Community Association

• Condos (Chapter 718): Must budget for reserves for capital expenditures and deferred maintenance (e.g., roofs, painting, paving).
  • As of 2022 (post-Surfside law changes), reserve studies and full funding of structural reserves are more strictly enforced.
• HOAs (Chapter 720): Not legally required, but highly recommended. Owners can waive reserve funding annually.

📊 Healthy associations conduct reserve studies every 3–5 years and fully fund critical components.

• The operating budget should accurately reflect:
  • Routine expenses (landscaping, utilities, management)
  • Contracted services (security, maintenance)
  • Insurance (which is rising in Florida)
• Budget should match income from dues/assessments, with a small surplus.

🧾 Annual budget meetings should be transparent and comply with notice requirements.

• Associations should track delinquencies and act promptly on collections.
• Healthy benchmark: <5% of owners delinquent on assessments.
• Timely collection procedures and legal action (e.g., liens or foreclosures) are in place if needed.

• Full property and liability coverage (including D&O insurance)
• For condos: compliance with Florida Statutes 718.111(11), which outlines specific insurance requirements
• For HOAs: adequate coverage for common elements and community liability

• Regular financial reporting (monthly, quarterly)
• CPA-reviewed or audited financials annually (especially if over $500K in revenue, per Florida Statute)
• Financials accessible to members, with proper retention of records

• Adheres to Chapters 718 (Condos) or 720 (HOAs)
• Holds timely board meetings, elections, and budget hearings
• Maintains required reserves (especially condos) and disclosures

•  Many healthy associations hire licensed community association managers (CAMs)
• Helps with compliance, budgeting, communication, and collections