Florida Condo Reserves in 2026: What HB 913 Changed and How to Budget for It
If you sit on a Florida condominium or cooperative board, 2026 is the first full budget season you will run under the reserve rules rewritten by House Bill 913. The law, which took effect in 2025, did not undo the post-Surfside reserve requirements. It refined them, extended a key deadline, and gave boards a few new ways to fund the work. Knowing exactly what changed is the difference between a budget your owners can plan for and a special assessment that catches everyone by surprise.
This guide breaks down what HB 913 actually did, who it applies to, and the steps your board should take this summer so your reserve plan is ready before the fall budget meeting.
The short version: what HB 913 changed
For boards that have been tracking the Structural Integrity Reserve Study (SIRS) rules since 2022, here is what is different now.
| Topic | Before HB 913 | Under HB 913 (2025) | | --- | --- | --- | | SIRS deadline | December 31, 2024 | Extended to December 31, 2025 | | Who needs a SIRS | Buildings three stories or more | Buildings three "habitable" stories or more; some four-family buildings exempt | | Reserve item threshold | Items over $10,000 | Items over $25,000 | | Funding methods | Reserves through assessments | Regular assessments, special assessments, loans, or lines of credit | | Milestone and SIRS timing | Run on parallel tracks | A completed milestone inspection can delay the SIRS for up to two budget years | | Board accountability | Review the study | An officer or director signs an affidavit acknowledging receipt of the completed SIRS |
None of this removes the core obligation: associations responsible for buildings of three or more habitable stories must have a SIRS, and they must fund the items it identifies. The law simply gives boards more room to plan how.
What a SIRS is, and whether your building needs one
A Structural Integrity Reserve Study is a professional study of the structural components of your building, the roof, load-bearing walls, foundation, floors, plumbing, electrical systems, waterproofing, windows, and exterior. It estimates each component's remaining useful life and replacement cost, then sets the reserve amount your association needs to set aside.
A SIRS is separate from a milestone inspection, though the two are related. A milestone inspection is a structural safety inspection required under current Florida law when a building of three or more habitable stories reaches 30 years of age, and on a recurring schedule (generally every 10 years) after that. Some buildings face earlier deadlines, for example certain coastal buildings can be required to inspect at 25 years, so confirm your building's specific date with your local building official rather than assuming.
Under HB 913, the SIRS requirement applies to condominium and cooperative associations responsible for buildings that are three or more habitable stories tall. That word matters. The change exempts certain smaller four-family structures that were previously swept in. If you are unsure whether your building qualifies, that is exactly the kind of question your accounting and management partner should be able to answer in writing.
The funding question every board is facing
The hardest part of the new rules is not the study. It is paying for what the study finds. Reserves for SIRS components generally cannot be waived or reduced the way they once could, which means the reserve line in your budget is no longer optional.
HB 913 did add flexibility on how you fund it. An association can now meet its SIRS reserve contributions through any of four methods:
- Regular assessments
- Special assessments
- Loans
- Lines of credit
There is a catch. Any method other than regular assessments requires a majority vote of the total voting interests of the association. In other words, a board cannot quietly take out a line of credit to cover reserves; the owners have to approve it. The law also requires the SIRS to include a baseline funding plan: a reserve funding schedule under which the reserve funding for each budget year keeps the reserve cash balance above zero. That baseline is the floor your budget has to clear.
Reserves are not a tax. They are the difference between a planned $400 monthly contribution and an unplanned $40,000 special assessment after a roof or a stack of balconies fails inspection.
For associations weighing a loan or a line of credit against a steep one-time assessment, the math is worth running carefully. Spreading a large structural cost over time can protect owners on fixed incomes from a sudden bill. Royale helps boards compare these options, including association loans and financing, so the choice is made on numbers, not pressure.
The milestone relief, and why it is not a loophole
One of the most useful, and most misunderstood, parts of HB 913 is the timing relief tied to milestone inspections.
If your association has completed a required milestone inspection, you may delay conducting the SIRS for up to two consecutive budget years following that inspection. Separately, an association that has completed a milestone inspection within the previous two years may, by a majority vote of the total voting interests, pause or reduce its reserve contributions for up to two consecutive annual budgets, for any budget adopted on or before December 31, 2028.
Read that carefully, because boards get it wrong. This is a short, conditional pause, not a permanent waiver. The structural work still has to be done, and the reserve obligation comes back. Using the pause to defer a hard conversation usually just makes the eventual assessment larger. Treat it as breathing room to plan the work properly, not as a reason to skip it.
How this fits your 2026 budget season
Most Florida associations finalize next year's budget in the fall, which means the work that determines whether your budget is realistic happens now, in the summer. Here is the sequence that keeps boards out of trouble.
- Confirm your milestone inspection and SIRS status, including the dates each is due for your specific building.
- Get the completed SIRS in hand, with its baseline funding plan, before you draft numbers.
- Model the reserve contribution against the baseline so each budget year keeps the reserve cash balance above zero.
- If the required contribution creates a large jump, compare regular assessments, a special assessment, a loan, and a line of credit side by side.
- Decide early whether any owner vote is needed, because non-regular funding methods require a majority of all voting interests.
- Communicate with owners before the budget meeting, not at it. People accept a planned increase far better than a surprise one.
- Document board review of the SIRS, including the required affidavit signed by an officer or director.
A board that walks into its budget meeting with the study, the funding options, and a clear recommendation will get a very different reception than one that arrives with a number and no explanation. Clear community association accounting is what makes that preparation possible.
Common mistakes boards make under the new rules
- Treating the milestone pause as a waiver. It is temporary and conditional. The work and the funding return.
- Funding to last year's number. The baseline funding plan, not habit, sets your minimum now.
- Skipping the owner vote. Loans and lines of credit for reserves require a majority of all voting interests. Skipping the vote can invalidate the funding.
- Surprising owners. A reserve increase explained in June lands far better than the same increase revealed in October.
- Keeping the SIRS and the budget on separate desks. The study should drive the budget. When your management and accounting are coordinated, it does.
How Royale Management Services helps
Royale has managed Florida condominium and cooperative associations since 1984, and our in-house accounting team builds budgets around exactly these requirements every year. We help boards confirm which obligations apply to their building, read the SIRS and its baseline plan in plain language, model funding options, prepare the owner communication, and keep the documentation the law now requires. The goal is simple: a reserve plan your board can defend and your owners can understand.
If your association is heading into budget season and the reserve picture feels uncertain, we can help you get ahead of it.
Request a proposal from Royale Management Services
Frequently asked questions
Did HB 913 eliminate the SIRS requirement?
No. Associations responsible for buildings of three or more habitable stories still must have a Structural Integrity Reserve Study and fund the components it identifies. HB 913 extended the deadline to December 31, 2025, refined who is covered, and added flexibility in how reserves are funded.
Can our board still waive reserves?
Reserves for the structural components covered by the SIRS generally cannot be waived or reduced the way ordinary reserves once could. This is the central change from the post-Surfside reforms, and HB 913 kept it in place. Talk with your association attorney about exactly which items apply to your building.
What does the new $25,000 threshold mean?
HB 913 raised the cost threshold for items that must be included in the reserve study from $10,000 to $25,000. In practice, this can reduce the number of smaller line items the SIRS must carry, though the major structural components remain covered.
Can we use a loan instead of a large special assessment?
Yes. The law allows reserve contributions to be funded through loans or lines of credit, not only assessments. Any funding method other than regular assessments requires a majority vote of the total voting interests of the association, so plan the vote into your timeline.
When should our board start preparing the 2026 budget?
Now. Because most associations adopt budgets in the fall, the summer is when you should confirm your SIRS status, review the study and its baseline funding plan, model funding options, and begin communicating with owners.
Sources
- Florida Senate: CS/CS/HB 913 (2025) Bill Summary
- Becker & Poliakoff: New Condominium Law Tweaks Reserve Rules
- Withum: Key Changes From Florida House Bill 913 Explained: Inspections, Reserves and More
- DBPR: Condominium Building Inspections Information and Resources
