Understanding Florida’s 2025 Condo Reserve Requirements: What Associations and Owners Need to Know

Effective January 1, 2025, Florida condominium associations are mandated to establish and maintain reserve funds specifically allocated for the repair and replacement of critical structural components. Initiative aims to ensure the safety and longevity of condominium buildings across the state.

Mandatory Reserve Components*

Associations are required to reserve funds for the following key building elements:

• Roof
• Load-bearing walls and primary structural members
• Floors
• Foundation
• Fireproofing and fire protection systems
• Plumbing
• Electrical systems
• Waterproofing and exterior painting
• Windows
• Any other item with a deferred maintenance expense or replacement cost exceeding $10,000, whose failure could negatively impact the aforementioned components, as determined by a licensed engineer or architect. (Bilzin Sumberg)

Structural Integrity Reserve Study (SIRS)

By December 31, 2024, associations must complete a Structural Integrity Reserve Study (SIRS) for each building that is three stories or higher. This study, conducted by a licensed engineer or architect, involves usual inspection to assess the condition and estimated remaining useful life of the aforementioned components. The SIRS will provide recommendations for appropriate reserve funding levels to address future repairs or replacements. (FP Group)

Funding Requirements

Based on the findings of the SIRS, associations are obligated to:

• Allocate sufficient funds annually to ensure that, by the end of each component’s estimated useful life, adequate resources are available for necessary repairs or replacements. For example, if a roof has a 25-year lifespan and a replacement cost of $2 million, the association should collect $80,000 annually over 25 years. (CRC Group)
• Prohibit the waiver or reduction of reserve contributions for the specifies structural components. Unlike previous provisions that allowed associations to waive or reduce reserve funding through member votes, the new law mandates full funding for these critical reserves, eliminating the option to defer or diminish reserve allocations. (Condo Voice)

Implications for Condominium Associations and Owners

These stringent reserve requirements are designed to promote proactive maintenance financial preparedness, thereby enhancing building safety and preventing deferred maintenance issues. However, associations and unit owners should anticipate potential increases in monthly assessments or special assessments to meet the dated reserve funding levels. It’s crucial for all stakeholders to stay informed and engaged in the association’s financial planning to ensure compliance and maintain the structural integrity of their properties.

In summary, the 2025 Florida condominium reserve requirements underscore the state’s commitment to building safety and fiscal responsibility, necessitating diligent planning and cooperation among condominium associations and unit owners.