Florida • Reserve study / underfunding
Is your Florida condo's reserve underfunded — and does the state require funding?
A reserve study can read as reassuring while quietly showing your Florida building is years behind on saving for its roof, elevators, or façade. What matters is how funded the reserves actually are — and what Florida requires.
The short answer
Florida requires a reserve study and requires the association to fund it. SIRS structural reserves are non-waivable for budgets adopted on or after Dec. 31, 2024 (§ 718.112). HOAs under Chapter 720 are not subject to SIRS. A thin reserve is the most common reason a special assessment lands later, so the study-versus-actual-balance gap is the number that matters. CondoSignal reads your reserve study and budget against Florida's rules. Free.Florida at a glance
Reserve study
Required
Structural Integrity Reserve Study (SIRS) for buildings 3+ stories
Reserve funding
Required
Funded to the study
Super-lien
None
Safe-harbor cap: the lesser of 12 months' past-due regular assessments or 1% of the original mortgage debt
Resale disclosure
Cancellation right
7-day rescission on the resale disclosure (HB 913, 2025)
What Florida requires
SIRS structural reserves are non-waivable for budgets adopted on or after Dec. 31, 2024 (§ 718.112). HOAs under Chapter 720 are not subject to SIRS. Whether a thin reserve is merely risky or actually out of compliance depends on that rule — which is the first thing to establish.
Why underfunding becomes an assessment
Written notice at least 14 days in advance stating the specific purpose; funds may be used only for that purpose (§ 718.112). Florida statute does not cap assessment increases; the declaration may. The 'percent funded' figure in the study, compared to the actual reserve balance, tells you how exposed you are.
What it means for collection and resale
Florida is not a true super-lien state (§ 718.116). The cap applies only if the association is named as a defendant in the first mortgagee's foreclosure; otherwise the association — and ultimately the remaining owners — can absorb the shortfall. Levied and pending special assessments must appear on the estoppel certificate (§ 718.116).
Your rights in Florida
As a Florida owner, your reserve information and any approved special assessments should appear in the association's budget and resale disclosures (7-day rescission on the resale disclosure (hb 913, 2025)). None of this is legal advice — confirm against the current statute and a licensed professional in your state.
What to check
- Find the reserve study's 'percent funded' figure.
- Compare the recommended contribution to what's budgeted.
- Confirm whether Florida mandates reserve funding.
- Check the remaining life of the roof, elevators, and façade.
- Look for a reserve catch-up or a recent special assessment.
- Check the study's date — an old study understates today's costs.
Sources
- Fla. Stat. § 718.112 (2025) — budgets, reserves, SIRS, special assessments(High)
- Fla. Stat. § 718.116 (2024) — assessments; liens; safe harbor; estoppel(High)
- Fla. HB 913 (2025) — SIRS deadline, $25k threshold, 7-day rescission(High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Florida-licensed professional.
FAQ
Frequently asked questions
Not sure what your documents are really telling you?
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