Peter S. Sachs, Esq., Sachs Sax Caplan Across Florida, condominium owners are seeing a noticeable shift in their association budgets. Monthly dues in many communities have increased in recent years, and the topic has become a frequent subject of conversation among residents and board members alike. For most owners, the concept of Condominium Association fees is familiar. What has changed recently is the broader financial environment surrounding community associations. Several factors — some legislative, some market-driven — are influencing how communities plan their budgets. One of the most significant developments has been increased attention to reserve funding, which refers to the money associations set aside for major future repairs. Following the tragic condominium collapse in Surfside in 2021, Florida adopted new laws aimed at ensuring buildings are structurally sound and financially prepared for long-term maintenance. These regulations require certain condominium associations to conduct structural inspections and maintain adequate reserves for critical components such as roofs, structural elements, and other key systems. For many communities, this has meant reassessing how much should be saved each year to prepare for future repairs. While reserve planning has always been a core responsibility of association boards, the newer requirements place greater emphasis on ensuring funds are available when large-scale maintenance becomes necessary. Insurance costs have also played a role in changing budgets. Condominium associations must maintain property insurance covering buildings and common elements, and in recent years insurance premiums across Florida have risen substantially. As insurers reassess risk and construction costs continue to increase, associations have had to adjust their budgets accordingly. In addition, the everyday costs of operating a community continue to evolve. Maintenance contracts, landscaping services, utilities, building systems, and professional services all factor into an association’s annual financial planning. As these expenses shift over time, budgets must adapt to reflect the realities of maintaining shared property and amenities. For residents, reviewing the association’s annual budget can provide helpful insight into how these factors shape financial decisions within their community. Attending association meetings and staying engaged in governance discussions can also help owners better understand how boards balance current operational needs with long-term...

By Steven G. Rappaport, Partner at Sachs Sax Caplan Florida’s sweeping condo safety reforms, enacted after the Surfside tragedy, were designed to protect residents from another catastrophic collapse. Yet, as the dust settles, community leaders now face a sobering reality: skyrocketing fees and assessments are pushing many unit owners, especially seniors on fixed incomes, toward financial distress. Lawmakers have warned of a coming wave of homelessnessamong elderly condo owners. The question now is: How can boards fulfill their legal obligations and protect the residents they serve? What’s Driving the Squeeze? The state’s updated regulations require milestone structural inspections for buildings three stories or taller that are 30 years or older. Associations must also conduct ten‑year structural integrity reserve studies and fully fund the resulting reserve obligations—a marked shift from earlier rules that allowed reserves to be waived. The financial impact of these mandates has been significant, often requiring tens of thousands of dollars in sudden assessments or sharp increases in monthly fees. Many older buildings were already underfunded when these mandates landed. For residents who purchased condos thinking $250/month was “affordable,” the reality now feels anything but. New Flexibility: A Short-Term Relief Valve In response, the legislature passed reforms effective July 1, 2025, designed to give boards breathing room without sacrificing safety: Pause on Reserve ContributionsAssociations actively making required repairs can now pause reserve contributions for up to two years, relieving some near-term financial pressure.Access to FinancingBoards may take out lines of credit or loans to fund required repairs and reserves—though these must be carefully evaluated, as debt carries its own liabilities.Updated Cost Thresholds & ExtensionsThe threshold for “reportable” deferred maintenance items has been raised to $25,000 and indexed to inflation. Additionally, deadlines for reserve studies have been extended to year-end 2025, and the inspection mandate now applies only to buildings with three “habitable” stories.New Transparency RulesInspectors and engineers can no longer bid on repairsspurred by their own assessments, and any conflicts—including familial ties—must now be disclosed. These changes show the legislature’s awareness of the affordability crisis. They are a stopgap, not a solution. Where Boards Stand: Legal Risks and Ethical Dilemmas While these...