Reserves are calculated using a separate (single asset) analysis taking into account each asset’s: a. Total estimated useful life b. Estimated remaining life c. Estimated cost to replace d. Current […]
THE ASSOCIATION BUDGET is the financial roadmap outlining the estimated expenses for operation of the association and maintenance of the common property, the money needed to fund reserves for replacement,
In Florida, the use of reserve funds is strictly governed to ensure that money set aside for long-term maintenance isn’t “borrowed” for daily expenses. 🛡️ According to Florida Statute 718.112(2)(f),
Can reserve funds be used for other purposes? Read More »
Yes, plumbing and electrical systems are both explicitly included in the list of items that must be addressed in a Structural Integrity Reserve Study (SIRS). 💧⚡ Under Florida Statute 718.112(2)(g),
Are plumbing and electrical included in SIRS? Why? Read More »
It depends primarily on the association’s total annual revenue. 📊 Under Florida Statute 718.111(13), associations are required to prepare different levels of financial reports based on their size and income.
Is the board required to have a CPA audit the books? Read More »
If an owner stops paying, the association has powerful statutory tools to collect: Late Fees and Interest: These begin accruing immediately. 📈 Legal Fees: The association can pass the cost
What can the board do if the owner stops paying their assessments? Read More »
The short answer is no. Even if the board is failing to repair the roof, ignoring the pool maintenance, or mismanaging funds, a unit owner generally cannot withhold assessment payments
Can an owner withhold assessments if the board fails its duties? Read More »
The biggest danger of not passing a new budget in today’s Florida legal climate involves reserves. Recent laws (like those surrounding Structural Integrity Reserve Studies or SIRS) mandate that certain
If the Association does not pass the budget on time, how are the Reserve Funds affected? Read More »
Florida law is quite strict about the timeline. Per the statutes: 14-Day Deadline: The budget must be adopted at least 14 days before the start of the fiscal year (usually
What are the penalties for failing to adopt a budget on time? Read More »
Under Florida Statute 718.112, the law provides a safety net to keep the lights on, while also setting up penalties for the board’s failure to act. 1. The “Prior Year”
What if the Association fails to adopt a budget for the next year? Read More »