Changes to the Florida Condominium Act have become as inevitable as death and taxes. Each year there seems to be a new "condo bill." This year’s sampling, HB 913, is another comprehensive bill that also impacts property managers, milestone inspections, and cooperative associations. Below are some key updates from the new legislation that goes into effect July 1, 2025:
Milestone Inspections
Section 553.899(3)(a), Florida Statutes, attempts to clarify the applicability of milestone inspections for smaller buildings by inserting the word “habitable” in between the term “three stories.” This change aims to exempt more condominiums from the obligation, such as those with two levels above ground floor parking. However, HB 913 does not insert "habitable" consistently in other applicable statutes, so the extent of the "clarification" is far from clear.
A small tweak in Section 553.899(11) now requires each local government to adopt an ordinance concerning milestone inspections. The ordinance will compel those subject to the inspection requirement to schedule or begin repairs for substantial structural deterioration within a specified timeframe after the applicable enforcement agency receives a "phase two" inspection report—but in no event more than one year after the agency receives the report.
HB 913 introduced new disclosure requirements for professionals performing milestone inspections that also intend to bid on the recommended corrective work. Any licensed designer or contractor who submits a bid may not have a direct or indirect interest in the entity providing the inspection—or be a "relative" of any person having a direct or indirect interest in the entity providing the inspection—unless such relationship is disclosed to the association in writing. If the licensed designer or contractor fails to disclose the relationship, the contract for services is voidable under Section 553.899(12) by the association. Note, however, the language is silent on whether the association is liable for any services rendered through the effective date of termination.
Nonresidential Condominiums
New Section 718.110(4)(b) allows a minority of unit owners and applicable lien holders in nonresidential condominiums created on or after July 1, 2025, to unilaterally amend their declaration in certain respects. Specifically, they can change the configuration or size of their units in any material fashion, materially alter or modify the appurtenances to their units, or change the proportion or percentage by which they share the common expenses and surplus. In other words, approval by the non-affected unit owners is not required for these types of amendments. This will give more flexibility to neighboring unit owners in new nonresidential condominiums to alter their spaces as business needs evolve.
Section 718.301(1) permits a developer to extend its control period over nonresidential condominiums with 10 or fewer units. Delayed turnover will allow these condominiums to operate more like traditional leased commercial properties, enabling the unit owners to focus on their businesses rather than managing the real estate.
Finally, Section 718.302 raises the voting threshold to cancel agreements made by the association during developer control from 75% to 90% for nonresidential condominiums with 10 or fewer units. All other condominiums, including nonresidential condominiums with more than 10 units, remain subject to the existing 75% threshold.
Reserve Funds
HB 913 introduced Section 718.111(16), which grants condominium associations explicit authority to invest their reserve funds. They can invest in certificates of deposit or depository accounts at community banks, savings banks, commercial banks, savings and loan associations, or credit unions without a vote of the unit owners. While this aims to help condominiums maximize returns on their reserve funds, these investment options arguably have always been available.
To provide financial relief under the new reserve requirements, condominium associations can now fund reserves through regular assessments, special assessments, lines of credit, or loans. However, all funding methods except regular assessments require approval by a majority vote of the association's total voting interest.
Additionally, condominium associations that have completed a milestone inspection within the previous two calendar years may pause reserve contributions for up to two consecutive fiscal years to fund repairs recommended by the inspection. However, this right expires for budgets prepared after December 31, 2028.
Structural Integrity Reserve Studies
HB 913 extended the deadline for completing a structural integrity reserve study (“SIRS”) to December 31, 2025. It also introduced new guidelines for the SIRS. For example, a SIRS must indicate the funding method(s) used by the association to meet its maintenance and reserve obligations. While the extension may provide relief for those unable to complete their SIRS by December 31, 2024, it may complicate matters for associations that met the initial deadline without the benefit of the new funding options or guidelines.
Associations can also delay performing a SIRS for up to two consecutive budget years if they have recently completed a milestone inspection (or a similar local inspection) and are focusing financial resources on completing the repair or maintenance obligations recommended by the inspection. This aligns with the right to pause reserve funding discussed above.
HB 913 also raised the threshold for deferred maintenance expenses or replacement costs in Section 718.112(2)(g)1.h. from $10,000 to $25,000. Additionally, the Florida Division of Condominiums, Timeshares, and Mobile Homes ("Division") will begin adjusting this threshold annually for inflation based on the Consumer Price Index. By February 1, 2026, and annually thereafter, the Division must conspicuously post the inflation-adjusted threshold amount for required reserves on its website.
The Division will eventually adopt a form for the SIRS in coordination with the Florida Building Commission.
Condominiums Created Within a Portion of a Building or Within a Multiple Parcel Building
In 2024, HB 1021 added Section 718.407 in response to a growing number of lawsuits involving mixed-use buildings with condominium components. It provided statutory recognition for condominiums created within a portion of a building or within a multiple parcel building.
HB 913 introduced three significant amendments to this new statute. First, Section 718.407(4)(b) requires the owner of the building's shared facilities (i.e., the common areas not part of a condominium) to provide the condominium association(s) with a complete financial report of all costs for maintaining the shared facilities within 60 days after the end of each fiscal year. Second, Section 718.407(4)(c) now allows the condominium association(s) to challenge the apportionment of costs for the maintenance with the Division, which is seemingly outside the Division's purview under Section 718.501. And third, HB 913 rolls back the retroactive application of Section 718.407, exposing all applicable projects created before July 1, 2025, to continued litigation and uncertainty without any legislative guidance as to what is proper.
