Florida Homeowners’ Association Act, Chapter 720

Florida HOA Reserve Requirements Under §720.303(6)

A Florida HOA’s reserve schedule is a disclosure obligation. Under §720.303(6) the board must show a fully-funded reserve schedule in every budget, and members can vote to waive or reduce it only by following the procedure in the statute. Underfunded reserves often correlate with special assessments because they signal deferred maintenance funding.

What the statute says

Section §720.303(6) sets four operational rules for Florida HOA reserves:

Annual budget (subsection 6(a)): the association must prepare an annual budget that sets out the annual operating expenses.
Reserve accounts (subsection 6(b)): in addition to annual operating expenses, the budget may include reserve accounts for capital expenditures and deferred maintenance for which the association is responsible. If reserve accounts are not included or are not fully funded, each financial report for the preceding fiscal year must include a statutory disclosure statement describing the impact.
Member vote on reserves: the membership of the association, by majority vote at a member meeting, may waive reserves or reduce funding below the fully-funded amount for a budget year. The waiver applies one budget year at a time. Verify the exact procedure and quorum requirements against the canonical statute at flsenate.gov; the subsection structure under (6) was amended in recent sessions.
Use of reserve funds: once reserve accounts are established, the membership of the association must affirmatively vote to redirect them; reserve funds set aside for one purpose cannot silently fund operations without that vote.

Source: flsenate.gov / Statutes / 720.303. Statute year: 2025. Verify against the current enrolled bill if new amendments have shipped since this page’s last review.

HB 1203 (2024) and §720.303(6): not the same conversation

HB 1203 (2024) amended Chapter 720 in several places, but it did NOT amend §720.303(6) reserve-funding rules. The sections HB 1203 reaches include compound interest on overdue assessments, fining and parking enforcement, board-member education, audited financial statements for associations of 1,000 or more parcels, and document-posting requirements. Reserve-funding is not on that list. Pages (and headlines) that frame HB 1203 as a reserves change are misreading the bill.

For the actual HB 1203 text, see the bill page on the Florida Senate site: flsenate.gov / Session / Bill / 2024 / 1203.

Florida HOA reserve requirements under §720.303(6). This page covers HOAs governed by Ch. 720. Condo associations fall under Ch. 718 and are outside HOAStream's current scope.

Florida HOA reserves operate under a different statutory framework than Florida condominium reserves. The post-Surfside reforms in SB 4-D (2022) and SB 154 (2023) imposed structural-integrity reserve study (SIRS) requirements on CONDOMINIUMS, by amending Chapter 718. Those reforms do NOT apply to HOAs. Florida HOAs continue under §720.303(6) with the disclosure-and-member-vote-to-waive structure described above.

If you are reading this page about a condominium reserve question, the answer is in Chapter 718, not on this page. HOAStream covers Florida HOA law (Ch. 720, plus the non-profit corporation rules in Ch. 617 and the public- records framework in Ch. 119); we do not answer condo questions.

What this means in practice

The disclosure rule in §720.303(6)(a) is the lever. Owners and prospective buyers see the fully-funded schedule in the budget every year, even when funding is waived. A waived line item next to a deferred-maintenance schedule is a signal that a future special assessment is more likely than an HOA where reserves are fully funded.

Common scenarios where the rules apply:

Annual budget approval where the board proposes to waive reserves to keep the assessment flat.
Buyer due diligence: requesting the reserve study and waiver history before closing.
Reserve study commissioning (engineering estimate of remaining-life and replacement cost for major components).
Board responses to a member petition asking for restored reserve funding.

What this page does not cover:

Florida condominium reserves under Chapter 718 + SB 4-D (2022) + SB 154 (2023) SIRS regime; that is a separate statutory framework.
How to commission a reserve study (this is an engineering vendor question).
Whether your community’s declaration imposes additional reserve obligations beyond the statute.
Litigation strategy for a member challenging a reserve waiver vote.

Common questions

Does a Florida HOA have to maintain reserves?

Section 720.303 subsection 6 governs HOA reserves. The annual budget may include reserve accounts for capital expenditures and deferred maintenance. When reserves are not provided or not fully funded, the financial report for the preceding fiscal year must include a statutory disclosure statement. Verify the current text at flsenate.gov.

Can the HOA waive reserves?

Yes, by a member vote. Under section 720.303 subsection 6, the membership of the association by majority vote at a member meeting may waive reserves or reduce funding below the fully-funded amount for a budget year. The waiver applies one budget year at a time; the question must be put to the members each budget cycle. Verify the procedure and quorum specifics against the canonical statute.

What happens if reserves are misused?

Section 720.303 subsection 6 governs the use of reserve funds. Once reserve accounts are established, the membership must affirmatively vote to redirect them; reserve funds set aside for one purpose cannot silently fund operations without that vote.

How are HOA reserves different from condo reserves under SB 4-D / SB 154?

The post-Surfside reforms in SB 4-D (2022) and SB 154 (2023) imposed structural-integrity reserve study (SIRS) requirements on Florida CONDOMINIUMS only. Those reforms amended Chapter 718 (the Condominium Act) and do NOT apply to HOAs. Florida HOAs continue under section 720.303 subsection 6 with the disclosure-and-member-vote-to-waive structure described above. If the question is about a condominium, the answer is in Chapter 718, not Chapter 720.

When to talk to a Florida HOA attorney

HOAStream is an information-lookup tool. It points you to the exact statute text on the topic you asked about; it does not give legal advice, interpret your specific situation, or recommend action. If your question involves any of the following, talk to a Florida HOA attorney:

Pending litigation, demand letters, or threatened lawsuits.
A specific board procedure where the HOA may have already acted improperly.
Document interpretation (your community’s CCRs, bylaws, or rules).
Strategy decisions about how to respond to a board action.

For attorney referrals, the Florida Bar Lawyer Referral Service is at 800-342-8011.

Florida HOA special assessments under §720.303(2) + §720.316 (waived reserves often drive assessments)
Florida HOA records requests under §720.303(5) (reserve schedule is a record you can request)
Florida HOA estoppel certificates (§720.30851) (estoppel discloses reserve status at closing)
Florida HOA fines and the 14-day hearing notice (§720.305) (separate procedural-clock topic)
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