Condo Reserve Laws And Boca's Market Reality

Are Boca condos getting tougher to navigate, or is it just noise? If you are weighing a purchase or sale, new Florida condo reserve rules, rising insurance considerations and shifting inventory are real factors in Boca Raton. You want clarity on what is required, what it might cost and how it affects pricing and financing. This guide breaks down the laws, the local market and the practical steps that protect your move. Let’s dive in.

Florida condo safety and reserve rules

Milestone inspections at 30 years

Florida now requires a “milestone inspection” for most buildings with three or more habitable stories at year 30, then every 10 years. Coastal conditions can trigger earlier local requirements. See the statute that governs these inspections in Chapter 553.899 of the Florida Statutes for timing and enforcement details. Florida Statutes 553.899

Structural reserve studies for condos

Condo associations for 3+ story residential buildings must complete a structural integrity reserve study that visually evaluates key components, estimates remaining useful life and replacement costs and recommends a funding schedule. The law places responsibility on boards to obtain the study and maintain appropriate reserve funding. Florida Statutes 718.112

What must be reserved for

The study must address items like roofs, primary structural members, fireproofing, plumbing, electrical, waterproofing and exterior painting, windows and doors, plus other components that meet the statutory dollar threshold. Statute language references a $25,000 threshold with inflation adjustments posted by the state. Associations must base reserve funding on the study’s identified items. Florida Statutes 718.112

How associations can fund work

Assessments and budget planning

Associations can build reserves within the annual budget or levy special assessments when needed. The reserve study often uncovers deferred projects, which can change budgets materially. Florida Statutes 718.112

Loans and lines of credit

The law allows associations to use loans or lines of credit to fund components identified in the reserve study. Borrowing can reduce shock from one-time assessments, but it creates carrying costs and requires board action and lender underwriting. Legislative updates aimed to balance safety with financial flexibility. Associated Press overview of policy updates

Governance and officer duties

Willful failure to complete required structural integrity reserve studies is treated as a breach of an officer’s fiduciary duty, and officers must sign affidavits acknowledging receipt of the completed study. The statute also sets how reserve funds can be used and when owners may vote on reserve decisions. Florida Statutes 718.112

Boca Raton condo market now

Inventory and buyer leverage

Across Boca and Palm Beach County, attached inventory has expanded and days on market have lengthened in many condo segments. Specialist reports show higher months of supply, especially in some luxury corridors, which gives buyers more room to negotiate. One local analysis pegged Boca luxury condo supply near the end of winter season at 15 months. CondoVultures on Boca luxury supply

Prices and sales trend

At the county level, the median sale price for existing condos hovered near the low to mid 300s in early 2025. In January 2025, the MIAMI Association of Realtors reported a Palm Beach County existing condo median of about 330,000 and noted that financing and building approvals can constrain sales. MIAMI Realtors county report

Insurance and flood factors

Flood maps changed on December 20, 2024 for Palm Beach County. Some properties shifted into higher risk zones, which can affect flood insurance requirements and costs. You can review maps and resources through local government tools. Palm Beach County FEMA flood map resources and City of Boca Raton flood and sea level resources. Regional projections also show 10 to 17 inches of sea level rise by 2040, an important planning variable for coastal buildings. Southeast Florida Climate Compact projection

What this means for buyers

Your due diligence checklist

Before you write an offer, ask for and review:

• The current budget and the most recent reserve or structural integrity reserve study, plus any officer affidavit and board plan to fund required items. Florida Statutes 718.112
• Minutes from the last 12 to 24 months of board meetings for inspections, repair discussions, assessments, loans and insurance renewals.
• Milestone inspection reports, engineer or architect evaluations and contract bids for major work, if available. Florida Statutes 553.899
• Master insurance certificates, including wind and flood details, and any open claims or litigation. Florida’s insurance market shows signs of stabilization, but pricing and deductibles still matter. Florida Realtors insurance overview
• FHA, VA or GSE project approval status. If a building lacks approvals, lenders may require higher down payments under limited review norms in Florida. Condo financing explainer
• Flood zone status and elevation information for the property and common elements. Palm Beach County FEMA flood map resources

How to position your offer

• Build a realistic budget that includes HOA fees, likely assessment timing and insurance changes.
• If the building plans to borrow, ask about terms and how loan costs will be passed to owners.
• Use contingency timelines to review documents thoroughly and confirm lender requirements early.

What this means for sellers

Prepare documentation upfront

• Gather the structural integrity reserve study, any milestone inspection reports and details on voted or proposed assessments. Florida Statutes 553.899 and Florida Statutes 718.112
• Have a concise summary of the association’s funding plan, including reserve status, anticipated projects and whether loans or lines of credit are being used.
• Provide current master insurance details and highlight any completed mitigation or improvements that reduce risk.

Price and marketing strategy

• Expect buyers to discount uncertainty. Clear, organized disclosures can preserve value by reducing perceived risk.
• Emphasize recent capital projects and healthy reserves where applicable. Well maintained buildings tend to hold value better when buyers have choices.

Key deadlines to watch

Inspection and study timing

• Milestone inspections generally start at year 30 for 3+ story buildings, then recur every 10 years. Local officials can require earlier inspections for coastal conditions. Florida Statutes 553.899
• Structural integrity reserve studies have statutory deadlines and affidavit requirements. The Legislature refined schedules in recent sessions, so boards should align their study timing with milestone inspections when possible and follow the current statute. Florida Statutes 718.112

Financing and insurance realities

Mortgage access in condo buildings

Many South Florida condo projects lack FHA approval. Conventional limited review can also change down payment requirements, which narrows the buyer pool for certain buildings. Confirm project approvals early in your process. MIAMI Realtors county report and Condo financing explainer

Insurance costs and coverage

Florida’s property insurance market has shown signs of strengthening, with more private carriers returning. Premiums, deductibles and flood requirements still vary by building and location, which affects HOA budgets and owner costs. Review the association’s current policies, upcoming renewals and any open claims. Florida Realtors insurance overview

A simple plan to move forward

• Get the facts. Start with the reserve study, milestone reports, budget and insurance documents for your target building.
• Price the risk. Estimate near term assessments, likely fee changes and insurance shifts so you can model total monthly cost.
• Choose smart contingencies. Align inspection, document and loan approval windows with the building’s disclosure timeline.
• Leverage local expertise. Work with a pro who screens buildings, negotiates strategically and manages details through closing.

If you want a clear, step by step path through Boca’s condo landscape, connect with Melissa Hoff for a focused plan and hands on representation.

FAQs

What is a structural integrity reserve study?

• It is a visual evaluation and financial plan for key building components that estimates remaining life and replacement costs, then sets a reserve funding schedule required for many 3+ story Florida condos. Florida Statutes 718.112

How do Florida’s condo rules affect HOA fees in Boca?

• Buildings that uncover deferred repairs can face higher budgets, special assessments or borrowing, though loans and updated procedures can spread costs over time. Outcomes vary by building age, condition and financing access. Associated Press overview of policy updates

Can you get a mortgage on a Boca condo without FHA approval?

• Often yes, but options can narrow and down payments may be higher under conventional limited review, so it is best to confirm project approvals before you shop. Condo financing explainer

How do FEMA flood map changes affect a Boca condo purchase?

• New maps can place buildings or common areas in higher risk zones, which can change flood insurance requirements and pricing for owners and associations. Check the address in local map tools. Palm Beach County FEMA flood map resources

Do newer Boca condos avoid these rules?

• Many 3+ story residential condos, old or new, must complete milestone inspections on a schedule and maintain reserves based on a structural study, with timing tied to building age and statute. Florida Statutes 553.899 and Florida Statutes 718.112