The no-waiver rule
Under s. 718.112(2)(f), the members of a unit-owner-controlled association that must have a SIRS may not vote to provide no reserves, or less than the required reserves, for the items in paragraph (g), for any budget adopted on or after December 31, 2024. A developer-controlled association cannot waive or reduce reserves before turnover either. The one exception the statute names is a multicondominium association using an alternative funding method approved by the division.
Non-SIRS reserves, such as a pool or paving, can still be waived or reduced by an owner vote under the conditions in s. 718.112(2)(f), which is why a combined reserve study should keep the two groups apart.
What the money may be used for
Reserve funds may be used only for authorized reserve expenditures unless a majority of the total voting interests approves another use in advance. For an owner-controlled association that must have a SIRS, the statute goes further for budgets from December 31, 2024: SIRS reserves may be used only for the replacement or deferred maintenance of the components in paragraph (g).
How the funding plan is built
Paragraph (g)4.a asks for a reserve funding schedule with a recommended annual amount that reaches each item's estimated replacement cost or deferred maintenance expense by the end of its remaining useful life. It also asks for a baseline funding plan that keeps the reserve cash balance above zero in every year. Most providers show both, so the board can see the minimum and a fuller target side by side.
The worked example on the cost page shows the arithmetic for one building, from replacement cost and remaining life to a per-unit monthly figure.
Ways to raise it
- Regular assessments. The default: the annual reserve contribution is built into the budget.
- Special assessments. For a gap or a near-term repair, approved by a majority of the total voting interests where the statute requires it.
- Loans and lines of credit. An owner-controlled association that must have a SIRS may secure a line of credit or loan to fund the milestone or SIRS work, by majority vote. The funds must be available to the board without further member approval. HB 913 added that a secured line of credit must be disclosed to later buyers.
- Pooled accounts. Since HB 913, reserves for two or more SIRS items can sit in one pooled account, which smooths the cash flow when items come due at different times.
The post-milestone pause
For budgets adopted on or before December 31, 2028, an association that completed a milestone inspection in the prior two calendar years may, by a majority of total voting interests, suspend or lower reserve contributions for a maximum of two annual budgets in a row to pay for the repairs that inspection recommended. It is a bridge, not a waiver: the SIRS schedule resumes afterwards.
Funding rules interact with the declaration and bylaws. Before a vote, check the mechanics with the association's attorney.