Module 3: Budget & Reserves

This set of flashcards includes key vocabulary and concepts related to budget and reserves for condominium associations and homeowners' associations as per Florida law.

Emergency Reserve Fund

Funds designated for use in emergencies, such as natural disasters, per Florida law.

Pausing Contributions

Temporarily halting reserve contributions if a building is deemed uninhabitable, requiring majority approval from the board.

Use of Reserve Funds

Existing reserves can be utilized to restore habitability after a disaster.

Resuming Contributions

Regular contributions to reserve funds must resume once the building is deemed habitable.

Essential Components

Mandatory reserve items such as roofing, painting, and paving specified by Florida law.

Optional Reserve Items

Reserves that condominium associations may establish for purposes like disaster preparedness and recreational amenities.

Reserve Account Regulations

Guidelines governing how reserve funds are managed, including interest and commingling rules.

Funding Frequency

The requirement that reserve funds must be collected at the same frequency as assessments, e.g., monthly.

HOA Reserve Requirements

Regulations ensuring that homeowners' associations have reserves specified in governing documents or budgets.

Owner Waiver

Homeowners can waive reserve requirements via majority vote if the governing documents do not mandate them.

Best Practices for HOA Reserve Funding

Recommendations for HOA boards to consider reserve funding for long-term financial stability, supported by a reserve study.