HOA Statutory vs Non Statutory Reserves in FL

Started by DanetteM • 3 replies • 174 views

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DanetteM (Florida)
Posts: 1

Posted:

Our developer established reserves for Painting every 7 years and Roof replacement every 20 years. Based on articles I have read, because the developer set them up, they are statutory per FL Statue 720. All the articles I have been able to find on this subject a are from 2021 and 2022. Has anything changed since 2022 that would point to them being non statutory?

ElleN (Idaho)
Posts: 1,339

Posted:

Did the developer set these reserve accounts on or after July 1, 2021?

The wording of 720.303 (6) (d) changed effective July 1, 2021. See Chapter No. 2021-99.

2020 version:
An association is deemed to have provided for reserve accounts if reserve accounts have been initially established by the developer or if the membership of the association affirmatively elects to provide for reserves. [Et cetera]

July 1, 2021 version:
An association is deemed to have provided for reserve accounts upon the affirmative approval of a majority of the total voting interests of the association. [Et cetera]

Here is one site that addresses this change:
https://www.floridacondohoalawblog.com/2021/11/24/are-reserves-still-mandatory-for-homeowners-associations/

In your case, I think this begs more investigation: Did the developer set up the reserve accounts before July 1, 2021? Does this matter?

KerryL1 (California)
Posts: 14,550

Posted:

What is the name of the document in which the reservers were established by the developer?

I appeasers that you're asking if your HOA must abide by the developer's shedule?????

CathyA3 (Ohio)
Posts: 6,299

Posted:

Just to be clear, are we talking about an HOA (FS 720) or a condominium (FS 718)? The comment about a roof reserve jumped out at me.

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