The following has been edited and copied from the Greater Severna Park Council Membership Meeting of 9 January 2024 Minutes of a presentation by Brian Fellner, Esq., an HOA/COA lawyer serving Anne Arundel County:
Remember that the reserve study applies to “structural, mechanical, plumbing, and electrical” components for which the Association has repair/replacement/maintenance responsibility.
“The law applies anywhere that an HOA has responsibility for components with a total purchase/installation cost of greater than $10,000.
The current Reserves information must be included in the Real Estate Package provided to buyers in these communities one month prior to closing of the purchase, or subject the HOA or COA and/or their Boards to legal recourse or other penalties.”
From GSPC Secretary’s minutes, the presentation stated, “…that insurance companies or mortgage lenders may soon start to investigate an HOA’s or COA’s history of Reserve Reports, Annual Reserve Budget collection, and their adequacy for coverage for replacement of the four categories of common property, that by law, must have coverage for the risk protection of the home or condo owners. The current Reserves information must be included in the Real Estate Package provided to buyers in these communities one month prior to closing of the purchase, or subject the HOA or COA and/or their Boards to legal recourse. This also applies to individual home or unit owners that suffer from the lack of Reserve Studies required by lenders of new mortgages or new home line of credit.”