The Future of Florida HOA and Condo Fees

A Time of Reckoning

It’s no secret that as we wrap up 2024 and move into the year 2025, The State of Florida is going through a time of reckoning, some might say a crisis regarding condo fees, forced special assessments, and rising HOA dues not to mention astronomical insurance premiums.

The increasing costs come as a result of the partial collapse of Champlain Towers South, which killed 98 people in Surfside in June 2021. New regulations signed into law in 2022 by Governor Ron DeSantis, and amended since, require condo associations for buildings of three habitable stories or more in height to complete a milestone inspection and a structural integrity reserve study, known as a SIRS. That threshold, with the word "habitable" that HB 913 added in 2025, is the language of Fla. Stat. § 553.899. The first inspection falls due by the end of the year a building turns 30, and where local conditions warrant it, such as proximity to salt water, the local enforcement agency can require it at 25.

In a nutshell, an association with buildings three habitable stories or higher in height must have a structural integrity reserve study, and for budgets adopted on or after December 31, 2024, it cannot waive reserves for the items that study covers. Associations that are not required to have one can still waive reserves by majority vote. For many unit owners, that has meant higher costs.

2026 update: the dates Florida condo boards are working to

One deadline is close. Associations that existed on or before July 1, 2022 and are controlled by unit owners had to have a structural integrity reserve study completed by December 31, 2025. An association required to complete a milestone inspection on or before December 31, 2026 may complete the study at the same time, and the statute adds: "In no event may the structural integrity reserve study be completed after December 31, 2026" (Fla. Stat. § 718.112(2)(g)7.). If your association is relying on an extension or a delay, confirm its own date with the association’s attorney.

Reserves for that work cannot be voted away. For a budget adopted on or after December 31, 2024, the owners of a unit-owner-controlled association that must obtain a structural integrity reserve study may not vote to provide no reserves, or less than the statute requires, for the items the study covers: roof, structure, fireproofing and fire protection, plumbing, electrical, waterproofing and exterior painting, windows and exterior doors, and certain other items (§ 718.112(2)(f)2.b.). The one exception is an association operating a multicondominium whose alternative funding method the state has approved.

One temporary option runs to 2028. For a budget adopted on or before December 31, 2028, a board may pause or reduce reserve contributions for no more than two consecutive annual budgets to fund repairs a milestone inspection recommended. It takes a majority of the total voting interests, the inspection must have been completed within the previous two calendar years, and a structural integrity reserve study must be performed before contributions continue (§ 718.112(2)(f)2.e.). Developer-controlled associations and two other narrow categories are excluded. A pause frees up what the association already contributes; a loan or line of credit provides what it does not have, and Florida law names both, as set out below. Our Florida page walks through each route.

Aging Infrastructure

Democratic State Sen. Jason Pizzo pointed to one of the main reasons Florida condo owners are coming to grips with this reality when he told the Associated Press, "Nearly 90% of the 1.6 million condos in Florida are more than 30 years old."

Aging infrastructure is not unique to Florida, but it’s a hurdle that homeowners associations and condominium association board members must start seriously addressing with their community members.

When infrastructure issues are highly visible, like a leaking roof dripping into a living space or a failing retaining wall threatening to collapse, they naturally demand immediate attention and are often labeled as high priorities. However, the real challenge arises with less obvious problems: those hidden out of sight and, therefore, out of mind. For example, aging plumbing systems buried beneath the property may slowly degrade, leading to costly water damage, or an outdated electrical grid might pose serious safety hazards without warning.

These unseen issues can quietly compromise the safety, structural integrity, and value of the community, often going unaddressed until they escalate into emergencies. Proactive maintenance and thorough inspections are crucial to uncovering and resolving these hidden threats before they spiral into more significant and costly problems.

How Did We Get Here?

As professional HOA loan consultants, we speak with hundreds of associations, HOA boards and community members every year. There are two common scenarios that often play out when we talk to our clients.

Scenario 1: De-prioritized Projects

We often here that for years and years, the HOA board de-prioritized major repair projects and common area improvements in an effort to keep dues as low as possible, and now the community is facing a large special assessment in order to bring the community back up to full function and address long standing capital improvement needs.

While this scenario felt like a win to board members and maybe condo owners alike at the time, it likely increased the cost of living in the community for the members and the families of the future.

Scenario 2: Community Dissatisfaction or Mistrust

It’s easy to want to blame the management company or the HOA and condo boards for failed financial management, but unfortunately in many cases it’s the community that votes down the idea of improvement.

We see a lot of instances where the board of directors has done an incredible amount of research, hired contractors, gotten the bids and the estimates done in order to solve the infrastructure or capital improvement challenges a community is facing only to be voted down by the community as a whole.

This is often the result of miscommunication, lingering mistrust stemming from the actions of previous boards, or deeper, unresolved community unrest that has been allowed to fester over time.

What Can We Do Now?

When considering the rising costs for communities, it’s important to recognize that investments in up-to-date infrastructure, healthy reserve funds, and accurate structural inspections are not inherently negative. These measures provide significant benefits: they enhance the protection of your investment, ensure the safety of your family, and contribute to creating a more desirable place to call home.

That said, these positives come with undeniable costs. Many community members face financial challenges daily, whether they are working multiple jobs or living on fixed incomes. For them, rising costs are not just numbers. They have tangible impacts on their ability to make ends meet and navigate everyday life.

Special Assessments

For most HOA and condo boards, the first instinct is often to levy a large special assessment on community members to cover the entire cost of a project. While this might seem like a reasonable solution, it is fraught with significant downsides.

First, a community is exactly that: a community. While some members may have the financial flexibility to pay a large special assessment without issue, others may struggle to come up with the necessary funds. This disparity can lead to delays in collecting the capital needed to start the project, which, in turn, can drive up costs due to inflation or unforeseen complications. These delays often introduce volatility and uncertainty into the process.

Second, special assessments often appear to be a "one-and-done" solution, but in reality, they frequently lead to ongoing challenges. The association might raise some money in year one, only to find itself needing additional funds in year two or three as new expenses arise. This cycle can become a persistent burden, creating financial strain and dissatisfaction within the community.

HOA Loans

A less commonly discussed but highly effective way to raise capital is by securing an HOA loan. Unlike special assessments, an HOA loan provides the necessary funds upfront, allowing the community to complete all required projects at once and bring the property back up to standard efficiently.

Florida law names it directly. Since HB 913 took effect on July 1 2025, an association required to have a SIRS may fund those reserves by special assessment, by line of credit, or by loan, on approval by a majority of the total voting interests. Borrowing for this work is not a workaround. It is one of the routes the statute sets out.

The statute treats the repairs themselves differently from the reserve account. Funding reserves by line of credit or loan takes the majority vote described above. Funding the work itself does not. Under Fla. Stat. § 718.112(2)(f)2.c.(II), the repair, maintenance or replacement a milestone inspection or a SIRS requires may be financed by a line of credit or a loan without an owner vote, and that money must be immediately available to the board. Goede, DeBoest & Cross, a Florida community association firm, reads the provision the same way in its 2025 legislative summary: repairs required by a SIRS study or milestone study may be funded by a line of credit or a loan without a vote of the owners.

By spreading the repayment over time, an HOA loan offers a more manageable and predictable payment structure. This approach helps community members, especially those already facing financial strain, balance their budgets without the immediate burden of a large, one-time expense. It creates a fairer solution while ensuring the community’s infrastructure and standards are restored promptly.

A Better Way Forward

It’s no secret that these are challenging times, not just for Floridians, but for community members nationwide. Whether you’re a condo owner or a homeowner in a developed community, it can feel like you’re facing a lose-lose situation. But here’s the good news: there is a way to achieve your goals without overwhelming your finances.

With the right approach, you can bring your community association up to standard while maintaining financial stability. The key is to stay positive, think creatively, and explore your options. One of the most effective solutions is securing an HOA loan.

At HOA Loan Services, we specialize in HOA financing. Our team is here to answer your questions and guide you toward a better path forward, one that avoids large special assessments and provides the financial flexibility your community needs. Let us help you take the next step with confidence.