FLORIDA RESERVE STUDY LEGISLATION

Florida HOA Reserve Fund Requirements (2025 Guide)

Homeowners Association Act

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* This is a link to the official state government resources

Homeowners Association Act

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* This is not an link to the official state government resources

Introduction

In Florida, homeowners’ associations (HOAs) are guided by specific laws that outline their financial responsibilities, including maintaining reserve funds for capital expenditures and deferred maintenance. Reserve studies play a crucial role in helping HOAs manage their finances effectively, ensuring that necessary repairs and replacements are planned for without financial surprises. This guide explores Florida’s HOA reserve study requirements, their benefits, and steps to ensure compliance.

Are reserve studies required in Florida?

Reserve studies are not explicitly required for HOAs under Florida law. However, Chapter 720 of the Florida Statutes, specifically Section 720.303(6), requires HOAs that establish reserve accounts for capital expenditures and deferred maintenance to adhere to specific standards for funding and usage. While the law does not mandate reserve studies, conducting one is a best practice to ensure adequate reserve funding.

Frequency of reserve studies

Florida law does not specify how often reserve studies should be conducted. Industry standards recommend performing a reserve study every 3–5 years to keep reserve funding plans accurate and reflective of current needs.

Minimum reserve fund contributions

If an HOA establishes reserve accounts, the law requires that the reserves be calculated using accepted methods for estimating the costs of repair and replacement. While there is no specific percentage mandated by Florida law, many associations aim for 70–100% funding to reduce the risk of financial shortfalls or special assessments.

Don’t wait until it’s too late—schedule a reserve study today to secure your community’s financial future.

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Florida SIRS Requirements: Overview

Florida’s SIRS law prioritizes the safety and longevity of buildings, particularly for high-rise condominiums and cooperatives. Compliance with this law ensures:

Financial Preparedness: Associations have the funds to address structural repairs without placing sudden financial burdens on homeowners.
Transparency: Homeowners gain a clear understanding of their community’s financial health and maintenance plan.
Property Value Protection: Ensuring well-maintained structures enhances property values and marketability.

Benefits of Conducting a Structural Integrity Reserve Study

Some of the main benefits include:

Enhanced Safety: Proactively identifying and addressing structural risks ensures the safety of residents and visitors.
Avoiding Special Assessments: Fully funded reserves reduce reliance on sudden special assessments or loans for costly repairs.
Compliance with State Law: Meeting SIRS requirements helps associations avoid legal and financial repercussions.
Fostering Community Trust: Transparent financial planning and communication build homeowner confidence in the board’s management.

Step-by-Step Guide to Complying with Florida’s SIRS Law

Hire a Qualified Professional

‍Engage a licensed engineer or architect to conduct your Structural Integrity Reserve Study. These professionals ensure compliance with state law and provide accurate assessments.

Conduct a Detailed Inspection

‍Include critical structural elements such as the roof, plumbing, electrical systems, load-bearing walls, and fireproofing in the study.

Develop a Funding Plan

Based on the study findings, create a funding plan that ensures reserves meet the projected costs for repairs and replacements.

Communicate with Homeowners

Share the reserve study results and funding plan to maintain transparency and align community expectations.

Update Regularly‍

Conduct a new Structural Integrity Reserve Study every 10 years or sooner if significant changes to the building’s condition occur.

FAQs

Are reserve studies mandatory for HOAs in Florida?

No, but they are a best practice for effective financial planning and transparency.

What happens if an HOA doesn’t maintain reserves?

Without adequate reserves, HOAs may need to impose special assessments or take out loans, creating financial strain for homeowners.

How often should reserve studies be conducted?

While not required, reserve studies should be performed every 3–5 years to ensure the reserve fund aligns with the HOA’s needs.

Can reserve funds be waived or reduced?

HOAs can waive or reduce reserves through a majority vote of homeowners, but this may increase the risk of financial instability.

How does PropFusion help with reserve studies?

PropFusion offers tools to manage reserve studies, including professional connections, financial forecasting, and dashboards for tracking reserve fund performance.

About PropFusion: Simplifying Reserve Study Management

PropFusion’s all-in-one software helps streamline reserve study management, offering automated reminders, detailed financial forecasts, and an intuitive dashboard to keep your HOA’s finances on track. Whether you’re in Alabama or any other state, our platform provides the tools you need for effective reserve planning.

Don’t wait until it’s too late—schedule a reserve study today to secure your community’s financial future.

Request Proposals Today

The information contained on this page is provided for informational purposes only, and should not be construed as legal advice on any subject matter. You should not act or refrain from acting on the basis of any content included on this page without seeking legal or other professional advice. The contents of this page contain general information and may not reflect current legal developments or address your situation. We disclaim all liability for actions you take or fail to take based on any content on this report.

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How PropFusion Simplifies Reserve Studies

PropFusion offers powerful tools that make managing reserve studies easier for HOAs:

Certified Expertise: All professionals in our network are fully certified and bring years of experience to ensure accuracy and compliance.
Reliable Proposals: Receive competitive proposals tailored to your association’s requirements, ensuring you get the best value.
Ongoing Support: Our professionals don’t just deliver a report—they offer ongoing insights to help you make informed decisions.