What is a Structural Integrity Reserve Study (SIRS)? My association doesn’t need one, our reserves are fine.
In the past, associations could vote to waive reserve funding entirely or to fund less than needed. While a reserve study was always recommended as prudent fiscal policy by the Florida Division of Condominiums, there was no law requiring such a study.
Florida Bill SB 4-D removes the ability to waive reserves for all associations and now requires that a Structural Integrity Reserve Study (SIRS) must be completed for ALL high-rise condos three or more stories in height by December 31, 2024. ALL condo associations MUST have fully funded reserves by December 31, 2024. A reserve study must also be completed EVERY 10 years.
SB 4-D also removes the ability of an association to use funds reserved for structural integrity and safety items for any other purpose other than their intended purpose. This ruling effectively ends “pooling” of reserves; if your association currently pools reserves, you must change to “straightline” reserves by December 31, 2024.
- Electrical Systems
- Load-bearing walls or other primary structural members
- Waterproofing & Exterior Painting
- Fireproofing & Fire Protection Systems
- Any other item exceeding $10,000 in replacement cost
The CSM goal with every reserve study is to meet the state funding requirement as conservatively as possible, and to ensure that your community will always have the funds when needed, eliminating the need for future special assessments. This allows all owners to have some peace of mind for years to come.
Many associations believe they have adequate reserve funding. Due to the new requirements, many are expected to be severely underfunded. Bringing reserves up to the required level may mean a special assessment to your members. By obtaining a reserve study now, your association will have the ability to fund your reserves over a longer period, easing the burden to owners.
(b) The local enforcement agency may determine that local circumstances, including environmental conditions such as proximity to salt water as defined in s.379.101, require that a milestone inspection must be performed by December 31 of the year in which the building reaches 25 years of age, based on the date the certificate of occupancy for the building was issued, and every 10 years thereafter. Learn More