What would change?

The proposed edits clarify when changing between pooled and straight-line reserve accounting requires a unit-owner vote. The text would replace a reference to “total reserve funding balances” with “required level of funding” in the conditions for changing methods without an owner vote.

It would also expressly address transferring straight-line balances into a pooled account and clarify the owner-vote trigger for reducing or eliminating funding balances for any reserve component.

The notice also reproduces provisions on annual funding adjustments, inflation, deferred contributions and balloon payments. Those provisions are existing rule language, not newly added restrictions in this October 22 proposal.

Why it matters to Brickell condominiums

Switching accounting methods can affect how boards explain reserve balances and future assessments. Before changing a reserve schedule, the board, PM, reserve professional and accountant should be working from the same component balances, funding assumptions and repair timeline.

Counsel should review whether the proposed transaction is solely an accounting-method change or also changes funding, purposes or permitted uses. A proposal should not be used as authority for a decision under the rule currently in force.

Three questions to review before adopting a budget

  1. Would the proposed accounting change reduce any component’s funding balance, or change the required level of funding, original purpose or restricted use?
  2. Can the reserve professional show how the current study, component balances and project schedule support the 2027 contributions?
  3. What owner approval is required under current law, the effective rule and the association’s governing documents?

Official sources

This update is for general information and does not state a BHA position on the proposal. Associations should review their specific circumstances with their professional advisors. Information checked October 26, 2026.