Excerpt from MIF12 – Florida Real Estate Magazine, 12th Edition
Following Florida’s strict laws enacted in 2022 after the collapse of Champlain Towers South in Surfside, condo owners facing costly structural repairs found themselves in a difficult—sometimes untenable—situation.
The new laws offer relief to owners, HOAs, and the broader condominium real estate market. The goal is to strike a balance between essential building safety and more manageable maintenance and repair costs.
Key Updates Effective July 1, 2025:
- Milestone Studies now apply only to residential buildings with three or more stories and over 30 years old (25 years near the coast), excluding garages and storage buildings.
- Reserve funds are no longer required for buildings with four units or fewer.
- The deadline for Milestone Study inspections has been extended to December 31, 2025.
Toward Easier Financing:
- HOAs may fund their reserves through a line of credit or bank loan—this applies to all multi-condo buildings, not just those with 25+ units.
- HOAs may pause reserve fund collections for two years following a Milestone Study.
- If budget estimates exceed 115% of the previous year’s budget, HOAs must propose alternative budgets.
The threshold for capital reserve assessments has increased from $10,000 to $25,000 to keep pace with inflation.
Toward Greater Transparency:
- HOAs can no longer reduce or cancel reserve assessments for roofing, foundations, or plumbing.
- Architects, engineers, and contractors involved in inspections or repairs must disclose any potential conflicts of interest in writing.
- Independent insurance evaluations must be conducted every three years.
- Owners cannot be denied access to official condominium documents.
- HOAs must send annual financial statements to owners within 180 days of closing the books.
Boards are now authorized to make “prudent” investments—such as reserve funds—in certificates of deposit (CDs) without requiring a vote from owners.
Toward Simplified Communication:
- Virtual meetings must be recorded and archived; meeting minutes must be posted online within 30 days. HOAs with more than 25 units are now required to have a website.
- Voting may be conducted electronically. Owners can request this via petition to their HOA. Email voting is also allowed if the owner agrees to waive anonymity.
- Meetings must be held within a 15-mile (24 km) radius of the building in question.
These measures are expected to restore confidence among buyers and sellers in the condo market.
However, buyers must now assess the status of reserve funds, inspection reports, and insurance compliance before purchasing. Working with a licensed, expert agent is more crucial than ever.
