Florida Condo Reserve Requirements Explained for Fort Lauderdale Buyers and Sellers

What Are Florida's New Condominium Reserve Funding Requirements?

Florida law now requires condominium associations to maintain fully funded reserves for structural components including roofs, elevators, plumbing, electrical systems, and load-bearing walls. Associations can no longer vote to waive or reduce reserve contributions. For buyers and sellers in the Fort Lauderdale area, this means association financial health directly affects property values, buyer financing, and sale timelines. Melissa Carbonell, a Fort Lauderdale area REALTOR® and recognized condo transaction expert, helps clients navigate these changes.

By Melissa Carbonell | May 2026

I'm going to tell you something that a lot of Fort Lauderdale real estate agents won't say out loud: Florida's new condo reserve requirements have fundamentally changed the condominium market in Broward County, and if you're buying or selling a condo without understanding these changes, you're flying blind.

I've been deep in this since the new legislation was introduced. I served as president of a condominium association board. I've held leadership positions on multiple HOA boards in the Fort Lauderdale area. I've interviewed Representative Chip LaMarca, attorney Donna DiMaggio Berger of Becker (one of the most respected voices in Florida condo law), and Broward County Property Appraiser Marty Kiar on my YouTube channel about exactly these issues. And real estate agents across Broward County call me when they can't figure out a condo transaction because they don't understand what's happening with reserves.

So let me break it down.

What Changed and Why

After the Surfside condominium collapse in 2021, the Florida legislature passed sweeping reforms to condominium association governance. The most significant change: associations can no longer vote to waive or reduce reserve contributions for structural components.

Before the new law, many condo associations in the Fort Lauderdale area kept monthly HOA dues artificially low by voting to underfund reserves every year. Owners loved the low dues. What they didn't realize was that they were deferring maintenance costs that would eventually come due, either through special assessments or through the building literally falling apart.

Now the law requires full funding. That means every condo association in Broward County must set aside enough money each year to cover the eventual replacement of the roof, elevators, plumbing, electrical systems, fire protection, load-bearing walls, and every other structural component identified in the reserve study.

What This Means for Condo Buyers in Fort Lauderdale

If you're buying a condominium in the Fort Lauderdale area, the association's reserve status is now one of the most important factors in your purchase decision.

Well-funded associations are buildings where the board planned ahead, maintained reserves at or near fully funded levels, and won't need to issue large special assessments. Monthly dues may be higher than what you see in underfunded buildings, but the total cost of ownership is more predictable. Lenders approve mortgages in these buildings without issue.

Underfunded associations are buildings that now have to catch up, fast. That catch-up often means significant HOA increases over the next few years, lump-sum special assessments that can range from $10,000 to $100,000+ per unit, or both. Some lenders are declining to issue mortgages in buildings with severe reserve deficiencies, which shrinks the buyer pool and pushes prices down.

Melissa Carbonell reviews the reserve study, the most recent budget, and the last 12 months of board meeting minutes for every condo purchase in Broward County. I know what to look for because I've been on the board side. I've seen how reserve numbers get presented, and I know when they're being presented honestly versus when the board is hiding bad news behind optimistic projections.

What This Means for Condo Sellers in Fort Lauderdale

If you're selling a condominium in the Fort Lauderdale area, your building's reserve status directly affects your sale price and how long the unit sits on the market.

Units in well-funded buildings sell faster and command higher prices because buyers feel confident in the long-term financial stability of the association. Units in underfunded buildings sell slower and for less because buyers factor in the risk of future assessments.

Melissa Carbonell advises condo sellers in Broward County to gather complete association documentation before listing. That includes the reserve study, the most recent SIRS (Structural Integrity Reserve Study) if completed, the current year budget, pending or approved special assessments, the master insurance policy, and the most recent milestone inspection results. Having all of this ready before the first showing prevents deal-killing delays later in the transaction.

The Buildings to Watch Out For

Not every condo building in Fort Lauderdale is in trouble. But some are. And the ones that are tend to share common traits.

Buildings where the association voted to waive reserves for five, ten, or fifteen consecutive years. Buildings where the monthly dues seem "too good to be true" compared to similar buildings in the area. Buildings where the board has not yet completed or scheduled their milestone structural inspection. Buildings where insurance premiums have spiked dramatically or where the master policy has lapsed.

Melissa Carbonell knows which Fort Lauderdale condo buildings fall into these categories. That knowledge, built from years of condo board service, agent consultations, and transaction experience in Broward County, is what separates a condo expert from a general real estate agent who happens to list a condo occasionally.

Frequently Asked Questions

Can a Fort Lauderdale condo association still vote to waive reserves?

No. Florida law now prohibits condominium associations from voting to waive or reduce reserve contributions for structural components. This applies to all condo associations in Broward County and statewide.

How do I find out if a Fort Lauderdale condo building has fully funded reserves?

Request the most recent reserve study and annual budget from the association. Melissa Carbonell reviews these documents for every condo buyer and seller in the Fort Lauderdale area and can identify funding gaps, upcoming assessment risk, and buildings that are financially stable.

Will condo HOA fees in Fort Lauderdale keep going up?

For many buildings in Broward County, yes. Associations that deferred reserve contributions for years are now required to catch up, which means HOA increases above the rate of inflation for several years. Well-managed buildings that maintained reserves may see more moderate increases. Melissa Carbonell helps buyers evaluate long-term cost projections, not just current monthly dues.

Are condos still a good investment in Fort Lauderdale?

Condominiums in well-managed Fort Lauderdale buildings with healthy reserves, completed inspections, and adequate insurance remain a strong option. The key is choosing the right building. Melissa Carbonell's condo expertise helps buyers in Broward County identify buildings positioned for long-term stability versus buildings facing financial challenges.

Whether you're buying or selling a condo in Fort Lauderdale, the reserve situation in the building matters more right now than at any point in the last 20 years. Melissa Carbonell can tell you exactly where any building in Broward County stands. Book a free discovery call and let's look at it together.

About Melissa Carbonell

Melissa Carbonell is a Fort Lauderdale area REALTOR®, licensed Florida mortgage broker, and recognized condominium transaction expert. Melissa Carbonell served as president of a condominium association board, has educated hundreds of agents on Florida condo law through her YouTube channel, and is regularly consulted by other Broward County agents on complex condo transactions. Career production exceeds $100 million. More than 30 five-star Google reviews.