Key Changes From Florida House Bill 913 Explained: Inspections, Reserves and More
Florida House Bill 913 (2025) introduces sweeping reforms to the Florida Statutes governing condominium and cooperative associations. These changes aim to enhance transparency, improve building safety, and ensure financial accountability. This article outlines the most critical updates, focusing on milestone inspections, structural integrity reserve studies (SIRS), and the waiver of reserves. Read ahead for a summary of the key bill changes and a summary of additional must-know information to help you stay compliant.
Mandatory Structural Inspections for Condominium and Cooperative Buildings
As part of the bill overhaul, a much-needed definition and scope limitation have been added to the inspection requirement for the applicable structures as part of the bill overhaul. The mandatory milestone inspections introduced during the last session have been defined to apply to buildings with three or more occupied stories in height. This excludes garages, shared spaces, and other non-habitable areas, as previously questioned by condominium association managers. The inspections must be completed by licensed professionals and are required every 10 years after the building reaches 30 years of age, by December 31 of the required year.
Milestone Inspections
Milestone inspections are now mandatory for condominium and cooperative buildings that are three or more habitable stories tall. These inspections must be conducted every 10 years once a building reaches 30 years. If a building reached 30 years before July 1, 2022, the first inspection must have been completed by December 31, 2024. For buildings reaching 30 years between July 1, 2022, and December 31, 2024, the deadline is December 31, 2025 (Section 4, lines 800–814).
Key provisions include:
- Professionals bidding on inspections must disclose any financial or familial ties to the inspection firm in writing.
- Local milestone enforcement agencies must electronically report inspection data to the state annually.
- Contracts are voidable if the licensed professionals fail to disclose conflicts of interest.
Structural Integrity Reserve Studies (SIRS)
SIRS are now required every 10 years for buildings with three or more occupied stories. These studies must include:
- Visual inspections of structural components.
- Estimated useful life and replacement costs.
- A funding plan that ensures reserves are sufficient to meet projected expenses.
Licensed engineers, architects, or certified reserve specialists must conduct or verify the studies. Associations must update the SIRS each time the funding method(s) change or if repairs affect reserve items. Tighter budget requirements include a provision that reserve funding schedules must align with the most recent SIRS before that budget may be adopted.
Waiver of Reserves
Significant changes have been made to the ability of associations to waive or reduce reserves:
- Associations, by vote of the membership, may waive the funding recommended in the most recent SIRS study under certain specific and limited situations.
- Reserve funding may include regular assessments, special assessments, lines of credit, or loans, but must be approved by a majority of the voting interests.
- Unit-owner-controlled associations (not applicable to associations under developer control) can secure lines of credit or loans to fund capital projects required under their SIRS. The line of credit or note must be sufficient to fund any previously waived or underfunded portions identified by the SIRS, funding must be made available immediately for access by the board to make the required capital repairs, and the line of credit or loan must be included in the annual financial statement required under s. 718.503 to be delivered to unit owners and prospective purchasers of a unit under the association.
Additional Additions and Deletions From HB 913
Note: The following is a summary. Readers should refer to the full bill for comprehensive details.
Additions
Community Association Manager (CAM) Regulations
- Revoked CAMs cannot work in, have an ownership interest in, or be an officer/partner/director/trustee of any management firm for 10 years following the revocation (Section 1, lines 592–599).
- CAMs must maintain online licensure accounts and identify the community associations to which they provide management services to (Section 1, lines 599–615).
- A licensee must update their online account within 30 days after any changes to the required information (Section 1, lines 606-608).
- Conflict of Interest Rules:
- Expanded definitions and disclosure requirements (Section 3, lines 688–793).
- Multiple bids are required if a conflict exists and the bid exceeds $2,500 (Section 3, lines 720–732).
Insurance Requirements
- Associations must maintain adequate property insurance based on replacement cost (Section 7, lines 1021–1049).
Digital Transparency
- Associations with 25+ units must post more documents online or via mobile apps (Section 7, lines 1311–1415; Section 18, lines 3410–3524).
Financial Reporting
- Extended due date for delivery of financial report to 180 days from the previous 120 days (Section 7, line 1432).
- Expanded delivery options (e.g., email) and affidavit requirements (Section 7, lines 1434–1443).
- New rules for reserve fund investment and use of credit (Section 7, lines 1546–1556; Section 20, lines 3539–3543).
Meetings and Voting
- Videoconferencing allowed for board meetings; videos must be recorded, and a hyperlink to the live video and the recording after the conclusion of the meeting must be made available to unit owners (Section 8, lines 1609–1746).
- New rules for electronic voting (Section 11, lines 2537–2611).
- Directors must complete education and continuing education (Section 8, lines 1923–1978).
- Turnover and Developer Control – Clarified timelines and exemptions for small nonresidential condominiums (Section 13, lines 2621–2688).
Division of Business and Professional Regulation (“DBPR”) Oversight
- Associations must create online accounts with the DBPR (Section 16, lines 3162–3191).
- The DBPR gains expanded enforcement powers (Section 16, lines 2784–3161).
Deletions
Conflict of Interest Procedures
- Removed requirement to attach conflict-related contracts to meeting agendas (Section 3, lines 739–741).
- Removed requirement to disclose conflicts at the next member meeting (Section 3, lines 757–762).
Insurance Coverage Specifics
- Deleted mandates for specific types of insurance coverage (Section 7, lines 1021–1065).
Meeting Notices
- Removed requirement for written notice of certain meetings (Section 11, lines 2537–2555).
- Deleted some notice and disclosure requirements for developer-controlled associations (Section 13, lines 2693–2715).
Authors: Lena Combs, CPA, Partner and Team Leader, Hospitality | [email protected] and Stephen Vinarub, CPA | [email protected]