Budgets and reserves — required disclosures

Common Elements summary — Section 718.112(2)(f) is the heart of condo financial governance. It requires the board to adopt an annual budget that includes estimated revenues, estimated operating expenses, AND fully funded reserves for roof, building painting, pavement resurfacing, AND any other item with a deferred maintenance or replacement cost over $10,000. The budget must be mailed to every owner with the meeting notice — 14 days minimum. For decades unit owners could vote each year to waive or partially fund reserves under 718.112(2)(f)(4). SB 4-D (2022) and its 2023 follow-ups eliminated the waiver for buildings three stories or taller starting with the 2024 budget — those reserves must now be fully funded based on a Structural Integrity Reserve Study (see 718.704). For non-SIRS items (paint, pavement, pool resurface, etc.) waiver is still possible by majority vote of those present at a noticed meeting. The trap for boards: failing to mail the budget on time invalidates the assessment. Re-noticing a meeting after the fiscal year starts is embarrassing and creates a billing gap.