June 2026 marks five years since the collapse of Champlain Towers South in Surfside, Florida. The tragedy reshaped how the condominium industry thinks about building safety. The Community Associations Institute (CAI) recently marked the anniversary with a message from its CEO. It reflected on the lives lost and the policy changes that followed. That message raises an important question for boards here at home: what does strong condo reserve funding in Kentucky actually look like, and who is responsible for it?
What Changed After Surfside
In the years since Surfside, several states have acted. Florida, for example, now requires milestone inspections and structural integrity reserve studies for condo buildings. These laws force associations to fund reserves at levels that reflect the true cost of maintaining aging buildings. They also require engineers to assess structural condition on a set schedule. The goal is simple: catch deferred maintenance before it becomes a crisis.
Kentucky & Indiana Have No Reserve Funding Mandate
Kentucky has no equivalent statute, and neither does Indiana. There is no state law requiring milestone inspections or a minimum reserve funding threshold for condominium associations. Because of that, many boards assume the risk behind Surfside does not apply to them. They see it as a Florida problem, tied to coastal climate and older buildings, not something relevant here.
That assumption is a mistake. The real lesson from Surfside was never about geography. It was about what happens when a board treats reserve funding as optional. It was about deferred maintenance, dues kept artificially low, and a lack of accurate information about a building’s true condition. Every one of those conditions can exist in a condo association in Lexington, Louisville, or New Albany just as easily as in South Florida.
Why the Responsibility Falls on Local Boards
Without a state mandate on either side of the river, the responsibility for getting this right falls on the board and its management company. That is not a burden to resent. It is an opportunity to lead.
Here is what a proactive board can do, starting now:
- Commission a professional reserve study. Update it on a regular cycle, and make sure it reflects real replacement costs, not a number chosen to keep the budget comfortable.
- Bring in a structural engineer for aging buildings. This matters most for buildings with decks, balconies, parking structures, or aging roofs. An outside assessment gives the board an objective picture, separate from what is visible on a routine walkthrough.
- Treat reserve funding as a financial discipline, not a line item. Boards should be ready to have honest conversations with homeowners about what adequate funding actually costs.
- Review insurance coverage against current replacement value. Legacy policy limits often understate a building’s real exposure.
| Requirement | Florida | Kentucky & Indiana |
|---|---|---|
| Mandatory milestone inspections | ✓ | ✗ |
| Structural reserve study required | ✓ | ✗ |
| Minimum reserve funding required | ✓ | ✗ |
| State enforcement for noncompliance | ✓ | ✗ |
Source: CAI, 2026 | All Points Community Management
None of this requires a new law. It requires a board willing to ask hard questions, and a management partner with the financial and operational discipline to help answer them.
Where Financial Oversight Fits In
This is where the combination of AAMC accreditation and CPA-level financial oversight matters. Reserve studies should not just sit in a file. They should actively guide budgeting decisions. Financial reporting should be built to withstand scrutiny, whether it comes from boards, lenders, or prospective buyers doing due diligence. A management company that takes reserve funding seriously treats a building’s financial health and its physical condition as one conversation, not two.
The Bottom Line for Kentucky and Southern Indiana Boards
Five years after Surfside, the industry has learned that safety and financial stewardship go hand in hand. Boards in Kentucky and Southern Indiana do not need to wait for a statute to start that conversation. The most protective step a board can take for its homeowners is to start now, before a gap in reserve funding becomes a much bigger problem.
If your board has not reviewed its reserve study or last engineering assessment in the past few years, now is the time. All Points Community Management works with boards across Kentucky and Southern Indiana to evaluate reserve funding, coordinate structural assessments, and build a financial plan grounded in the real condition of your building. Reach out to start that conversation.
Source: Community Associations Institute, “A Commitment to Condominium Safety: Five Years After Surfside,” CAI CEO message, 2026.