Maryland Senate passes bill enabling separate assessments for accessory dwelling units

On March 27, 2025, the Maryland Legislature introduced Senate Bill 891, a significant piece of legislation aimed at redefining the governance of homeowners associations (HOAs) in relation to accessory dwelling units (ADUs). This bill seeks to address the growing need for affordable housing options by allowing homeowners associations to treat ADUs as separate lots for voting and assessment purposes, thereby enhancing the rights of homeowners who wish to add these units to their properties.

The key provisions of Senate Bill 891 include granting homeowners associations the authority to treat ADUs as separate lots when voting on HOA matters. This change is particularly relevant as it empowers homeowners with ADUs to have a voice in association decisions that may affect their living situations. Additionally, the bill allows associations to increase assessments beyond previously established limits to cover reserve funding, specifically for properties that include ADUs.

The introduction of this bill comes amid ongoing debates about housing affordability and the role of local governance in facilitating or hindering the development of ADUs. Proponents argue that this legislation will encourage the construction of ADUs, which can provide essential rental income for homeowners and increase the availability of affordable housing. Critics, however, express concerns that such measures may lead to increased assessments that could burden homeowners, particularly those in communities with strict HOA regulations.

The implications of Senate Bill 891 extend beyond individual homeowners; they touch on broader economic and social issues. By potentially increasing the number of ADUs, the bill could help alleviate housing shortages in Maryland, a state grappling with rising living costs. Furthermore, the legislation reflects a shift in policy that recognizes the importance of flexible housing solutions in urban planning.

As the bill progresses through the legislative process, stakeholders from various sectors, including housing advocates and HOA representatives, are expected to weigh in on its potential impacts. The outcome of this bill could set a precedent for how accessory dwelling units are managed within homeowners associations across Maryland, influencing future housing policies and community development initiatives.

Senate Bill 891 is set to take effect on October 1, 2025, pending further legislative approval. As discussions continue, the bill's fate will be closely monitored by those invested in the intersection of housing policy and community governance.