Lawmakers Eye Changes to Borrowing Rules and Reserve Requirements
Condominium association boards and community association managers (CAMs) should keep a close eye on the Florida legislature in the coming weeks. We're several weeks through the 2025 legislative session, and several proposed bills are gaining traction, especially those related to the financial obligations and safety regulations imposed after the tragic Surfside collapse in 2021.
What’s on the Table?
Recent news coverage highlights a growing conversation in Tallahassee about softening certain aspects of Florida’s strict condo safety laws. Specifically, lawmakers are considering changes that would allow associations to borrow money without a full membership vote in order to fund required repairs or reserve funding.
Since the passage of SB 4-D in 2022, Florida condominiums have faced significant new requirements, including milestone inspections, structural integrity reserve studies (SIRS), and mandatory full reserve funding by the end of 2024. These mandates have led to rising assessments, homeowner frustration, and financial strain on many associations.
Now, some lawmakers, and even Governor DeSantis, are expressing support for bills that would give condo boards more flexibility in meeting these obligations.
Why This Matters
Allowing associations to borrow funds without a membership vote could speed up necessary repairs and help boards avoid contentious special assessments or voting delays. However, it also raises questions about financial transparency and long-term debt obligations. Any change to the current framework would need to balance unit owner protections with the need for swift action to maintain building safety.
What Happens Now?
As the legislative session continues, we expect more clarity on the fate of these bills. DHN Attorneys will continue monitoring the developments and will provide updates as soon as the picture becomes clearer.
