Florida HOA & Condo Budget Requirements: What Boards Must Do Before Adopting the 2027 Budget

Florida HOA budget requirements are not the same for every association. A condominium follows Chapter 718 of the Florida Statutes; a homeowners' association follows Chapter 720 — and the two chapters set different rules for notice, owner votes, and reserves. For most associations the budget is adopted in November or December, so the decisions below need to be settled now, not the week of the meeting.

Here is what each chapter requires, what changed in 2025 and 2026, and a checklist to work through before the 2027 budget goes out.

Florida condo budget requirements (Chapter 718)

Notice: 14 days, with the proposed budget attached

Under §718.112(2)(e), at least 14 days before the budget meeting the board must hand deliver, mail, or electronically transmit (to owners who have consented to electronic notice) a notice of the meeting and a copy of the proposed annual budget. Keep proof that notice went out — an affidavit from the person who sent it, filed with the official records, is the standard way to show compliance. Older bylaws sometimes require more than 14 days; the longer period controls.

Adoption deadline: 14 days before the fiscal year

§718.112(2)(f) requires the board to adopt the annual budget at least 14 days before the fiscal year starts. For a January 1 fiscal year, that puts adoption around December 18 — and because the meeting itself needs 14 days' notice, the proposed budget realistically has to be final and in owners' hands by early December.

The 115% rule now requires a substitute budget up front

This is the change most boards haven't absorbed yet. Since July 1, 2025, if a proposed budget requires assessments that exceed 115% of the prior year's assessments, the board must simultaneously propose a substitute budget that leaves out discretionary expenditures not required to be in the budget. Both go to owners with the 14-day notice. At the meeting, owners consider the substitute first; it is adopted with a majority of all voting interests (or more, if your bylaws say so). If it fails, the board may adopt its original proposal.

Three things are excluded when you run the 115% test: required reserves, expenses the board doesn't expect to recur regularly or annually, and insurance premiums. The accounting behind that comparison matters: the headline increase and the statutory test can point in different directions.

Reserves: what can and can't be waived

• Required reserve items. The budget must include reserves for capital expenditures and deferred maintenance, including roof replacement, building painting, pavement resurfacing, and any other item whose deferred maintenance or replacement cost exceeds $25,000 (indexed for inflation — the threshold was $10,000 before 2025).
• Non-structural reserves can be waived or reduced only by a majority vote of the total voting interests, not just owners present.
• SIRS reserves cannot be waived. For budgets adopted on or after December 31, 2024, associations required to have a Structural Integrity Reserve Study cannot vote to fund less than the statute requires for SIRS components. We covered that rule in detail in our guide to Florida's SIRS reserve funding requirement.
• Limited relief exists. With a majority of total voting interests, a board that recently completed a milestone inspection may temporarily pause reserve contributions for up to two consecutive annual budgets to fund the repairs it identified — available only for budgets adopted on or before December 31, 2028. Funding reserves through a special assessment, line of credit, or loan also requires a majority of total voting interests.

Website posting now reaches much smaller condos

Starting January 1, 2026, condominium associations with 25 or more units must maintain a website or app, and §718.111(12)(g) requires both the annual budget and any proposed budget to be considered at the annual meeting to be posted there. The threshold used to be 150 units, so many mid-size associations face the posting rule for the first time.

Florida HOA budget requirements (Chapter 720)

• What the budget must show. §720.303(6) requires an annual budget of operating expenses, plus reserve accounts where reserves exist.
• Meeting notice. A budget meeting is a board meeting, so §720.303(2)(c) requires notice posted conspicuously in the community at least 48 hours in advance. If a special assessment will be considered, notice must go to members and be posted at least 14 days ahead and state the nature of the assessment. Your governing documents may require more.
• After adoption. The association must give each member a copy of the annual budget or written notice that a copy is available on request at no charge.
• Website posting. HOAs with 100 or more parcels must post the annual budget and any proposed budget to be considered at the annual meeting on their website (§720.303(4)).
• Reserves. HOA reserves are not universally required; they apply when the governing documents or a member vote establish them. Once in place, members can vote to waive or reduce funding, but that vote covers only one budget year, and reserve funds may be used only for authorized reserve purposes unless members approve otherwise in advance.

What your accountant should hand the board before the budget meeting

The statute sets the process; the numbers are what owners question. A solid budget package includes:

1. Current-year actuals projected to year-end, so each 2027 line is grounded in what was really spent, not last year's budget rolled forward.
2. A reserve schedule tied to your latest reserve study or SIRS, with SIRS components shown separately from other reserves.
3. The 115% calculation, worked out (condos), showing the exclusions so the board knows before notice goes out whether a substitute budget is required.
4. A clean assessment schedule per unit or parcel that matches the totals, ready to load into owner ledgers on January 1.

If your year-end financial statements also need to meet Florida's revenue-based reporting tiers (compiled, reviewed, or audited), our Florida HOA and condo financial reporting guide breaks down which level applies to your association.

2027 budget self-check for your board

1. Do we know which chapter governs us — 718 or 720 — and what our own bylaws add on top of it?
2. Have we counted back from our fiscal year start to set the adoption date and the notice date?
3. (Condos) Have we run the 115% test with the statutory exclusions, and prepared a substitute budget if we're over?
4. Is every SIRS component funded at the level the study calls for, with no waiver vote on those items?
5. If we plan to waive or reduce any other reserves, is the owner vote scheduled and properly noticed?
6. If we're required to have a website, is the proposed budget posted where owners can reach it?

Frequently asked questions

How much notice is required for a condo budget meeting in Florida?

At least 14 days. Under §718.112(2)(e), Florida Statutes, the board must hand deliver, mail, or electronically transmit (to owners who consented) a notice of the budget meeting and a copy of the proposed annual budget at least 14 days before the meeting. Some bylaws require more notice, so check yours.

Do homeowners vote on the HOA budget in Florida?

Usually not. Chapter 720 lets the board prepare and adopt the annual budget at a properly noticed board meeting. Owners vote on related questions, such as waiving or reducing reserves, and your governing documents may give members more say. After adoption, members must receive a copy of the budget or notice that one is available free.

What happens if a Florida condo budget goes up more than 15 percent?

If the proposed budget requires assessments above 115% of the prior year, the board must also propose a substitute budget without discretionary expenditures. Owners consider it at the budget meeting first; it passes with a majority of all voting interests. Reserves, non-recurring expenses, and insurance premiums are excluded from the 115% test.

Can a Florida HOA or condo waive reserve funding?

Sometimes. HOA members can vote to provide no or reduced reserves, and the vote covers only one budget year. Condo owners can waive or reduce non-structural reserves by a majority of total voting interests, but for budgets adopted on or after December 31, 2024, SIRS-required reserves cannot be waived or reduced.

When does a Florida condo association have to adopt its budget?

At least 14 days before the association's fiscal year begins, under §718.112(2)(f). For a calendar-year association, that means adopting by mid-December, and because the meeting itself needs 14 days' notice, the proposed budget realistically has to be finished and mailed by early December.

For the full statutory text, see §718.112, Florida Statutes (condominiums) and §720.303, Florida Statutes (HOAs).

This article is for general educational purposes and reflects our understanding of Chapters 718 and 720, Florida Statutes (2025), as of the publish date above. It is not legal advice. Statutory requirements change frequently, and your association's declaration and bylaws may impose additional or stricter requirements — confirm the details that apply to your association with your association's legal counsel.