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How many condominiums have fully funded reserves in Florida?

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(TALLAHASEE, FLA) —  The Florida legislature just passed a law that requires all condominiums to fully fund reserves by January 1, 2025, according to attorney Eric Glazer who specializes in community association law.

To figure out how much money to set aside, condo boards are being asked to hire companies to do what is called a reserve study, which analyzes the association’s finances and potential repair costs.

Here is a chart that shows that condo boards have their work cut out for them…less than 5% are fully funded.

“A reserve study is a pretty inexpensive tool, and this changes all that,” Robert Nordlund, the Founder and CEO of Association Reserves NBC6.

Association Reserves is the same company that did the 2020 reserve study for Champlain Towers South, which collapsed a year ago.  The reserve study showed the building needed to set aside nearly $10.3 million for repairs.

If condominiums were required to fund 100% of the accrued depreciation of their paragraph (g) components (e.g., roof and exterior painting) as of 12/31/24, there would have to be a ton of Special Assessments.  That’s not going to happen and nothing in SB 4-D requires it.