2027 Florida Condominium Budgets: What Boards Should Address Before Adoption

For condominium associations operating on a calendar-year fiscal year, the board must adopt the 2027 budget at least 14 days before the beginning of the fiscal year. The proposed budget and notice of the budget meeting must separately be provided to unit owners at least 14 days before the meeting. These deadlines leave little room to correct a reserve schedule, complete the 115 percent comparison, or address a notice problem after the proposed budget has been distributed.

The starting point is the governing documents, the association's current financial position, and the requirements of Chapter 718, Florida Statutes. The statute sets minimum procedures. It does not relieve the board of its obligation to make reasonable financial decisions for its own community.

Work backward from the adoption deadline

Section 718.112(2)(e) requires that owners receive notice of the meeting at which the proposed annual budget will be considered, together with a copy of the proposed budget, at least 14 days before the meeting. The notice must be delivered by an authorized method, which includes electronic delivery to owners who have consented to receive notices that way. The person who gives the notice must sign an affidavit of compliance, and that affidavit must be kept in the association's official records. The notice and agenda must also be posted as required by section 718.112(2)(c). Under section 718.111(12)(g), condominium associations with 25 or more units that do not contain timeshare units must also maintain a website or mobile application containing specified records, including the annual budget, certain proposed budgets, and required meeting notices and agendas.

The 14-day adoption deadline comes from section 718.112(2)(f).

Budget for the property the association actually maintains

The operating budget should account for anticipated revenue, insurance, utilities, maintenance, contracts, management, professional services, and other common expenses. Rather than increasing last year's figures by a uniform percentage, the board should review existing contracts, recent expenses, known increases, and pending projects.

The declaration matters here. It determines, among other things, which property the association must maintain and how common expenses are shared among the units. In a master association or multicondominium, the board should pay particular attention to expenses that benefit only certain buildings or groups of owners. The budget should follow the documents rather than attempt to change those allocations.

Keep operating expenses and reserves separate

Condominium budgets must also provide for reserve accounts under section 718.112(2)(f). Reserves are required for roof replacement, building painting, and pavement resurfacing regardless of cost, and for other items whose deferred maintenance expense or replacement cost exceeds a statutory threshold that is adjusted each year. DBPR lists the 2026 threshold as $25,675 and expects to announce the 2027 threshold by February 1, 2027.

An association required to complete a structural integrity reserve study (SIRS) has additional obligations. Its budget must maintain reserves for the SIRS items the association is responsible for under the declaration, based on the findings and recommendations of the most recent study, and the legal rules for those reserves differ from the rules for other reserves. Some components fall into both groups: a roof or exterior painting, for example, may be a required reserve category and also a SIRS component, in which case the SIRS requirements apply to it. A board should not assume that owners may vote to waive or repurpose SIRS reserves.

Run the 115% comparison early

If proposed assessments exceed 115 percent of the prior year's assessments, after applying the statutory exclusions, the board must simultaneously propose a substitute budget that omits discretionary expenditures not legally required. For an association controlled by its unit owners, this is a procedural requirement, not a cap on assessments. The statute also calls for the notice of a meeting involving a substitute budget to be mailed or hand delivered to each owner, so electronic delivery alone should not be relied on for that notice. One mistake we regularly encounter is treating the 115% calculation as a limit on the overall budget rather than applying the statutory exclusions. Another is waiting until the budget meeting to determine whether a substitute budget is required. Boards should complete the comparison early enough to prepare the substitute budget and the correct notices.

What to confirm before the notice goes out

Before sending the budget notice, the board should confirm that the proposed expenses and allocations follow the declaration and that the reserve schedule includes all required components and any applicable SIRS funding. The board should also complete the 115 percent calculation early enough to prepare a substitute budget if necessary and confirm that the statutory notice, posting, website, and affidavit requirements can be satisfied.

For help preparing or reviewing your association's budget, please contact Pope Mazzara & Menendez.

Disclaimer: This article is provided for general informational purposes and does not constitute legal advice. The application of Florida law depends on the facts and governing documents of each association. Reading this article does not establish an attorney-client relationship with Pope Mazzara & Menendez, PLLC.