Condo 4.0 – Florida’s Latest Changes to the Condominium Act (HB 913)

On June 23, 2025, Governor DeSantis signed HB 913. This law is effective July 1, 2025. This is Part I of a two-part summary and contains the changes to the Condominium Act and Fla. Stat. 553.899, of which condominium associations need to be aware. These changes are not applicable to homeowner associations governed by Fla. Stats. Chapter 720. While comprehensive, this summary is a general outline of most, but not all, changes applicable to condominium associations. You should check directly with your attorney as to changes that may impact your community.

Insurance- Fla. Stats. s. 718.111(11)

• Revises “adequate insurance coverage” from “must be based” to “may be based” on the replacement cost of the property to be insured as determined by an independent insurance appraisal or update of a prior appraisal. The replacement cost must be determined every 3 years.

Official Records – Fla. Stats. s. 718.111(12)

• Committee meeting minutes and a recording of all association meetings conducted by video conference are made official records.
• All bank statements and ledgers are specifically made official records.
• A copy of all affidavits required by the Condominium Act are made official records.
• Modifies standard for criminal penalties related to records requests from “knowingly, willfully, and repeatedly” to “willfully and knowingly or intentionally.”
• Requires an association to maintain an adequate number of copies of the association’s most recent annual financial statements and annual budget on the condominium property.
• New deadline for when an association must upload official records once received or created to the Association’s website/ mobile app to 30 days after the association receives or creates an official record unless a shorter period is otherwise required.
• New records required to be posted on website:
  • Approved minutes of all board meetings over the last 12 months.
  • The video recording or hyperlink to the video recording for all meetings of the association, the board, any committee, and the unit owners which are conducted by video conference over the last 12 months.
  • A copy of all affidavits required by the Condominium Act.

Financial Reporting – Fla. Stats. s. 718.111(13)

• Extends the deadline for providing copy of end of year financial report from 120 days to 180 days.
• Clarifies the requirement that an association provide a copy of the financial report or a notice that the financial report will be made available upon request.
• New requirement that an affidavit be completed to evidence compliance with deadline for sending financial report to owners.
• Increases the voting threshold for approving a lesser degree of financial reporting from a majority vote of those present to a majority of all the voting interests of an association.

Investment of Association Funds – Fla. Stats. s. 718.111(16)

• New section requiring the Board use best efforts to make prudent investment decisions that carefully consider risk and return in an effort to maximize returns on invested funds.
• Clarifies methods of investing association reserve funds – allows investing in one or any combination of certificates of deposit or in depository accounts at a community bank, savings bank, commercial bank, savings and loan association, or credit union without a vote of the unit owners.

Board Meetings – Fla. Stats. s. 718.112(2)

• Clarifies a Board meeting may be conducted in person or by video conference. The Division of Condominiums is to adopt rules governing the requirements for meetings.
• New requirement that the notice for a Board meeting conducted by video conference must state that the meeting will be held via video conference, include a hyperlink and call-in conference telephone number for unit owners to attend the meeting and list the address of the physical location where unit owners can attend the meeting in person.
• Requirement that all meetings conducted by video conference be recorded, and that such recording be maintained as an official record of the association for at least 1 year after the date the video recording is posted on the association’s website. “Video Conference” is also now defined.
  • Modifies distance requirement for location of annual meeting from 45 miles to within 15 miles or within the same county as the condominium.
  • If a unit owner meeting is conducted via video conference, a unit owner may vote electronically in the manner provided in Section 718.128.
  • Clarifies that unit owner meetings, including the annual meeting, may be conducted in person or via video conference. If the annual meeting is conducted via video conference, a quorum of the members of the board (new requirement) must be physically present at the physical location where unit owners can attend the meeting. The location must be provided in the association’s bylaws, and if silent, the meeting must be held within 15 miles of the condominium or within the same county as the condominium.
  • If a unit owner meeting is conducted via video conference, the video conference must be recorded and the recording maintained as an official record.
  • The Division to adopt rules governing the requirements for association meetings.

Budget Meetings- Committee Meeting and/or Board Meeting

• Specifically authorizes budget meetings to be held by video conference, and specifies that a sound transmitting device must be used so that the conversation of members may be heard by the board or committee members and unit owners attending in person.
• New requirement that if a board is proposing a budget which requires assessments which exceed 115 percent of assessments for the preceding fiscal year (excluding certain expense categories), the board must also simultaneously propose a substitute budget that does not include any discretionary expenditures that are not required to be in the budget. The substitute budget must be proposed at the budget meeting before the adoption of the annual budget. Excluded categories from the 115% calculations include required reserves, and expenses of the repair, maintenance and replacement of SIRS reserve items.

Reserve Funding

• Increases mandatory reserve threshold for deferred replacement or maintenance expenses to $25,000 or the inflation-adjusted amount, whichever is greater (previously $10,000).
• New subsection (2)(f)(2)c. added to Fla. Stats. s. 718.112–
  • Allows an association to fund SIRS reserves through regular assessments, special assessments, lines of credit or loans. A line of credit, a loan or special assessment, requires approval of a majority vote of the total voting interests of the association.
  • Allows an association to secure a line of credit or loan to fund capital expenses required by a milestone inspection or SIRS. The line of credit or loan must be sufficient to fund the cumulative amount of any previously waived or unfunded portions of the reserve funding amount required for statutorily required reserves and the most recent SIRS.
  • Funding from the line of credit or loan must be immediately available for access by the Board to fund required repair, maintenance, or replacement expenses without further approval by the members.
  • A special assessment, line of credit, or loan secured under this section and related details must be included in the association’s annual financial statement.
• Removed requirement for member approval to pause contributions to reserves or reduce reserve funding if a local building official determines that the entire 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 2 calendar years, the board, upon approval of a majority of the total voting interests, may temporarily pause, for a period of no more than 2 consecutive annual budgets, reserve fund contributions or reduce the amount of reserve funding for the purpose of funding repairs recommended by the milestone inspection.
  • An association that has paused reserve contributions must have a SIRS completed before the continuation of reserve contributions in order to determine the association’s reserve funding needs and to recommend a reserve funding plan.
  • Codifies ability of an association to pool reserves for two or more required components. Permits pooling for SIRS reserves. Switching from pooled to straight line funding no longer requires a vote of the members.

Structural Integrity Reserve Study

• Any design professional or contractor who bids to perform a SIRS must disclose in writing to the association their intent to bid on any services related to any maintenance, repair, or replacement that may be recommended by the SIRS.
• Any design professional or contractor who submits a bid for performing services recommended by the SIRS may not have an interest, directly or indirectly, in the firm or entity providing the SIRS or be a relative of any person having a direct or indirect interest in such firm unless such relationship is disclosed to the association in writing. A contract for services is voidable by the association and terminates upon sending a written notice terminating the contract if the required disclosures are not made.
• New requirement that a SIRS report must include a recommendation for a reserve funding schedule based on a baseline funding plan that provides a reserve funding goal in which the reserve funding for each budget year is sufficient to maintain the reserve cash balance above zero.
• New requirement that if a SIRS recommends reserves for a non-SIRS component, the amount of the recommended reserves for such item must be separately identified as not required by a SIRS.
• The SIRS must take into consideration the funding method(s) used by the association to fund the maintenance and reserve funding obligations through regular assessments, special assessments, lines of credit, or loans.
• If the SIRS is performed before the association has approved a special assessment or secured a line of credit or loan, the SIRS must be updated to reflect the funding method selected and its effect on the reserve funding schedule.
• A SIRS report may be updated to reflect any changes to useful life of the reserve items after such items are repaired or replaced, and the effect such repair or replacement will have on the reserve funding schedule.
• An association must obtain an updated SIRS before adopting any budget in which the reserve funding from regular assessments, special assessments, lines of credit, or loans do not align with the funding plan from the most recent SIRS.
• Adds an additional exception to the SIRS requirement for “four-family” dwellings.
• Extends deadline for SIRS to be completed from December 31, 2024, to December 31, 2025.
• New requirement that an officer or director must sign an affidavit acknowledging receipt of the completed SIRS report.
• The division is to adopt a form for the SIRS report.

Hurricane Protection – Fla. Stats. s. 718.113(5)

• Allows an association to amend the declaration to shift the cost of any removal or reinstallation of hurricane protection, including exterior windows and doors, if their removal is necessary for the maintenance, repair, or replacement of other condominium or association property for which the association is responsible.

Electronic Voting – Fla. Stats. s. 718.128

• 25% of the voting interests may petition the Board to adopt electronic voting for the next scheduled election.
• An owner may vote by email if the Association does not have electronic voting.
• Unless an association has already adopted electronic voting, an Association must designate an email address for receipt of electronically submitted ballots.
• A unit owner may electronically transmit a ballot to the designated email address. An association must count completed ballots that are electronically transmitted to the designated email address. There are certain ballot requirements, and those owners waive the secrecy of their emailed ballot.

Milestone Inspections
Several clarifications to Florida Statutes section 553.899 to:

• Clarify that the milestone inspection requirement applies to buildings that are three “habitable” stories or higher.
• Impose a new requirement that any licensed architect or engineer who bids to perform the milestone inspection must disclose in writing to the association their intent to also bid on services related to the maintenance, repair, or replacement which may be recommended by the milestone inspection.
• Requires disclosure by design professional or contractor bidding on milestone inspection services of an interest, directly or indirectly, in the firm or entity providing the milestone inspection, and allows for voidability of their contract without such disclosure.

Requirements for Management Contracts- Fla. Stats. s. 718.111(3)(g)

• All Board members or officers of an Association that contracts with a CAM or CAM firm now have a duty to ensure the CAM or CAM firm is properly licensed before entering into a contract.
• An association may terminate a CAM or CAM firm contract if the CAM or CAM firm’s license is suspended or revoked during the term of the contract by sending written notice to the CAM or CAM Firm. The termination is effective on the date the CAM or CAM firm became unlicensed.

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