Reserve funding used to be a topic many Florida boards preferred to avoid. After recent changes to state law affecting condominium safety and structural reserves, it has become one of the most important conversations a community association manager can lead — and one boards can no longer postpone.
At its core, a reserve study answers two questions: what major components will the association eventually have to repair or replace, and how much should it be setting aside each year so the money is there when the time comes. Roofs, paving, elevators, painting, and structural elements are the kinds of long-lived, expensive items reserves are meant to cover.
For CAMs, the value you add is not performing the study yourself — it is helping the board understand it and act on it. That means engaging a qualified reserve provider, making sure the study reflects the community's actual components and conditions, and translating the findings into a funding plan the board can adopt and the owners can understand.
Be straight with boards about the trade-off. Underfunding reserves keeps assessments lower today but sets the community up for special assessments or loans later, often at the worst possible moment. Adequate, steady funding is almost always cheaper and far less disruptive over time. Owners tend to accept this when it is explained clearly and early.
Keep good records. Document when the study was done, the assumptions behind it, the board's funding decisions, and the schedule for updates. Regulations and best practices expect reserve studies to be revisited periodically, not treated as a one-time exercise.
If your boards are still treating reserves as optional, now is the time to change that conversation. Verify the current statutory requirements that apply to each association you manage, and lean on qualified professionals — your job is to make sure the board is informed, compliant, and planning ahead.