Review of The 2025 Changes to Florida Statues Chapter 718 & 719: (HB 913) With Specific Emphasis on Changes to Rules Affecting Milestone Inspections, SIRS and Funding Reserves – Insights from Association Leadership Webinar Series S6, E9

 

In the latest episode of Castle Group’s Association Leadership Webinar Series Season 6, Episode 9, Castle Group hosted another insightful episode on the Florida House Bill 913 and the introduces sweeping changes to Statutes 718 and 719, placing new emphasis on milestone inspections, structural integrity reserve studies (SIRS), and reserve funding obligations. The recent webinar hosted by Craig Vaughan, Chief Financial Officer at Castle Group, featured insights from Jeffrey Rembaum and Michael Bender of Kaye, Bender, Rembaum, and Nicole Johnson of Haffer & Co. Here are some of the key takeaways from the discussion and what they mean for condominium and cooperative associations: 

General Legislative Updates 

The updates apply primarily to condominium associations, with some elements relevant to cooperatives: 

• Video Conferencing and Meeting Notices: Meetings can now be held in an electronic virtual format but must include a physical location too. All electronic/virtual meetings must be recorded and such recordings must remain accessible as part of the Official Records, and posted on the Association website, for at least one year. Associations with over 25 units must have website compliant with Section 718.111(12), Florida Statutes, by January 1, 2026. 

• Board and Member Meeting Rules: Annual member meetings must now have a quorum of the board physically present, if conducted in electronic/virtual format. 

• Electronic Voting: Condos without existing e-voting systems must designate an email address to receive ballots. If 25% of members petition the board to implement a formal e-voting system, then the Board must adopt e-voting within 21 days of receipt of the petition. 

Registration and Insurance Requirements 

• Association Registration: By October 1, 2025, all condominium associations must register with the Division of Florida Condominiums, Timeshares, and Mobile Homes, providing basic data like the number of units and the names of banks holding association funds and more. 

• Insurance Appraisals: Insurance coverage must be based on full replacement value determined at least once every three years, even though the new law now says it “may” be based on that appraisal. Boards must still use best efforts to ensure proper coverage. 

Budgetary Changes: The 115% Rule 

If a proposed budget exceeds 115% of the previous year (excluding insurance, reserves, and structural integrity reserves), the board must present an alternative and give owners a chance to vote at a properly noticed member meeting. If a quorum is not achieved, then the Board may adopt its proposed budget. 

Milestone Inspections and SIRS Updates 

• Milestone Inspection: The law change clarified that the requirement applies to buildings with three or more habitable stories. Garages are not considered habitable for this calculation. 

• Conflict of Interest Disclosures: Professionals bidding on milestone inspections or associated work must disclose any potential conflicts. Failure to do so can void the contract and may result in disciplinary action. 

SIRS Deadline and Reserve Requirements 

• New Deadline: Associations now have until December 31, 2025, to complete their first Structural Integrity Reserve Study (SIRS), an extension from the original 2024 deadline. 

• Threshold for Reserve Items: The threshold for the “Catch-all” items requiring reserves has increased from $10,000 to $25,000 (plus inflation as determined by the division, yearly). This change impacts both SIRS and non-SIRS components. 
• Funding Methods: Associations can choose from fully funded, threshold funded, or baseline funded approaches. Baseline funding carries the most risk as it assumes zero cushion for unexpected costs, potentially leading to special assessments. 

This update introduces stricter compliance requirements and a renewed emphasis on financial planning and transparency. Associations should consult with legal and financial professionals to ensure they adapt properly to these changes.  For a complete 2025 Legislative Guide visit www.KBRLEGAL.com and click the link to download. 

To Watch the full webinar, visit https://castlegroup.com/webinar/review-of-the-2025-changes-to-florida-statutes-chapters-718-719-hb-913-with-a-specific-emphasis-on-changes-to-rules-affecting-milestone-inspections-sirs-and-funding-of-reserves/. 

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