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Florida HB 1021: What the 2023 Condo Reform Law Requires
Florida HB 1021 (2023) condo reform: SIRS (Structural Integrity Reserve Study) mandatory for 3+ story condos by December 31, 2024. Covers: roof, structure, fireproofing, plumbing, electrical, windows, waterproofing, balconies, foundation. Reserve funding: must fund to SIRS level; annual waiver votes now prohibited. Milestone inspections: at 30 years (25 coastal); every 10 years after. SIRS must be disclosed to prospective buyers. Own Luxury Homes® 12-Point Agent Integrity Audit™.
Florida HB 1021: What the 2023 Condo Reform Law Requires
Florida House Bill 1021 (signed May 2023) is the comprehensive condo reform legislation that changed the rules for every Florida condominium association. Here is exactly what it requires and when.
The Structural Integrity Reserve Study (SIRS)
The most significant requirement of HB 1021: every Florida condominium association in a building of 3 or more habitable stories must complete a Structural Integrity Reserve Study (SIRS). What a SIRS covers: the study must evaluate and establish reserve requirements for specific structural and life-safety components, including: • Roof • Load-bearing walls and other primary structural members • Fireproofing and fire protection systems • Plumbing systems • Electrical systems • Waterproofing and exterior painting • Windows and exterior doors • Elevators • Balconies, catwalks, and other load-bearing structural systems • Foundation • Parking garages and parking structures Who conducts the SIRS: a licensed Florida engineer or architect; the study must be done in person, at the property. SIRS deadline: December 31, 2024 for existing associations. New buildings: within 6 months of turnover from developer to owners.
Reserve Funding: The Elimination of Annual Waiver Votes
Before HB 1021, Florida condo associations could hold an annual vote to waive reserve funding. This was extremely common. An association that should have been saving $800,000/year for structural reserves could vote each year to instead use those funds for general purposes, effectively building zero structural reserve balance over decades. Post-HB 1021: associations may no longer vote to waive or reduce SIRS reserve funding. Reserves for structural components must be funded as specified in the SIRS. The catch-up problem: associations that waived reserves for 10, 15, or 20 years entered the new regime with massive reserve deficits. The SIRS calculates what reserve balance is required; associations with large gaps have three options: 1. Levy a special assessment to fund the gap immediately 2. Take out a loan (condo association line of credit) to fund reserves and repay through increased monthly dues 3. Combination approach There is no fourth option. Funding is mandatory.
Milestone Inspections: The Structural Safety Check
Separate from the SIRS, HB 1021 requires milestone structural inspections: First milestone inspection: by the end of the calendar year in which the building reaches 30 years of age (25 years for buildings within 3 miles of a coastline). After the first inspection, every 10 years. Phase 1: visual inspection of the building's structural components by a licensed engineer or architect. If no concerns are identified: Phase 1 complete, no Phase 2 required. Phase 2: if the Phase 1 inspection identifies substantial structural deterioration, a Phase 2 inspection is required. Phase 2 involves more detailed evaluation of specific areas of concern and may include destructive testing of structural components. Phase 2 cost: $25,000 to $100,000+ depending on the building and extent of investigation. After inspection: the local municipality receives the engineer's report. If findings indicate unsafe conditions, the municipality can issue a repair order or, in extreme cases, an evacuation order. Champlain Towers South never had a milestone inspection because the requirement didn't exist until after the collapse.
“HB 1021 is one of the most significant pieces of real estate legislation in Florida history. The communities that implemented it well — completed their SIRS, funded appropriately, scheduled milestone inspections, communicated transparently with owners — are the ones buyers can feel confident about. The communities that have delayed, fought the requirements, or underfunded are the ones where special assessments are coming and buyers have the most risk. My job is to identify which category a specific condo association falls in before my client makes an offer.”
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®
What is HB 1021 Florida condo?
Florida House Bill 1021 (2023) is comprehensive condo reform legislation enacted after the 2021 Surfside collapse. Key requirements: (1) Structural Integrity Reserve Study (SIRS) mandatory for 3+ story condos by December 31, 2024; (2) full reserve funding per SIRS — associations can no longer vote annually to waive reserve contributions; (3) milestone structural inspections at 30 years (25 for coastal buildings) and every 10 years after; (4) SIRS and inspection results must be disclosed to prospective buyers. Associations that previously waived reserves now face mandatory catch-up through special assessments.
What is a SIRS in Florida condo law?
A Structural Integrity Reserve Study (SIRS) is a mandatory assessment of a Florida condominium building's structural and life-safety components, conducted by a licensed engineer or architect. It evaluates the condition and remaining useful life of the roof, load-bearing structure, fireproofing, plumbing, electrical, windows, waterproofing, balconies, foundation, elevators, and parking structures. The SIRS establishes the required annual reserve contribution for each component. Condo associations in 3+ story buildings were required to complete a SIRS by December 31, 2024. The SIRS must be disclosed to prospective buyers.
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