Update: Gov. DeSantis signed HB913 into law June 18, 2025. It goes into effect July 1, 2025.
Many of our clients who own a Florida condo want to pass it to their children, and have incorporated that into their estate planning. But with fees and special assessments surging for older units, parents and children alike are having second thoughts about the wisdom of that arrangement. In response, Florida is now taking steps that may allay their concerns. We explain below.
The Backstory
Recent cost increases are traceable to the tragic collapse of Champlain Towers in 2021 that killed 98 people. In the wake of that calamity, the state established regulations requiring milestone inspections and timely repairs for aging condominiums. Buildings 30 years or older (or 25 years if near the coast) are required to undergo structural integrity studies, which must be conducted every ten years. Critical repairs may not be deferred.
Additionally, condo boards must fully fund reserves for necessary repairs, a requirement that has led to special assessments and steeper fees that are particularly burdensome for middle class owners and those on fixed incomes. No longer can condo boards waive or reduce fees for repairs in order to keep costs low. These increased costs come at a time when homeowners insurance is significantly more expensive than in the past, too.
As a result, some have decided that leaving their property to their children is not practical. Others want to sell. There is currently a glut of condos on the market, and sale prices are depressed. According to an ISG World Report, in Miami-Dade, Broward and Palm Beach there were 8,497 active condo listings in the first quarter of 2024; by the second quarter, the number was 20,293.
Relief Is On The Way: HB913
In an effort to provide condo owners with financial relief, in April 2025 the Florida legislature passed HB 913. The bill tweaks the original legislation, retaining safety standards but making paying for necessary repairs more affordable and more predictable. Here are the broad contours of the new legislation:
- The original law requires condo associations to keep enough money in reserves to fix repairs. HB913 gives boards more flexibility, allowing them to take out a line of credit or a loan to meet the legal requirement for reserves.
- Condo boards may now invest their reserve funds, with investments limited to certificates of deposit and depository accounts in financial institutions.
- Contributions to reserves may be reduced or paused for up to two years following the first milestone inspection.
- Original milestone reports were due by Dec. 2024, but many buildings have yet to comply. According to the Miami Association of Realtors, only 39% of buildings in Southeast Florida have met the deadline. The new legislation extends the deadline by one year.
- Under the original legislation, buildings of three or more stories must conduct structural integrity evaluations. However, exactly what “three stories” means was ambiguous. The new law clarifies that it means three habitable stories. Garages and first floors not occupied by residents do not count. This clarification will exempt numerous buildings from the original regulations.
The bill now goes to the governor, who says he will sign it. In fact, it was one of Governor DeSantis’ top priorities for this legislative session. It will go into effect on July 1.
You can read a summary of HB913 here.
If you are considering (or-reconsidering) whether to include your condo unit in your estate plan, please call our office. Our estate planning attorneys can advise you and help you create an estate plan that works for you and your family. Call 561-625-1100.
