Sponsor Proposes Study of Condominium Reserve Shortfalls After Local Presidents and Condo Owners Flag Aging Buildings

Delegate Del. Rosemary Rosenberg (transcript label: Rosenberg) introduced a bill proposing a state response to insufficient condominium reserve accounts after testimony about older condominium buildings that face special assessments owners cannot afford. Rosenberg said many older condo owners are fixed‑income seniors who cannot cover large assessments and argued the state should study the scale of the problem and the demographic profile of affected owners.

The nut graf: Testimony described older condominium communities with underfunded reserve accounts; the sponsor offered an amendment to convert the proposed fund into a Department of Housing and Community Development study to quantify need as a first step.

Lisa Budlow of CHAI (Comprehensive Housing Assistance Inc.) and condo association leaders described dozens of older condominium buildings with low reserves and owners who face “special assessments” of several thousand dollars that they cannot afford. Budlow urged a study that would quantify how many buildings are at risk, the age and income of occupants, and the reserve gaps to design a later solution. The sponsor said an amendment would make the bill a study to avoid creating an unfunded program during the current fiscal constraints.

Ending: The committee heard supportive testimony for a study and several condominium leaders provided written letters; sponsor offered an amendment substituting a study by DHCD as a first step before any programmatic fund was created.