If a Sarasota or Bradenton condo has caught your eye, ask about its reserve funding before you ask about the view. Florida's HB 913 condo reform, signed in 2025, changed how associations must fund structural reserves — and that change can affect whether a building qualifies for FHA financing at all. Here's what the law does and what it means for your FHA condo search in 2026.
What HB 913 actually changed
Per the Florida Governor's office and the Florida House of Representatives final bill analysis, the law:
- Raised the mandatory-reserve threshold for deferred maintenance or replacement items from $10,000 to $25,000, adjusted annually for inflation.
- Generally requires associations to fully fund the reserves recommended by their most recent Structural Integrity Reserve Study (SIRS), rather than voting to waive or reduce them — with narrow exceptions, such as a board-approved pause tied to a recent milestone inspection.
- Allows associations to fund required reserves through special assessments, lines of credit, or loans, with owner approval, instead of only through regular assessments.
- Extended the SIRS completion deadline for owner-controlled associations existing before July 1, 2022.
The intent, per the Governor's office, is to give associations more flexibility on how they fund reserves while still requiring that structural reserves actually get funded — a direct response to the post-Surfside push for stronger building safety funding statewide.
Why this matters for an FHA condo purchase
FHA does not just approve a unit — it approves the whole condo project. Part of that review looks at the association's budget, reserve funding, and any pending special assessments or litigation. A building that is mid-transition on reserve funding, working through a new special assessment, or securing a loan to meet SIRS requirements may need additional documentation before FHA will approve a loan there. That doesn't mean the building is a bad investment — it means your paperwork trail matters more.
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Before you write an offer, let's check the building's FHA approval status and reserve funding picture together. No SSN or credit pull required for the initial conversation.
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Questions to ask before you make an offer
| Question | Why it matters |
|---|---|
| Is this project currently on HUD's FHA-approved condo list? | No approval, no FHA financing — full stop. |
| Has the association completed its SIRS? | Determines whether reserve funding is based on current data or overdue. |
| Is there a pending or recent special assessment? | Large or unresolved assessments can complicate approval and your budget. |
| How is the association funding its reserves — regular dues, a loan, or a special assessment? | Under HB 913, all three are allowed with owner approval, but each affects your monthly costs differently. |
| What is the reserve threshold the association is using? | The 2025 law raised the mandatory threshold from $10,000 to $25,000, adjusted for inflation. |
This isn't just a Sarasota issue — but it's a Sarasota opportunity
Coastal Sarasota and Manatee County have some of Florida's highest concentrations of older condo stock, which puts many local buildings squarely in the middle of this reserve-funding transition. Buyers who do their homework here — checking FHA approval status and reserve health before falling in love with a unit — avoid the frustration of a financing surprise late in the process. For the buildings that are well-managed, this due diligence is quick; it simply has to happen early. See our guide to FHA-approved condos in Sarasota and our overview of FHA condo approval requirements for the mechanics of the approval process itself.
What this doesn't change
HB 913 is about association-level reserve funding, not about FHA's core condo rules or your individual qualification. The 3.5% minimum down payment, FHA's credit and debt-to-income guidelines, and the mortgage insurance premium structure are unaffected. If you're weighing FHA against a conventional loan on a condo purchase, our FHA versus conventional comparison walks through the trade-offs.
Frequently asked questions
What is Florida's HB 913 and how does it affect condo buyers?
HB 913, signed in 2025, changed how Florida condo associations must fund structural reserves. It raised the mandatory-reserve threshold for deferred maintenance items from $10,000 to $25,000 (adjusted for inflation) and generally requires associations to fully fund SIRS-recommended reserves rather than waiving them, with narrow exceptions.
Does the condo reserve law affect FHA condo approval in Sarasota?
It can. FHA condo approval depends partly on the association's financial health, including reserve funding. A building actively working through new reserve requirements, a special assessment, or a reserve-funding loan may need extra documentation before FHA will approve financing there.
What is a Structural Integrity Reserve Study (SIRS)?
A SIRS is a mandatory inspection and funding plan for a condo building's major structural components — roof, load-bearing walls, plumbing, and similar systems. Florida law increasingly requires associations to fund reserves based on the SIRS rather than voting to waive them.
Can I still get an FHA loan on a Florida condo after these changes?
Yes, in most cases. Most established, well-managed associations will meet FHA's requirements. The changes simply mean it's more important than ever to check a specific building's HUD-approval status and financial documents before writing an offer.
How do I check if a Sarasota-area condo is FHA-approved?
Ask your loan officer to check the project against HUD's approved condo list before you make an offer, or review our guide to FHA-approved condos in Sarasota. Approval status and financial standing can change, so always verify for the specific building and unit.
Sources: Office of Florida Governor Ron DeSantis, press release on HB 913; Florida House of Representatives, Final Bill Analysis, HB 913; Florida Senate bill page, HB 913 (2025).
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Joe Pistone & Team · CrossCountry Mortgage · NMLS# 2087918 · Equal Housing Opportunity · Educational only — not a commitment to lend. Condo association financials, reserve status, and FHA project approval can change; verify current status for any specific building before relying on it. CrossCountry Mortgage NMLS# 3029 · 205 S. Hoover Blvd., Suite 203, Tampa, FL 33609 · Licensed in Florida.