Fully funded financial reserves?

[theo]

In the aftermath of the high rise condo collapse in Sunrise, Fl a few years ago, new legislation (SB-4?…not sure) created new requirements for periodic inspections and engineering certifications for FL condos 3 stories or higher. A new requirement for condos to fully fund financial reserves was also a part of that legislation. I recall that the engineering certification requirement went into effect soon thereafter and that the full funding of reserves requirement was to go into effect on January 1, 2025.

The financial reserves at one FL timeshare property at which we have long owned a few weeks have been inadequate or non-existent for as long as I can remember — and they remain so today as CY 2026 commences. During a recent Board meeting, the management company at this particular FL resort openly asserted that the statutory requirement for the full funding of financial reserves had been “postponed” by the state of Florida, with no further details or specificity provided. I have been unable to unearth any verification of that particular assertion since then.

So….my question for our studio audience is whether YOU might know anything about (or can perhaps steer me toward a source for documentation / verification of) this alleged “postponement” of enactment and enforcement of this full funding of reserves requirement for condos (obviously including timeshare properties) in Florida.

Speculation or uninformed opinion would not be at all helpful here, but knowledgeable input or any other verifiable information or source would certainly be welcomed and genuinely appreciated. Thanks in advance.

 

[heitmullerj02]

2 years ago Vistana conducted an inspection based on the new law. Since it’s an older resort they needed 8.5 million to correct the issue with a 10 year phase in To complete. They are well run and had the resources, they sent a schedule for the items to be addressed. However it factored in my decision to deed it back to Marriott. I do not have any other info.

 

[dioxide45]

Governor DeSantis Signs Legislation Delivering Relief to Condo Owners | Executive Office of the Governor

www.flgov.com

 

[moonstone]

I read the link dioxide45 posted and it appears the timeframe has been extended which may help some condos/timeshares. We attended a meeting at our timeshare in St. Augustine Beach shortly after that new inspection law went into effect and the board assured the owners that the reserves were well and fully funded. We have always paid attention to the annual budget statements our Bd puts out and the reserves have always been clearly stated for each item/category. We bought pre-construction in 1982 and had 1 special assessment (equal to 1yrs maint. fee) back in the '80s to repair hurricane damage that insurance didn't fully cover. Our resort has passed the inspections so far with flying colours and a couple very minimal repairs needed. The most major one was that some concrete on 2 corners of the underside of both of the outside staircases had been chipped off. The inspectors wanted the chipped areas repaired so salty moisture couldn't get to the re-bars. Since the building is right at the beach that is important.


~Diane

 

[theo]

Governor DeSantis Signs Legislation Delivering Relief to Condo Owners | Executive Office of the Governor

www.flgov.com

Thank you for this link; much appreciated. The key piece of specific information that I sought lies in the “2 year pause in reserve fund contributions” language. I knew of the reserve funding requirement identified in the original legislation, but I was entirely unaware of HB 913, later passed in 2025, creating a “2 year pause” on that reserves funding requirement. Thanks again.

The specific independent FL “Legacy” resort of concern for us has always “opted out” of adequately funding reserves, a choice previously (even if unwisely) allowed by majority owner vote (a vote which I personally never supported). It will be interesting to see how owners there react when “the chickens come home to roost” next year and they discover / realize, to their chagrin, that they can no longer simply “opt out” of adequately funding financial reserves by merely voting to do so.

The post-Ian "delinquency" rate (including all "non performing" HOA-owned weeks) at this particular property is currently just over 25%; a percentage which is plainly not sustainable long-term. If too many owners who currently pay their fees reliably balk (...or bail) at the looming and inevitable upward spike in maintenance fees when financial reserves must be funded, by FL law, the future may not be too bright there. We shall see...

 

[dioxide45]

Thank you; much appreciated. The key piece of information I sought lies in the “2 year pause in funding reserve contributions”. I knew of the funding requirement in the original legislation, but was entirely unaware of that subsequently allowed “2 year pause”. Thanks again.