HB 1506 Maryland House of Delegates · 2026 Regular Session

Condominiums and Homeowners Associations - New Owner Fees - Limitations

HB 1506 limits fees that new condominium or homeowners association (HOA) owners must pay at closing. It prohibits associations from charging new unit owners (not initial buyers) more than the current monthly assessment paid by existing owners at closing. Similarly, new lot owners in HOAs cannot be charged more than the existing lot owner's current monthly assessment. This bill directly affects new buyers in these communities by capping their initial capital contribution fees. The law takes effect October 1, 2026.

Issues: ✓ Housing

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Mar 2026

House of Delegates Passage

Mar 2026

Senate Passage

Governor

Introduced Feb 13, 2026 Last action Mar 25, 2026

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What changed between versions

First - Condominiums and Homeowners Associations - New Owner Fees - Limitations → Third - Condominiums and Homeowners Associations - New Owner Fees - Limitations · 4 edits

MODERATE

This bill expands the cap on initial fees charged to new condominium and homeowners association owners from one month's dues to three months' dues. It also adds a specific exemption for large-scale master-planned communities that offer municipal-style services, ensuring they are not subject to the new fee limit. Additionally, the bill requires sellers to clearly label these fees on disclosure documents to ensure transparency for buyers.

Scope change

The bill's scope was expanded to include a specific exemption for 'master-planned communities' that provide services similar to municipalities, which were previously not explicitly excluded.

FISCAL

The maximum allowable initial capital contribution or similar fee for new owners was increased from an amount equal to one month's assessments to three times that amount.

ELIGIBILITY

A new exemption was created for 'master-planned communities' (large developments with amenities like pools and trails) and senior age-restricted communities that provide municipal-style services, exempting them from the fee cap.

REQUIREMENT

New requirements mandate that resale certificates and disclosure statements must explicitly label the fee as a 'New Owner Fee,' 'Initiation Fee,' or 'Capital Contribution Fee' and state the specific amount.

DEFINITION

A formal definition was added for 'master-planned community' to clarify that it refers to large-scale residential developments integrating homes, commercial spaces, and shared amenities.

Floor votes · House of Delegates Mar 11, 2026

How they voted

137–0

Passed · 5 other

Total votes 142

Mar 11, 2026

D Democratic103

99 Yea 4

96% Yea

R Republican39

38 Yea 1

97% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 23, 2026

Committee

Referred Judicial Proceedings

upper

Mar 23, 2026

Lower · Passed

Third Reading Passed

lower

Mar 21, 2026

Lower · Passed

Favorable with Amendments {

lower

Mar 21, 2026

Lower · Passed

Favorable with Amendments Report by Economic Matters

lower

Mar 11, 2026

House Of Delegates · Passed

House of Delegates Vote: pass (137-0-5)

house of delegates

Feb 13, 2026

Committee

First Reading Economic Matters

lower

1 primary · 0 co-sponsors