On June 23, 2025, Governor DeSantis signed into law House Bill 913, which clarified and updated various facets of legislation surrounding Structural Integrity Reserve Studies (SIRS). The bill, which focuses on condo safety and financial relief, may have a direct impact on condominiums that are required to conduct a SIRS. And while it may seem overwhelming to face legislative changes, these new bills aim to ease the burdens many condominiums have felt since SIRS legislation was enacted. Here, we will provide an overview of the main takeaways from these legislative changes.
The Basics
The original deadline to obtain an initial SIRS was December 31, 2024. This deadline has been extended to December 31, 2025. While the structural components that are required to be included in a SIRS remain the same, the threshold for inclusion of assets with a deferred maintenance expense or replacement cost exceeding $10,000 has been raised to $25,000. In terms of who needs a SIRS, what constitutes “three stories or higher” has been changed to “three habitable stories.” Habitable areas include areas for living, sleeping, or cooking and eating. This means that if a building is three stories, but the first floor is just a parking garage, the building is no longer required to conduct a SIRS. Additionally, buildings that are three habitable stories but have four or fewer family dwellings (aka units) are exempt from SIRS legislation.
Loans, Credit Lines, Assessments, and Funding
To ease the financial burden of funding SIRS reserves, the bill provides that associations can use special assessments, loans of lines of credit in addition to regular assessments in their reserve funding plans, as long as they receive prior approval of a majority of the voting interests. However, associations must obtain an updated SIRS before adopting any budget in which the reserve funding from regular assessments, special assessments, credit lines, or loans no longer align with the funding plan from their most recent SIRS. Therefore, if a line of credit was considered part of the funding plan but is no longer available to the association, an updated SIRS is required to ensure funding plans are adequate without the inclusion of the credit line. On the flip side, if an association has obtained an assessment, loan, or line of credit that is immediately available to them, reserve study providers can incorporate these funds into their SIRS funding plan.
Because the requirement to follow the SIRS funding plan proved challenging for many condominiums, it’s understandable that some communities may find themselves off-track. However, because funding for SIRS components is critical to building safety, communities that have veered from their structural funding plan should consider obtaining an updated SIRS to get this funding plan back on track.
If a milestone inspection identified necessary repairs due to significant structural deterioration, associations may pause funding for SIRS components for up to two years upon a majority vote. This can be done to accommodate completing the repairs identified in the milestone inspection, but only if their budget is adopted on or before December 31, 2028. Any community that votes to pause SIRS funding is required to obtain an updated SIRS before resuming reserve contributions.
Reporting and Compliance
When it comes to the completion of a SIRS, there are two notable legislative updates. First, the board of directors of any association that has obtained a SIRS must sign an affidavit acknowledging that they have received their completed SIRS report. This assists in keeping boards and service providers accountable in the completion of a SIRS.
Additionally, the Florida Department of Business and Professional Regulation’s Division of Condominiums, Timeshares, and Mobile Homes will be developing a standardized form that associations will submit to confirm their completion of a SIRS. By streamlining the reporting process, it will become easier for boards to ensure they have alerted the proper authorities of their community’s compliance. While this form is not yet available, more information on this process is forthcoming.
Reserve Advisors is proud to be an advocate for the communities we serve, and are honored that Regional Executive Director Matt Kuisle was able to work alongside Florida state legislators and staff throughout this process. Acting as a resource for technical definitions and reserve study concepts, Matt was dedicated to striking a balance between legislative changes and maintaining the integrity of buildings and the financial health of the communities we serve.
If you have any questions about Florida’s legislative changes or how they may affect your community, please don’t hesitate to reach out to [email protected], or fill out the form below.
