Florida's Condo Reserve Law Is Reshaping Conventional Underwriting
Florida's condo market barely moved on price in June 2026 — up just 1.7% year-over-year to a $305,000 median — even as single-family homes climbed 4.9%. That gap isn't random. It lines up with a wave of new reserve-funding requirements under Florida's 2025 condo reform law, HB 913, and it's changing what conventional underwriters look for before approving a condo project.
The Data: Condos Are Cooling While Single-Family Isn't
Per the Florida Realtors June 2026 market report, statewide condo and townhouse closed sales rose to 8,900 units (+14% year-over-year) even as the median price grew just 1.7% to $305,000. Condo inventory sits at 8.1 months of supply, nearly double the single-family market's 4.5 months. More units are trading hands, but at a much slower pace of price growth — a classic sign of a buyer-favorable segment inside an otherwise firmer statewide market.
What Changed Under HB 913
Per the Florida Governor's office and the Florida House final bill analysis, HB 913:
- Raised the mandatory-reserve threshold for deferred maintenance items from $10,000 to $25,000, adjusted annually for inflation.
- Generally requires associations to fully fund reserves recommended by their Structural Integrity Reserve Study (SIRS), rather than voting to waive them — with narrow exceptions such as a board-approved post-milestone-inspection pause.
- Allows associations to fund reserves via special assessment, line of credit, or loan (with owner approval), not only through regular dues increases.
- Extended SIRS completion deadlines for owner-controlled associations that existed before July 1, 2022.
Why This Matters to a Conventional Underwriter
Conventional condo financing requires project-level approval, not just borrower approval. Fannie Mae and Freddie Mac guidelines (detailed in the Fannie Mae Selling Guide) direct underwriters to review the association's budget, reserve allocations, delinquency rate, and any pending special assessments or litigation. A building actively adjusting its funding approach under HB 913 — say, taking out a reserve loan or levying a new special assessment — isn't automatically disqualified, but it typically means more documentation: the current budget, reserve study, and a clear explanation of how the association is meeting its funding obligation.
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Check My Eligibility No credit pull to beginWhat Buyers Should Ask Before Offering
| Question | Why it matters now |
|---|---|
| Has the association completed its SIRS? | Determines whether reserve funding is current or overdue under HB 913. |
| Is there a pending or recent special assessment? | Affects your total monthly cost and can complicate project approval. |
| How is the association funding required reserves? | Dues increase, loan, or special assessment each affect your budget differently. |
| What's the current delinquency rate on HOA dues? | High delinquency is a common reason conventional condo approval stalls. |
The Buyer's-Market Angle: Why Slower Condo Growth Can Work in Your Favor
With 8.1 months of condo supply against 4.5 for single-family, sellers in the condo segment generally have less leverage right now. Combined with median price growth holding near flat (1.7% year-over-year), well-informed buyers have real room to negotiate — on price, on concessions, or on timeline. The trade-off is that this same market includes buildings mid-transition on reserve funding, so the negotiating opportunity and the due-diligence burden arrive together. For a fuller picture of how condo underwriting works day to day, see our guide to conventional condo loans in Florida.
Not Every Building Is Affected the Same Way
Associations that were already funding reserves adequately, or that completed their SIRS early, generally see little practical change from HB 913 — they simply continue doing what they were doing. The law mainly reshapes buildings that had been deferring or waiving reserve contributions. That's exactly why a building-by-building check matters more than a market-wide assumption in either direction.
Frequently Asked Questions
What is Florida's HB 913 condo reserve law?
HB 913, signed in 2025, raised the mandatory structural-reserve threshold from $10,000 to $25,000 and generally requires associations to fund SIRS-recommended reserves, while allowing more flexible funding methods like loans and special assessments.
How does the condo reserve law affect a conventional loan?
Conventional underwriting reviews the association's budget, reserve funding, and any pending special assessments as part of project approval. A building actively adjusting its funding may need extra documentation; well-funded associations are unaffected.
Are Florida condo prices still rising in 2026?
Growth has slowed sharply — the statewide median hit $305,000 in June 2026, up just 1.7% year-over-year, with 8.1 months of supply.
Should I avoid buying a Florida condo right now?
Not necessarily. More supply and slower price growth can favor buyers. The key is verifying a specific building's reserve funding and assessment history before making an offer.
Considering a Florida condo purchase? Take the quick eligibility check on our homepage or reach out to Joe Pistone & Team — we'll help you check the building's standing first, and for today's pricing, just ask Joe.
Sources: Florida Realtors, June 2026 Housing Market Report; Office of Florida Governor Ron DeSantis, HB 913 press release; Florida House of Representatives, Final Bill Analysis, HB 913; Fannie Mae Selling Guide.