Florida Reserve Studies

Required by FL Statutes 718.112, a Structural Integrity Reserve Study (SIRS) is a study of reserve funds required for major future repairs and replacement of common areas. It’s based on a visual inspection that must be conducted by a licensed engineer or architect, determining the life expectancy of 8 structural items. The study outlines the cost of maintenance and replacement of those items, so the association can budget correctly.

All residential condos/co-ops that are 3+ stories must complete the Structural Integrity Reserve Study by December 31st, 2024.

No laws require a SIRS for HOAs, Townhomes and 1 or 2-story condominiums in Florida.

All Florida condos and co-ops that are 3 stories or taller must complete a Structural Integrity Reserve Study (SIRS) by December 31, 2024.
The board must vote to include the SIRS in the budget in 2025.
SIRS must be fully funded by January 1, 2026.

Fully funding the Structural Integrity Reserve Study does not mean you have to have all the money for the repairs by January 1, 2026. It means your monthly collection must be at a number that when it comes time to do the repairs you have the money in the bank.

Yes, the association can pool the items in the Structural Integrity Reserve study together but they can not be pooled with traditional reserve items. They must be in a separate, protected account.

The licensed PE, architect or RS that determined the lifespan of the items is the only person that can make changes to the life expectancy of SIRS items. The Board of Directors can not go in and adjust the numbers. The BOD is expected to follow the Structural Integrity Reserve Study to the cent. Banks will review it when asked to finance condo units.

The first one must be completed by December 31st, 2024, then updated every 10 years. Given that this account must be funded, we suggest the SIRS be updated every 3 years to make sure the numbers are accurate.

Such failure’s a breach of a director’s and an officer’s fiduciary relationship to the unit owners under 718.111(1). Disclosure requirements now mandate this report for all buyers. It would be highly unlikely for a buyer to secure financing for a unit when the association is not compliant with the law. Failure to be able to finance will negatively impact the values of the units in an association.

The price depends on the size of the association. Stone Reserve Studies aims to reduce this cost by having one site inspection that can be used for multiple reports.

They allow for accurate budgeting for condominiums, HOAs and townhomes; keeping properties appealable and avoiding unexpected large assessments.

A Structural integrity Reserve Study is only required for all residential condos that are 3+ stories. No other Florida statutes exist for traditional reserve studies; however, many association documents require them every 3 years.

The market is changing dramatically due to inflation, political changes and supply chain issues. To maintain correct reserves most economically, is to get a yearly reserve study update. The SIRS is required to be updated every 10 years.

Associations and developers can no longer waive reserve on items in the Structural Integrity Reserve Studies. Boards can still waive the funds in the traditional reserve study but it now requires a majority membership vote.

Condos/Co-ops that require a Structural Integrity Reserve Study must be funded by January 1st, 2026.

There are no statutory regulations on who can complete a traditional reserve study. Florida law mandates a visual inspection to determine the age and useful life of the 8 structural items that must be completed by a licensed engineer, architect or certified Reserve Specialist for a Structural Integrity Reserve Study.

Reserve Specialist is a certification by Community Association Institute (CAI). To achieve this designation, one must have a degree in engineering, architecture, or construction management (or similar work experience); have completed at least 30 reserve studies, apply and be confirmed by CAI.

The SIRS report is an official record of the association, open to inspection by membership & authorized representatives. It must be kept on file for 15 years.

1. SIRS is required for Condos & Co-ops that are 3+ stories and 10+ years old. There are no Florida requirements for HOAs, Townhomes, or 2 and 1-story condos for any reserve study; however, many bylaws require reserve studies every 3-5 years.

2. A traditional reserve study includes all community items that require budgeting, like roofs, paint, landscaping, pools, mail stations, garage holders, elevators and walkways. The SIRS only requires 8 critical structural components.

3. A licensed architect, engineer or certified Reserve Specialist must complete a site inspection to determine the items’ lifespan for a SIRS. A traditional reserve study can be completed by anyone, including homeowners; however, it is recommended to be completed by a professional who is experienced in community reserve studies.

4. Items listed in the SIRS report are required to be fully funded, and are not allowed to be waived or pooled. There are no funding requirements for a traditional reserve study.

5. There are no timelines for traditional reserve studies. A SIRS must be completed every 10 years for 3+ story condos and co-ops in Florida.