Most communities in Florida are governed by a homeowners’ association, i.e. an HOA, subject to Florida HOA law. Volunteers elected by residents charge a monthly fee to cover maintenance and repairs to common areas like a pool and a clubhouse. HOAs also hire a landscape company and other service providers, including a management company to oversee everything. HOAs maintain an audited budget that residents are expected to adhere to.
What is an HOA reserve fund? And why should home buyers care about an HOA reserve fund?
Florida doesn’t require an HOA to set up a reserve fund per se, “but once members vote to establish them, the association must follow a detailed set of statutory rules for funding, managing, and spending reserves. This catches many homeowners off guard,” according to Lang Realty.
Reserve Accounts
The budget may or may not include reserve accounts for capital expenditures and deferred maintenance for which the association is responsible.
What Happens if an HOA Reserve Fund is Underfunded?
That may result in a special assessment, meaning each resident is responsible for paying that one-time fee in addition to their regular monthly.
HOA Reserve Fund Access
HOA reserve funds are not public information and only accessible to parcel owners. Lang Realty agents can advise you if you are authorized to read that HOA’s rules and budget before you buy and move in.
Here’s Florida’s HOA law:- https://www.flsenate.gov/laws/statutes/2020/720.303
Condo Associations
Condos and condo associations are governed by a different law that addresses reserve fund specifics under ‘common surplus’.
“Special assessment” means any assessment levied against a unit owner other than the assessment required by a budget adopted annually.” https://www.flsenate.gov/Laws/Statutes/2025/Chapter718
