GLMC Legal Featured in Realtor.com’s National Article on HOA Reserve Requirements

GLMC Legal is proud to share that Partner Raul Gastesi was recently featured in a national article on Realtor.com, titled “Only 12 U.S. States Require HOAs To Maintain Cash Reserve Plans: What Owners Should Know.” The article offers a timely and important look at how reserve funding laws impact homeowners and condo associations across the country.

As one of the few states requiring fully funded HOA reserve studies, Florida has seen a wave of new regulations following the tragic Surfside condominium collapse. These laws aim to prevent similar catastrophes by mandating that associations conduct regular reserve studies and maintain adequate funds for future structural repairs and emergencies.

In the article, Mr. Gastesi provides clarity on the difference between reserve funds and special assessments:

“These reserves are based on projections of future needs and are meant to ensure the long-term upkeep and safety of the community,” says Gastesi. “Special assessments tend to create homeowner dissatisfaction because they often involve large, sudden out-of-pocket costs.”

Mr. Gastesi also warns of the financial risks underfunded associations may pose, not only to safety but to homeowners’ ability to sell or refinance:

“In extreme cases, banks may refuse to lend for purchases in underfunded buildings, limiting sales to all-cash buyers and dramatically reducing market value,” he explains.

As HOA regulations evolve, especially in Florida, GLMC Legal continues to provide expert legal guidance for associations and homeowners navigating these complex changes. Whether you’re a board member managing compliance or a buyer assessing risk, our team is here to help protect your interests.

📖 Read the full article on Realtor.com below!