October and November are budget season for most Florida community associations. For boards on a calendar fiscal year, the next twelve months of assessments, reserves, and owner expectations get decided in the next few weeks. Get the budget and the meeting process right and January starts quietly. Get them wrong and the board can spend the new year defending a budget that was not properly noticed, a reserve vote that was not valid, or a special assessment that cannot be spent the way the board intended.
This guide is for condominium and homeowners association boards in Volusia and Flagler counties. It covers what Florida law requires when you adopt a budget, how the reserve rules changed after the 2024 and 2025 condominium reforms, what a special assessment notice must say, and how to keep the annual meeting and election on schedule.
Condominium Budgets: Notice First, Then the Vote
For condominiums, the process is set by Florida Statutes section 718.112. The board must deliver a copy of the proposed annual budget, together with notice of the meeting where it will be considered, at least 14 days before that meeting, by hand delivery, mail, or electronic transmission. The meeting is open to owners, and the association should keep the affidavit of notice in its official records.
The budget itself must be adopted at least 14 days before the start of the fiscal year. Working backward from January 1, that leaves less time than many boards expect once the 14-day notice window is built in.
Watch the 115 percent line. If the board's proposed budget would require assessments of more than 115 percent of the prior year's assessments, the board must also propose a substitute budget that leaves out discretionary spending that is not required. Reserves, certain anticipated nonrecurring expenses, and insurance premiums are excluded when you calculate that percentage, so a budget driven mostly by insurance or required reserves is treated differently than one driven by discretionary projects.
HOA Budgets: Simpler Rules, Same Need for Care
Homeowners associations follow Florida Statutes section 720.303. The annual budget must show estimated revenues and expenses and the projected surplus or deficit, and it must separately list any fees the association pays for recreational amenities. Every member must receive a copy of the budget or a written notice that a copy is available at no charge.
The step HOA boards miss most often is the assessment notice. A board may not levy an assessment at a meeting unless the notice of that meeting specifically says assessments will be considered and gives their estimated cost and purpose. For special assessments, the notice must be mailed, delivered, or electronically transmitted to members and posted in the community at least 14 days before the meeting. Your governing documents may add requirements on top of the statute, so read them alongside it.
Reserves: The Biggest Change in Years
For condominiums, the reserve rules have changed more in the last few years than at any point in recent memory, and the changes are now showing up in real budgets.
Every condominium budget must include reserves for roof replacement, building painting, and pavement resurfacing regardless of cost, plus any other item with a deferred maintenance or replacement cost of more than $25,000, a figure the state now adjusts annually for inflation.
For buildings three habitable stories or higher, the association must also have a structural integrity reserve study, often called a SIRS, prepared or verified by a qualified engineer, architect, or reserve specialist. The study covers the roof, the load-bearing structure, fireproofing and fire protection, plumbing, electrical, waterproofing and exterior painting, windows and exterior doors, and other items whose failure would affect those systems. Reserves for those components must be funded based on the most recent study.
Here is the change boards feel most. For budgets adopted on or after December 31, 2024, an association that is required to have a structural integrity reserve study cannot waive or reduce the reserves for those structural components. Owners can still vote to waive or reduce other reserves, but not these.
The 2025 legislation gave boards some room to manage the cost. If a milestone inspection was completed within the prior two calendar years, owners can vote by a majority of the total voting interests to temporarily pause or reduce structural reserve contributions for up to two consecutive annual budgets, so the money can go to the repairs the inspection identified. The law also allows structural reserves to be funded through special assessments, lines of credit, or loans, with owner approval. These options come with specific conditions and voting requirements, so confirm eligibility before building them into a budget.
Reserves in a Homeowners Association
For most HOAs, reserves are optional unless the governing documents require them or the members voted to establish them. Once members establish reserves by a majority of the total voting interests, the board must include them in each year's budget. Members can later vote to waive or reduce them for a single budget year, and reserve funds stay in the reserve account unless the members approve another use in advance.
Special Assessments: Say Exactly What the Money Is For
When the budget will not cover a project, a special assessment is often the answer. Under section 718.116(10), a condominium's notice of a special assessment must state the specific purpose or purposes, and the money can be used only for those purposes. Anything left over after the project is finished is treated as common surplus, which the board can refund to owners or apply to future assessments.
The notice of the board meeting where a nonemergency special assessment will be considered must go to owners and be posted on the property at least 14 days before the meeting, and it must state that assessments will be considered, along with their purpose and estimated cost. Draft the purpose carefully. A purpose that is too narrow can leave the board unable to pay for related work it discovers once the project starts.
Annual Meetings and Elections
For many associations, budget season overlaps with the annual meeting. In a condominium, the first notice of the election date must go out at least 60 days before the election, owners who want to run must give written notice of their intent at least 40 days before, and the second notice and ballot go out between 14 and 34 days before. The annual meeting notice and agenda must be delivered and posted at least 14 days ahead.
These deadlines run backward from the meeting date, so set the date first and build the calendar from it. A missed notice deadline is one of the most common reasons an election is challenged, and condominium election challenges must be started within 60 days after the results are announced.
A Short Budget Season Checklist
- Set the budget meeting and annual meeting dates, then calendar every notice deadline backward from each one
- Confirm your structural integrity reserve study is current and that the budget funds the structural components it identifies
- Check whether any owner vote on reserves is permitted, and use the required ballot language if it is
- Run the 115 percent calculation for condominiums before the proposed budget goes out
- Make sure any meeting notice that involves assessments states the purpose and estimated cost
- Keep affidavits of notice and the adopted budget in the official records
Frequently Asked Questions
How much notice do Florida condo owners get before the budget meeting?
At least 14 days. The proposed budget and notice of the meeting must be hand delivered, mailed, or electronically transmitted to owners at least 14 days before the meeting where the budget will be considered.
Can condo owners still vote to waive reserves in Florida?
For some reserves, yes. But for budgets adopted on or after December 31, 2024, an association required to have a structural integrity reserve study cannot waive or reduce the reserves for the structural components that study covers.
Are Florida HOAs required to keep reserves?
Not always. HOA reserves are generally required only if the governing documents call for them or the members voted to establish them. Once established, they must be included in each year's budget.
Can a special assessment be used for something other than its stated purpose?
No. A condominium special assessment can be used only for the specific purposes stated in the notice. Any money left over is treated as common surplus.
Talk to Your Association's Counsel Before the Budget Goes Out
Kistemaker Business Law Group advises condominium and homeowners associations across Volusia and Flagler counties on budgets, reserves, assessments, elections, and governing documents. Erum Kistemaker brings more than 25 years of experience and is AV Preeminent rated and recognized as a Super Lawyer.
Call (386) 310-7997 or schedule a consultation to have your budget, reserve plan, and meeting notices reviewed before they go to owners.
