Structural Integrity Reserve Studies (SIRS)

Who Needs a Reserve Study?

All condominium and homeowners' associations should have a Reserve Study performed. However, due to legislation passed in 2022 (SB 4D) in response to the tragedy of the collapse of Champlain Towers South in Surfside, Florida, all condominium associations in Florida with buildings over two stories in height MUST have a Structural Integrity Reserve Study (SIRS) performed by by December 31, 2025.

Legislative Update (2025)

On June 23, 2025 Florida Govenor Ron DeSantis signed into law HB913, which made significant changes to Florida statutes 718 and 719 concerning Structural Integrity Reserve Studies. Below is a summary of the changes to Florida law:

1. SIRS must be completed by 12/31/2025 (previously 12/31/2024).
2. SIRS reserve funding may be paused for two consecutive annual budgets if a milestone inspection was completed within the previous two calendar years (requires a membership vote). A new SIRS must be completed after any pause in funding.
3. Clarifies that the requirements for SIRS apply to buildings with three or more "habitable" stories.
4. SIRS may be funded by special assessments, lines of credit, or bank loans (requires a membership vote).
5. SIRS funds may be “pooled” using the Cash Flow method but cannot be “pooled” with Non-SIRS funds.
6. Changing accounting methods (to the Cash Flow method) no longer requires a membership vote.
7. SIRS must include a (Cash Flow method) Baseline funding plan.
8. The SIRS may be updated for changes in useful life of the components.
9. A new SIRS must be obtained before adopting a budget that deviates from the existing SIRS.
10. “Any Other Item Category” for both SIRS and Non-SIRS components minimum cost was increased from $10,000 to $25,000 and will be inflation adjusted each year.
11. SIRS providers must disclose in writing if they will be providing a bid on any service recommended by SIRS.
12. An officer or a director must sign an affidavit acknowledging receipt of the SIRS.
13. The division (Department of Business and Professional Regulation) shall adopt a form for SIRS.

The Purpose of a Reserve Study

The primary purpose of a Reserve Study is to determine the amount of funds to set aside, or “Reserve”, in the annual budget each year for future repairs, replacements, and deferred maintenance of an association’s property. A Reserve Study is a crucial tool for associations to make informed financial decisions, maintain an association's property, and comply with legal requirements. It’s a comprehensive assessment of the current condition of their property’s major components and the future cost of repairing and replacing those items. All Reserve Studies should contain the following 3 elements:

1. A comprehensive Component List, each item’s Remaining Useful Life, and their Replacement Cost.
2. The current strength of the Reserve Fund, often expressed as the “Percentage Funded”.
3. A recommended reserve Funding Plan

The Reserve Study Process

The Reserve Study process is performed in five stages and takes approximately 30-45 days to complete. A full detailed written Reserve Study report, including our findings, inspections, calculations, and recommended Funding Plan(s)shall be provided to the association's representatives to provide to the unit owners.

Types of Reserve Studies

1.) Structural Integrity Reserve Study (SIRS)

Due to recent additions to Florida legislation (SB4D) in response to the tragic structural failure and significant loss of life at the Champlain Towers South Condominium in Surfside, Florida all condominium associations must complete a Structural Integrity Reserve Study (SIRS) on buildings that are over two stories in height by December 31st, 2025. In addition, they must fully fund those “SIRS” reserves for said structural components for any budgets passed on or after January 1st, 2025. A Structural Integrity Reserve Study (SIRS) includes specific structural components as explicitly defined by the Florida statutes. These structural elements include:

• Roof / Roof Covering
• Structural Components
• Fireproofing & Suppression Systems
• Plumbing System
• Electrical System
• Windows & Exterior Doors
• Painting / Sealing the Exterior of the Buildings
• Any Structural Item Over $25,000

The SIRS is an essential financial planning tool that provides a detailed analysis of the expected Useful Life, Remaining Useful Life, and estimated Replacement Cost for these major structural components. Florida law requires condominium associations to conduct a SIRS every ten years to ensure that adequate funds are available when major structural repairs or replacements are necessary as conditions change significantly over a decade. We recommend the Reserve Study be updated every one to three years due to changes in the condition of the components, the level of inflation, interest rates, and other environmental conditions that affect the required level of funding for all components.

2.) Full Reserve Study (Traditional)

A traditional Full Reserve Study is the most comprehensive type of Reserve Study. It contains all the items included in a SIRS but also includes ALL reserve components no matter the category or cost of the item. A Full Reserve Study is more comprehensive than a SIRS; however, typically the difference in reserve funding amount is minimal. A traditional Full Reserve Study includes the following components:

• Roof / Roof Covering
• Structural Components
• Fireproofing & Suppression Systems
• Plumbing System
• Electrical System
• Windows & Exterior Doors
• Painting / Sealing the Exterior of the Buildings
• Any Structural Item Over $25,000
• PLUS: All Other Reserve Components

Florida Condominium Reserve Requirements

Per Florida statutes, all condominium associations with buildings over two stories in height must perform a SIRS and must fully fund the reserves for all SIRS components. This requirement cannot be waived. All condominiums in Florida, no matter the age or height of the buildings, must reserve funds for the following four components:

• Roof / Roof Covering
• Painting / Sealing the Exterior of the Buildings
• Paving & Parking
• Items over $25,000 (structural & non-structural items)

If an association's buildings are one or two stories in height, then the reserve requirement for all of the above components can be waived by a majority vote of the membership in the affirmative. Many associations have chosen to waive funding these items for years, resulting in multiple special assessments to the membership and/or a significant amount of deferred maintenance to an association's property. If an association has buildings that are greater than two stories in height and is required to perform a SIRS, then only the "Paving & Parking" & non-structural "Items over $25,000" components can be waived since the "Roof / Roof Covering" and "Painting / Sealing the Exterior of the Buildings" categories are part of the required SIRS and those components cannot be waived.