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§ 11B-112.2. Homeowners association annual budget

West's Annotated Code of MarylandReal PropertyEffective: October 1, 2022

West's Annotated Code of Maryland
Real Property (Refs & Annos)
Title 11b. Maryland Homeowners Association Act (Refs & Annos)
Effective: October 1, 2022
MD Code, Real Property, § 11B-112.2
§ 11B-112.2. Homeowners association annual budget
Currentness
Application of section
(a) This section applies only to a homeowners association that has responsibility under its declaration for maintaining and repairing common areas.
Preparation and submission of budget
(b)(1) The board of directors or other governing body of a homeowners association shall cause to be prepared and submitted to the lot owners an annual proposed budget at least 30 days before its adoption.
(2) The annual proposed budget may be sent to each lot owner by electronic transmission, by posting on the homeowners association's home page, or by including the annual proposed budget in the homeowners association's newsletter.
Items included in annual budget
(c) The annual budget shall provide for at least the following items:
(1) Income;
(2) Administration;
(3) Maintenance;
(4) Utilities;
(5) General expenses;
(6) Reserves; and
(7) Capital expenses.
Amount of reserves
(d)(1) Subject to paragraph (2) of this subsection, reserves provided for in the annual budget under subsection (c) of this section shall be the funding amount recommended in the most recent reserve study completed under § 11B-112.3 of this title.
(2) If the most recent reserve study was an initial reserve study, the governing body shall, within 3 fiscal years following the fiscal year in which the initial reserve study was completed, attain the annual reserve funding level recommended in the initial reserve study.
Adoption of budget
(e)(1) The budget shall be adopted at an open meeting of the homeowners association or any other body to which the homeowners association delegates responsibilities for preparing and adopting the budget.
(2)(i) The board of directors or other governing body of a homeowners association shall submit the adopted annual budget to the lot owners not more than 30 days after the meeting at which the budget was adopted.
(ii) The adopted annual budget may be submitted to each lot owner by electronic transmission, by posting on the homeowners association's home page, or by inclusion in the homeowners association's newsletter.
(3)(i) Notice of the meeting at which the proposed budget will be considered shall be sent to each lot owner.
(ii) Notice under subparagraph (i) of this paragraph may be sent by electronic transmission, by posting on the homeowners association's home page, or by including the notice in the homeowners association's newsletter.
Expenditures requiring approval
(f) Except for an expenditure made by the homeowners association because of a condition that, if not corrected, could reasonably result in a threat to the health or safety of the lot owners or a significant risk of damage to the development, any expenditure that would result in an increase in an amount of assessments for the current fiscal year of the homeowners association in excess of 15% of the budgeted amount previously adopted shall be approved by an amendment to the budget adopted at a special meeting for which not less than 10 days' written notice or notice by electronic transmission shall be provided to the lot owners.
Obligation of homeowners association for expenditures
(g) The adoption of a budget does not impair the authority of the homeowners association to obligate the homeowners association for expenditures for any purpose consistent with any provision of this title.

Credits

Added by Acts 2010, c. 294, § 1, eff. Oct. 1, 2010; Acts 2010, c. 295, § 1, eff. Oct. 1, 2010. Amended by Acts 2020, c. 138, § 1, eff. Oct. 1, 2020; Acts 2020, c. 559, § 1, eff. Oct. 1, 2020; Acts 2021, c. 433, § 1, eff. Oct. 1, 2021; Acts 2022, c. 664, § 1, eff. Oct. 1, 2022.
MD Code, Real Property, § 11B-112.2, MD REAL PROP § 11B-112.2
Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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