Yes, plumbing and electrical systems are both explicitly included in the list of items that must be addressed in a Structural Integrity Reserve Study (SIRS). 💧⚡

Under Florida Statute 718.112(2)(g), the study must account for the replacement or substantial deferred maintenance of these systems. The goal is to ensure that the association is putting enough money aside now so that when these massive systems eventually fail, the funds are already in the bank.

Why They Are Included

While things like “painting” might seem aesthetic, plumbing and electrical are considered critical safety components.

• Plumbing: This includes the main lines and risers that serve the entire building. A failure here can lead to catastrophic water damage or mold across multiple units. 🏗️

• Electrical: This focuses on the primary electrical systems that power the building’s common areas and life-safety systems (like fire alarms or emergency lighting). 💡

Because these are on the “SIRS list,” the board cannot allow owners to vote to waive or reduce the reserves for them. They must be funded based on the engineer’s findings.

The short answer is no. Even if the board is failing to repair the roof, ignoring the pool maintenance, or mismanaging funds, a unit owner generally cannot withhold assessment payments as a form of protest.

Only through the substitute budget process or by electing new board members.

In Florida, the use of reserve funds is strictly governed to ensure that money set aside for long-term maintenance isn’t “borrowed” for daily expenses. 🛡️

According to Florida Statute 718.112(2)(f), reserve funds and any interest they earn must remain in the reserve account and be used only for the purposes for which they were reserved. For example, money in a “Roof Reserve” cannot be used to pay the association’s electricity bill or legal fees.

However, there is a “legal escape hatch” that allows an association to use these funds for a different purpose if specific conditions are met:

The Voting Requirement 🗳️

A board cannot decide on its own to move reserve money. To use reserve funds for a purpose other than their intended one, the association must obtain approval from a majority of the total voting interests at a duly called meeting of the association.

The “SIRS” Restriction 🚫

As we discussed earlier, the new laws have added a massive caveat to this rule. For budgets adopted after December 31, 2024, owners cannot vote to use reserve funds for other purposes if those funds are designated for Structural Integrity Reserve Study (SIRS) items (like the roof, load-bearing walls, or fire protection).

Essentially, the law now treats safety-related money as “untouchable” for any other use, regardless of how the owners vote.

In Florida, the board’s authority to levy special assessments is governed by Chapter 718 of the Florida Statutes (The Condominium Act). While the board generally has the power to assess owners for common expenses, Florida law imposes strict “transparency and notice” conditions to protect unit owners from surprise charges. 🏖️

Under Florida law, a board can typically levy a special assessment on its own initiative, but they must clear several specific legal hurdles for it to be valid.

Core Statutory Conditions

• The 14-Day Notice Rule: Per FS 718.112, the board must provide written notice to every unit owner at least 14 days before the meeting where a special assessment will be considered. This notice must also be posted conspicuously on the property. 📅

• Specific Purpose & Cost: It must include a description of the purpose (e.g., “Roof Replacement”) and an estimated cost. If the board is approving a specific contract for the work, that contract must be made available for owners to review. 🔍

• Proportional Allocation: Assessments must be shared among owners according to their percentage of ownership in the common elements, as defined in your Declaration of Condominium (FS 718.115).

• The “Paper Trail”: After the notice is sent, the association must file an affidavit in their official records proving that the notice was properly delivered to all owners. 📝

At least 10% of all voting interests within 21 days of the board’s budget adoption.

The statute says assessments must be paid at least quarterly.

The biggest danger of not passing a new budget in today’s Florida legal climate involves reserves. Recent laws (like those surrounding Structural Integrity Reserve Studies or SIRS) mandate that certain safety-related reserves must be funded. A board that fails to adopt a budget may be effectively “skipping” these mandatory contributions, which can lead to personal liability for directors or legal action from owners.

It depends primarily on the association’s total annual revenue. 📊

Under Florida Statute 718.111(13), associations are required to prepare different levels of financial reports based on their size and income. I’ll guide you through the specific thresholds and requirements.

Associations with total annual revenues of less than $150,000 are generally only required to prepare a report of cash receipts and expenditures, which does not necessarily require a CPA.

The Financial Reporting Hierarchy

The law creates a “ladder” of financial reporting. As an association’s revenue increases, the level of scrutiny required from a CPA becomes more intense.

Yes. Late fees cannot exceed $25 or 5% of the assessment, whichever is greater, and only if your specific bylaws allow for it.

It’s common for a budget to have many line items, but Florida law treats Special Assessments as a completely different bucket of money than your Annual Operating Budget.

The core statute that prevents the board from mixing these funds is Florida Statute 718.116(10).

The “Single Purpose” Rule 🎯

Even if your annual budget has 50 different line items for things like “Pool Chemicals” or “Legal Fees,” a special assessment is legally bound to the one specific reason it was created.

• Restricted Use: Per FS 718.116(10), funds collected through a special assessment “shall be used only for the specific purpose or purposes set forth in [the] notice.”

• The Firewall: The board cannot treat special assessment money as a backup fund for when another line item in the regular budget runs short. For example, if they assess for “Elevator Modernization,” they cannot use that cash to cover a surprise increase in the “Insurance” line item of the regular budget. 🛡️

Florida law is quite strict about the timeline. Per the statutes:

• 14-Day Deadline: The budget must be adopted at least 14 days before the start of the fiscal year (usually by December 18th for associations on a calendar year).

• Minor vs. Major Violations:

  • Failing to adopt the budget on time is considered a major violation of the Condominium Act. 🚩

  • The Division of Florida Condominiums can levy civil penalties against the association, ranging from $500 to $5,000.

  • If it happens a second time, it is flagged as a recurring violation, which can lead to even stricter oversight or higher fines.

If an owner stops paying, the association has powerful statutory tools to collect:

• Late Fees and Interest: These begin accruing immediately. 📈

• Legal Fees: The association can pass the cost of their attorney’s collection efforts directly to the owner.

• Claim of Lien: Under FS 718.116, the association can place a lien on the unit.

• Foreclosure: If the debt isn’t paid, the association can actually foreclose on the unit to recover the money, regardless of whether the board was “doing its job” or not. 🏠🔨

In a normal annual budget, the board often has some flexibility to move money between operating line items (like using leftover “Landscaping” money to cover extra “Security” costs). However, Special Assessment funds are not flexible.

If a project is finished and there is money left over, the board only has two legal paths under the same statute:

1. Refund the extra to the owners. 💸

2. Credit the extra toward future assessments (reducing your next bill).

Under Florida Statute 718.112, the law provides a safety net to keep the lights on, while also setting up penalties for the board’s failure to act.

1. The “Prior Year” Default Rule

If the board misses the deadline to adopt a new budget, Florida law dictates that the prior year’s budget continues in effect until a new one is officially adopted.

• Payment Stays the Same: Unit owners typically continue paying the same monthly assessment amount they paid the previous year.

• The Risk: If costs (like insurance or utilities ⚡) have gone up, but the assessment stays at last year’s lower rate, the association will quickly run a deficit. This often forces the board to pass a special assessment later to bridge the gap—which has its own strict notice and use rules.

A budget proposed by owners that excludes discretionary spending.

Reserves, insurance premiums, and non-recurring maintenance/repair of structural items.

While the statute gives boards broad power, your association’s Bylaws or Declaration may limit that power. For example:

• Spending Caps: Many older Florida documents state the board can only assess up to a certain dollar amount without a majority vote of the owners.

• Material Alterations: If the assessment is for an “improvement” that significantly changes the look or function of the property (like turning a tennis court into a pickleball court 🎾), FS 718.113 usually requires a vote from the membership.

It must be proposed and adopted at least 14

days before the fiscal year begins.

The short answer is no. Even if the board is failing to repair the roof, ignoring the pool maintenance, or mismanaging funds, a unit owner generally cannot withhold assessment payments as a form of protest.

Only through the substitute budget process or by electing new board members.

In Florida, the board’s authority to levy special assessments is governed by Chapter 718 of the Florida Statutes (The Condominium Act). While the board generally has the power to assess owners for common expenses, Florida law imposes strict “transparency and notice” conditions to protect unit owners from surprise charges. 🏖️

Under Florida law, a board can typically levy a special assessment on its own initiative, but they must clear several specific legal hurdles for it to be valid.

Core Statutory Conditions

• The 14-Day Notice Rule: Per FS 718.112, the board must provide written notice to every unit owner at least 14 days before the meeting where a special assessment will be considered. This notice must also be posted conspicuously on the property. 📅

• Specific Purpose & Cost: It must include a description of the purpose (e.g., “Roof Replacement”) and an estimated cost. If the board is approving a specific contract for the work, that contract must be made available for owners to review. 🔍

• Proportional Allocation: Assessments must be shared among owners according to their percentage of ownership in the common elements, as defined in your Declaration of Condominium (FS 718.115).

• The “Paper Trail”: After the notice is sent, the association must file an affidavit in their official records proving that the notice was properly delivered to all owners. 📝

At least 10% of all voting interests within 21 days of the board’s budget adoption.

The statute says assessments must be paid at least quarterly.

The biggest danger of not passing a new budget in today’s Florida legal climate involves reserves. Recent laws (like those surrounding Structural Integrity Reserve Studies or SIRS) mandate that certain safety-related reserves must be funded. A board that fails to adopt a budget may be effectively “skipping” these mandatory contributions, which can lead to personal liability for directors or legal action from owners.

It depends primarily on the association’s total annual revenue. 📊

Under Florida Statute 718.111(13), associations are required to prepare different levels of financial reports based on their size and income. I’ll guide you through the specific thresholds and requirements.

Associations with total annual revenues of less than $150,000 are generally only required to prepare a report of cash receipts and expenditures, which does not necessarily require a CPA.

The Financial Reporting Hierarchy

The law creates a “ladder” of financial reporting. As an association’s revenue increases, the level of scrutiny required from a CPA becomes more intense.

Yes. Late fees cannot exceed $25 or 5% of the assessment, whichever is greater, and only if your specific bylaws allow for it.

It’s common for a budget to have many line items, but Florida law treats Special Assessments as a completely different bucket of money than your Annual Operating Budget.

The core statute that prevents the board from mixing these funds is Florida Statute 718.116(10).

The “Single Purpose” Rule 🎯

Even if your annual budget has 50 different line items for things like “Pool Chemicals” or “Legal Fees,” a special assessment is legally bound to the one specific reason it was created.

• Restricted Use: Per FS 718.116(10), funds collected through a special assessment “shall be used only for the specific purpose or purposes set forth in [the] notice.”

• The Firewall: The board cannot treat special assessment money as a backup fund for when another line item in the regular budget runs short. For example, if they assess for “Elevator Modernization,” they cannot use that cash to cover a surprise increase in the “Insurance” line item of the regular budget. 🛡️

Florida law is quite strict about the timeline. Per the statutes:

• 14-Day Deadline: The budget must be adopted at least 14 days before the start of the fiscal year (usually by December 18th for associations on a calendar year).

• Minor vs. Major Violations:

  • Failing to adopt the budget on time is considered a major violation of the Condominium Act. 🚩

  • The Division of Florida Condominiums can levy civil penalties against the association, ranging from $500 to $5,000.

  • If it happens a second time, it is flagged as a recurring violation, which can lead to even stricter oversight or higher fines.

If an owner stops paying, the association has powerful statutory tools to collect:

• Late Fees and Interest: These begin accruing immediately. 📈

• Legal Fees: The association can pass the cost of their attorney’s collection efforts directly to the owner.

• Claim of Lien: Under FS 718.116, the association can place a lien on the unit.

• Foreclosure: If the debt isn’t paid, the association can actually foreclose on the unit to recover the money, regardless of whether the board was “doing its job” or not. 🏠🔨

In a normal annual budget, the board often has some flexibility to move money between operating line items (like using leftover “Landscaping” money to cover extra “Security” costs). However, Special Assessment funds are not flexible.

If a project is finished and there is money left over, the board only has two legal paths under the same statute:

1. Refund the extra to the owners. 💸

2. Credit the extra toward future assessments (reducing your next bill).

Under Florida Statute 718.112, the law provides a safety net to keep the lights on, while also setting up penalties for the board’s failure to act.

1. The “Prior Year” Default Rule

If the board misses the deadline to adopt a new budget, Florida law dictates that the prior year’s budget continues in effect until a new one is officially adopted.

• Payment Stays the Same: Unit owners typically continue paying the same monthly assessment amount they paid the previous year.

• The Risk: If costs (like insurance or utilities ⚡) have gone up, but the assessment stays at last year’s lower rate, the association will quickly run a deficit. This often forces the board to pass a special assessment later to bridge the gap—which has its own strict notice and use rules.

A budget proposed by owners that excludes discretionary spending.

Reserves, insurance premiums, and non-recurring maintenance/repair of structural items.

While the statute gives boards broad power, your association’s Bylaws or Declaration may limit that power. For example:

• Spending Caps: Many older Florida documents state the board can only assess up to a certain dollar amount without a majority vote of the owners.

• Material Alterations: If the assessment is for an “improvement” that significantly changes the look or function of the property (like turning a tennis court into a pickleball court 🎾), FS 718.113 usually requires a vote from the membership.

It must be proposed and adopted at least 14

days before the fiscal year begins.