Do Florida Condo Reserves Have to Be Fully Funded?

Short answer: yes, for the structural components in buildings three or more habitable stories tall.

Since the 2022 condo safety law (SB 4-D) and its 2024 and 2025 follow-ups (HB 1021 and HB 913), owners in those buildings can no longer vote to waive or reduce reserves for the items covered by a Structural Integrity Reserve Study.

Everything else, and every smaller building, still works the way it always did.

Here is what that means in practice.

What "fully funded" means in the statute

This is the point most boards get confused about. Florida law does not use "fully funded" the way a reserve study does.

In a reserve study, percent funded compares your reserve balance to the deterioration of your components, and "full funding" is a goal of keeping that ratio at or near 100 percent. That is a CAI standard, not a legal requirement anywhere in Florida.

Under Chapter 718, "fully funding" means the association's budget includes reserve contributions at the level recommended by its most recent SIRS, with no waiver or reduction. It is about the annual contribution matching the study, not about the bank balance hitting a particular percentage. A building can be legally compliant and still sit at 40 percent funded, because it is catching up over the SIRS funding schedule rather than all at once.

Which reserves cannot be waived

For condos of three or more habitable stories, the SIRS covers a fixed list: the roof, structure (including load-bearing walls and primary structural members), fireproofing and fire protection systems, plumbing, electrical systems, waterproofing and exterior painting, windows and exterior doors, and any other item over $25,000 (indexed to inflation) whose failure would affect the structural integrity of the building. Our post on the difference between a reserve study and a SIRS goes through the list in detail.

For budgets adopted on or after December 31, 2024, the membership cannot vote to waive or reduce reserves for those items. The board cannot do it either. The only exceptions are narrow: a condominium that is being terminated, or a building a local official has declared uninhabitable.

What can still be waived or reduced

Two groups are outside the mandatory rule.

Non-structural components

Pool equipment, pavement, clubhouse furnishings, landscaping, fencing and similar items are still subject to the traditional Florida rule: a majority of the voting interests present at a duly called meeting can vote to waive or reduce those reserves for a given year. They must be clearly labelled as non-SIRS items in the budget.

Buildings under three stories

Two-story condos, and buildings of four or fewer units with three stories or fewer, are not subject to SIRS. Their reserves for roof, painting and paving still follow the older Chapter 718 framework, which allows waiver by vote.

The flexibility HB 913 added

The 2025 amendments did not loosen the no-waiver rule, but they did give boards more ways to comply:

• Pooled reserves are allowed for SIRS items, and boards can switch between pooled and straight-line accounting without a member vote. The pool must be shown to be sufficient, and cannot drop below the baseline plan in the study.
• Loans, lines of credit and special assessments can be used as the reserve funding source, provided the SIRS identifies that source and the required approvals are in place.
• A two-year pause on SIRS reserve contributions is permitted where a milestone inspection has identified structural repairs and the money is going toward those repairs. A new SIRS is required before contributions resume.
• Reserve funds can be held in CDs and insured deposits without a member vote.

What boards should do

If your building is three stories or more, treat the SIRS funding plan as the floor for your budget. Check that every SIRS item is being funded at the recommended level, that non-SIRS items are labelled separately, and that any pooling or borrowing is reflected in the study itself rather than bolted on afterwards. If your SIRS predates the HB 913 changes or your funding approach has changed, it needs updating before you adopt the next budget.

Requirements for every state, including Florida, are in our reserve study law guide. If you need a SIRS or a full reserve study for a Florida association, request a proposal.

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