It is a confusing time to serve on a Florida condo board. You are likely hearing two different stories about how much money you need to save for repairs. One story comes from Florida state law, and the other comes from the new Fannie Mae condo reserve requirements 2026 Florida guidelines.
At the Felten Property Assessment Team (FPAT), we want to make sure your association does not get stuck in the middle. Picking the wrong funding path right now could make it impossible for your owners to sell their units to buyers using traditional mortgages.
Florida HB 913 Condo Reserves Explained
To understand the current crisis, we first have to look at state law. Recent legislation was passed to help condo boards manage the heavy financial burden of structural repairs. Under Florida HB 913 condo reserves explained simply, the state gave associations a bit more breathing room.
One of the biggest reliefs was the timeline. The Florida SIRS deadline extended 2025 2026 provision meant that most associations had until December 31, 2025, to complete their Structural Integrity Reserve Study (SIRS). If you were bundling it with a milestone inspection, you were given until December 31, 2026. HB 913 also raised the threshold for mandatory reserve components from $10,000 to $25,000.
While the state of Florida is trying to be flexible, federal lenders are doing the exact opposite.
Baseline Funding vs Fully Funded Reserves Florida
Florida law allows for a method called "Baseline Funding." This allows your association to keep just enough money in the bank so the reserve balance never drops below zero. It sounds great to boards because it temporarily keeps monthly Condo fees lower.
However, the debate of baseline funding vs fully funded reserves Florida was just ended by Fannie Mae and Freddie Mac.
Starting August 3, 2026, Fannie Mae will no longer accept Baseline Funding. If your association uses this state-approved minimum method, your building could be blacklisted from conventional lending.
The New 15% Rule & "Highest Goal" Mandate
To keep your building lendable, your board must prepare for two major federal deadlines:
- The Highest Goal Wins (August 3, 2026): Lenders now require your budget to reflect the highest recommended reserve allocation listed in your reserve study. If your paperwork shows a "Fully Funded" plan, but you choose a lower state-approved path, the bank will reject the buyer's loan.We recommend the reserve study be revised so that the highest recommended funding plan in your reserve study is an adequate Threshold Funding Plan.
- The 15% Rule (January 4, 2027): If your association does not have an updated, professional reserve study (completed within the last three years), Fannie Mae is increasing the mandatory minimum reserve contribution from 10% to 15% of your total operating budget.
Condo Reserve Study Cost Miami & Tampa: What to Expect
Don't let outdated paperwork hurt your property values. Since lenders now strictly look at the "highest goal" in your report, having an unrealistic funding plan on paper is a massive liability.
If your study is more than three years old, it is time for an update. You might be wondering about the condo reserve study cost Miami, Tampa, or Fort Lauderdale markets are currently seeing. While costs vary based on building size and amenities, a Level 3 Update (which cleans up your paperwork without requiring a new site visit) is highly cost-effective, especially if FPAT completed your original study.
FPAT Fast-Track: We offer a 24-hour turnaround on proposals so your board can make decisions quickly. Do not wait until the 2027 budget season starts—the time to fix your report is now.
People Also Ask (PAA Corner)
Can condo boards waive reserves in Florida 2026?
No. Following recent state laws (SB 4-D, SB 154, and HB 913), unit owner-controlled associations can no longer vote to waive or reduce reserve funding for structural integrity items (such as roofs, load-bearing walls, and foundations) that are included in your SIRS.
What is the deadline for Florida SIRS in 2026?
Thanks to HB 913, the deadline for Florida condo associations to complete their Structural Integrity Reserve Study (SIRS) was December 31, 2025. However, if your building was also required to complete a Milestone Inspection by the end of 2026, you are allowed to complete the SIRS at the same time (December 31, 2026).
How often must an insurance appraisal be updated in Florida?
Under Florida Statute 718.111, condominium associations must update their replacement cost valuations for insurance purposes at least every 36 months (3 years).
Ready to protect your building's financing? Contact the Felten Property Assessment Team today for a free review of your current funding plan. We are Florida's leading experts in SIRS compliance, helping communities navigate state law and federal lending rules.
