Association: [LEGAL NAME OF ASSOCIATION, INC.]
Property type: [ ] Condominium (ch. 718) [ ] Cooperative (ch. 719) [ ] HOA (ch. 720)
Fiscal year this schedule funds: [FY START DATE] to [FY END DATE]
Number of units or parcels assessed: [COUNT]
Prepared by: [NAME, ROLE] Date prepared: [DATE]
Reviewed by: [ ] Treasurer [ ] Board [ ] CPA [ ] Reserve professional Date: [DATE]
Source of the component lives and costs below:
[ ] Structural integrity reserve study dated [DATE], prepared by [FIRM], [ ] engineer (ch. 471) [ ] architect (ch. 481) [ ] RS or PRA (CAI or APRA)
[ ] Non-SIRS reserve study dated [DATE], prepared by [FIRM]
[ ] Board estimate, no professional study (state why in section 12)
Reserve accounting method for this year: [ ] Straight line (component method) [ ] Pooled (cash flow method)
Basis of accounting for every dollar figure on this schedule: [ ] Cash [ ] Modified accrual [ ] Accrual
State the basis before anyone fills a number in, because the same schedule means different things under each basis and nothing downstream reconciles while the basis is left unstated.
On a cash basis, "reserve funds on hand" is reserve cash and reserve investments. Nothing owed to the reserve fund is counted until it is collected.
On an accrual basis, "reserve funds on hand" is reserve cash and investments plus reserve assessments receivable, net of the allowance for uncollectible accounts, less any liability payable from reserves. The difference between the two figures is usually the delinquency balance, and on a delinquent property it is large.
This template assumes cash unless a different box is checked above, because that is how most Florida boards run reserves in-year. Note the mismatch that creates: the annual financial report itself is prepared under generally accepted accounting principles, which is an accrual presentation. See § 718.111(13)(a) and § 720.303(7)(a), Fla. Stat. So a schedule kept on a cash basis will not tie line for line to the audited or reviewed statements without a reconciling item. Section 6.2 sets out the tie-out under each basis. Do not resolve a difference by changing a number here; identify the reconciling item.
How to use this schedule
This is the page that sits between a reserve study and a budget. The study says what the components are, how long they have left, and what they will cost. The budget says what the association will collect. This schedule is where the two are reconciled component by component, so that the single reserve number appearing in the budget can be traced back to a roof and a road rather than to last year's number plus a percentage.
Work straight down it:
Section 1 decides which components must appear at all. That answer is different for a condominium, a cooperative, and an HOA, and it is set by statute rather than by preference.
Section 2 defines every column so that two people filling the schedule mean the same thing by "remaining life."
Section 3 is the schedule itself. One row per component. Fill it in.
Section 4 applies the statutory inclusion test to each row and marks it required or discretionary.
Section 5 computes the annual contribution. Two formulas, and the one you use depends on the reserve accounting method chosen above.
Sections 6 to 10 carry the total into the budget, into the financial statements, and through the disclosure, waiver, and study-currency rules.
Section 13 lists the places where common practice and the statute disagree. Read it before adopting.
Three rules that save the most rework:
One row per component. Do not merge. The funding formula runs on each item's own remaining life and its own cost. A row that combines a 3-year pool pump with a 22-year roof cannot be computed correctly at any contribution amount.
Pick the reserve accounting method before you fill the contribution column, because the column means two different things under straight line and pooling.
Pick the basis of accounting before you fill the balance column, cash or accrual, and write it in the header. A balance that includes uncollected reserve assessments and one that does not are different numbers, and the schedule cannot be checked against the financial statements until a reader knows which one is on the page.
Mark every row required or discretionary. A later board needs to see which lines it is allowed to adjust and which it is not.
1. Which components belong on this schedule
1.1 Condominium and cooperative: three items are required no matter how small
A condominium budget must include reserve accounts for capital expenditures and deferred maintenance, and those accounts must include roof replacement, building painting, and pavement resurfacing regardless of the amount. See § 718.112(2)(f)2.a., Fla. Stat. A cooperative carries the identical requirement at § 719.106(1)(j)2.a., Fla. Stat.
There is no size floor on these three. A four-unit condominium with a small parking pad still reserves for pavement resurfacing.
1.2 The dollar threshold is $25,000, and it moves every year
Beyond those three, a condominium or cooperative must reserve for any other item whose deferred maintenance expense or replacement cost exceeds $25,000, or the inflation-adjusted amount determined by the division, whichever is greater. See § 718.112(2)(f)2.a. and § 719.106(1)(j)2.a., Fla. Stat.
The division is required to adjust that figure annually for the Consumer Price Index for All Urban Consumers released each January, and to conspicuously post the adjusted minimum threshold on its website by February 1, 2026 and annually thereafter. See § 718.112(2)(f)6. and § 719.106(1)(j)6., Fla. Stat.
So the threshold is a lookup, not a constant. Record what you looked up:
| Field | Entry |
|---|---|
| Threshold used for this schedule | $[AMOUNT] |
| Source | [ ] $25,000 statutory floor [ ] Division-posted inflation-adjusted amount |
| Date the division figure was retrieved | [DATE] |
| Retrieved by | [NAME] |
This is the single most common error in circulation. A great many Florida reserve studies, including studies dated 2025, still state the threshold as $10,000. In this corpus of association reserve studies, the string "10,000" appears in a clear majority of documents while "25,000" appears in well under half. The lower figure is not the current statutory text. Using $10,000 pulls components onto the mandatory list that the statute does not require there, which sounds conservative but is not harmless: it converts discretionary lines into lines the board believes it cannot touch, and it makes the schedule disagree with any correctly drawn study a purchaser's lender later reads.
If your study states $10,000, do not silently correct the study. Note the discrepancy in section 12, and ask the preparer for a written confirmation of the threshold actually applied.
1.3 Condominium and cooperative: the SIRS components
Where a structural integrity reserve study is required, reserves must be maintained for the items identified in § 718.112(2)(g) for which the association is responsible under the declaration, and the reserve amount for those items must be based on the findings and recommendations of the most recent study. See § 718.112(2)(f)2.a., Fla. Stat. The cooperative parallel is § 719.106(1)(j)2.a. pointing to § 719.106(1)(k).
A SIRS must study at least the following, for each building three habitable stories or higher as determined by the Florida Building Code:
| # | SIRS item | Condominium citation | Cooperative citation |
|---|---|---|---|
| a | Roof | § 718.112(2)(g)1.a. | § 719.106(1)(k)1.a. |
| b | Structure, including load-bearing walls and other primary structural members and primary structural systems as those terms are defined in § 627.706, Fla. Stat. | § 718.112(2)(g)1.b. | § 719.106(1)(k)1.b. |
| c | Fireproofing and fire protection systems | § 718.112(2)(g)1.c. | § 719.106(1)(k)1.c. |
| d | Plumbing | § 718.112(2)(g)1.d. | § 719.106(1)(k)1.d. |
| e | Electrical systems | § 718.112(2)(g)1.e. | § 719.106(1)(k)1.e. |
| f | Waterproofing and exterior painting | § 718.112(2)(g)1.f. | § 719.106(1)(k)1.f. |
| g | Windows and exterior doors | § 718.112(2)(g)1.g. | § 719.106(1)(k)1.g. |
| h | Any other item over the section 1.2 threshold whose failure to be replaced or maintained negatively affects items a. through g., as determined by the visual inspection portion of the study | § 718.112(2)(g)1.h. | § 719.106(1)(k)1.h. |
Two qualifiers that boards routinely miss:
"For which the association is responsible pursuant to the declaration." If the declaration assigns unit windows and doors to the individual owner, those are not association reserve items. Record the declaration article you relied on in the schedule's notes column, because that determination is the one an owner will question.
The SIRS list is the study's minimum scope, not the schedule's maximum. A condominium still reserves for its pool deck and its gate operator if they clear the threshold. They are simply not SIRS components, which matters for pooling and for the waiver bar in section 8.
1.4 When the SIRS requirement does not reach
Under § 718.112(2)(g)5., Fla. Stat., the SIRS paragraph does not apply to:
buildings less than three stories in height;
single-family, two-family, three-family, or four-family dwellings with three or fewer habitable stories above ground;
any portion or component of a building that has not been submitted to the condominium form of ownership; and
any portion or component of a building that is maintained by a party other than the association.
A condominium that falls entirely outside the SIRS requirement still has reserve obligations. The three always-required items and the threshold test in sections 1.1 and 1.2 apply regardless. What changes is that there is no study whose findings bind the reserve amount, and the waiver bar in section 8.2 does not apply.
1.5 HOA: reserves are permissive until the members make them mandatory
This is the structural difference between chapter 720 and the other two chapters, and getting it backwards produces either an unnecessary panic or an unlawful waiver.
Under § 720.303(6)(b), Fla. Stat., an HOA budget may include reserve accounts for capital expenditures and deferred maintenance for which the association is responsible. Nothing requires them.
They become mandatory only when the members establish them under § 720.303(6)(d), Fla. Stat.: an affirmative approval of a majority of the total voting interests, by vote at a duly called membership meeting or by written consent. The approval action must state that reserve accounts shall be provided for in the budget and must designate the components for which the accounts are to be established. Upon approval, the board includes those accounts in the budget in the next fiscal year and each year thereafter.
Once established that way, § 720.303(6)(b) makes it a one-way door: the association must thereafter determine, maintain, and waive reserves in compliance with the subsection, until the reserve account is terminated on approval of a majority of the total voting interests, at which point it is removed from the budget.
Record the association's status, because everything downstream depends on it:
| Question | Answer |
|---|---|
| Have the members established reserves under § 720.303(6)(d)? | [ ] Yes, dated [DATE] [ ] No |
| If yes, which components did the approval action designate? | [LIST, or attach the approval document] |
| If no, does the budget nevertheless carry voluntary deferred-expenditure accounts? | [ ] Yes [ ] No |
| Do the governing documents cap assessment increases including reserves? | [ ] Yes, cite: [ARTICLE] [ ] No |
That last row matters. Under § 720.303(6)(b), where reserve accounts are not established under paragraph (d), funding of such reserves is limited to the extent that the governing documents limit increases in assessments, including reserves. A voluntary reserve program in a capped community can be lawfully underfunded in a way a statutory reserve program cannot.
An HOA that has not established statutory reserves may still use this entire schedule. It is good practice and it is what a buyer's lender wants to see. It is simply not, in that posture, a statutory obligation, and the two conspicuous-type disclosures in section 8.4 then apply.
1.6 Components an HOA schedule commonly carries
Where the HOA membership is designating components under § 720.303(6)(d), the designation should name real assets rather than categories, because a category cannot be computed. The list below is ordered by how often each component appears across the reserve studies measured for this template, which is the population the column header names and the only population these percentages were computed against. Budgets, financial statements, and other association financial documents were not part of this count. The list is offered as a prompt, not as a required set. Delete what the association does not own or does not maintain.
| Rank | Component | Share of reserve studies mentioning it |
|---|---|---|
| 1 | Building painting and exterior coatings | 86% |
| 2 | Roof covering | 79% |
| 3 | Common area lighting and light poles | 74% |
| 4 | Pavement, asphalt resurfacing, and parking areas | 69% |
| 5 | Windows and exterior doors | 68% |
| 6 | Lakes, ponds, seawalls, and bulkheads | 67% |
| 7 | Drainage and stormwater structures | 62% |
| 8 | Electrical systems and panels | 62% |
| 9 | Plumbing, risers, and repiping | 58% |
| 10 | Roads and streets | 55% |
| 11 | Irrigation systems | 53% |
| 12 | Sidewalks and walkways | 51% |
| 13 | Balconies and railings | 49% |
| 14 | Furniture, fixtures, and fitness equipment | 48% |
| 15 | Fire alarm, sprinkler, and life-safety systems | 48% |
| 16 | Waterproofing | 47% |
| 17 | Landscape replacement and tree work | 46% |
| 18 | Fencing and perimeter walls | 45% |
| 19 | Carpet and interior flooring | 44% |
| 20 | Pool resurfacing and pool deck | 40% |
| 21 | Elevators | 35% |
| 22 | Clubhouse and amenity buildings | 34% |
| 23 | Signage and entry monuments | 34% |
| 24 | Concrete restoration and spall repair | 33% |
| 25 | Courts: tennis, pickleball, basketball | 30% |
| 26 | Emergency generator | 26% |
| 27 | HVAC, air handlers, chillers, cooling towers | 24% |
| 28 | Mailboxes and mail kiosks | 24% |
| 29 | Curbing | 24% |
| 30 | Gates and access control | 23% |
| 31 | Seal coating | 21% |
| 32 | Pool pumps, heaters, and equipment | 20% |
| 33 | Cameras and security systems | 15% |
| 34 | Docks, boardwalks, and piers | 14% |
| 35 | Playground and tot lot equipment | 13% |
| 36 | Lift stations and septic | 13% |
| 37 | Interior corridors and hallways | 9% |
| 38 | Parking garage and parking deck structure | 4% |
Two observations from that ranking are worth acting on. Lakes, ponds, seawalls, and bulkheads sit at 67%, ahead of most building systems, because this is Florida and shoreline structures are a real capital asset with a finite life. And parking garage structure sits at 4%, which is far below the share of Florida associations that actually own one, so if the association has a parking structure, assume it is missing from whatever template the last schedule was built on.
2. Column definitions
Fill these in the same way every year. The schedule is only useful as a time series.
| Column | What goes in it | Notes and traps |
|---|---|---|
| # | Sequential row number | Keep the numbers stable across years so a component can be followed. If a component is retired, do not reuse its number. |
| Component | The specific asset | "Roof covering, buildings 1 to 8, asphalt shingle." Not "roofing." |
| Location or building | Where it is | A multi-building property needs this or the quantities cannot be checked. |
| Unit of measure | SF, SY, LF, EA, building, allowance | An allowance is fine, but say so, because an allowance cannot be re-priced from a unit rate. |
| Quantity | How much of it there is | The number a contractor would bid against. This is the column that lets a future board test whether a cost estimate is still sane. |
| Estimated useful life (EUL) | Total expected life of a new installation, in years | A property fact, not a policy choice. |
| Remaining useful life (RUL) | Years left as of the first day of the budget year | Measured from the study date and rolled forward. State the roll-forward date in the notes. |
| Next replacement year | Budget year plus RUL | A derived column, but it is the one board members read first. |
| Percent replaced | Share of the component addressed at that event | Use it where a component is replaced in phases. Leave at 100% otherwise. |
| Estimated replacement cost or deferred maintenance expense | Current-year cost to do the work | Current-year dollars, stated as of a date. Do not mix a 2024 estimate and a 2026 estimate in the same column without saying so. |
| Reserve balance allocated to this component | Funds on hand attributed to this row, as of the start of the budget year | Under the straight-line method this must be maintained per component. Under pooling it may be a memo allocation. Say which. |
| Unfunded balance | Cost less allocated balance | Negative balances are possible and they matter to the formula in section 5.2. |
| Annual contribution required | The amount this row contributes to the budget's reserve line | Computed, not chosen. Section 5. |
| Required or discretionary | Whether the statute compels this row | Section 4. Under § 718.112(2)(g)4.b., a study that recommends reserves for an item not required by the paragraph must identify that item separately. Carry that distinction here. |
| Basis | Where the numbers came from | SIRS, non-SIRS study, contractor quote, board estimate. A row sourced from a board estimate should look different from a row sourced from an engineer. |
| Notes | Condition rating, declaration reference, phasing assumption | The column that makes the schedule auditable a decade later. |
Two definitions to fix before anyone starts typing:
Estimated replacement cost or deferred maintenance expense. The statute treats these as alternatives for a reason. Some components are replaced on a cycle. Others are maintained on a cycle and never wholly replaced. Waterproofing and exterior painting are usually the latter. Put the number in the column and say in the notes which of the two it is.
Remaining useful life is not "years since the study." If the study is three years old, every RUL in it is three years stale. Roll it forward and record that you did.
3. The component schedule
Copy the row block as many times as needed. The groupings below follow the way associations in this corpus actually organize a reserve schedule. Delete groups that do not apply.
These are the SIRS components for a condominium or cooperative subject to the study requirement. For an HOA they are ordinary components with no special status.
Subtotal, amenities and interiors: cost $[SUM] balance $[SUM] contribution $[SUM]
3.5 Schedule totals
| Line | Amount |
|---|---|
| Total estimated replacement cost and deferred maintenance, all components | $[SUM] |
| Total reserve funds on hand at the start of the budget year, on the basis of accounting stated in the header | $[SUM] |
| Total funding shortfall: sum of the positive unfunded balances only | $[SUM] |
| Memo only: sum of the negative unfunded balances, the over-funded components | ($[SUM]) |
| Memo only: net of the two lines above | $[SUM] |
| Total annual reserve contribution to carry into the budget | $[SUM] |
| Of which, contribution attributable to required components | $[SUM] |
| Of which, contribution attributable to discretionary components | $[SUM] |
| Contribution per unit or parcel, per year | $[AMOUNT] |
| Contribution per unit or parcel, per month | $[AMOUNT] |
Take the bolded contribution figure straight to the reserve line of the operating budget. Section 6 is the reconciliation.
Why the shortfall line is a sum of positives and not a net. Under the straight-line method the funding requirement is computed component by component, and step b3 of the worksheet in section 5.2 directs you to enter zero rather than a credit where a component's balance exceeds its cost. That is the statute's instruction at § 720.303(6)(g)1.b., Fla. Stat., and it is the presentation chapters 718 and 719 assume when they require the reserved amount to be computed on each item's own remaining useful life and own replacement cost. A single net "total unfunded balance" undoes that instruction on the face of the schedule: an over-funded roof silently offsets an underfunded road, the total looks smaller than the association's real obligation, and the board reads a cross-subsidy the funding method does not permit. Report the positive shortfalls as the total. Keep the over-funded amounts as a memo line so the information is not lost, and never carry the netted figure into a funding decision.
Under the pooled method the net figure is not wrong in the same way, because pooling funds the components as a group and the real test is the lowest projected ending balance in section 5.4 rather than any component's balance. Even under pooling, keep the two lines separate. A board that later switches from pooled to straight-line accounting, which § 718.112(2)(f)4. lets it do without a member vote, needs to see which components are short.
4. The inclusion test, component by component
Run each row through this before you accept the required or discretionary mark. For a condominium or cooperative, work down the left column and stop at the first Yes.
| Step | Test | If Yes |
|---|---|---|
| 1 | Is it roof replacement, building painting, or pavement resurfacing? | Required. No dollar threshold applies. § 718.112(2)(f)2.a. / § 719.106(1)(j)2.a. |
| 2 | Is the association required to obtain a SIRS, and is this an item identified in § 718.112(2)(g) / § 719.106(1)(k) for which the association is responsible under the declaration? | Required, and the reserve amount must be based on the findings and recommendations of the most recent study. § 718.112(2)(f)2.a. |
| 3 | Does the deferred maintenance expense or replacement cost exceed the section 1.2 threshold? | Required. |
| 4 | None of the above | Discretionary. The association may reserve for it and often should. It is simply not compelled. |
Then apply the long-life carve-out, which sits on top of the answer above:
With respect to items for which an estimate of useful life is not readily ascertainable, or with an estimated remaining useful life of greater than 25 years, an association is not required to reserve replacement costs for such items, but an association must reserve the amount of deferred maintenance expense, if any, which is recommended by the structural integrity reserve study for such items. See § 718.112(2)(f)2.a. and § 719.106(1)(j)2.a., Fla. Stat.
Two things follow that are easy to get wrong:
The carve-out excuses the replacement reserve, not the row. A component with a 40-year remaining life still belongs on the schedule, with its life and cost stated, marked as no replacement reserve required. Deleting the row hides an obligation that arrives in year 26.
If the study recommends a deferred maintenance amount for such an item, that amount is reserved. The word in the statute is "must."
And the study-side mirror of the same rule, at § 718.112(2)(g)4.b., Fla. Stat.: the study may recommend that reserves need not be maintained for an item whose useful life and replacement cost cannot be determined, or for an item with a remaining life over 25 years, and may instead recommend a deferred maintenance amount. If the study recommends reserves for any item for which reserves are not required, the amount of those recommended reserves must be separately identified in the study as an item for which reserves are not required. Carry that separation into this schedule's "Req'd?" column. That column is what makes a later reduction defensible.
4.1 Exceptions log
Any row where the schedule departs from the study, or where the board overrode a default, gets an entry here. This is the page that answers the question a future board or an auditor will actually ask.
Both methods are lawful. The choice changes the arithmetic, not the obligation.
| | Straight line (component method) | Pooled (cash flow method) |
|---|---|---|
| How funds are tracked | A separate balance per component | One balance across the pooled components |
| What the contribution answers | "What does this component need this year?" | "What does the pool need so it never goes negative?" |
| Typical effect | Higher near-term contributions, no cross-subsidy | Smoother contributions, requires an annual cash-flow projection |
| Spending across components | Requires a member vote to use one component's funds for another purpose | Funds are already pooled, within the pooling limits below |
| Member vote to switch methods, condo and coop | Not required. § 718.112(2)(f)4. and § 719.106(1)(j)5., Fla. Stat. expressly say a vote of the members is not required for the board to change the accounting method between pooled and straight line. | Same |
That last row is the opposite of what many boards have been told. Changing between pooling and straight line is a board decision for a condominium or cooperative. Waiving or reducing reserves is not. Those are different acts and only the second requires the members.
Pooling limits. For a condominium, reserve accounts may be pooled for two or more required components, and reserve funding for components listed in paragraph (g) may only be pooled with other components listed in paragraph (g). The funding shown in the proposed budget must be sufficient to ensure that available funds meet or exceed projected expenses for all components in the pool, based on the reserve funding plan or schedule of the most recent SIRS. See § 718.112(2)(f)4., Fla. Stat. The cooperative provision at § 719.106(1)(j)5. is worded the same way, except that the cross-reference in the printed text points to paragraph (g) with an editorial footnote marker; the SIRS items in chapter 719 are in paragraph (k). Have counsel confirm which reference governs before relying on a cooperative pooling structure.
So a condominium may run two pools: one for SIRS components and one for everything else. It may not run a single pool that mixes them.
Pooling limits, HOA. Under § 720.303(6)(g)2., Fla. Stat., the pooled contribution disclosed on the proposed budget may not be less than the amount required to ensure that the beginning balance plus projected annual cash inflows over the remaining estimated useful lives of all pooled assets equals or exceeds projected annual cash outflows over those same lives, based on the current reserve analysis. Projected inflows may include estimated earnings from investment of principal and accounts receivable minus the allowance for doubtful accounts. The reserve funding formula may not include any type of balloon payment.
That balloon-payment bar is worth pausing on. A funding plan that starts low and escalates by a fixed percentage every year for twenty years is a pattern that appears in real Florida reserve studies, and at least one study in this corpus flags its own escalating plan as arguably a form of balloon payment and recommends annual member approval as a result. Chapter 720 bars balloon payments outright. Chapters 718 and 719 contain no equivalent express bar. If the association is an HOA and the study proposes an escalating contribution, have the preparer address paragraph (g)2. in writing.
5.2 Straight-line formula, HOA
Chapter 720 states the formula explicitly. Where the association maintains separate reserve accounts for each required asset, the contribution to each account is the sum of two calculations, per § 720.303(6)(g)1., Fla. Stat.:
a. The total amount necessary, if any, to bring a negative component balance to zero.
b. The total estimated deferred maintenance expense or estimated replacement cost of the component, less the estimated balance of that component as of the beginning of the period the budget will be in effect. The remainder, if greater than zero, is divided by the estimated remaining useful life of the component.
The formula may be adjusted each year for changes in estimates and for deferred maintenance performed during the year, and may include factors such as inflation and earnings on invested funds.
Worksheet, one per component:
| Step | Line | Amount |
|---|---|---|
| a | Amount required to bring a negative component balance to zero | $[AMOUNT] |
| b1 | Estimated replacement cost or deferred maintenance expense | $[AMOUNT] |
| b2 | Less estimated component balance at the start of the budget period | ($[AMOUNT]) |
| b3 | Remainder (b1 minus b2), enter zero if negative | $[AMOUNT] |
| b4 | Divided by estimated remaining useful life, in years | [YEARS] |
| b5 | Result of b3 divided by b4 | $[AMOUNT] |
| | Annual contribution for this component (a plus b5) | $[AMOUNT] |
Note what step b3 does. If a component is over-funded, the remainder is negative, and the statute directs you to enter zero rather than a credit. An over-funded roof does not reduce the contribution to the roads.
5.3 Straight-line formula, condominium and cooperative
Chapters 718 and 719 do not spell the arithmetic out the way chapter 720 does. What they require is that the amount to be reserved must be computed using a formula based upon estimated remaining useful life and estimated replacement cost or deferred maintenance expense of the reserve item. See § 718.112(2)(f)2.a. and § 719.106(1)(j)2.a., Fla. Stat.
The worksheet in section 5.2 satisfies that description and is the conventional presentation. Two overlays apply that do not apply to an HOA:
Where a SIRS is required, the reserve amount for the paragraph (g) or paragraph (k) items must be based on the findings and recommendations of the most recent study. Your arithmetic does not override the study's funding plan. If the board wants a different number, the route is an updated study, not a different spreadsheet. See section 10.2.
The association may adjust replacement reserve assessments annually for an inflation adjustment and for changes in estimates or extension of useful life caused by deferred maintenance. § 718.112(2)(f)2.a.
5.4 Pooled worksheet
Under pooling, the per-component contribution column in section 3 becomes a memo allocation and the real test is at the pool level. Run the projection out over the remaining useful lives of the pooled assets and show the years, at minimum, until the first year in which the balance is at its lowest.
Test: is the lowest projected ending balance above zero in every year of the projection? [ ] Yes [ ] No
If No, the contribution is too low. Raise it, or shift a component's replacement year on a documented engineering basis, or fund the shortfall through one of the routes in section 9.1. Do not adopt a plan that projects a negative balance and call it pooling.
5.5 Assumptions used
| Assumption | Value | Source |
|---|---|---|
| Inflation applied to future costs | [X.X]% | [STUDY / BOARD] |
| Interest or investment return on reserve funds | [X.X]% | [BANK / STUDY] |
| Projection horizon, in years | [YEARS] | [STUDY] |
| Cost basis year | [YEAR] | [STUDY] |
State these on the face of the schedule. Two schedules with the same components and different inflation assumptions produce different contributions, and a reader who cannot see the assumption cannot see why.
6. Carrying the total into the budget and the financial statements
6.1 To the budget
| Where it goes | Amount | Check |
|---|---|---|
| Reserve contribution line in the operating budget | $[AMOUNT] | Must equal the bolded total in section 3.5 |
| Reserve assessment shown per unit or parcel | $[AMOUNT] | Section 3.5 divided by units, matched to the assessment schedule |
| Reserve schedule attached to or referenced by the budget | [ ] Attached [ ] Referenced | A reserve line with no schedule behind it is the gap this template exists to close |
Across the association budgets measured for this template, roughly seven in ten showed a reserve contribution line, while fewer than one in ten showed an estimated replacement cost and only about one in twenty showed a useful or remaining life. The statutory formula is defined entirely in terms of those two inputs. That means most published Florida association budgets present a reserve number whose derivation an owner cannot see. Attaching this schedule is the whole fix.
6.2 To the balance sheet
Reserve funds are legally constrained in a way operating funds are not, and the financial statements should say so.
The tie-out depends on the basis of accounting checked in the header, and the two are not the same test.
| Basis | What the reserve fund balance in section 3.5 must tie to |
|---|---|
| Cash | Reserve cash and reserve investments only. Uncollected reserve assessments are not in the figure, on either side. |
| Accrual, which is what the annual financial report itself uses | Reserve cash and investments plus reserve assessments receivable, net of the allowance for uncollectible accounts, less any liability payable from reserves. It does not tie to reserve cash alone, and a schedule that tests it against reserve cash alone will report a false failure every year the association carries a delinquency. |
| Modified accrual | State on the schedule which items are accrued and which are recorded on receipt, then apply the accrual test to the accrued items only. An unstated hybrid is the case that never reconciles. |
Where the schedule is kept on a cash basis and the statements are prepared under generally accepted accounting principles, per § 718.111(13)(a) and § 720.303(7)(a), Fla. Stat., the two will differ by design. Write the reconciling item down. It is normally reserve assessments receivable net of the allowance, and it belongs in the notes to this schedule rather than in an adjustment to a balance.
| Check | Yes / No |
|---|---|
| Reserve cash is presented in a separate fund column or is otherwise clearly segregated from operating cash | [ ] |
| The basis of accounting checked in the header is the basis actually used to fill the balance column in section 3 | [ ] |
| The reserve fund balance on the balance sheet ties to the total allocated balance in section 3.5, applying the basis-specific test in the table above | [ ] |
| Where the schedule and the statements are on different bases, the reconciling item is identified and quantified | $[AMOUNT] |
| Any interfund due to or due from nets to zero across the fund columns | [ ] |
| Reserve interest income is credited to the reserve fund, not to operating | [ ] |
| Where the annual financial report is audited or reviewed, the supplementary information on future major repairs and replacements is present and agrees with this schedule | [ ] |
That last row is the one most often missing. In the annual reports measured for this template, the supplementary information on future major repairs and replacements appeared in nearly every report that carried an auditor's report, which means its absence from a given report is a question for the board rather than a normal omission.
6.3 Reserve interest follows the reserve
Reserve funds and any interest accruing on them must remain in the reserve account or accounts and may be used only for authorized reserve expenditures unless their use for other purposes is approved in advance by a majority vote of all the total voting interests. See § 718.112(2)(f)3., § 719.106(1)(j)4., and § 720.303(6)(h), Fla. Stat. Note the vote threshold differs by chapter; section 8.1 sets it out.
Sweeping reserve interest into operating to close an operating deficit is a use of reserve funds for another purpose. It requires the vote.
7. Percent funded, and what the statute actually asks for
Percent funded is the reserve balance divided by the fully funded balance for a component. It is a useful diagnostic and it appeared in roughly two of every five reserve studies measured here. It is not the statutory funding standard, and treating it as one has led boards to believe they are out of compliance when they are not, and to believe they are compliant when they are not.
What the statute asks of a SIRS, at § 718.112(2)(g)4.a., Fla. Stat.:
At a minimum, the structural integrity reserve study must include a recommendation for a reserve funding schedule based on a baseline funding plan that provides a reserve funding goal in which the reserve funding for each budget year is sufficient to maintain the reserve cash balance above zero. The study may recommend other types of reserve funding schedules, provided that each recommended schedule is sufficient to meet the association's maintenance obligation.
So the floor the study must recommend is baseline funding, which keeps the balance above zero. It is not 100% funding. A study may recommend a full-funding schedule and many do, and a board may adopt one, but a board funding at baseline in accordance with its study's recommended schedule has not thereby failed the statute.
The obligation that does bind is the one in § 718.112(2)(f)2.a.: where a SIRS is required, the reserve amount for the paragraph (g) items must be based on the findings and recommendations of the most recent study. Follow the study's plan, whichever plan it recommends.
One caution on the ratio itself. Percent funded is a fraction whose numerator is the reserve balance, so it moves with the basis of accounting checked in the header. The same association reports a higher percent funded on an accrual basis, where uncollected reserve assessments are inside the numerator, than on a cash basis, where they are not. Two years of the figure are only comparable if both years were computed on the same basis. Record the basis alongside the number.
Record all of it so nobody has to guess:
| Measure | Value |
|---|---|
| Funding plan adopted | [ ] Baseline [ ] Full funding [ ] Threshold [ ] Other: [DESCRIBE] |
| Plan recommended by the study | [ ] Baseline [ ] Full funding [ ] Other: [DESCRIBE] |
| Does the adopted plan match the study's recommendation? | [ ] Yes [ ] No, see section 10.2 |
| Overall percent funded at the start of the budget year | [XX.X]% |
| Basis of accounting the percent-funded figure was computed on | [ ] Cash [ ] Modified accrual [ ] Accrual, per the header |
| Lowest projected balance under the adopted plan | $[AMOUNT] in [YEAR] |
8. Waiving or reducing reserves
This is where the largest amount of bad practice sits, because the rule changed and the habit did not.
8.1 Three chapters, three different vote standards
| | Condominium | Cooperative | HOA |
|---|---|---|---|
| Who may vote to provide no or reduced reserves | Members of a unit-owner-controlled association | Members of a unit-owner-controlled association | The membership |
| Threshold | Majority of the total voting interests | Majority of the total voting interests | Majority vote at a meeting at which a quorum is present |
| Duration | Applies to the budget in question | For a fiscal year | Applicable to one budget year only |
| Citation | § 718.112(2)(f)2.b. | § 719.106(1)(j)2.b. | § 720.303(6)(f) |
| Who may vote at all | Only the voting interests of units subject to assessment to fund the reserves in question, § 718.112(2)(f)5. | | |
Applying the HOA standard to a condominium is the error to watch for. A majority of those present at a quorate meeting is a much lower bar than a majority of all voting interests, and a condominium waiver taken on the lower standard did not legally happen.
If the vote fails, or the meeting is not quorate, the reserves as included in the budget go into effect. This is stated in all three chapters: § 718.112(2)(f)2.f., § 719.106(1)(j)2.c., and § 720.303(6)(f), Fla. Stat. There is no rollover of last year's waiver and no default to the lower number. Silence funds the reserves.
8.2 The December 31, 2024 bar on waiving structural reserves
For a budget adopted on or after December 31, 2024, the members of a unit-owner-controlled association that must obtain a structural integrity reserve study may not determine to provide no reserves or less reserves than required for the items listed in paragraph (g). See § 718.112(2)(f)2.b., Fla. Stat. The cooperative parallel is § 719.106(1)(j)2.c.
The only exception in the condominium text is an association operating a multicondominium, which may so determine if an alternative funding method has been approved by the division.
The same date carries a second bar. For a budget adopted on or after December 31, 2024, members of such an association may not vote to use reserve funds, or any interest accruing on them, for any purpose other than the replacement or deferred maintenance costs of the paragraph (g) components. See § 718.112(2)(f)3. and § 719.106(1)(j)4., Fla. Stat.
The practical effect is that the routine annual reserve waiver vote is finished for structural components in a SIRS association. Non-SIRS components in the same association may still be waived under the ordinary rule. That is why the "Req'd?" column in section 3 is not decoration: it is the line between what may be put to a vote and what may not.
One narrow additional exception exists on the other side of the ledger: if an association votes to terminate the condominium under § 718.117, Fla. Stat., the members may vote to waive the maintenance of reserves recommended by the most recent SIRS. See § 718.112(2)(f)2.a.
8.3 The proxy warning, verbatim
Proxy questions relating to waiving or reducing the funding of reserves, or to using existing reserve funds for other purposes, must contain the following statement in capitalized, bold letters, in a font size larger than any other used on the face of the proxy ballot. See § 718.112(2)(f)5., Fla. Stat.
WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
Reproduce it exactly. Larger than any other font on the ballot is a measurable requirement, not a stylistic suggestion.
8.4 The two HOA conspicuous-type statements
Chapter 720 requires two statements in conspicuous type, and both are commonly placed on the wrong document.
Where the budget does not provide for reserve accounts under § 720.303(6)(d), or the governing documents do not obligate the developer to create reserves, and the association is responsible for repair and maintenance of capital improvements that may result in a special assessment if reserves are not provided or not fully funded, each financial report for the preceding fiscal year required by § 720.303(7) must contain, per § 720.303(6)(c)1., Fla. Stat.:
THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR FULLY FUNDED RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS REGARDING THOSE ITEMS. OWNERS MAY ELECT TO PROVIDE FOR FULLY FUNDED RESERVE ACCOUNTS UNDER SECTION 720.303(6), FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF A MAJORITY OF THE TOTAL VOTING INTERESTS OF THE ASSOCIATION BY VOTE OF THE MEMBERS AT A MEETING OR BY WRITTEN CONSENT.
Where the budget does provide for funding accounts for deferred expenditures but those accounts are not created or established under paragraph (d), each financial report for the preceding fiscal year required under § 720.303(7) must also contain, per § 720.303(6)(c)2., Fla. Stat.:
THE BUDGET OF THE ASSOCIATION PROVIDES FOR LIMITED VOLUNTARY DEFERRED EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED IN OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO PROVIDE FOR RESERVE ACCOUNTS UNDER SECTION 720.303(6), FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT STATUTE.
Note where the statute attaches them. Both are attached to the annual financial report, not to the budget. Common practice puts them on the budget. Putting them only on the budget does not satisfy § 720.303(6)(c). Do both: it is free, and only one of the two placements is required.
8.5 Waiver record for this budget year
| Field | Entry |
|---|---|
| Was a waiver or reduction proposed? | [ ] No, reserves fully funded per this schedule [ ] Yes |
| If yes, which components? | [LIST ROW NUMBERS] |
| Are any of them paragraph (g) or paragraph (k) SIRS items? | [ ] No [ ] Yes, and the association must obtain a SIRS, in which case see section 8.2 |
| Vote standard applied | [ ] Majority of total voting interests [ ] Majority at a quorate meeting |
| Meeting date and result | [DATE], [FOR] for, [AGAINST] against, quorum [ ] attained [ ] not attained |
| If not attained, reserves as included in the budget go into effect | [ ] Confirmed |
| Proxy carried the § 718.112(2)(f)5. warning in the required format | [ ] Yes [ ] N/A |
| Reduced contribution adopted | $[AMOUNT], versus $[AMOUNT] fully funded per section 3.5 |
Where a waiver is taken, present both columns on the face of the budget: the amount this schedule computes and the amount actually being funded. One document in this corpus did exactly that, with a full-funding column beside a reduced-funding column and a percent-funded row for each. It was the clearest presentation encountered, and it appeared once.
9. Pauses, borrowing, and other funding routes
9.1 Ways reserves may be funded
For a condominium, reserves for the paragraph (g) items may be funded by regular assessments, special assessments, lines of credit, or loans. A special assessment, line of credit, or loan under that provision requires the approval of a majority vote of the total voting interests. See § 718.112(2)(f)2.c.(I), Fla. Stat. The cooperative provision is § 719.106(1)(j)3.a.(I).
The borrowing trap. A unit-owner-controlled association that must have a SIRS may secure a line of credit or a loan to fund capital expenses required by a milestone inspection under § 553.899, Fla. Stat. or by a SIRS. The line of credit or loan must be sufficient to fund the cumulative amount of any previously waived or unfunded portions of the reserve funding amount required by the paragraph, plus the most recent structural integrity reserve study. Funding must be immediately available to the board without further member approval. See § 718.112(2)(f)2.c.(II), Fla. Stat.
Read that twice. A decade of waivers does not disappear when the association borrows. It becomes part of the minimum size of the loan. Track it here:
| Field | Amount |
|---|---|
| Cumulative previously waived or unfunded reserve funding | $[AMOUNT] |
| Funding required by the most recent SIRS | $[AMOUNT] |
| Minimum sufficient line of credit or loan | $[AMOUNT] |
Any special assessment, line of credit, or loan secured under that provision, and its related details, must be included in the annual financial statement delivered to unit owners under § 718.111(13), Fla. Stat. and provided to prospective purchasers under § 718.503, Fla. Stat.
That borrowing provision does not apply to an association controlled by a developer as defined in § 718.103, Fla. Stat., an association in which the nondeveloper unit owners have been in control for less than one year, or an association controlled by one or more bulk assignees or bulk buyers as defined in § 718.703, Fla. Stat.
9.2 The two narrow pauses
Two pauses exist, and only two. The milestone-repair pause is set out in a separate row per chapter below, because the condominium and cooperative versions carry different exclusion lists and merging them misstates one of the two.
| Pause | Condition | Limit | Citation |
|---|---|---|---|
| Uninhabitable building | The local building official as defined in § 468.603, Fla. Stat. determines the entire building is uninhabitable due to a natural emergency as defined in § 252.34, Fla. Stat. | The board may pause or reduce reserve funding, and may expend reserve funds to make the building habitable. Upon the official's determination that the building is habitable, the association must immediately resume contributing. | § 718.112(2)(f)2.d.; § 719.106(1)(j)2.d. |
| Milestone repairs, condominium | For a budget adopted on or before December 31, 2028, where the association completed a milestone inspection under § 553.899 within the previous 2 calendar years, on the approval of a majority of the total voting interests, for the purpose of funding repairs the milestone inspection recommended | No more than two consecutive annual budgets. The association must have a SIRS performed before resuming contributions, to determine funding needs and recommend a funding plan. Does not apply to an association controlled by a developer as defined in § 718.103, an association in which nondeveloper unit owners have been in control less than 1 year, or an association controlled by one or more bulk assignees or bulk buyers as those terms are defined in § 718.703. | § 718.112(2)(f)2.e. |
| Milestone repairs, cooperative | Same condition as the condominium row | Same two-budget limit and the same requirement to have a SIRS performed before resuming. The exclusion list is shorter: it does not apply to a developer-controlled association or an association in which nondeveloper unit owners have been in control less than 1 year. There is no bulk assignee or bulk buyer exclusion in chapter 719. | § 719.106(1)(j)3.b. |
The split above is not editorial tidiness. The bulk assignee and bulk buyer carve-out appears only in the condominium provision. The cooperative provision, verified against the text of § 719.106(1)(j)3.b., excludes only developer-controlled associations and associations under nondeveloper control for less than 1 year, and chapter 719 does not use the terms "bulk assignee" or "bulk buyer" in this context at all. A cooperative board told it is excluded on bulk-buyer grounds has been given the wrong chapter's rule.
Neither pause is a general hardship pause. If neither condition is met, there is no pause available.
9.3 Milestone inspection status
The milestone inspection is a separate obligation from the SIRS, and its timing drives several of the provisions above. Under § 553.899(3)(a), Fla. Stat., an owner of a building three habitable stories or more in height that is subject in whole or in part to the condominium or cooperative form of ownership as a residential condominium under chapter 718 or a residential cooperative under chapter 719 must have a milestone inspection performed by December 31 of the year in which the building reaches 30 years of age, based on the date the certificate of occupancy was issued, and every 10 years thereafter.
| Situation | Deadline |
|---|---|
| Building reached 30 years of age before July 1, 2022 | Initial milestone inspection before December 31, 2024 |
| Building reaches 30 years of age on or after July 1, 2022 and before December 31, 2024 | Initial milestone inspection before December 31, 2025 |
| All others | By December 31 of the year the building turns 30, then every 10 years |
Under § 553.899(3)(b), Fla. Stat., the local enforcement agency may determine that local circumstances, including environmental conditions such as proximity to salt water as defined in § 379.101, Fla. Stat., require the inspection at 25 years of age instead, and every 10 years thereafter. A coastal association cannot assume 30 years without checking the local ordinance.
| Field | Entry |
|---|---|
| Certificate of occupancy date, per building | [BUILDING]: [DATE] |
| Local enforcement agency | [AGENCY] |
| Has the agency adopted a 25-year trigger? | [ ] Yes [ ] No [ ] Not confirmed |
| Milestone inspection status | [ ] Not yet due [ ] Phase one complete [DATE] [ ] Phase two complete [DATE] |
| Repairs recommended and their estimated cost | $[AMOUNT] |
| Are those repairs reflected in this schedule? | [ ] Yes, rows [LIST] [ ] No, explain: [ ] |
10. Study currency and the paperwork around it
10.1 Is the study current?
| Requirement | Status |
|---|---|
| A residential condominium association must have a SIRS completed at least every 10 years after the condominium's creation, for each building three habitable stories or higher. § 718.112(2)(g)1. | Study dated [DATE], next due [DATE] |
| Associations existing on or before July 1, 2022 and controlled by owners other than the developer had to complete a SIRS by December 31, 2025. An association required to complete a milestone inspection under § 553.899 on or before December 31, 2026 may complete the SIRS simultaneously with that inspection, and in no event may the SIRS be completed after December 31, 2026. § 718.112(2)(g)7. | [ ] Complete, dated [DATE] [ ] Not complete, and the association is relying on the simultaneous-with-milestone allowance: milestone due [DATE], SIRS scheduled [DATE] [ ] Not complete, and no allowance applies, which is a compliance failure to raise with counsel now |
| A milestone inspection performed within the past 5 years that meets the paragraph's requirements may be used in place of the visual inspection portion of the SIRS. § 718.112(2)(g)8. | [ ] Used [ ] Not used |
| Where a milestone inspection is completed, the association may delay a required SIRS for no more than the 2 consecutive budget years immediately following it. § 718.112(2)(g)9. | [ ] Delay invoked, years [ ] and [ ] [ ] Not invoked |
| The study was performed or verified by an engineer licensed under ch. 471, an architect licensed under ch. 481, or a person certified as a reserve specialist or professional reserve analyst by CAI or APRA. § 718.112(2)(g)3.a. | [ ] Confirmed, credential: [ ] |
| The preparer disclosed in writing any intent to bid on recommended work, and no prohibited interest or relationship exists. § 718.112(2)(g)3.b. | [ ] Confirmed |
Read the second row carefully before concluding the association is out of compliance. The general deadline was December 31, 2025, but § 718.112(2)(g)7. carries an express allowance: an association that is required to complete a milestone inspection on or before December 31, 2026 may complete the structural integrity reserve study simultaneously with that inspection. December 31, 2026 is the outside date the statute sets for the study in every case. An association inside that allowance and holding a scheduled milestone inspection is not in violation today, and a schedule that labels it a violation gives a compliant board a false finding to act on. An association with no milestone inspection obligation in that window, which has still not completed a study, is a different case and belongs in front of counsel.
That conflict-of-interest provision has teeth. A contract for services is voidable and terminates on the association filing a written notice terminating it, where the design professional or licensed contractor failed to provide the required written disclosure.
10.2 The update trigger boards do not know about
The association must obtain an updated structural integrity reserve study before adopting any budget in which the reserve funding from regular assessments, special assessments, lines of credit, or loans does not align with the funding plan from the most recent version of the structural integrity reserve study. See § 718.112(2)(g)4.c., Fla. Stat.
This is the provision that closes the loop. A board cannot fund a different number than its study calls for and simply note the variance. Departing from the funding plan requires an updated study first.
The same paragraph requires the study to take into consideration the funding methods the association uses, and requires the study to be updated where it was performed before the association approved a special assessment or secured a line of credit or loan, to reflect the selected funding method and its effect on the reserve funding schedule including any anticipated change in regular assessments.
| Check | Yes / No |
|---|---|
| Does the contribution in section 3.5 align with the funding plan in the most recent SIRS? | [ ] |
| If No, has an updated study been obtained before budget adoption? | [ ] |
| Has the association since approved a special assessment, line of credit, or loan not reflected in the study? | [ ] |
| If Yes, has the study been updated to reflect it? | [ ] |
10.3 Distribution and filing
| Obligation | Deadline | Done |
|---|---|---|
| Distribute a copy of the SIRS to each unit owner, or deliver notice that it is available for inspection and copying on written request. § 718.112(2)(g)11. | Within 45 days after receiving the study | [ ] [DATE] |
| Provide the division a statement that the study was completed and was provided or made available to each unit owner, on the division's posted form. § 718.112(2)(g)12. | Within 45 days after receiving the study | [ ] [DATE] |
| An officer or director signs an affidavit acknowledging receipt of the completed study. § 718.112(2)(g)10. | On receipt | [ ] [DATE] |
Willful and knowing failure by officers or directors to complete a SIRS is a breach of fiduciary relationship to the unit owners under § 718.111(1), Fla. Stat. The same is true of a willful and knowing failure to have a milestone inspection performed, under § 718.112(2)(h), Fla. Stat.
10.4 Budget adoption mechanics
The reserve schedule is only as good as the meeting that adopts it.
| Requirement | Condominium | Cooperative | HOA |
|---|---|---|---|
| Notice of the budget meeting plus a copy of the proposed budget, delivered together | At least 14 days before, § 718.112(2)(e)1. | At least 14 days before, § 719.106(1)(e) | Per § 720.303(2)(c) board-meeting notice rules |
| Affidavit evidencing compliance with the notice requirement, filed in the official records | Required, § 718.112(2)(e)1. | Required | Not stated in ch. 720 |
| Board adopts the budget | At least 14 days before the start of the fiscal year, § 718.112(2)(f)1. | At least 14 days before the start of the fiscal year, § 719.106(1)(j)1. | Not stated as a deadline in ch. 720 |
| Failing to adopt timely a second time | Deemed a minor violation; the prior year's budget continues in effect until a new one is adopted, § 718.112(2)(f)1. | Same, § 719.106(1)(j)1. | Not applicable |
Attach this schedule to the proposed budget when it goes out with the notice. An owner who receives a reserve line without a schedule has been given a number, not a budget.
11. Annual maintenance of this schedule
Work this list every year, in this order, before the budget meeting.
| # | Step | Done | By | Date |
|---|---|---|---|---|
| 1 | Roll every RUL forward one year and record the new measurement date | [ ] | [ ] | [ ] |
| 2 | Look up the current division-posted inflation-adjusted reserve threshold and record it in section 1.2 | [ ] | [ ] | [ ] |
| 3 | Reduce the RUL to zero and reset the EUL on any component actually replaced during the year | [ ] | [ ] | [ ] |
| 4 | Move actual reserve expenditures out of the allocated balances, component by component | [ ] | [ ] | [ ] |
| 5 | Confirm the basis of accounting in the header is unchanged from last year, and if it changed, restate the prior year's balance column on the new basis before comparing | [ ] | [ ] | [ ] |
| 6 | Reconcile total allocated balances to the balance sheet using the basis-specific test in section 6.2, and record the reconciling item | [ ] | [ ] | [ ] |
| 7 | Re-price any component whose estimate is more than three years old, or apply the stated inflation factor and say so | [ ] | [ ] | [ ] |
| 8 | Add components acquired or discovered during the year, including anything a milestone inspection surfaced | [ ] | [ ] | [ ] |
| 9 | Re-run the section 4 inclusion test on every row against the current threshold | [ ] | [ ] | [ ] |
| 10 | Recompute contributions under the chosen method | [ ] | [ ] | [ ] |
| 11 | Confirm the total still aligns with the SIRS funding plan, or obtain an updated study | [ ] | [ ] | [ ] |
| 12 | Confirm the study is within its 10-year window and the milestone inspection is current | [ ] | [ ] | [ ] |
| 13 | Carry the total to the budget and attach this schedule to the budget notice | [ ] | [ ] | [ ] |
| 14 | File the completed schedule in the official records with the adopted budget | [ ] | [ ] | [ ] |
12. What this schedule is not
State the limits on the face of the document. A schedule that overstates its own authority is worse than one that is candid.
This is not a reserve study. It organizes and computes. Where a SIRS is required, only a person qualified under § 718.112(2)(g)3.a., Fla. Stat. can supply the findings and recommendations this schedule depends on.
Board estimates and professional estimates are not interchangeable. The Basis column exists so a reader can tell them apart. Where the basis is a board estimate, say so plainly rather than letting the precision of a table imply an engineer.
Costs are current-year opinions of cost. They are not bids. Competitive bids on written specifications are how a replacement year is actually priced.
A schedule is not a funding decision. The board adopts the budget. This document shows what the arithmetic produces.
Components maintained by someone other than the association do not belong here, and the declaration is the authority for that, not practice.
Known limitations of this particular schedule:
| Limitation | Detail |
|---|---|
| Components with no professional estimate | [LIST ROW NUMBERS] |
| Components where the study and the schedule disagree | [LIST, and see section 4.1] |
| Components where the association's maintenance responsibility is unclear | [LIST] |
| Age of the underlying study | [YEARS] |
13. Where common practice and the statute disagree
Everything in this section was verified against the statutory text rather than against the corpus, and each item is a place where doing what most associations do produces a schedule that is wrong.
| # | Common practice | What the statute says | Consequence of following practice |
|---|---|---|---|
| 1 | The reserve threshold is $10,000. | $25,000, or the division's inflation-adjusted amount, whichever is greater. § 718.112(2)(f)2.a., § 719.106(1)(j)2.a. The division posts the adjusted figure by February 1, 2026 and annually. § 718.112(2)(f)6. | Components are marked required when they are discretionary, and the schedule disagrees with any correctly drawn study. The stale figure appears in a clear majority of the reserve studies measured here, including studies dated 2025. |
| 2 | Reserves are waived at the annual meeting each year, as usual. | For a budget adopted on or after December 31, 2024, a unit-owner-controlled association required to obtain a SIRS may not provide no or reduced reserves for the paragraph (g) items. § 718.112(2)(f)2.b., § 719.106(1)(j)2.c. | The waiver is void as to structural components. The budget the association believes it adopted is not the budget in effect. |
| 3 | A waiver passes on a majority of those voting at the annual meeting. | Condominium and cooperative require a majority of the total voting interests. § 718.112(2)(f)2.b., § 719.106(1)(j)2.b. Only the HOA standard is a majority at a quorate meeting. § 720.303(6)(f) | A condominium waiver taken on the HOA standard did not happen. |
| 4 | If the waiver meeting fails or lacks a quorum, last year's reduced funding continues. | The reserves as included in the budget go into effect. § 718.112(2)(f)2.f., § 719.106(1)(j)2.c., § 720.303(6)(f) | The association under-collects against a budget that legally requires full funding. |
| 5 | Switching from straight line to pooling requires a member vote. | A vote of the members is not required for the board to change the accounting method. § 718.112(2)(f)4., § 719.106(1)(j)5. | Boards delay a legitimate improvement, or hold an unnecessary vote and treat its failure as binding. |
| 6 | Reserve accounts can all be pooled together. | Paragraph (g) components may only be pooled with other paragraph (g) components. § 718.112(2)(f)4. | A single pool mixing structural and non-structural components is not compliant. Run two. |
| 7 | An escalating annual contribution is a normal funding plan. | For an HOA, the reserve funding formula may not include any type of balloon payment. § 720.303(6)(g)2. | A plan that back-loads the burden may be unlawful in a chapter 720 association. |
| 8 | A component with a 30-year remaining life can be left off the schedule. | No replacement reserve is required, but the association must reserve the deferred maintenance expense, if any, recommended by the SIRS for such items. § 718.112(2)(f)2.a. | An obligation disappears from view and reappears as a special assessment. |
| 9 | The board can fund a different number than the study recommends and explain the variance. | The association must obtain an updated study before adopting any budget whose reserve funding does not align with the most recent study's funding plan. § 718.112(2)(g)4.c. | The budget is adopted on a study the statute no longer treats as current. |
| 10 | HOA reserves are mandatory once they appear in a budget. | HOA reserves are permissive under § 720.303(6)(b) and become statutory only when established by member vote under § 720.303(6)(d), which must designate the components. | Boards either believe they cannot stop, or waive statutory reserves as if they were voluntary. Both are wrong, in opposite directions. |
| 11 | The HOA no-reserve disclosures go on the budget. | The statute attaches both to each financial report for the preceding fiscal year required by § 720.303(7). § 720.303(6)(c)1. and 2. | Budget-only placement does not satisfy the statute. Do both. |
| 12 | Borrowing wipes the slate clean. | Any line of credit or loan for milestone or SIRS capital work must be sufficient to fund the cumulative previously waived or unfunded reserve funding plus the most recent study. § 718.112(2)(f)2.c.(II) | Years of waivers become a loan covenant, at a size the board did not anticipate. |
| 13 | Full funding is the statutory standard. | The SIRS must at minimum recommend a baseline funding plan keeping the reserve cash balance above zero, and may recommend others. § 718.112(2)(g)4.a. What binds is that the reserve amount be based on the study's findings and recommendations. § 718.112(2)(f)2.a. | Boards either panic at a percent-funded figure or treat percent funded as the compliance test and miss the real one. |
| 14 | The milestone inspection is due at 30 years, everywhere. | The local enforcement agency may require 25 years for local conditions such as proximity to salt water. § 553.899(3)(b) | A coastal association misses its own deadline by five years. |
| 15 | Reserve interest can be used to close an operating shortfall. | Reserve funds and any interest accruing thereon must stay in the reserve account and may be used only for authorized reserve expenditures absent the required vote. § 718.112(2)(f)3., § 719.106(1)(j)4., § 720.303(6)(h) | An unauthorized use of reserve funds, with the additional bar in § 718.112(2)(f)3. for SIRS associations from December 31, 2024. |
| 16 | The schedule shows one net "total unfunded balance." | Under separate reserve accounts the contribution is computed per component, and where a component's balance exceeds its cost the remainder is entered as zero rather than as a credit. § 720.303(6)(g)1.b. Chapters 718 and 719 require the amount to be computed on each item's own remaining useful life and own replacement cost. § 718.112(2)(f)2.a., § 719.106(1)(j)2.a. | An over-funded component silently offsets an underfunded one. The board reads a smaller obligation than it has and funds a cross-subsidy the straight-line method does not permit. Report the sum of positive shortfalls. See section 3.5. |
| 17 | The bulk assignee and bulk buyer exclusion applies to the milestone-repair pause in a cooperative too. | The bulk assignee and bulk buyer carve-out appears only in the condominium provision, § 718.112(2)(f)2.e. The cooperative provision, § 719.106(1)(j)3.b., excludes only a developer-controlled association and one in which nondeveloper unit owners have been in control for less than 1 year. | A cooperative board is told it cannot use a pause that is in fact available to it, or a condominium board misses an exclusion that is. See section 9.2. |
| 18 | The schedule does not say whether it is on a cash or an accrual basis. | No statute prescribes the basis for this working schedule, but the annual financial report is prepared under generally accepted accounting principles. § 718.111(13)(a), § 720.303(7)(a) | The balance column silently means reserve cash in one year and reserve cash plus receivables in the next, percent funded is not comparable across years, and the tie-out to the financial statements reports a failure that is only a basis difference. State the basis in the header. |
| 19 | An association without a completed SIRS today is automatically in violation. | The deadline was December 31, 2025, but an association required to complete a milestone inspection on or before December 31, 2026 may complete the SIRS simultaneously with it, and in no event after December 31, 2026. § 718.112(2)(g)7. | A compliant board is handed a false compliance finding, and a genuinely late one is lost among them. Sort the two cases. See section 10.1. |
14. Adapting this outside Florida
The structure of this schedule travels. The statutory content does not. Every corpus document behind this template is from a Florida association, and every citation is to the Florida Statutes.
Before using it in another state, re-derive these eight things from that state's act:
Whether reserves are mandatory, permissive, or established by member action, and for which association types.
Whether a reserve study is required, on what interval, and by whom it must be performed.
Whether there is a dollar threshold for a component to be a required reserve item, and whether it is indexed.
Whether specific components are named as always required.
The formula the statute prescribes, and whether pooling is permitted.
The vote standard and duration for waiving or reducing reserves, and what happens when the vote fails.
Any required disclosure language and the document it attaches to.
Any structural inspection regime and how it interacts with reserve funding.
Sections 2, 3, 5.4, 6, 11, and 12 are jurisdiction-neutral and can be used as they stand. Sections 1, 4, 7, 8, 9, 10, and 13 are Florida-specific and must be rebuilt.
15. Signatures
| Role | Name | Signature | Date |
|---|---|---|---|
| Prepared by | [NAME] | | [DATE] |
| Treasurer | [NAME] | | [DATE] |
| President | [NAME] | | [DATE] |
| Reviewed by CPA | [NAME, FIRM] | | [DATE] |
| Reviewed by reserve professional | [NAME, FIRM, CREDENTIAL] | | [DATE] |
Board action: the board of directors adopted this reserve component schedule as the basis for the reserve line in the [FISCAL YEAR] budget at its meeting on [DATE], by a vote of [FOR] to [AGAINST].
Filed in the official records on [DATE] by [NAME].
Disclaimer
This template is a starting point, not accounting, tax, or legal advice. It was built by reading real Florida association reserve studies, budgets, and financial statements alongside the current statutory text, and it will not fit every association without change.
Your association's declaration, bylaws, and articles govern, and where they conflict with anything here, they win. Your accountant governs the treatment of reserve funds in your books and financial statements. Statutes change, and the reserve threshold in section 1.2 is adjusted by the division every year, so verify the current text and the current posted figure rather than relying on this document's date.
Have a CPA and Florida counsel review this schedule and the funding it produces before the board adopts it, and have a qualified reserve professional supply the component lives and costs where a structural integrity reserve study is required. Common Elements is not your accountant, your engineer, or your lawyer, and publishing this template does not create any professional relationship.
Template provided by Common Elements · commonelements.com/t/fl-reserve-component-schedule
Free to use and share. Build this in the app instead and it fills itself from your association's record, then exports branded: commonelements.com/tools