Florida structural integrity reserve studies (SIRS) and the end of waived reserves
What a SIRS must cover, who may prepare it, the December 31, 2024 rule on reserve waivers and how to read one.
A structural integrity reserve study, or SIRS, is Florida's second post-Surfside safeguard. Where the milestone inspection asks whether a building is structurally sound now, the SIRS asks whether the association is saving enough money to keep it that way. It is required by section 718.112(2)(g) of the Florida Statutes, and since budgets adopted on or after December 31, 2024 it directly limits an association's ability to skip reserve funding.
Which associations need one
A residential condominium association must have a SIRS completed at least every 10 years after the condominium's creation for each building on the condominium property that is three habitable stories or higher, as determined by the Florida Building Code.
What it must cover
At a minimum the study covers, as related to the structural integrity and safety of the building:
- roof;
- structure, including load-bearing walls and other primary structural members and systems;
- fireproofing and fire protection systems;
- plumbing;
- electrical systems;
- waterproofing and exterior painting;
- windows and exterior doors;
- any other item with a deferred maintenance expense or replacement cost over $25,000 (or the Division's inflation-adjusted figure, if greater) whose failure would harm the items above.
The study is based on a visual inspection of the condominium property.
Who may perform it
A SIRS, including its visual inspection, must be performed or verified by a Florida-licensed engineer or architect, or by a person certified as a reserve specialist or professional reserve analyst by the Community Associations Institute or the Association of Professional Reserve Analysts.
The statute also deals with conflicts. A design professional or licensed contractor who bids to perform a SIRS must disclose in writing any intent to bid on the repair work the study may recommend. A contractor bidding on recommended work may not have an undisclosed interest in, or be related to someone with an interest in, the firm that did the study. A contract made without the required disclosure is voidable by the association.
Funding the reserves
The SIRS feeds directly into the budget. In an association required to have one, reserves must be maintained for the SIRS items the association is responsible for, and the amount must be based on the findings and recommendations of the most recent study (s. 718.112(2)(f)). Reserve amounts are computed from each item's estimated remaining useful life and replacement cost or deferred maintenance expense.
The big change: for a budget adopted on or after December 31, 2024, members of an association that must obtain a SIRS may not vote to provide no reserves or less reserves than required for the SIRS items. (A multicondominium association may do so only under an alternative funding method approved by the Division, and members may waive SIRS reserves if they vote to terminate the condominium.) Before then, many associations routinely voted to waive reserves; owners in those buildings may now face higher monthly assessments or special assessments to catch up.
Reserves for SIRS items may be funded by regular assessments, special assessments, lines of credit or loans. A special assessment, line of credit or loan for this purpose needs a majority vote of the total voting interests. A unit-owner-controlled association may also use a line of credit or loan to fund capital expenses required by a milestone inspection or SIRS, and those arrangements must be reported in the annual financial statement given to owners and to prospective buyers.
SIRS and the milestone inspection: how they differ
The two are often confused. A milestone inspection (s. 553.899) is a structural safety inspection by a licensed architect or engineer, triggered by the building's age, reported to the local building department, and focused on whether the structure is sound today. A SIRS is a financial planning study for the association, required every 10 years for buildings three stories or taller, covering a broader list of components (roof, plumbing, electrical, waterproofing, windows and more), and used to set reserve contributions in the budget. One can be done without the other, and a building may be due for both. A buyer is entitled to the milestone summary and the most recent SIRS, so ask for both.
If your association skipped reserves in the past
Owners in buildings that waived reserves for years are the most exposed to the new rule. The catch-up can come as a higher monthly assessment, a special assessment, or a loan repaid through assessments. Ask the board for the funding plan it adopted after its SIRS, how many years it covers, and what it means per unit. If you are buying, put those figures next to the asking price.
What buyers get
A resale buyer is entitled to the association's most recent SIRS or a statement that the association has not completed one (s. 718.503(2)(a)6). If a required SIRS hasn't been completed, contracts signed after December 31, 2024 must say so conspicuously.
How to read a SIRS as an owner or buyer
- The funding plan. Find the recommended annual contribution for each item and compare it with the reserve line in the current budget.
- Remaining useful life. Items near the end of their life (roof, waterproofing, windows) are the next big bills.
- Current reserve balance. Compare it with the study's recommended balance. A large shortfall points to special assessments or loans.
- Deferred maintenance. The study must note it; it often signals costs that are already due.
- Who did it and when. Check the preparer's license or credential and whether the study is current.
Financial figures on this site
DBPR publishes a small file of key financial indicators that some associations reported, including operating and replacement (reserve) fund balances. Where the association's name matches exactly, we show the latest year on the condominium's page. Very few condominium associations appear in it, and the figures can be several years old, so always ask the association for its current financial report and SIRS.
General information only, current as of the date above. The information on Florida Condo Lookup is not a recommendation or a guarantee of anyone's work. A license record shows registration status on the date shown, not workmanship, insurance coverage at the time of your job, or suitability for your project. Confirm license, insurance and permits directly before you hire. Rules and programs change; check the official sources linked in this guide.