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Understanding Florida's New Laws on HOA and Condo Reserve Requirements

In recent legislative sessions, Florida has introduced new laws that significantly impact Homeowners Associations (HOAs) and Condominium Associations (COAs) regarding reserve requirements. These changes aim to enhance financial stability and transparency within community associations across the state. Here’s a detailed look at what these new laws entail and how they might affect both associations and homeowners.

Background on Reserve Requirements

Reserve funds are crucial for HOAs and COAs as they ensure funds are available for major repairs, replacements, and other significant expenses. These reserves help prevent special assessments or sudden increases in fees, thereby providing financial predictability for homeowners.

Key Changes in Florida's Legislation

1. Mandatory Reserve Funding

The new law mandates that HOAs and COAs must fund reserves for capital expenditures and deferred maintenance unless waived or reduced by a membership vote. This requirement applies to associations that manage more than a certain number of units (typically 10).

2. Reserve Study Requirements

Associations are now required to conduct reserve studies to assess the adequacy of their reserve funds. These studies must be conducted by qualified professionals and include an analysis of the necessary reserves to cover anticipated expenses over the next 30 years.

3. Financial Reporting and Transparency

The legislation emphasizes transparency by requiring associations to disclose their reserve funding status in their annual financial reports. This includes detailed information on the amount of reserves collected and spent, reserve balances, and any changes to reserve plans.

4. Opt-Out Provision

While the law mandates reserve funding, associations have the option to vote to waive or reduce reserves annually. This vote must achieve a specified threshold (usually a majority or supermajority of members) and must be renewed annually.

Implications for Associations and Homeowners

For Associations:

  • Compliance: Associations must ensure they meet the new reserve funding requirements and conduct regular reserve studies.

  • Financial Planning: Detailed financial planning becomes essential to accurately project future expenses and maintain adequate reserves.

  • Transparency: Enhanced transparency will build trust with homeowners and provide a clear picture of the association’s financial health.

For Homeowners:

  • Financial Stability: Increased reserve funding can lead to more predictable fees and fewer surprise assessments.

  • Long-Term Maintenance: Adequate reserves ensure that the community can maintain its infrastructure and amenities without compromising on quality or safety.

  • Involvement: Homeowners should actively participate in association meetings and votes to understand and influence reserve funding decisions.


Florida’s new laws on HOA and Condo reserve requirements mark a significant step towards ensuring the financial health and sustainability of community associations statewide. By mandating reserve funding, conducting regular studies, and promoting transparency, these measures aim to protect both associations and homeowners from financial instability while fostering long-term community well-being.

For associations navigating these changes, it’s crucial to consult legal professionals specializing in community association law to ensure compliance and effective financial planning. By adhering to these new requirements, associations can strengthen their financial foundations and provide homeowners with peace of mind regarding their community’s future upkeep and maintenance.

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