“New Reserve Laws Exempt Certain Buildings” – News-Press
Q: Our condominium consists of a number of buildings with two residential floors with covered parking underneath.
It is my understanding that the prior statutes allowed associations to partially fund the reserves. Fully funding the reserves through increased quarterly payments or a sizable special assessment will impose an unnecessary hardship on our owners given all the work already performed.
Is there a clause or exemption under the new statute that would allow us the flexibility of reducing the reserve funding where not needed? (R.R., via e-mail)
A: The current statute, as amended on July 1, 2025, provides that the requirements for a Structural Integrity Reserve Study (“SIRS”) applies to buildings of three “habitable stories” or more. Three-story buildings, with two living floors over a ground level non-habitable floor, such as parking, are now exempt. Further, buildings containing single-family, two-family, three-family, or four-family dwellings with three or fewer habitable stories above ground are not required to schedule or fund “SIRS reserves.” Exempt associations still must follow the “old” reserve laws.
The Florida Condominium Act currently requires scheduling reserves for roof replacement, building repainting, and pavement resurfacing (regardless of replacement cost or deferred maintenance expense), and any component with a replacement cost or deferred maintenance expense of $25,000.00 or more.
Although “SIRS reserves” cannot be waived or reduced and must be fully funded, this law does not appear to be applicable to your community. For condominiums that are not required to have a SIRS reserve funding may still be reduced or waived by a vote of the owners. However, the 2025 amendment to the statute now says that the required vote is a majority vote of the total voting interests of the association, not just a majority of those who vote.
Therefore, with the exception of the reserve waiver/reduction vote being made harder, the various new reserve laws, which are rather complicated to say the least, do not appear to apply to your association. Of course, the board should confirm this with the association’s attorney.
Q: The current condominium law requires the physical presence of a quorum of the board at the annual meeting. Our annual meeting is always held in May, and the board is scattered around the country at that time of year. Is their presence by video conference sufficient for the annual meeting? (J.R., via e-mail)
A: No. Florida’s Condominium Act was amended effective on July 1, 2025 to require that if the annual membership meeting is conducted by “video conference,” a quorum of the board must be present at the physical location of the annual meeting. The new law does not explain why this was thought to be necessary or desirable, nor what the consequences may be if the association does not have a quorum of its board physically in attendance for the annual meeting.
This could present a problem for some associations, like yours, where the board is not in Florida during the summer months, and in condominiums that are primarily used for rental purposes and where owners may never use the units. The apparent goal of making annual meetings more transparent will likely be thwarted by this law and could result in associations shying away from the use of remote communication technology to avoid all the new rules that have been imposed.
If a quorum of your board cannot attend the annual meeting in person, the “safest” way to hold the meeting is the “ancient” way, by “paper only,” meaning that proxies will be used and those who cannot attend in person will not be privy to what happens at the meeting. There may be other “workarounds,” such as audio conference call only, which I would suggest discussing with your association’s legal counsel.
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.
