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 Contributions
Associations actively making required repairs can now pause reserve contributions for up to two years, relieving some near-term financial pressure. - Access to Financing
Boards 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 & Extensions
The 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 Rules
Inspectors 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 reforms offer short-term relief, they also expose condo boards to new levels of liability if mismanaged or poorly communicated:
- Compliance Risk
Missing revised deadlines or failing to document a pause in reserve contributions can trigger enforcement actions and diminish legal protections. - Financial Risk
Lines of credit and loans can keep buildings safe today—but without long-term planning, they could saddle associations with unsustainable debt. - Transparency Exposure
Boards must now vet vendors rigorously. Failing to enforce conflict protocols or disclose relationships could lead to legal challenges, particularly if repair costs rise unexpectedly. - Resident Backlash
Approved freezes on reserves or new financing can increase tension with residents—especially those who already feel priced out.
A Practical Legal Roadmap for Boards
Sachs Sax Caplan advises that boards take the following steps immediately:
1. Audit Your Financial Plan
Evaluate upcoming repair needs, reserve study findings, and the benefits/risks of loans or contribution pauses.
2. Communicate Early and Clearly
Residents need transparency: explain why changes are necessary, how long they’ll last, and what long-term plans look like.
3. Document Every Decision
Board votes, engineering reports, resident notices—record-keeping is your best defense against future disputes.
4. Vet Inspectors and Vendors
Get disclosures in writing, ensure no conflicts of interest, and retain documentation.
5. Plan for the Long Term
Build a sustainable roadmap so temporary relief doesn’t become known debt or deferred disaster.
Florida’s condo reforms are not simply legal obligations—they are life-saving mandates. But legal compliance and affordability are not mutually exclusive. Boards that act with transparency, foresight, and strategic planning can balance safety with financial compassion.
Our attorneys at Sachs Sax Caplan help community associations across the state craft legal strategies that safeguard buildings and protect vulnerable residents. Contact our Community Associations team to review your legal obligations, financial plans, and communication strategy—before the next deadline hits.