What are Florida HOA budget and reserve requirements?

Summary

Florida § 720.303(6) requires every HOA to adopt an annual budget. Reserve accounts are optional — they may be established by a majority vote of the membership. Once established, they must be funded unless waived by membership vote for that budget year.

What the statute requires

§ 720.303(6) establishes the following budget and reserve obligations for HOAs:

What this means in practice

Budget obligations

• Your board must adopt a written budget every year — there is no exception for small HOAs
• The budget must set out the annual operating expenses for the association

Reserve accounts

• Reserve accounts are voluntary — they are established by a majority vote of the membership per § 720.303(6)(d)
• If reserves are established, they must be funded each year unless members vote to waive or reduce funding for that budget year
• A reserve study should be conducted to determine appropriate funding levels if reserves are in place

Disclosure and access

• The budget must disclose reserve balances and any shortfalls — members have the right to see this information
• Financial records including the budget must be available within 10 business days of a member request

Liability

• Failure to adopt an annual budget violates § 720.303(6) and exposes the board to liability

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