A cap on Maryland's HOA capital-contribution fees passed the House 136-0 and died without a Senate vote
A cap on Maryland's HOA capital-contribution fees passed the House 136-0 and died without a Senate vote
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.
Why a proportional cap rather than a dollar figure
Three times the monthly assessment is an unusual drafting choice, and a defensible one. A flat dollar cap would bind a $180-a-month townhouse association and a $900-a-month high-rise identically, and would need an inflation escalator to survive — the same escalator that HB 1132 was trying to repeal from the resale-fee provisions in the same session.
Tying the cap to the assessment makes it self-scaling and self-indexing. It also makes it self-limiting in a way the sponsor presumably intended: an association that wants a larger contribution has to raise its own monthly assessment to justify it, which is a decision owners see.
The disclosure half is arguably the more consequential provision. A capital contribution is a fee a buyer typically discovers at settlement, and requiring it to be named in the resale certificate under its own label — new owner, initiation, or capital contribution fee — puts it in the document a purchaser reads before closing rather than in the figure they are handed at it.
It was a first filing, and it was unanimous
Unlike most of the Maryland community-association bills that died this session, HB 1506 has no prior-session history. We found no match in 2023, 2024 or 2025. It arrived new, was amended in Economic Matters, and drew a 136–0 House vote.1
That combination is worth pausing on. The proposals with long refiling records — the owners' bill of rights, manager licensing, the oversight division — are contested on principle and attract organised opposition. A first-time bill that passes a chamber unanimously and then simply stops has not been defeated on the merits by anyone; it has been passed over.
CAI's Maryland Legislative Action Committee, which itemised its positions on ten 2026 bills, does not list HB 1506 among them.3 Neither does Maryland REALTORS' session summary. Both of the sector's organised interests took public positions on the resale-fee bill in the same session and neither appears to have engaged with this one.
The pattern it belongs to
HB 1506 is one of five House-passed community-association bills that Senate Judicial Proceedings never brought to a vote in 2026. The others were the oversight division (passed 99–35), statewide board-member training (92–29), the meeting-recording mandate (133–0) and the Baltimore County commission (108–24).
Maryland publishes a committee voting record only where a committee actually voted, and for all five no such record exists. They were not voted down. They were not reached.
Three further bills — the resale-fee cap, a ten-year foreclosure limit and a short-term-rental preemption — got as far as the Senate floor on sine die day and died there. The tally for the session is nine community-association bills through the House, none through the Senate.
Where an association stands meanwhile
Nothing has changed, which is the point. There is no statutory ceiling on a Maryland initial capital contribution, no statutory requirement to itemise it under that name in the resale package, and no pending bill to create either.
What does exist is the general resale-disclosure framework: Real Property § 11-135 for condominiums and § 11B-106 for homeowners associations require disclosure of the current assessment, prior-year fees and charges, delinquency, and other fees payable to the association. A capital contribution payable at settlement is a fee payable to the association, so the existing disclosure duty reaches it — without the dedicated label, and without a cap.
What to watch next
Whether it is refiled at all. A bill nobody lobbied against and everybody voted for is cheap to reintroduce, and a sponsor who already has a 136–0 House vote has the easiest possible argument to make to a Senate committee. The counter-consideration is that the sponsor must return: the 2027 session, convening 13 January 2027, is the first of a new four-year term after the 3 November 2026 election.
Pre-file drafting requests are due 20 November 2026, seventeen days after Election Day. That is the window in which this either comes back or quietly does not.
Related Maryland HOA Topics
- 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 ↩
- 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 ↩
- CAI Advocacy, 2026 Maryland End of Legislative Session Report — itemised positions on ten 2026 bills; HB 1506 is not among them ↩
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