Disclaimer: The names and examples in this article may have been changed at the request of clients. Build Safe Escrow is committed to protecting client confidentiality while educating the public on financial transparency and reform in the HOA and condo space.
HB 913 Florida: What Condo Owners Need to Know About New Repair Laws
After years of heated town hall meetings, unexpected special assessments, and homeowner anxiety about surprise bills, Florida condo owners may finally be getting some relief—thanks to HB 913, a new bill that’s changing how repairs can be funded.
This legislation gives HOAs and condo associations new tools to manage repairs without immediately burdening homeowners with massive out-of-pocket costs. But understanding how it works—and how to protect yourself—is key.
Let’s break it down.
What Is HB 913?
HB 913, commonly referred to as the “Condo Relief and Reform Bill,” addresses a critical issue that’s been building for years: how associations pay for major repairs in aging condo buildings.
Here’s what the bill does:
– Allows HOAs to secure lines of credit or loans to pay for repair projects
– Enables associations to invest reserve funds to grow repair budgets over time
– Creates flexibility, so HOAs can avoid hitting residents with large special assessments all at once
“It’s not just about avoiding assessments. It’s about giving boards more tools to manage responsibly,” said one HOA attorney in South Florida.
From Special Assessments to Smart Financing
For years, when a roof, concrete structure, or balcony needed major work, the answer was the same: hit every homeowner with a one-time assessment—sometimes for $10,000… $25,000… or even more.
HB 913 changes the game. Instead of demanding immediate payment, associations can now finance the repairs—spreading costs over time and keeping housing more affordable.
⚠️ Real Scenario Before HB 913:
- A 40-year-old building in North Miami needs $2 million in repairs
- 200 homeowners are each assessed $10,000 upfront
- Dozens go delinquent or are forced to sell
✅ Real Scenario After HB 913:
- The board secures a $2 million credit line
- Owners contribute monthly over 5–10 years
- Repairs begin immediately; no sudden financial shocks
But with greater financial tools comes a new risk: How do you make sure borrowed funds are used responsibly?
Where Construction Escrow Comes In
Here’s the missing piece of the puzzle: construction escrow.
What Is It?
Construction escrow is a neutral, third-party service that holds project funds—whether from loans, credit lines, or owner contributions—and only releases payments when verified work is completed.
This protects everyone—homeowners, contractors, lenders, and the board itself.
Here’s how it supports HB 913’s goals:
| Problem | How Escrow Solves It |
| Board misuses borrowed funds | Funds are only released when milestones are completed and verified |
| Owners demand transparency | All stakeholders can see draw requests and payment logs |
| Contractors overbill or walk off | Escrow ensures they’re only paid for real, approved work |
| Owners worry about paying before work starts | Escrow aligns payments with real progress |
“Escrow turned a complicated $1.8M project into a manageable, transparent process,” said the treasurer of a condo board in Hollywood, FL.
Escrow in Action: How It Works with HB 913 Loans
Let’s say your condo board secures a $3 million loan to renovate balconies, replace elevators, and repaint the exterior.
With Build Safe Escrow, the board sets up a draw schedule tied to clearly defined milestones. Each draw is released only after documentation is submitted and progress is verified.
- Milestone 1: Engineering inspections and permits
- Milestone 2: Demo and structural repairs complete
- Milestone 3: Elevator installation
- Milestone 4: Final exterior finishes and walkthrough
Each draw is released only after documentation is submitted and progress is verified.
This protects everyone—homeowners, contractors, lenders, and the board itself.
Why This Matters for You as a Homeowner
HB 913 gives condo associations more breathing room. But breathing room without structure can lead to poor decisions and broken trust.
That’s where construction escrow becomes your greatest ally. It:
Prevents misuse of loan funds
Reduces fraud and contractor disputes
Builds confidence among residents and investors
Helps boards manage large projects without micromanaging the money
And most importantly—it makes you feel secure in the place you call home.
Next Steps for HOAs and Condo Boards
If your building is considering a repair project or looking to avoid a future assessment, here’s what to do:
1. Explore financing options
Use HB 913 as a gateway to smarter funding—not just another loan
2. Pair financing with escrow
Make sure every dollar is tracked and tied to real progress
3. Communicate with homeowners
Build trust by showing how funds are protected from start to finish
Final Thoughts: Financial Flexibility Must Be Paired with Financial Accountability
HB 913 is a step forward—but how your board uses it matters more than the law itself. Without tools like escrow, borrowed funds can create new risks instead of solving old ones.
Construction escrow ensures that money moves at the speed of progress—and not a moment sooner.
👉 Want to explore escrow options for your HOA or condo project?
Contact Build Safe Escrow for a free consultation. Let’s help you manage repairs and renovations with confidence, structure, and complete transparency.
📞 Call us at (855) 611-3532
🌐 Visit www.buildsafeescrow.com
Ready to Go Deeper? Grab Our Free Guides:
🏡 For Property Owners:
Renovate Smarter: How to Protect Your Project Funds
Discover how to avoid common renovation pitfalls, protect your money, and choose the right contractor with confidence.
📥 Download the free guide
👷 For Contractors:
Win More Jobs with Escrow: A Contractor’s Guide to Securing Projects and Payments
Learn how offering escrow-backed bids can help you stand out, get paid faster, and build a reputation for professionalism.
📥 Download the contractor guide
➕ More Resources from Build Safe Escrow:
🚧 How to Protect Your Construction Funds, Even with a Great Contractor
📄 The One Agreement That Can Save Your Renovation—and You Don’t Need a Lawyer to Use It
🛑 Construction Disputes Are Costly—Here’s How Escrow Solves Them
What is HB 913 and how does it help condo owners?
HB 913, also known as the “Condo Relief and Reform Bill,” is a new Florida law that changes how condo associations can pay for major repairs. Before this bill, associations often relied on massive, one-time special assessments that could financially strain homeowners, sometimes forcing them to sell. HB 913 allows HOAs and condo associations to use more flexible financing options, such as loans or lines of credit, to cover the cost of repairs. This spreads the financial burden over a longer period, making it more manageable for homeowners.
How does HB 913 change how repairs are funded?
The new law shifts the funding model away from large, immediate special assessments. Instead of each owner being hit with a large upfront bill (e.g., $10,000 or more), the condo board can secure a loan or credit line. This allows repairs to begin right away while homeowners contribute to the cost through smaller, regular payments over several years. This approach helps avoid “sudden financial shocks” and makes necessary repairs more affordable for residents.
What is construction escrow and why is it important with HB 913?
Construction escrow is a neutral, third-party service that holds the money for a repair project. It acts as a safeguard, ensuring that funds—whether from a loan or owner contributions—are only released to contractors as specific, verified work is completed. Because HB 913 allows associations to secure large loans, construction escrow is crucial for financial accountability. It prevents the misuse of borrowed funds, provides transparency to homeowners, and protects against issues like contractor overbilling or fraud.
How does construction escrow protect homeowners and the board?
Escrow provides a layer of security and transparency for all parties involved. For homeowners, it ensures their money is tied directly to project progress, so they aren’t paying for work that hasn’t been done. For the board, it provides a structured, verifiable process for managing a large budget, which helps build trust with residents and avoids potential disputes. The escrow service tracks all payments and draw requests, making the entire project transparent.
What should my condo board do now that HB 913 is in effect?
First, explore the new financing options available under HB 913 to find a smarter way to fund repairs than immediate special assessments. Second, pair any financing with a construction escrow service to ensure that all funds are tracked and used responsibly. Third, communicate these plans with homeowners to build confidence and demonstrate financial accountability from start to finish.