“New Condominium Law Tweaks Reserve Rules” – News-Press

Today’s column is the fourth installment of our annual legislative review, focusing on HB 913, which became effective on July 1, 2025. Today’s topic, reserves:

Here is a summary of the major changes:

1. Three “Habitable” Stories: Although there are inherent conflicts in the statute (some clauses that should have been amended were not), the new statute provides that the requirements for a Milestone Inspection and Structural Integrity Reserve Study (“SIRS”) applies to buildings of three “habitable stories” or more. This will apply primarily to three story buildings, with two living floors over a ground level non-habitable floor, such as parking.
2. Default Replacement Cost Threshold: For decades, the Florida Condominium Act has required scheduling reserves for roof replacement, building repainting, and pavement resurfacing. The Act has also historically required reserves for any component with a replacement cost or deferred maintenance expense of $10,000.00 or more. This number has changed to $25,000.00 and is to be adjusted for inflation periodically by the state regulatory agency. Roofing, painting and paving are not subject to the $25,000.00 trigger (nor were they subject to the $10,000.00 threshold).
3. Funding SIRS Reserves: The new statute allows the Association to fund reserve contributions required by the SIRS in one of four ways: (1) regular assessments; (2) special assessments; (3) loans; (4) lines of credit. Funding SIRS reserves through any of the foregoing methods other than regular assessments requires a vote of a majority of the entire voting interests (not just those who vote).
4. “Pausing” Reserve Funding: In one of the most confusing changes to the statute, the law now allows eligible associations, upon the approval of a majority of the total voting interests of the association, to “pause” SIRS reserve funding for a period of no more than two years. This applies to association budgets adopted on or before December 31, 2028. Further, the association needs to have received its Milestone Inspection within the two years preceding the pause and must obtain an SIRS within two years after the pause, and before reserve funding recommences.
5. Pooling: The statute clarifies that SIRS and Non-SIRS reserves can each be accounted for on a “pooling” basis, though two separate “pools” would be required. The statute does not directly address whether a unit owner vote is still needed to move existing “straight line reserve money” into the pool. There is room to debate that topic.
6. Content of SIRS: The statute now requires that the structural integrity reserve study contain certain information, including a recommended reserve schedule and an identification of items for which a reserve analysis has been performed, but are not reserves required by statute.
7. Affidavit: In an apparent attempt to “turn up the heat” on board members, the law now requires that officers and directors acknowledge receipt of the association’s SIRS by affidavit. In a related (though broader) provision of the 2025 changes, the Condominium Act now requires that all affidavits required by the statute be maintained as part of the official records of the association.
8. Standard SIRS Format: The statute now requires the Florida Division of Condominiums, Timeshares and Mobile Homes of the Department of Business and Professional Regulation, in consultation with the Florida Building Commission, to develop a standard format that all structural integrity reserve studies will be required to follow.

Next week, we will continue reviewing the changes to the statutes with a look at changes to the audit rules and the keeping of official records.

Joe Adams is an attorney with Becker & Poliakoff, P.A., Fort Myers. Send questions to Joe Adams by e-mail to jadams@beckerlawyers.com. Past editions may be viewed at floridacondohoalawblog.com.