Florida’s New Condo Laws: What Borrowers & Condo Owners Need to Know

Governor Ron DeSantis recently signed significant updates to Florida’s condo laws (HB 913 and related bills), reshaping how condo buildings — especially aging high-rises — handle repairs, reserves, and safety compliance. These changes directly impact South Florida residents, many of whom live in older towers facing major structural needs and rising insurance costs.

Key Law Updates Effective July 1, 2025

Extended Deadlines for Inspections & Reserves
Buildings over three habitable stories now have until December 31, 2025, to complete their Structural Integrity Reserve Study (SIRS), providing crucial breathing room for associations.

Refined Milestone Inspection Requirements
Only buildings with three or more habitable stories are required to perform milestone inspections, sparing smaller low-rise and duplex structures.

Funding Flexibility for Repairs
Condo associations can now use rehab loans or lines of credit to meet reserve requirements and finance repairs. They may also pause reserve contributions for up to two years to focus on urgent structural improvements.

Higher Reserve Thresholds
Repairs costing under $25,000 are no longer counted toward reserve requirements — a significant increase from the previous $10,000 threshold.

Transparency and Governance Improvements
Associations must provide easier access to records, hold quarterly Q&A meetings, and disclose conflicts of interest, boosting trust and accountability.

Why South Florida Condo Owners Should Pay Attention

South Florida is home to a large number of older high-rise condos, many along the coastline. With stricter inspection mandates and rising maintenance costs, condo owners are facing tough financial decisions. While the updated laws are designed to ease immediate burdens, they still require significant funding for repairs and reserve rebuilding.

The Role of Hard Money Loans

At HardMoney Company, we specialize in providing fast, flexible capital to real estate investors throughout Florida, including fix-and-flip borrowers. While we don’t guarantee loans to condo associations or HOAs, it’s important to understand that recent legal changes now allow associations to seek loans to cover reserve and repair needs.

Why might a hard money loan be considered?

• Speed & Flexibility: Hard money loans can provide quicker access to funds compared to traditional bank loans — critical when facing tight repair timelines.
• Alternative to Special Assessments: Rather than placing large immediate assessments on condo owners, some associations may explore loan options to spread costs over time.
• New Legal Pathways: With HB 913 explicitly allowing lines of credit and loans for associations, doors have opened for alternative funding sources.

Important Considerations

While these changes create new opportunities, condo associations must carefully evaluate their repayment ability and overall financial health. Rising insurance premiums, maintenance backlogs, and demographic factors (such as retiree-heavy ownership) can all affect the feasibility of taking on new debt.

For individual investors and borrowers in the fix-and-flip market, the broader condo environment in South Florida underscores the importance of due diligence — understanding not only the unit you might buy, but also the financial health and legal compliance of the entire building.

Final Thoughts

Florida’s new condo laws are reshaping the landscape for condo owners and boards alike. While these changes aim to balance safety with affordability, they also highlight the increasing need for strategic financial planning.

At HardMoney Company, we’re here to support real estate investors in Florida and those in other markets with education and resources on creative financing solutions. While we may not offer HOA or association loans, we remain a committed partner to real estate investors seeking to navigate South Florida’s evolving market.

Have questions about using hard money for your next project?
Contact HardMoney Company today to learn more.