The New Rules About Roofing Reserves that Property Managers Need to Know About


The recent extension of Florida’s Distressed Condominium Relief Act (DCRA) brings with it a reminder for property managers of HOAs that specific regulations are in place controlling the financial reserves of the HOA. This law is now in effect through 2018, after being signed into law in 2010.

Roofing repair and reserves are connected, as the money held in reserves can be used for deferred maintenance, such as roof inspections and repairs.


Balancing roof repair and reserves for an HOA is made easier by the DCRA. When it was enacted in 2010, it was meant to be temporary relief to encourage bulk purchases of condominium units in the face of a recession. Bulk buyers were afforded some measure of protection from liability, including construction defects.

Since Florida construction always has with it some distressed projects and unsold properties, the DCRA has been considered a success in absorbing the backlog and excess capacity of condominiums.

The Reserves

Part of the DCRA, Section 3, section 718.112, Florida Statutes, reads in part:

2.a. In addition to annual operating expenses, the budget must include reserve accounts for capital expenditures and deferred maintenance. These accounts must include, but are not limited to, roof replacement…regardless of the amount of deferred maintenance expense or replacement cost, and for any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000… This subsection does not apply to an adopted budget in which the members of an association have determined, by a majority vote at a duly called meeting of the association, to provide no reserves or less reserves than required by this subsection.

Roof Repair and Reserves

With regard to roof repair and reserves, those reserves can only be ignored if a majority of HOA members vote to do this, which any good property manager would advise against. If units need shingle roof repair and reserves are inadequate or non-existent, the HOA board will have to collect funds for necessary repairs from all the HOA members, including the bulk buyer representing multiple units.


The wisest course for a property manager is to diplomatically remind HOA board members that reserves intended for roof inspection, maintenance and repair should be spent only on those necessary maintenance items, and replenished through reserve accounts.

Local, Professional Help Available

Kelly Roofing has significant experience working with HOAs and condominiums.

Contact Kelly Roofing today for help with your roofing needs in Naples and the surrounding region.

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