Reserves

All Resources

Modified: June 30, 2025

Article

Condominium & Cooperative Associations

CS/CS/HB 913

 

Reserves

pp. 63–99, 142–155; §718.112 and §719.106, F.S.

 

Requires any determination of whether assessments exceed 115 percent of assessments for the prior fiscal year to exclude any authorized provision for required, rather than reasonable, reserves for the following:

  • Repair or replacement of the condominium property.

  • Anticipated expenses of the association that the board does not expect to be incurred on a regular or annual basis for the repair, maintenance, or replacement of the structural integrity reserve items.

  • Insurance premiums.

 

Specifies that the reserve accounts included in an annual budget for capital expenditures and deferred maintenance must include, but are not limited to, roof replacement, building painting, and pavement resurfacing, and any other item that has a deferred maintenance expense or replacement cost that exceeds $25,000 (rather than $10,000) or the inflation-adjusted amount determined by the Division, as provided under the bill, whichever is greater.

 

Allows, if an association votes to terminate a condominium, members of the association to waive the maintenance of reserves recommended by the association’s most recent structural integrity reserve study (SIRS).

 

Allows reserves for SIRS items to be funded by regular assessments, special assessments, lines of credit, or loans. However, a special assessment, line of credit, or loan pursuant to this provision requires the approval of a majority vote of the total voting interests of the association.

 

Provides that if an association secures a line of credit or a loan to fund capital expenditures required by a milestone inspection or SIRS:

  • The line of credit or loan to be sufficient to fund the cumulative amount of any previously waived or unfunded portions of the reserve funding amount required and the most recent SIRS.

  • Funding from the line of credit or loan to be immediately available for access by the board to fund required repair, maintenance, or replacement expenses without further approval by the members of the association.

  • A special assessment, line of credit, or loan secured pursuant to these provisions and related information to be included in the annual financial statement that associations are required to provide to unit owners and prospective purchasers of a unit.

 

Specifies the above provisions do not apply to associations controlled by a developer, an association in which the nondeveloper unit owners have been in control for less than one year, or an association controlled by one or more bulk assignees or bulk buyers.

 

Allows a board of an association to pause contributions to its reserves, without obtaining the prior approval of a majority of its members, if a local building official determines that a condominium building is uninhabitable due to a natural emergency.

 

For a budget adopted on or before December 31, 2028, if an association has completed a milestone inspection within the previous two calendar years, the bill allows a board, upon the approval of a majority of the total voting interests of the association, to temporarily pause, for a period of no more than two consecutive annual budgets, reserve fund contributions or reduce the amount of reserve funding for the purpose of funding repairs recommended by the milestone inspection. These provisions do not apply to an association controlled by a developer, an association in which the nondeveloper unit owners have been in control for less than one year, or an association controlled by one or more bulk assignees or bulk buyers.

 

Requires an association that has paused reserve contributions to have a SIRS performed before the continuation of reserve contributions in order to determine the association’s reserve funding needs and to recommend a reserve funding plan.

 

Authorizes an association to pool reserve accounts for two or more required SIRS items.

 

Requires that the reserve funding indicated in the proposed annual budget must be sufficient to ensure that available funds meet or exceed projected expenses for all components in the reserve pool, based on the most recent SIRS.

 

Provides a vote of the members is not required for the board to change the accounting method for reserves to a pooled accounting method or a straight-line accounting method.

 

Requires the Division to annually adjust for inflation, based on the Consumer Price Index for All Urban Consumers released in January of each year, the minimum $25,000 threshold amount for required reserves. By February 1, 2026, and annually thereafter, the bill requires the Division to conspicuously post on its website the inflation-adjusted minimum threshold amount for required reserves.

 

Effective date: July 1, 2025, unless otherwise provided in the bill.

Chapter No. 2025-175, LOF