Q I am the president of our condo association and I am in favor of creating  reserves. Over the last 40 some years our residents have voted down the  establishment of a reserve. I would like to recommend to the owners a general  pool of reserves. Do I first hold a vote on if the owners want a reserve, or  must I first conduct a study to establish an estimated cost?  

 —Reserves Proponent  

A “Section 718.112(2)(f) of Florida Statutes provides that the annual budget of an  association must include full reserves,” says Robert L Kaye, Esq., managing member of Kaye Bender Rembaum, based in Fort  Lauderdale.  

 “Whether or not to present the option to the membership to waive all or a portion  of the full reserves is first up to the board of directors. If the board does not wish to reduce the reserves, there is no requirement in  the law that it be offered for membership vote. Each year, the proposed budget  must include the formula for computing the full reserves set forth in Section  61B-22.005 of the Florida Administrative Code, which requires an indication of  the estimated replacement cost of each of the items that must be included in  reserves. This suggests the need to undertake a reserve study on a periodic  basis.”