Planning for capital expenses and deferred maintenance is essential to
a good budget. Employing accurate methods for estimating useful life and
replacement cost is the cornerstone to avoiding special assessments.

Although the homeowner's association statute in Florida does not address
reserves, it is a good business practice for the board of any community to
examine all of their financial needs; including both the annual operating
expenses for the coming year as well as the long term needs for deferred
maintenance and capital expenditures for common amenities.

Florida condominiums and cooperatives are required to estimate the useful
life and costs of roof replacement, pavement resurfacing and building
painting as well as any other item where the deferred maintenance or
replacement cost would exceed $10,000.00. They must include that
amount in their proposed annual budget as "reserves".

An association may choose to waive the collection of reserves (or to collect
less than the full amount required by the budget) through a majority vote
of the members present at a valid meeting.

Either overestimating the useful life or underestimating the replacement
cost of common elements or a vote to reduce or waive collection of reserves
can result in budgetary shortfalls that can lead to a special assessment.

Flagler Coastal recommends that a competent consultant determine
which items will need to be replaced and what maintenance will need to
be performed to protect the common property before estimating a budget.

Our licensed managers are trained, tested and receive continuing education in order to
help our Associations comply with an array of regulations that impact owners and
residents in managed communities. more ...

Building neighborhoods that are safe and secure requires more than an entry gate.
Flagler Coastal has developed a collection of specific security initiatives that
provide our residents peace of mind. more ...