Quick answer
Florida ended reserve waivers for structural items. Budgets adopted on or after December 31, 2024 must fund reserves for every SIRS component, and the threshold for including other items is indexed ($25,675 in 2026). HB 913 added funding flexibility, including loans, lines of credit, and a limited pause during mandated repairs.
Reserves are the money an association sets aside today for the big-ticket repairs it knows are coming: the roof, the elevators, the concrete, the paint. Florida rewrote the rules after Surfside, and the era of waiving reserves to keep dues low is over for buildings subject to the SIRS requirement. Here is what changed and what it means for your monthly assessment.
Key facts
- For budgets adopted on or after December 31, 2024, unit-owner-controlled associations subject to SIRS cannot waive or underfund reserves for the statutory structural components.
- The SIRS funding schedule must keep the projected reserve cash balance above zero.
- General reserves (pool, pavement, furniture) can still be adjusted by owner vote.
- The catch-all threshold for other SIRS items is indexed annually: $25,675 for 2026, posted by the Division by February 1 each year.
Straight-line versus pooled reserves
Associations fund reserves in two basic ways. Straight-line reserves keep a separate account for each component, and money saved for the roof stays with the roof. Pooled reserves combine components into one fund and rely on the timing of projected expenditures, which usually lowers the required annual contribution. Both are legitimate. Under current law, SIRS component reserves may be pooled, but only with other SIRS component reserves; they cannot be redirected to non-SIRS uses.
Why can’t we just waive them anymore?
Because waiving was the mechanism that produced buildings with documented structural problems and empty accounts. The Legislature concluded that owners voting their own dues down at the expense of structural safety was exactly how communities ended up with five-figure emergency assessments, or worse. For SIRS components, the vote no longer exists. For everything else, the membership still controls funding levels through the annual budget process.
What does this do to my monthly payment?
For associations that were funding honestly all along, little changes. For associations that waived for years, assessments are rising, sometimes sharply, because the funding schedule has to carry decades of deferred saving. The alternatives to higher regular assessments are the tools HB 913 authorized: special assessments, loans, and lines of credit, each requiring majority approval of all voting interests. None of them reduce the total; they change the shape of the payments.
Questions to ask at budget season
When the proposed budget arrives, ask: Is there a current reserve study, and is the SIRS portion funded on schedule? Which components are SIRS and which are general? What is the projected reserve balance over the next ten years, and does it stay above zero? Are we deferring anything the study says is due? An owner who can ask those four questions changes the quality of the budget meeting. The book’s Chapter 5 walks through reading a budget and a reserve study line by line, and it is the free chapter below.
Common questions
Why did my assessments go up so much?
Decades of waived reserves left many buildings underfunded just as the law began requiring full SIRS funding. The increase is usually the real cost of the building catching up with owners for the first time.
What is the difference between straight-line and pooled reserves?
Straight-line funds each component in its own account on its own schedule; pooled combines components into one fund built on cash-flow projections. Pooling is usually more efficient, but it demands a competent, current reserve study.
Can the board borrow instead of assessing?
Yes. HB 913 confirmed associations may use loans and lines of credit to fund reserve obligations and repairs, with owner protections. Borrowing spreads cost over time but adds interest, so compare it honestly against an assessment.
Related guides
This guide is educational, not legal or engineering advice. Statutes change and every building and declaration is different. Confirm how the law applies to your association with your attorney and a licensed professional. Figures current as of July 2026.