Coming 4 January 2027
A pause in reserve funding is a deferred bill, not a discount.
On 4 January 2027, the minimum reserve allocation rises from 10% to 15% of annual budgeted assessment income. If you are buying a Miami condominium between now and then, this is the number that decides whether the monthly figure you were quoted is the monthly figure you will pay.
What reserves actually cover
Florida requires reserves for a defined list of structural components — roof, load-bearing walls, fireproofing, plumbing, electrical, waterproofing and exterior painting, windows and exterior doors, and any item over $25,000 that affects them. Owners cannot vote to waive these.
That last point is the one that changed the market. For decades, associations kept monthly costs artificially low by voting reserves down. That option is gone for structural items.
The pause is not a discount
Legislation in 2025 allows a pause of up to two budget years, but only to fund repairs a milestone inspection identified. It is a sequencing tool, not relief. The money is still owed, and a buyer who reads “reserves paused” as “reserves not needed” has misread it.
The three-year test
Ask for three years of budgets and reserve balances, and measure them against the 15% standard arriving in January 2027. You are looking for the trend, not the snapshot. An association moving from 6% to 9% to 12% is managing the transition. One flat at 4% has a decision coming that will land on owners.
Why this shows up in price
This is the single biggest reason two apparently similar condominiums in the same neighbourhood trade at very different prices per square foot. One has funded its obligations. The other has not, and the market has priced in an assessment that has not been announced yet.
Sometimes that discount is a genuine opportunity — the work is scoped, the reserve study exists, and the price has overcorrected. Sometimes it is the market being right. The paperwork tells you which.
Frequently asked questions
What is changing for Florida condo reserves in 2027?
From 4 January 2027, the minimum reserve allocation rises from 10% to 15% of annual budgeted assessment income.
Can owners vote to waive structural reserves?
No. Reserves for the defined structural components, including roof, load-bearing walls, waterproofing, plumbing and electrical, cannot be waived by owner vote.
Does a reserve pause reduce what owners owe?
No. A pause of up to two budget years is permitted only to fund repairs identified by a milestone inspection. It defers the bill rather than removing it.