For decades, Florida condo boards could vote each year to waive or reduce reserve funding. Many did. The annual vote to waive reserves was one of the most common motions at Florida condo annual meetings, because it kept assessments lower in the short term.
After the Champlain Towers South collapse in Surfside, the legislature changed that.
What changed
F.S. 718.112(2)(f), as amended, now prohibits waiving or reducing reserves for the structural components identified in a structural integrity reserve study (SIRS). The specific components are listed in F.S. 718.112(2)(g):
- Roof
- Load-bearing walls and primary structural members
- Floor
- Foundation
- Fireproofing and fire protection systems
- Plumbing
- Electrical systems
- Waterproofing and exterior painting
- Windows
If your building has completed a SIRS (required for 3+ story buildings), the reserve amounts identified for these components must be fully funded. The board cannot vote to waive them. The members cannot vote to waive them.
What boards can still waive
Reserves for NON-structural items (furniture, landscaping, amenity equipment, technology upgrades) can still be waived or reduced by a majority vote of the membership at a duly noticed meeting. The Surfside amendments only locked structural reserves.
The budget impact
For boards that historically waived reserves, this is a significant budget change. The SIRS identifies the cost to replace or repair each structural component and the timeline. Those numbers go directly into the reserve line items in the annual budget. Assessments may need to increase to cover the funding requirement.
The alternative to a single large increase is a phased approach: some associations are ramping reserve contributions over 2 to 3 years to reach full funding. The statute requires full funding but does not prescribe the ramp schedule.
Two documents, side by side
The board needs the SIRS report and the current budget side by side. The SIRS identifies what must be reserved. The budget shows what is currently funded. The gap between the two is what the board needs to address.
The board needs the SIRS report and the current budget side by side. The SIRS identifies what must be reserved. The budget shows what is currently funded. The gap between the two is what the board needs to address.
Statute text summarized for reference. For application to your building's specific facts, consult a Florida-licensed condominium attorney.