House Bill 295, introduced in Maryland on March 3, 2025, aims to enhance transparency and accountability within condominium governance. The bill proposes several key provisions that address the management of condominium associations, particularly focusing on the handling of contracts and financial oversight.

One of the main features of House Bill 295 is the stipulation that contracts entered into by condominium boards can be terminated without liability within 30 days of notice, provided that all board members have not yet been elected by unit owners. This provision seeks to empower unit owners by allowing them to reassess contracts made by developers or interim boards, potentially reducing the risk of unfavorable agreements.

Additionally, the bill mandates that condominium governing bodies conduct an independent reserve study at least 30 days before unit owner meetings. This requirement is designed to ensure that financial planning for maintenance and repairs is based on accurate assessments, thereby safeguarding the interests of unit owners.

House Bill 295 also emphasizes the importance of maintaining accurate financial records. It requires that all books and records be kept in Maryland or within a 50-mile radius, ensuring accessibility for unit owners. Furthermore, if at least 5% of unit owners request it, an independent audit of the financial records must be conducted annually, with the costs shared among the owners.

The bill has sparked discussions among stakeholders, with proponents arguing that it will lead to better governance and protect the rights of unit owners. However, some opposition has emerged, particularly from developers who may view the new regulations as burdensome. Critics argue that the additional requirements could slow down the development process and increase costs.

The implications of House Bill 295 are significant, as it seeks to address long-standing issues of transparency and accountability in condominium management. Experts suggest that if passed, the bill could lead to improved financial practices and greater trust between unit owners and their boards. As the legislative process continues, the outcome of this bill will be closely monitored by both advocates and opponents, with potential ramifications for condominium governance across Maryland.