2026-09-12 · Maryland · Legislation · Did not pass

What happened. Maryland law places no limit on the initial capital contribution a condominium or homeowners association may charge a buyer at closing. A first-time bill to change that passed the House of Delegates 136–0 on 11 March 2026, went to Senate Judicial Proceedings, drew a hearing notice for 3 April — and got no committee report and no vote. House Bill 1506 died at sine die on 13 April.¹

The absence of a cap is the current law, and the fiscal note says so plainly: Maryland statute does not expressly limit initial capital contributions or similar closing fees.²

What it would have done

Delegate Ross's bill proposed two things:²

• A cap keyed to the assessment. The initial capital contribution or similar fee charged to a new owner — other than an initial owner or purchaser from the developer — could be no more than three times the monthly assessments paid by an existing owner at the time of closing.
• Mandatory disclosure in the resale package. The resale certificate or disclosure statement would have had to state the fee, labelled as a new owner, initiation, or capital contribution fee, its amount, and any other fee required for settlement.

There was one exemption, and it was carefully drawn: a “master planned community”, including a senior age-restricted community, providing municipal-like services across multiple individual condominiums — defined as a large-scale comprehensive residential development integrating homes, commercial space and amenities such as dog parks, trails, pools and sport courts.

The Department of Legislative Services found no state or local fiscal effect and no small-business effect.

1. House Bill 1506 (2026), Condominiums and Homeowners Associations – New Owner Fees – Limitations — passed House 136-0 on 11 March 2026; Senate Judicial Proceedings hearing noticed 3 April, no committee report, died at sine die ↩
2. Department of Legislative Services fiscal and policy note, HB 1506 (2026) — the three-times-monthly-assessment cap, the resale-certificate labelling duty, the master planned community exemption, and the finding that current Maryland law does not limit these fees ↩
3. CAI Advocacy, 2026 Maryland End of Legislative Session Report — itemised positions on ten 2026 bills; HB 1506 is not among them ↩