Budget Requirements

What Budgetary Requirements Does Florida Law Place on Associations?

Florida HOAs must prepare yearly budgets estimating anticipated expenses and revenue and identifying any reserve accounts or funds set aside for deferred expenditures. Fla. Stat. 702.303(6). The specific methods for adopting budgets and calculating assessments will be set forth in the association’s declaration and/or articles of incorporation, and the board has a duty to comply with those requirements.

The Florida Condominium Act includes more precise budgetary requirements than the Homeowners’ Association Act. Each year, a condo association must prepare a detailed budget of estimated revenues and expenses - broken down by expense classifications and providing for reserve accounts for capital expenditures and deferred maintenance. Fla. Stat. §718.112(2)(f). Each condo association must hold an annual budget meeting open to all members. Fla. Stat. §718.112(2)(e). If the association’s budget is increased by more than 115 percent over the prior year, the association must hold a special meeting to consider an alternate budget if requested by at least 10 percent of members. Fla. Stat. §718.112(2)(e).