New Florida Condo Laws Reshape HOA Landscape: What HB 913 & HB 393 Mean for Owners and Buyers

In the wake of the tragic Surfside collapse, Florida lawmakers promised sweeping reforms to protect condo residents and ensure building safety. Those promises have now materialized into law—but the consequences are far more complex than anyone anticipated. Two major bills signed in 2025, HB 913 and HB 393, represent the most significant overhaul of Florida's condominium governance in decades, affecting hundreds of thousands of owners, billions of dollars in property values, and the fundamental economics of condo living in the Sunshine State.

For prospective condo buyers, these laws create new due diligence requirements and potential financial landmines. For current owners, they bring both relief and risk—extended timelines for compliance, but also new pathways for associations to accumulate debt. For real estate investors, they reshape the calculus of condo investments entirely. Understanding these reforms isn't optional—it's essential for anyone participating in Florida's condo market.

Understanding the Legislative Response: From Surfside Tragedy to Statewide Reform

The Catalyst: Surfside and the Safety Crisis

The June 24, 2021 collapse of Champlain Towers South in Surfside killed 98 people and exposed systemic failures in Florida's condo oversight. Investigations revealed years of deferred maintenance, inadequate reserves, and governance dysfunction that allowed a structurally compromised building to remain occupied. The tragedy sparked immediate calls for reform, resulting in initial legislation that mandated structural integrity reserve studies (SIRS) and stricter building inspections.

However, the original reforms created unintended consequences. Associations faced crushing financial burdens as reserve studies revealed decades of deferred maintenance. Special assessments of $50,000, $100,000, or more per unit became common. Some owners, particularly retirees on fixed incomes, faced impossible choices: pay assessments they couldn't afford or sell units that had become unmarketable.

What HB 913 and HB 393 Actually Do

The new laws represent a recalibration—extending deadlines, raising thresholds, and providing financing options while maintaining core safety requirements. Here's what changed:

• Extended SIRS Deadlines: Associations now have more time to complete structural integrity reserve studies, with phased implementation based on building age and size.
• Raised Cost Thresholds: The minimum cost for items requiring reserve study inclusion increased from $10,000 to $25,000, reducing the number of components associations must fund.
• New Financing Options: Associations can now secure lines of credit and loans to fund reserves and repairs, rather than relying solely on special assessments.
• Enhanced Governance Protections: Electronic voting requirements, transparency mandates, and owner notification provisions strengthen accountability.
• Reporting Requirements: Beginning October 1, 2025, associations must file detailed financial reports with the state, creating public transparency into reserve funding levels.

Florida's waterfront condo communities face new financial and governance requirements under HB 913 and HB 393

The Financial Impact: Relief, Risk, and Long-Term Consequences

Short-Term Relief: Extended Timelines and Higher Thresholds

For associations struggling to meet the original post-Surfside requirements, HB 913 and HB 393 provide meaningful breathing room. The extension of SIRS deadlines allows associations to phase capital improvements over longer periods, reducing the immediate financial shock. The increase in the cost threshold from $10,000 to $25,000 means fewer building components require reserve funding, lowering monthly assessment increases.

The Debt Trap: Financing Options and Long-Term Risk

Perhaps the most controversial provision in the new laws is the authorization for associations to secure lines of credit and loans to fund reserves and repairs. Proponents argue this provides flexibility and avoids devastating special assessments. Critics warn it creates a debt trap that shifts financial burdens to future owners.

The mechanics of association financing create several risks:

• Interest Rate Exposure: Associations borrowing at variable rates face payment increases if interest rates rise, forcing fee hikes or additional assessments.
• Credit Quality Concerns: Associations with poor financial health may only qualify for high-interest loans, compounding their financial stress.
• Debt Service Burden: Monthly loan payments reduce available funds for ongoing maintenance, potentially creating a cycle of deferred upkeep.
• Marketability Impact: Units in buildings with significant association debt may become harder to sell or finance, as lenders scrutinize building financial health.

The Reserve Study Threshold: Hidden Consequences

Raising the reserve study threshold from $10,000 to $25,000 seems like a technical adjustment, but it has profound implications. Components that fall below the threshold don't require funded reserves, meaning associations can legally operate without setting aside money for their replacement or repair.

This creates a two-tier system:

Miami Beach condo towers must navigate new reserve requirements and governance standards under Florida's reformed laws

Governance and Transparency: Enhanced Protections and New Requirements

Electronic Voting and Owner Participation

HB 913 and HB 393 mandate electronic voting options for association elections and major decisions, addressing longstanding complaints about low participation and governance dysfunction. Associations must now provide online voting platforms, making it easier for owners—particularly those who don't reside in their units—to participate in governance.

This seemingly minor provision could have major implications:

• Increased Participation: Easier voting may lead to higher turnout, potentially shifting power dynamics within associations.
• Investor Influence: Non-resident owners and investors may now participate more actively, changing voting patterns on assessments and spending.
• Accountability Pressure: Boards face greater scrutiny when more owners can easily vote on budgets, contracts, and policy decisions.

Financial Transparency and Reporting

Beginning October 1, 2025, associations must file detailed financial reports with the state, including:

• Reserve fund balances and funding percentages
• Outstanding loans and lines of credit
• Pending special assessments
• Delinquency rates and collection actions
• Major contracts and vendor relationships

This creates unprecedented transparency—but also potential market consequences. Buildings with poor financial health will now have that information publicly available, potentially affecting property values and marketability.

What This Means for Condo Buyers: New Due Diligence Requirements

The Expanded Buyer Checklist

If you're considering buying a condo in Miami or anywhere in Florida, your due diligence process just became significantly more complex. The new laws create additional factors you must investigate before closing:

Red Flags That Should Stop a Purchase

Certain warning signs should give any buyer serious pause—or cause them to walk away entirely:

Financing Challenges for Buyers

Even if you're willing to accept the risks, your lender may not be. Mortgage underwriters now scrutinize condo association finances more carefully, and buildings with financial problems may be non-warrantable—meaning conventional financing isn't available.

Lenders typically decline financing when:

• Reserve funding falls below 10% of the annual budget
• More than 15% of owners are delinquent on fees
• The association is involved in significant litigation
• Pending special assessments exceed certain thresholds
• The building has failed required inspections

This creates a vicious cycle: buildings with financial problems can't attract buyers with conventional financing, reducing the buyer pool to cash purchasers and further depressing values.

What This Means for Current Condo Owners: Navigating the Transition

Understanding Your Association's Compliance Status

If you currently own a Florida condo, you need to understand where your association stands relative to the new requirements. Contact your board or management company and ask:

• Has the required SIRS been completed? If not, when is it scheduled?
• What deficiencies were identified in the SIRS?
• What is the funding plan to address identified issues?
• Are special assessments anticipated? If so, how much and when?
• Is the association considering financing options (loans or lines of credit)?
• What is the current reserve funding percentage?

Participating in Governance: Your Voice Matters

The new electronic voting requirements make it easier than ever to participate in association governance. This isn't just a convenience—it's an opportunity to influence decisions that will affect your property value and monthly costs for years to come.

Selling Considerations: Disclosure and Marketability

If you're considering selling your condo, the new laws create additional disclosure obligations and marketability challenges. Florida law requires sellers to provide buyers with association financial documents, and buyers are now more sophisticated about what to look for.

To maximize your unit's marketability:

• Proactive Disclosure: Provide all required documents upfront, demonstrating transparency and building buyer confidence.
• Association Advocacy: Work with your board to ensure compliance with new requirements and maintain strong financial health.
• Realistic Pricing: Units in buildings with financial challenges or deferred maintenance must be priced accordingly.
• Professional Representation: Work with agents who understand the new laws and can effectively communicate your building's strengths to buyers.

What This Means for Investors: Recalculating Condo Investment Returns

The New Risk-Return Equation

For real estate investors, HB 913 and HB 393 fundamentally alter the economics of condo investments. The potential for special assessments, association debt, and financing challenges creates new risks that must be factored into return calculations.

Opportunity in Distress: Value-Add Strategies

While the new laws create risks, they also create opportunities for sophisticated investors willing to navigate complexity:

• Distressed Building Acquisitions: Buildings with financial problems trade at discounts. Investors who can solve governance and financial issues can create significant value.
• Board Participation: Active investors who join boards and drive improvements can enhance building financial health and property values.
• Bulk Purchases: Acquiring multiple units in a single building provides voting power to influence association decisions.
• Value-Add Renovations: In buildings with strong fundamentals but deferred unit-level maintenance, renovated units command premiums.

Expert Guidance: How Amarante Real Estate Can Help You Navigate the New Laws

Specialized Knowledge for Complex Transactions

The new Florida condo laws create complexity that requires specialized expertise. At Amarante Real Estate Services, we've invested heavily in understanding HB 913 and HB 393 and their practical implications for buyers, sellers, owners, and investors.

Our team provides:

• Document Review and Analysis: We review association financials, reserve studies, and inspection reports to identify risks and opportunities.
• Building Financial Health Assessment: We evaluate reserve funding levels, debt obligations, and compliance status to determine true building financial health.
• Negotiation Strategy: We use building financial information to negotiate price adjustments, seller concessions, or repair credits.
• Lender Coordination: We work with lenders to address warrantability concerns and secure financing for units in complex situations.
• Market Intelligence: We track which buildings are thriving and which are struggling, helping clients avoid problem properties.

Comprehensive Services for Every Client Type

Whether you're buying, selling, investing, renting, or relocating to Miami, we provide tailored guidance for your specific situation:

Conclusion: Knowledge Is Protection in Florida's Evolving Condo Market

Florida's new condo laws—HB 913 and HB 393—represent a well-intentioned effort to balance building safety with financial affordability. But as with any major legislative reform, the consequences are complex and sometimes contradictory. Extended timelines provide relief, but also enable continued deferral of necessary maintenance. Financing options prevent devastating special assessments, but create long-term debt burdens. Enhanced transparency empowers owners, but also exposes building weaknesses that affect property values.

For buyers, the message is clear: due diligence has never been more important. For current owners, engagement in association governance is no longer optional—it's essential to protecting your investment. For investors, the new laws create both risks to avoid and opportunities to exploit.

The Florida condo market is entering a new era—one where financial health, governance quality, and regulatory compliance separate thriving buildings from struggling ones. Property values will increasingly reflect these fundamentals, creating winners and losers in ways that weren't as pronounced before Surfside.