Understanding Your Association Budget — and Why Many Are Changing

Peter S. Sachs, Esq., Sachs Sax Caplan

Across Florida, condominium owners are seeing a noticeable shift in their association budgets. Monthly dues in many communities have increased in recent years, and the topic has become a frequent subject of conversation among residents and board members alike.

For most owners, the concept of Condominium Association fees is familiar. What has changed recently is the broader financial environment surrounding community associations. Several factors — some legislative, some market-driven — are influencing how communities plan their budgets.

One of the most significant developments has been increased attention to reserve funding, which refers to the money associations set aside for major future repairs. Following the tragic condominium collapse in Surfside in 2021, Florida adopted new laws aimed at ensuring buildings are structurally sound and financially prepared for long-term maintenance. These regulations require certain condominium associations to conduct structural inspections and maintain adequate reserves for critical components such as roofs, structural elements, and other key systems.

For many communities, this has meant reassessing how much should be saved each year to prepare for future repairs. While reserve planning has always been a core responsibility of association boards, the newer requirements place greater emphasis on ensuring funds are available when large-scale maintenance becomes necessary.

Insurance costs have also played a role in changing budgets. Condominium associations must maintain property insurance covering buildings and common elements, and in recent years insurance premiums across Florida have risen substantially. As insurers reassess risk and construction costs continue to increase, associations have had to adjust their budgets accordingly.

In addition, the everyday costs of operating a community continue to evolve. Maintenance contracts, landscaping services, utilities, building systems, and professional services all factor into an association’s annual financial planning. As these expenses shift over time, budgets must adapt to reflect the realities of maintaining shared property and amenities.

For residents, reviewing the association’s annual budget can provide helpful insight into how these factors shape financial decisions within their community. Attending association meetings and staying engaged in governance discussions can also help owners better understand how boards balance current operational needs with long-term planning.

While association budgets may evolve as conditions change, their purpose remains consistent: maintaining the community’s infrastructure, protecting property values, and ensuring that shared amenities continue to serve residents well for years to come.

Peter S. Sachs is a founding partner of Sachs Sax Caplan, P.L. in Boca Raton, Florida and is board certified in Condominium and Planned Development Law by The Florida Bar. Visit ssclawfirm.com.