Reserves are funded as part of the annual budget, including accounts for capital expenditures and deferred maintenance for items like roof replacement, building painting, and pavement resurfacing, among others exceeding $10,000 in deferred maintenance expenses or replacement costs. The funding amount is calculated based on the estimated remaining useful life and estimated replacement cost or deferred maintenance expense of each reserve item. For associations required to conduct a structural integrity reserve study, the reserve amount must be based on the study’s findings and recommendations. Additionally, associations can adjust reserve assessments annually to reflect inflation adjustments and any changes in estimates or extensions of the useful life of a reserve item due to deferred maintenance. This structured approach aims to ensure that funds are available for significant repairs and replacements, contributing to the property’s long-term maintenance and value preservation. Read more in section (f) of the s 718.112.