By Eric Glazer, Esq.

Published December 7, 2020


To keep it simple……in a condominium, when the board sends out its budget, that budget SHALL include reserve accounts for pavement, painting and roofing and anything else expected to cost $10,000.00 to repair or replace.


However, the statute says…. 


This subsection does not apply to an adopted budget in which the members of an association have determined, by a majority vote at a duly called meeting of the association, to provide no reserves or less reserves than required by this subsection.  


If the unit owners don’t vote to waive or reduce the full funding of reserves, full funding of reserves shall go into effect.


Many boards simply hold a board budget meeting, and at that board meeting, count the limited proxies, and announce whether or not there are enough votes to waive or reduce the full funding of reserves.  Then they pass the appropriate budget, all at the same meeting.


A closer reading of the statute makes it clear that the waiving of reserves must occur at a unit owner meeting.  Then, depending upon the vote at that unit owner meeting, the board adopts the appropriate budget (with or without reserves) at a subsequent board budget meeting.


So, I tell my clients to schedule a unit owner meeting let’s say at 6:45 pm to count the limited proxies and then schedule the actual board budget meeting for 7:00pm. To actually pass the budget depending upon the results of the 6:45 pm meeting.


Remember, the limited proxy must say:


Proxy questions relating to waiving or reducing the funding of reserves or using existing reserve funds for purposes other than purposes for which the reserves were intended shall contain the following statement in capitalized, bold letters in a font size larger than any other used on the face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.


Now that you know how to waive reserves, the age old question is….should you vote to waive reserves?

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About HOA & Condo Blog

Eric Glazer Eric Glazer graduated from the University of Miami School of Law in 1992 after receiving a B.A. from NYU. He has practiced community association law for more than 2

decades and is the owner of Glazer and Sachs, P.A. a seven attorney law firm with offices in Fort Lauderdale and Orlando and satellite offices in Naples, Fort Myers and Tampa.


Since 2009, Eric has been the host of Condo Craze and HOAs, a weekly one hour radio show that airs at noon each Sunday on 850 WFTL.




He is the first attorney in the State of Florida that designed a course that certifies condominium residents as eligible to serve on a condominium Board of Directors and has now certified more than 10,000 Floridians all across the state. He is certified as a Circuit Court Mediator by The Florida Supreme Court and has mediated dozens of disputes between associations and unit owners. Eric also devotes significant time to advancing legislation in the best interest of Florida community association members.

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