Florida Structural Integrity Reserve Study Requirements

The Florida Department of Business and Professional Regulation has the authority to conduct procedural reviews to confirm whether inspections were performed and that they were performed by a qualified individual. The maximum civil penalty per offense is $5,000, with the potential of daily fines for continued violations. Furthermore, insurance and mortgage lenders often request a copy of your SIRS and failure to produce one can directly impact your your community’s insurability and ability to obtain mortgages.

Any budget adopted on or after December 31, 2024 requires that a SIRS be used as the basis for funding structural reserves. Funding recommendations outlined in a study are the direct result of near-term project needs and the existing reserve balance. While the law specifically states that the association must attain the annual funding level set forth in the structural integrity reserve study, there may be cases where it is difficult if not impossible to do so without the use of additional assessments, loans, or lines of credit. These additional sources of revenue can be included in a SIRS funding plan but must be immediately available and approved by a majority of the voting interests.

Appropriate allocation of existing reserve funds requires an analysis of the remaining useful lives and future cost of replacement for all of your community maintained assets. If a major structural project is necessary in year one and the existing reserve fund is only sufficient enough to address that project, 100% of reserve funds should be allocated to the structural component funding plan. Whereas, if elevator controls need replacement in year one and there are no near-term structural projects, the funds should be allocated to the non-structural funding plan.

Yes, a SIRS report will be structured differently. The report will consist of two expenditure tables and two reserve funding plans; one each for structural and non-structural components. Furthermore, the report will need to incorporate foundations, load-bearing walls, floors, unit windows, fireproofing, etc. to ensure compliance with the legislation.

The Florida Department of Business and Professional Regulation states that funding obligations are dependent on the SIRS provider’s recommendation. This may or may not require full reserve funding by 2025. If an item does have some useful life remaining, you will likely not need to have all of the funds on hand by 2025. View our blog to understand the many definitions of “fully funded”

If your community is not required to have a SIRS, it can continue to waive or partially fund reserves. However, effective July 1, 2023, waiver of reserves will require a vote of the majority of all of the voting interests. Prior to this date, reserves can still be waived by a majority vote at a duly called meeting of the membership.

The DBPR will rely on the SIRS to determine which components need to be reserved for. Reserves do not need to be maintained for components for which the remaining useful life can not be ascertained or exceeds 25 years.

No. Replacement schedules and costs are forecasted at the time of the study. Actual project timelines and costs may change as your property deteriorates over time. Components nearing the end of their useful lives should be monitored and periodically assessed by component-specific experts. These individuals will determine the actual need for replacement and the necessary scope and related cost. We encourage associations to follow through on the full scope of the project and to update the SIRS funding plan in the event project timelines and costs vary from the initial study.

This is dependent on the age of your building. A milestone inspection is required when a building is 30 years old and every 10 years thereafter. However, the initial milestone inspection report would be required at 25 years if your local enforcement agency has determined that local circumstances require as such. The age of the building is determined by the date of certificate of occupancy. For more information on milestone inspections, visit the Florida DBPR.