The Maryland General Assembly’s 2026 legislative session included several new and/or updated laws impacting common ownership communities in Maryland. Here are the key takeaways:
Senate Bill 747/House Bill 469: Condominium Unit Owner Responsibility for Damage or Destruction and Mandatory Insurance Coverage
Section 11-114 of the Maryland Condominium Act currently provides that if the cause of any damage or destruction originates from a unit, then the owner of the unit is responsible for up to $10,000 of the condominium association’s insurance deductible. The new legislation expands these requirements starting on October 1, 2027:
Insured Casualty. Section 11-114 of the Maryland Condominium Act will provide that, if the cause of any damage or destruction originates from a unit, then the owner of the unit is responsible for the lesser of:
- The total cost of the repair or replacement;
- the condominium association’s insurance deductible amount as specified in its property insurance policy; or,
- $25,000.
Annual Notice. Condominium associations will need to annually inform unit owners in writing of their insured casualty responsibilities and the condominium association’s insurance deductible amount.
Mandatory Unit Owner Insurance. The legislation also creates a new Section 11-114.3 in the Maryland Condominium Act, which applies to all residential condominiums except those composed entirely of detached units.
Under this new Section 11-114.3, all unit owners must maintain an insurance policy for their unit that includes:
- Coverage for the condominium association’s property insurance deductible or a portion of the deductible required under Section 11-114;
- loss assessment coverage of at least $25,000; and,
- dwelling or building property coverage of at least the greater of:
- $25,000; or
- the amount necessary to repair and replace (i) improvements and betterments made by the current unit owner or acquired from any previous unit owner other than the developer; and (ii) upgrades conveyed to the unit owner that are the unit owner’s responsibility to insure under the bylaws.
Unit owners must annually provide proof of insurance to the condominium association and whenever requested by the condominium association.
This new legislation does not go into effect on October 1, 2026, as is typical, but will have a delayed effective date of October 1, 2027 to allow insurance companies and unit owners a sufficient runway to provide and obtain the necessary insurance.
Senate Bill 758: Common Ownership Communities – Candidate or Proposition Signs- Display Period
Until recently, condominiums, cooperatives, and homeowners associations could not restrict the display of candidate signs or signs that advertise the support/defeat of any proposition for 30 days before the primary election, general election, or vote on the proposition.
This new legislation expands the timeframe from 30 days to 45 days. Moving forward, condominiums, cooperatives, and homeowners associations may not restrict these signs and displays for 45 days before the start of early voting for a primary election, general election, or vote on a proposition. If there is no early voting, then for 45 days before the primary election, general election, or vote on the proposition.
This new legislation will take effect immediately on the date it is enacted.
Senate Bill 573: Charles County – Governing Bodies of Common Ownership Communities – Member Training
This new legislation applies only to board members and officers of condominium associations in Charles County, as well as board members of homeowners associations in Charles County.
Under this new law, you must complete a training curriculum within 90 days after you are first elected or appointed as a board member or officer. For those who are already board members or officers on October 1, 2025, then the training must be completed within 90 days of you beginning your subsequent term as a board member or officer.
The training must be developed by (i) a common ownership commission that is recognized by the State of Maryland or a local government, or (ii) an organization that is approved by a recognized common ownership commission.
The board or officers will certify that each member has successfully completed the training, retain a copy of the certificate of completion, and notify the common ownership commission of the certification within 90 days after obtaining it.
The certificate will remain valid for 3 years. If you do not successfully complete the required training, then you may be removed from office or your vote invalidated.
This new legislation goes into effect on October 1, 2026.
House Bill 956: Condominiums – Buildings More Than 40 Years Old – Study
This new legislation requires that the Department of Housing and Community Development conduct a study on Maryland condominium buildings that are more than 40 years old.
The study will specify certain information about condominiums, including the number of condominium buildings that are more than 40 years old, the number of units within each condominium building, the average age of unit owners in each condominium building, the average annual income of unit owners in each condominium building, the date of the most recent reserve study for each condominium building, and the difference between the current amount in each reserve fund and the amount that is required to be in each reserve fund for each condominium building.
This new legislation went into effect on June 1, 2026, and the Department of Housing and Community Development needs to report its findings to the General Assembly on or before December 1, 2026. The legislation will remain in effect for a period of 1 year and 1 month, and at the end of June 30, 2027, will be abrogated with no further action required by the General Assembly.
It is unclear how the information to complete the survey will be obtained.
This article will appear in the July 2026 edition of Quorum.
Much of the new legislation may prompt additional questions and raise practical concerns. We encourage you to reach out to your community association’s attorney for guidance and insight as to how these new laws apply to your community.
Nura Rafati and Jeremy Tucker are community association attorneys at Lerch, Early & Brewer. For more information, contact Nura Rafati at 301-657-0730 or nrafati@lerchearly.com or Jeremy Tucker at 301-657-0157 or jmtucker@lerchearly.com.
