Florida Reserve funding laws for condominiums and coopeartives will stay the same for at least another year (no changes were proposed for home owner associations). This comes after several bills were introduced in the 2022 legislative session that just concluded. House bill 7069 passed the House of Representatives. That same bill was taken up in […]
budgeting
Reserve Funds: Expectations versus Reality
Most associations know that it is important to adequately fund their reserve items. However, the reality of actually doing it is a different matter. It takes time, effort, and political capital to properly fund reserves. Reserve schedules should be examined every year and not left on a shelf to collect dust. The political capital comes […]
Understanding Percent Funded of Reserves
One key feature that a reserve study should indicate is how well funded an association is. The way that is measured is by a term called percent funded. In Layman’s terms, percent funded means how much money you have in reserves versus how much money you should have in reserves. The Community Associations Institute defines […]
What Should Be in the Reserve Schedule?
The purpose of the reserve schedule is to disclose reserve information to members of the association in the annual budget. The reserve schedule lists each reserve item, how much longer it will last (remaining life), how long it will last when new (useful life), and how much it will cost to replace (replacement cost). Also […]
Reserves Budgeting: Do’s and Don’ts
With budget season approaching, here is a quick list of reserve budgeting dos and don’ts. Dos: Look at your reserves yearly. Some associations just reuse old numbers that are not realistic and are not based on proper data. Try to get the proper reserve items on the reserve schedule. One of the most common mistakes […]