The tragic collapse of the Champlain Towers South condominium in Surfside, Florida in June 2021 sent shockwaves through the condo and association world. The human toll was immense, and the regulatory response followed quickly. In Florida, as of 2025, associations, unit-owners, property managers and lenders face a fundamentally altered regulatory landscape. New laws impose rigorous disclosure rules, stricter reserve funding obligations, expanded oversight of management firms, longer cooling-off periods for resale contracts, and mandated online accounting and transparency.
For anyone invested in Florida condos, HOAs, property management, financing or brokerage, understanding these reforms is now mission-critical.
Why It Matters
Condos and HOAs are no longer simply governed by private contracts and by-laws—they are subject to escalating regulatory scrutiny. Buyers, lenders and brokers now demand structural histories, reserve sufficiency, inspection reports and transparent governance. Associations that fail to comply risk shrinking unit-marketability, “ineligible for financing” flags, special assessments, litigation, and even occupancy limitations. Recent reporting shows older Florida buildings being flagged as non-financeable due to structural backlog and deferred maintenance issues—a clear case study of the consequences.
As one industry observer puts it:
“The benchmark for condominium governance has shifted. What used to be a board decision about reserve waivers is now a statutory obligation with serious market consequences.” — Omar Hussain
Indeed, the reforms are not optional. They reflect a new era of accountability for associations—and a new risk profile for owners and investors.
What’s New in 2025: Key Legislative Changes
House Bill 913 (HB 913) – Effective July 1, 2025
Florida’s legislative response to the Surfside collapse and subsequent policy debate has culminated in major reform through HB 913 (Chapter 2025-175) and related amendments. (The Florida Senate) Some of the pivotal provisions include:
Milestone Inspections & Structural Integrity Reserve Studies (SIRS)
- Buildings of three habitable stories or more (clarified language) must undergo “milestone” structural inspections. (Bilzin Sumberg)
- Associations must complete or update a Structural Integrity Reserve Study (SIRS) which lays out the funding plan for major structural items and longer-term repair obligations. (Perez Mayoral, P.A.)
- The deadline for completing the initial SIRS has been extended to December 31, 2025 in many cases. (Bilzin Sumberg)
- Associations may be allowed to pause reserve contributions for up to two fiscal years if they have performed the milestone inspection within the prior two years and choose to dedicate funds to repairs. (Shumaker)
- The threshold for items requiring immediate reserve inclusion was raised from $10,000 to $25,000, with future indexing for inflation. (Bilzin Sumberg)
Disclosure & Resale Cooling-Off Periods
- In resale transactions (non-developer unit sellers), sellers must provide extensive disclosure documents: the declaration, bylaws, rules, recent budget and financials of the association, meeting minutes, SIRS or statement of its absence. (munizzilaw.com)
- Buyers now have a seven-day rescission period (up from three days) after receipt of required disclosures to cancel the contract if they choose. (Shumaker)
Transparency, Online Records & Management Liability
- Associations must create and maintain an online account with the Florida Division of Condominiums, Timeshares and Mobile Homes (within the Department of Business & Professional Regulation) by October 1, 2025, and upload records such as board-meeting minutes, video-conference recordings and full lists of major repairs. (Shumaker)
- Community association managers and management companies face new licensing, reporting and conflict-of-interest disclosures. A person whose license is revoked may not have an ownership or employment interest in a management firm for a specified time. (The Florida Senate)
Mixed-Use Buildings & Shared Facilities
- In buildings with mixed residential/commercial or multiple parcels, new cost-apportionment rules require the owner of the shared facilities to provide annual cost reports to the condo association within 60 days after fiscal year-end. (Bilzin Sumberg)
Case Study: Older Buildings Flagged as “Ineligible for Financing”
Multiple media outlets (e.g., the New York Post) have reported on Florida condo buildings facing financing restrictions—not because of market downturns, but due to backlog of structural repair work, insufficient reserve funding, or missing milestone inspections. Such flags depress resale value, restrict buyer pools, and strain associations.
In this environment, associations that lack compliant SIRS documentation, proper reserve funding, or fail to maintain required online records may find units harder to sell and owners subject to surprise special assessments.
How Associations, Boards & Owners Should Respond
With the new landscape, proactive compliance and strategic planning are essential. Here is a practical roadmap:
- Review and Update Governance Documents
- Amend association bylaws, rules and meeting procedures to reflect new license-requirements for management, online record-keeping and voting.
- Ensure the declaration, budget and condo documents are ready for disclosure when a resale contract is executed.
- Conduct or Commission a SIRS and/or Milestone Inspection
- Secure quotations from licensed engineers/architects for the milestone inspection (if building triggers apply).
- Commission a SIRS that addresses structural components, expected useful life, cost estimates, funding schedule, and a plan that keeps reserve cash flow from dropping below zero over a 30-year horizon. (Perez Mayoral, P.A.)
- If the association has cleared its milestone inspection and prioritized repairs, explore the possibility of a temporary pause of reserve contributions under the new law—but do so transparently, document decisions and keep owners informed.
- Update Reserve Policies and Funding Strategies
- Consider whether your reserve-funding strategy needs revision in light of the increased threshold ($25k) and new funding flexibility (lines of credit, loans). (Perez Mayoral, P.A.)
- Communicate to owners how the funding strategy works, the timeline for repairs and the impact on future assessments.
- Maintain reserve-fund accounts in accordance with statute; invest reserves in eligible accounts as permitted.
- Create or Upgrade Online Records & Disclosure Mechanisms
- Establish a dedicated association website or portal where required records (board minutes, meeting recordings, financial statements) are uploaded within 30 days of creation or receipt. (Shumaker)
- Prepare a disclosure packet for sellers of units: ensure you can supply the declaration, budget, financial statements, SIRS (or statement of absence), meeting minutes, management contracts, inspection reports.
- Update sales contract templates to allow for the new seven-day rescission period.
- Train Management, Board and Owners
- Ensure the board, management firm and architect/engineer know the new obligations: structural inspections, fund-pausing conditions, online record-keeping, license reporting, conflicts of interest.
- Conduct owner-education sessions so unit-owners understand their rights, the new disclosure regime and the reasons for reserve funding.
- Assess Marketability & Financing Readiness
- Engage with title companies, mortgage lenders or underwriting firms to affirm that your building is compliant (inspections current, reserves funded, records online) to avoid “ineligible for financing” flags.
- Communicate building’s compliance status publicly to buyers and brokers so that purchasing units is less encumbered.
- If backlog exists, develop a remediation plan, schedule repairs, set special assessments or lines of credit to demonstrate governance seriousness.
“For associations and owners alike, compliance isn’t just avoiding penalties—it’s preserving the value and liquidity of the property. Marketability now hinges on documentation, transparency and structural integrity.” — Omar Hussain.
Practical Example: Board Response Timeline
Imagine a 12-story coastal condo built in 1980 subject to the three-habitable-stories rule. The board receives notification that no SIRS has been done yet.
- Q3 2025: Board engages structural engineer for milestone inspection; simultaneously engages reserve-study firm for SIRS.
- Q4 2025: Inspection finds moderate structural components needing repair; SIRS outlines a 30-year funding model. Board votes to place building in compliance, begins special assessment/line of credit process.
- Q1 2026: Association updates website with complete board minutes from past 12 months, uploads meeting video recordings, and issues disclosure packet for owners/resale.
- Q2 2026: A unit owner lists for resale; seller provides disclosure packet, buyer reviews and uses 7-day rescission period built into contract.
- Q3 2026: Unit sells with financing approved—because building shows current inspection, funded reserves, online records—all reinforcing market confidence.
Risks & Remaining Challenges
- Some associations may struggle with the cost of inspections, reserve studies, and repairs; although the law offers flexibility (loan/line of credit, pause contributions), debt carries its own risks.
- Regulatory rule-making is still being finalized; associations must monitor DBPR updates and evolving case law.
- Mixed-use buildings may experience disputes over cost-apportionment of shared facilities under new statute. (Bilzin Sumberg)
- Smaller associations may lack professional governance infrastructure and may find compliance burdensome—but exemptions are limited.
“This wave of reform is not a one-time event; the baton has been passed from crisis response to ongoing governance discipline. Boards that treat the new rules as optional will find themselves behind the curve.” — Omar Hussain
Conclusion
The post-Surfside era has ushered in a new paradigm for condominiums, associations and HOAs in Florida. The 2025 reforms—centered in HB 913 and companion legislation—reflect a hard-won consensus that structural safety, financial transparency, and management accountability are non-negotiable. For boards, owners and property professionals, the takeaway is clear: compliance is now a market prerequisite. Doing the work—inspections, reserve studies, online records, disclosures—safeguards not only safety and legal exposure but also resale value, financing eligibility and community confidence.
For every stakeholder—buyers, lenders, brokers, associations—the question is not simply how to adapt, but how to excel in this new environment. And as one more time:
“When the value of a unit depends on a board’s diligence and transparency, governance isn’t overhead—it’s the foundation of value.” — Omar Hussain
