means, the equipment or system used must permit any lot owner, board 12
member, or committee member in attendance to hear and be heard by all others 13
participating in the meeting. 14

(3) A link or instructions on how to access the meeting by telephone 15
conference, video conference, or similar electronic means shall be included in the notice of 16
the meeting. 17

(4) No specific authorization from lot owners shall be required to hold a 18
meeting electronically. 19

(5) A RECORDING OF A MEETI NG CONDUCTED BY TELE PHONE 20
CONFERENCE, VIDEO CONFERENCE , OR SIMILAR ELECTRONIC M EANS SHALL BE 21
KEPT AS AN OFFICIAL RECORD OF THE HOMEOW NERS ASSOCIATION IN 22
ACCORDANCE WITH § 11B–112 OF THIS TITLE. 23

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 24
October 1, 2026. 25