Condominium financial reporting rules must include, but not be limited to, standards for presenting a
summary of association reserves, including a good faith estimate disclosing the annual amount of
Florida condo law reserve funds that would be necessary for the association to fully fund reserves for each reserve item
based on the straight‐line accounting method. Section 718‐111(13). Annual budgets shall include
reserve accounts for items such as, but not limited to, roof replacement, pavement, painting and other
items with a replacement cost exceeding $10,000. Funding for the accounts can be waived by a majority
vote at a duly called meeting. Section 718.112(f)(2).
Homeowner associations may adopt a budget that includes reserve accounts for capital expenditures
and deferred maintenance for which the association is responsible. If reserve accounts are not
established, funding of such reserves is limited to the extent that the governing documents limit
increases in assessments, including reserves. Associations may waive reserves with proper notification in
their financial statement. Section 720.303(6).
There is no statutory requirement to conduct a reserve study and no statutory requirement to fund