HB 913 Condo Reserves 2026: A South Florida Buyer's Guide

If you are shopping for a condo in Hollywood, Aventura, or Hallandale Beach right now, the single most important document you will read is not the listing sheet or even the inspection report. It is the building's reserve study and its Structural Integrity Reserve Study (SIRS). At Sell It Realty, we have watched buyers fall in love with a unit, skip the reserve numbers, and then get hit with a five-figure special assessment three months after closing. In 2026, with Florida's HB 913 changes now fully in play, reading those reserve numbers correctly is the difference between a smart buy and an expensive surprise.

This is your practical, broker's-eye guide to what a condo reserve study is, what HB 913 changed for 2026, and exactly what to look for before you sign.

What a Reserve Study Actually Is

A reserve study is the association's long-term savings plan for big-ticket repairs — the roof, elevators, concrete, paint, plumbing, seawalls, and other components that wear out over decades. The study estimates when each item will need replacement and how much money the association should set aside every year to pay for it without borrowing or hitting owners with a surprise bill.

The SIRS is a stricter, structural subset created after the 2021 Surfside collapse. Under current Florida law, condominium buildings that are three or more habitable stories must complete a SIRS covering structural components like the roof, load-bearing walls, foundation, floor, and waterproofing. Buildings of that height must also complete a milestone structural inspection — generally by the time the building turns 30 years old, or 25 years if it sits within three miles of the coast, which covers a large share of our South Florida inventory.

✅ Pro tip: When you request documents, ask for three things by name: the current reserve study, the completed SIRS, and the milestone inspection report (Phase 1, and Phase 2 if one was ordered). If a three-story-plus building near the water cannot produce these in 2026, treat that as a red flag, not a paperwork delay.

What HB 913 Changed for 2026

House Bill 913 took effect July 1, 2025, and it reshaped how associations fund reserves. These are the changes that matter to you as a buyer heading into 2026:

The reserve threshold jumped from $10,000 to $25,000

Previously, any component costing more than $10,000 to replace needed its own segregated reserve line. HB 913 raised that threshold to $25,000, and starting in 2026 that number is adjusted annually for inflation by the state's Division of Condominiums. In plain terms: smaller-dollar items no longer require a dedicated reserve, which can slightly reduce the reserve burden on smaller buildings. It also means you should look closely at how mid-size repairs are being funded.

Boards can now use loans and lines of credit to fund reserves

HB 913 gave boards the option to fund reserves through loans, lines of credit, or special assessments, with proper board or member approval. This is flexibility, but it is also a warning sign to read carefully. A building "funding reserves" through a bank loan is carrying debt that you, as a future owner, help repay through your monthly dues.

Pooled reserves for structural components

Boards may now pool reserve accounts for SIRS structural components without a separate unit-owner vote, so money can flow to the most urgent structural need. Importantly, structural reserves can generally only be pooled with other structural items — not raided to repave the parking lot or refresh the gym.

⚠️ Warning: "Fully reserved" and "pooled and adequately funded" are not the same thing as "no assessments coming." A building can be technically compliant on paper and still be one bad milestone inspection away from a major assessment. Always read the reserve study alongside the milestone report, not in isolation.

How to Read a Reserve Study Like a Broker

Here is the exact sequence we walk our buyers through when we pull association documents.

1. Check the funding percentage. Reserve studies usually state how funded the reserves are versus the "fully funded" target. Below roughly 30 to 40 percent funded is a caution zone; it often signals future assessments or dues increases.

2. Read the SIRS component list and remaining useful life. Look for any structural item — roof, concrete, waterproofing — showing only a few years of remaining life. That is where the next big bill hides.

3. Cross-reference the milestone inspection. If the milestone report flagged "substantial structural deterioration," the association is legally required to act, and that action gets funded by owners.

4. Look for recent or pending special assessments. Ask specifically: has the board approved, discussed, or voted on any assessment in the last 24 months? Get it in writing.

5. Scan board meeting minutes. The last 12 months of minutes tell you what is really happening — insurance shocks, contractor bids, reserve debates — long before it shows up in a formal notice.

✅ Pro tip: Get the association estoppel certificate early. It legally discloses the unit's financial standing, current dues, and any pending assessments as of the date it is issued. In a fast-moving market like Aventura or Hollywood Beach, ordering it early keeps you from losing days at the closing table.

The Questions to Ask Before You Write an Offer

Documents tell you a lot, but a few direct questions to the listing agent or association manager fill in the gaps. In our experience, the following short list surfaces most hidden problems on a South Florida condo:

• Is the SIRS complete, and did it identify any structural item near the end of its useful life? A "yes, complete, no urgent items" is very different from "we are still gathering bids."
• Has a special assessment been approved, discussed, or voted on in the last two years? Discussion in the minutes usually precedes a formal notice by months.
• What are the reserve funding percentage and the target? A confident manager answers this in one sentence.
• Is any reserve funded by a loan or line of credit, and what are the terms? This tells you whether current dues already carry debt service.
• What did the last two insurance renewals do to the master policy premium? In coastal Broward and Miami-Dade, insurance is often the fastest-rising line in the budget.

If the answers are vague, slow, or defensive, that is data too. A well-run Hollywood or Cooper City association that has done its homework is usually happy to prove it. A building that stalls on basic financial questions is quietly telling you where the risk lives.

Keep in mind that none of this replaces professional advice. A reserve study and a milestone report are technical, and the legal implications of HB 913 vary building to building, so for anything material you should consult a licensed engineer, attorney, or CPA before you rely on it.

Why This Hits South Florida Especially Hard

Our coastal condo stock is older and closer to salt air than almost anywhere else in the state. A large share of buildings in Hollywood, Hallandale Beach, Sunny Isles, and Bal Harbour are hitting milestone and SIRS deadlines at the same time that insurance and construction costs remain elevated. That combination is exactly why reserve studies deserve more of your attention in 2026 than they did five years ago.

The good news: informed buyers have leverage. A building that is transparent, fully reserved, and current on its SIRS and milestone work is worth paying for. A building that is dodging documents is telling you something. Reading the reserve study is how you tell the two apart before you commit hundreds of thousands of dollars.

If you want a second set of eyes on a building's reserve study or SIRS before you make an offer, that is exactly the kind of due diligence we do every week. Browse current condo listings, and when you find one worth pursuing, we will help you decode the financials.

Buying is only half the equation. If you already own and are weighing whether to sell before a possible assessment lands, get a current read on your unit's value with a free home valuation.

Call Adi directly at 305-409-1305 or request a home valuation.