Understanding the Maryland Condominium Act: What Columbia Commercial Boards Need to Know

Summary

While the Maryland Condominium Act is often discussed in residential contexts, it also applies to commercial condominium associations. However, not all provisions apply equally. For example, reserve study and funding mandates only apply to residential condos. For board members managing commercial properties in Columbia, Maryland, this article explains which parts of the law apply, how to stay in compliance, and which best practices still make sense; like voluntary reserve studies, capital planning, and clear communication with owners.

What the Maryland Condominium Act Covers

The Maryland Condominium Act (Title 11 of the Real Property Article) applies to all condominiums in Maryland, including commercial ones. It outlines how associations must operate, including:

• Board meeting requirements

• Budget adoption rules

• Owner notices and transparency

• Rule enforcement procedures

• Fiduciary duties of board members

Even though the law is the same statute for both residential and commercial condos, certain provisions, such as mandatory reserve studies and reserve account funding, only apply to residential associations.

Key compliance requirements for commercial boards:

• Annual Budgeting: Boards must adopt an annual budget and provide owners with the proposed version at least 30 days before the adoption meeting. Once approved, the final budget must be distributed within 30 days.

• Open Meetings: Board meetings must be open to all owners, with reasonable notice provided in advance. Boards are allowed to hold closed sessions for certain issues, like legal or personnel matters.

• Rule Enforcement: Boards may adopt rules consistent with the governing documents and must provide notice and an opportunity to be heard when enforcing them.

• Fiduciary Duty: Board members must act in the best interest of the association, avoid conflicts of interest, and manage finances prudently.

Reserve Studies: What’s Required vs. What’s Recommended

Recent updates to the Maryland Condominium Act require residential associations to:

• Perform a professional reserve study every five years

• Maintain adequate reserve funding based on that study

Commercial condominiums are currently exempt from both requirements.

However, that doesn’t mean reserve planning should be ignored.

Why Columbia commercial condos should still consider a reserve study:

• Many buildings in Columbia were developed in the 1960s–1980s and are now aging.

• Shared components like roofs, HVAC systems, elevators, and parking lots require long-term planning.

• Reserve studies provide a roadmap for capital improvements and reduce the risk of unexpected special assessments.

• Lenders and buyers increasingly view reserve planning as a sign of a well-managed property.

  
  

Compliance and Management Tips for Columbia Boards

Review Your Governing Documents

Even if state law doesn’t require certain policies, your bylaws or declarations may. Work with an attorney to ensure they’re updated and legally sound.

Practice Proactive Budgeting

Use budget committees or external consultants to create realistic, transparent budgets that reflect both annual expenses and long-term planning goals.

Communicate Clearly and Often

Use email, owner portals, and posted notices to keep members informed. Transparent communication builds trust and reduces legal risk.

Consider Hiring a Management Company

Professional management can help ensure legal compliance, efficient operations, and streamlined owner relations. JFI Real Estate Management specializes in managing commercial properties in Columbia and understands local zoning, permitting, and board operations.

Local Considerations in Columbia, Maryland

Columbia is a unique, master-planned community with mixed-use developments, office parks, and retail condos, especially near Columbia Town Center, Broken Land Parkway, and Lake Kittamaqundi. Commercial boards here face specific challenges:

• Mixed-Use Coordination: Many properties combine retail, office, and residential elements. Boards must collaborate with adjacent uses to align maintenance schedules and access rules.

• Aging Infrastructure: Systems like HVAC, roofing, and elevators often require upgrades in older buildings. A reserve study can help prioritize projects based on urgency and ROI—even if not required.

• Sustainability Pressure: Businesses and tenants increasingly value eco-friendly upgrades. Consider capital improvements like LED lighting, high-efficiency HVACs, and EV charging stations.

Conclusion

Commercial condo boards in Columbia must follow key sections of the Maryland Condominium Act, even if some high-profile mandates, like reserve studies, don’t apply. But choosing to implement smart capital planning, transparent budgeting, and open governance is still the best way to protect your building’s value and reputation.

Need help staying compliant or planning your next capital project? Schedule a consultation with JFI Real Estate Management. Our Columbia-based team offers tailored guidance, reserve planning support, and full-service association management built around your property's needs.

👉 Contact Us Today to get started.