Florida Reserve Requirements for HOA and Condo Boards: Reserves, Reserve Studies, and SIRS

Florida treats condo and HOA reserves very differently. Condo boards must budget reserves for the roof, painting, paving and any other item costing more than $25,675 (the 2026 threshold). For buildings three habitable stories or higher, they must also complete a structural integrity reserve study (SIRS) at least every 10 years and fund what it recommends. HOA boards need reserves only once owners vote them in or the governing documents require them. From then on the reserves are binding, and owners can waive them only one budget year at a time.

First, which rules apply to you

Condo associations follow Chapter 718 and HOAs follow Chapter 720, and their reserve rules have little in common, so this guide keeps them separate. If you're not sure which applies, check your declaration or see our Chapter 718 vs. Chapter 720 comparison.

HOA reserves under §720.303(6): optional, until they aren't

You'll read online both that Florida doesn't require HOA reserves and that they're mandatory. Neither is the whole story: under Chapter 720, reserves are optional until the owners vote to establish them, and binding after that.

Before owners vote: optional

An HOA budget "may include" reserve accounts for capital expenditures and deferred maintenance (§720.303(6)(b)). Until owners establish statutory reserves, that funding is limited by any caps your documents put on assessment increases. Your declaration or bylaws may also impose reserve requirements of their own.

An HOA without statutory reserves still has a disclosure duty. If it's responsible for repairing and maintaining capital improvements that could lead to a special assessment, every annual financial report must include this statement in conspicuous type (§720.303(6)(c)1.):

THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR FULLY FUNDED RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS REGARDING THOSE ITEMS. OWNERS MAY ELECT TO PROVIDE FOR FULLY FUNDED RESERVE ACCOUNTS UNDER SECTION 720.303(6), FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF A MAJORITY OF THE TOTAL VOTING INTERESTS OF THE ASSOCIATION BY VOTE OF THE MEMBERS AT A MEETING OR BY WRITTEN CONSENT.

A budget that funds voluntary accounts owners never established under the statute needs a different statement, saying those funds aren't subject to the statute's rules (§720.303(6)(c)2.).

How owners make reserves binding

Reserves become statutory when a majority of the total voting interests, meaning all owners rather than those present, approves them at a membership meeting or by written consent. The approval must name the components covered, and the board budgets them from the next fiscal year on (§720.303(6)(d)).

Once reserves are established

• Funding is by formula, based on each item's remaining useful life and replacement cost or deferred maintenance expense, adjusted yearly as estimates change. Components can be funded separately or pooled, but not with balloon payments (§720.303(6)(e), (g)).
• Waivers last one year. Owners can vote for no reserves or less than the statute requires, by a majority vote at a meeting where a quorum is present. If the vote fails or there's no quorum, the budgeted reserves take effect. Each waiver covers only one budget year (§720.303(6)(f)).
• Reserve money stays put. It can be spent only on authorized reserve items unless members approve another use in advance by majority vote at a meeting with a quorum (§720.303(6)(h)).
• Ending a reserve account takes a majority of the total voting interests (§720.303(6)(b)).

While a developer controls the association, it may include reserves in the budget but isn't required to (§720.303(6)(i)).

Condo reserves under §718.112(2)(f): mandatory

What the budget must include

Every condo budget must include reserves for roof replacement, building painting, and pavement resurfacing, whatever they cost. It must also reserve for any other item whose deferred maintenance expense or replacement cost exceeds $25,000 or the Division's inflation-adjusted figure, whichever is greater (§718.112(2)(f)2.a.). The Division of Florida Condominiums, Timeshares and Mobile Homes posts the adjusted figure by February 1 each year. For 2026 it is $25,675.

Reserves are calculated by the same useful-life and replacement-cost formula. An association that must have a SIRS bases its reserves for the SIRS items on its most recent study. Items with more than 25 years of remaining life, or no estimable life, need no replacement reserve, but any deferred maintenance the SIRS recommends must still be reserved.

Waivers: who can vote, and what's off limits

• Most reserves can be waived. In an owner-controlled association, owners can vote for no reserves or less than required by a majority of the total voting interests (§718.112(2)(f)2.b.).
• SIRS items can't be waived. For budgets adopted on or after December 31, 2024, an owner-controlled association that must have a SIRS cannot waive or reduce reserves for the SIRS components. The one exception is a multicondominium association whose alternative funding method the Division has approved.
• No waivers under developer control. A developer-controlled association can't vote to waive or reduce reserves. If a waiver vote fails or doesn't reach a quorum, the budgeted reserves take effect (§718.112(2)(f)2.f.).
• Only the owners who pay vote. Only units assessed for the reserves in question vote on waiving them, and the proxy ballot must carry a prominent statutory warning about special assessments (§718.112(2)(f)5.).

Using and pooling reserves

Reserves can be used for other purposes only if a majority of all the total voting interests approves in advance. A SIRS association can't redirect its SIRS reserves at all, for budgets adopted on or after December 31, 2024 (§718.112(2)(f)3.). Reserves can be pooled, but SIRS components only with other SIRS components (§718.112(2)(f)4.).

Structural integrity reserve studies (SIRS)

Which buildings need one

Every residential condo association needs a SIRS at least every 10 years for each building three habitable stories or higher (§718.112(2)(g)1.). It's a recurring board duty, not a one-time deadline. Smaller buildings and one- to four-family dwellings of three or fewer stories are exempt (§718.112(2)(g)5.), and Chapter 720 has no SIRS requirement.

What it must cover

At a minimum, the study covers these items as they relate to the building's structural integrity and safety:

• Roof
• Structure, including load-bearing walls and other primary structural members and systems
• Fireproofing and fire protection systems
• Plumbing
• Electrical systems
• Waterproofing and exterior painting
• Windows and exterior doors
• Any other item whose deferred maintenance or replacement cost exceeds the reserve threshold, if failing to maintain it would harm the items above

The study is based on a visual inspection. It must state each item's remaining useful life and cost, and recommend a funding plan that at minimum keeps the reserve balance above zero every year (§718.112(2)(g)2., 4.a.).

Who can perform it

A licensed Florida engineer or architect, a CAI-certified reserve specialist or an APRA professional reserve analyst must perform or verify it (§718.112(2)(g)3.a.). A study bidder who also plans to bid on the repairs must disclose that in writing (§718.112(2)(g)3.b.).

What the board must do with it

• Acknowledge it. An officer or director must sign an affidavit acknowledging receipt of the completed study (§718.112(2)(g)10.).
• Share and report it within 45 days. Give each owner a copy or notice of availability, and file the Division's completion statement (§718.112(2)(g)11.–12.).
• Budget from it. If the funding the board plans to adopt doesn't match the study's plan, for example because it chose a loan, the board needs an updated SIRS before adopting that budget (§718.112(2)(g)4.c.).
• Don't skip it. Officers or directors who willfully and knowingly fail to complete a required SIRS breach their fiduciary relationship to the unit owners (§718.112(2)(g)10.). See fiduciary duty for Florida board members.

Deadlines and the milestone inspection

Owner-controlled associations existing on or before July 1, 2022 had to complete a first SIRS by December 31, 2025, or by December 31, 2026 if combined with a milestone inspection due by then. No first SIRS can come later than that (§718.112(2)(g)7.).

A milestone inspection is a separate structural inspection, due by the end of the year a condo or co-op building turns 30 (25 if the local building official requires it) and every 10 years after (§553.899(3)). The two connect:

• A milestone inspection done within the past 5 years that meets the SIRS requirements can stand in for the SIRS's visual inspection (§718.112(2)(g)8.).
• After a milestone inspection, an association can delay a required SIRS for up to two consecutive budget years to put its money toward the inspection's repairs (§718.112(2)(g)9.).

Relief options for condo boards

Each of these comes with conditions, and all are decisions to make with the association's attorney and reserve professional.

• Pausing reserves for milestone repairs. For budgets adopted on or before December 31, 2028, an association that completed a milestone inspection in the previous two calendar years can pause or reduce contributions for up to two consecutive annual budgets to fund its repairs. It needs a majority of the total voting interests, and a new SIRS before contributions resume (§718.112(2)(f)2.e.).
• Assessments, credit or loans. SIRS reserves can be funded by regular or special assessments, lines of credit or loans. A special assessment, line of credit or loan needs a majority of the total voting interests, and a loan must cover any previously waived or unfunded reserves and be disclosed to owners and buyers (§718.112(2)(f)2.c.).
• Uninhabitable buildings. After a natural emergency, the board can pause reserves until the building is habitable again (§718.112(2)(f)2.d.).

The pause and the credit or loan option aren't available to associations controlled by a developer, associations whose owners have been in control for less than a year, or associations controlled by bulk assignees or bulk buyers.

Reserve studies beyond what the law requires

Outside the SIRS, Florida law doesn't require a general reserve study or set a schedule for one. But both chapters calculate reserves from each item's remaining useful life and replacement cost, and a professional study is how a board gets those numbers instead of guessing. It inventories components such as roofs, roads, pools and drainage, estimates each one's life and cost, and lays out a funding plan. For an HOA weighing statutory reserves, it shows owners what they'd commit to. For how owners read one, see HOA finances explained.

Side by side: HOA vs. condo reserve rules

Each row verified against the 2026 Florida Statutes. Florida changes these rules often, so check the date before relying on a row.

Frequently asked questions

Are Florida HOAs required to have reserves? Not unless owners vote them in or the governing documents require them. A majority of the total voting interests can establish reserves for named components, and from then on the board must budget them every year. Owners can waive them only one budget year at a time (§720.303(6)).

Do reserves need to be fully funded in Florida? For condos, required reserves must be budgeted, and SIRS associations can't waive the structural ones; other condo reserves can be waived by a majority of all voting interests. HOA reserves apply only once established, and owners can waive them year by year.

What are the requirements for a structural integrity reserve study in Florida? Condo buildings three habitable stories or higher need one at least every 10 years. It must cover the roof, structure, fire protection, plumbing, electrical, waterproofing and painting, and windows and doors. A licensed engineer or architect, or a certified reserve specialist, must perform or verify it.

How often should a Florida HOA get a reserve study? Chapter 720 doesn't set a schedule, and doesn't require a study at all. An HOA with statutory reserves still has to calculate them from remaining useful life and replacement cost, and a professional study is the usual way to get those figures. Ask a reserve professional how often your components need updating.

How much does a reserve study cost? It depends on the property's size and complexity. Get bids from more than one qualified preparer, and for a SIRS, check whether the bidder also plans to bid on repairs.

What is the "5-year rule" for Florida HOAs? It's not a reserve rule. It usually refers to the five-year limit on lawsuits over written contracts, and it's widely misunderstood. See our explanation in what your Florida HOA can and cannot restrict.

Learn more

• Chapter 718 vs. Chapter 720: Condo and HOA Board Duties Compared
• Florida Condo Milestone Inspections and Reserves
• HOA Finances Explained
• HOA Board Member Duties
• Florida Statute 720.303 — Association powers and duties; budgets
• Florida Statute 718.112 — Bylaws; reserves; SIRS
• Florida Statute 553.899 — Milestone inspections
• DBPR — Reserve threshold

Statutory content on this page was last verified against the 2026 Florida Statutes on 2026-10-03. Confirm current statute text at flsenate.gov before relying on it.