The new condo law reserve study rules in Florida, explained

Last updated 2026-08-14

what is a reserve study

A reserve study is a professional inspection and financial report that tells a condo or HOA board two things: what shape the building's major components are in, and how much money the association needs to be setting aside now so it doesn't get hit with a giant bill later. A typical reserve study has two parts. The physical analysis lists every major common element (roof, paint, pavement, elevators, pool equipment) along with its estimated remaining useful life. The financial analysis takes that list and builds a funding plan, usually a 20 to 30 year projection, showing what the reserve account balance should be each year to pay for replacements as they come due. For Florida condos specifically, there are now two related but distinct things: the general reserve study any well-run association should have, and the structural integrity reserve study (SIRS) that state law requires for certain buildings. A SIRS only covers structural and life-safety items. A full reserve study covers everything, structural and cosmetic. Boards often need both, run by qualified professionals, sometimes combined into one report. See our reserve study guide for the mechanics of ordering one and reading the results.

what is the new condo law and why did it change reserve rules

The law most people mean when they say "new condo law" is Senate Bill 4-D, passed in 2022 after the Champlain Towers South collapse in Surfside that killed 98 people in June 2021. It was later cleaned up by SB 154 (2023) and further tweaked by HB 1021 (2024). The law added two big requirements to Florida Statutes Chapter 718: milestone structural inspections for older buildings, and structural integrity reserve studies (SIRS) with mandatory full funding for the components a SIRS covers. Before 2022, Florida condo associations could vote every year to waive reserves or fund them at less than 100 percent. That option is gone for SIRS components. The statute defines a SIRS as covering, at minimum, roof, load-bearing walls, floor, foundation, fireproofing and fire protection systems, plumbing, electrical systems, waterproofing and exterior painting, and windows and doors, "structurally required elements whose collective failure would have a negative effect on the safety of the building." ^[1] Under section 718.112(2)(g), "the association may not determine to provide no reserves or less reserves than required" for SIRS items once the study is done. ^[2] That single sentence is the part boards keep getting surprised by, because it kills the old habit of voting to waive or reduce reserves at the annual meeting.

what is a reserve study for an hoa

An HOA reserve study works the same way conceptually as a condo reserve study, but the legal requirement is different. Florida's SIRS and milestone inspection mandates in Chapter 718 apply to condominiums, not to homeowners' associations governed by Chapter 720. That said, plenty of Florida HOAs, especially ones with shared buildings, clubhouses, garages, or elevators 3 stories or taller, are choosing to do reserve studies anyway, because the underlying risk (deferred maintenance turning into a six-figure special assessment) doesn't care what statute governs you. Some HOA declarations already require periodic reserve studies as a matter of contract, independent of state law. If your HOA has attached, multi-story buildings, don't assume you're exempt just because you're not a condo. Check your declaration and talk to counsel about whether Chapter 718-style obligations, or something close to them, already apply through your governing documents. See hoa reserve study for how HOAs typically structure this.

what is an hoa assessment and what is a special assessment

An HOA assessment is simply the fee a homeowners association charges its members to run and maintain the community. There are two main types. Regular assessments are the recurring dues, monthly or quarterly, that fund day to day operations, insurance, and the reserve accounts. Special assessments are one-time charges the board levies when there isn't enough money in reserves (or operating funds) to cover an unexpected or underfunded expense, like a roof replacement, a concrete restoration project, or a milestone inspection repair bill. Special assessments are exactly what full reserve funding is supposed to prevent. If an association has been funding its SIRS components properly for years, a big repair should be a planned reserve withdrawal, not an emergency bill mailed to every unit owner. That's the entire theory behind the 2022 law: Surfside made it obvious that decades of underfunded reserves and deferred structural maintenance can turn deadly, and Florida's legislature decided voluntary reserve funding wasn't working. See hoa special assessment for how these are calculated and noticed to owners.

how much should an hoa (or condo) have in reserves

There's no single dollar figure the state hands you. The honest answer is: whatever a qualified reserve study says your specific building needs, based on the actual age, materials, and remaining life of its components. What the law does mandate, for SIRS components in condos, is that reserves be funded at 100 percent of the amount the study calculates, no discretion to underfund. That's a change from the old system, where boards could vote to fund at 50 percent, 25 percent, or zero, as long as owners approved it each year. For everything outside the SIRS categories (things like landscaping, painting that isn't part of waterproofing, recreational amenities), Chapter 718 still allows some board flexibility, though many attorneys advise funding those close to 100 percent too, since underfunded non-SIRS reserves just shift the same problem into a future special assessment. As a rough industry benchmark (not a legal standard), reserve professionals often look at a "percent funded" ratio, current reserve balance divided by the fully funded balance. National reserve-study associations have historically flagged anything under roughly 30 percent funded as a red flag for special-assessment risk, though this is an industry rule of thumb, not a Florida statutory threshold, so treat it as a gut check rather than a legal target.

how much does a reserve study cost

Basic reserve study (non-SIRS)	Cosmetic + mechanical components	$3,000-$8,000
Full SIRS	Structural, life-safety components, engineer-stamped	$6,000-$15,000+
Combined milestone inspection + SIRS	Structural inspection plus reserve funding plan	Varies, often discounted vs. separate engagements	*Ranges are industry estimates from reserve-study and engineering firms, not state-set fees. Get local quotes; coastal, high-rise, and older buildings generally cost more to inspect.

Cost depends heavily on building size, number of components, and whether you're getting a basic reserve study or a full SIRS with an engineer's stamped inspection. Industry sources and reserve-study firms commonly cite a range of roughly $3,000 to $15,000+ for a standalone reserve study on a mid-size condo building, with large or structurally complex properties running higher. A SIRS, because it legally requires inspection by a licensed engineer or architect under section 718.112(2)(g), tends to cost more than a basic reserve study covering only cosmetic items, since you're paying for a professional's stamped structural assessment, more than a spreadsheet. ^[2] DBPR does not publish a fixed statewide fee schedule for reserve studies (pricing is set by the private firms and licensed professionals who perform them), so get at least two or three quotes from firms with Florida-licensed engineers or reserve specialists before committing. Ask what's included: physical inspection, funding plan, and whether the milestone inspection and SIRS are being bundled or billed separately, since some firms will do both visits at once and save you a trip charge. | Study type | Typical scope | Rough cost range* |

who has to do a sirs and by when

Florida condo associations with buildings 3 stories or higher must complete a SIRS, and the deadline that actually bites is the funding requirement: full reserve funding for SIRS components is required starting with the first fiscal year that begins on or after December 31, 2024. ^[2] The inspection portion (the SIRS study itself) generally needed to be completed by December 31, 2024, for buildings required to do a milestone inspection, per the statute's phase-in schedule, though DBPR and legislative updates in 2023 and 2024 adjusted some deadlines and added limited relief for associations that had a study underway. ^[3] Because the legislature has amended these dates more than once since 2022, don't rely on a blog post (including this one) for your building's exact deadline. Confirm the current deadline with your association's counsel, your local building department, and DBPR's condominium division guidance. Milestone structural inspections, the separate but related requirement, apply to buildings 3 stories or more and are generally due by the 30th year after the certificate of occupancy (25th year if the building is within 3 miles of the coast), and every 10 years after that. ^[4] See our milestone-inspections hub for the age and coastal-distance triggers in detail.

can a board still waive or reduce reserves

For SIRS components, no. That's the core change. Once a SIRS is completed, the board cannot put a question to owners asking to waive or underfund those specific reserve line items, full stop, per section 718.112(2)(g). ^[2] This is a real shift from pre-2022 practice, where an annual membership vote to waive reserves entirely was routine at plenty of Florida condos, especially older, smaller associations trying to keep monthly fees low. Boards that built budgets around waived reserves for years are now facing sudden jumps in monthly assessments, or special assessments, to catch up. For reserve items outside the SIRS list, some limited board and membership discretion remains under Chapter 718, but that flexibility has also narrowed compared to the pre-Surfside statute. Talk to your association's counsel about exactly what's still waivable in your specific declaration and fiscal year, since transition rules have moved more than once.

are hoa special assessments tax deductible

Generally, no, not for the individual homeowner claiming a personal income tax deduction, and this isn't specific to Florida. The IRS treats special assessments the same way it treats regular HOA dues for a primary residence: they're generally a nondeductible personal expense. ^[5] There are narrow exceptions. If you rent out the unit as investment or rental property, special assessments and regular dues are typically deductible as ordinary business expenses against rental income, subject to normal IRS rules on capital improvements versus repairs. If the special assessment funds a capital improvement (like a full structural restoration) on a rental property, it may need to be capitalized and depreciated rather than deducted immediately, similar to how you'd treat a major roof replacement. ^[5] This is a tax question, not a condo-law question, so run your specific numbers by a CPA rather than relying on general guidance. IRS Publication 527 covers residential rental property deductions if you want the primary source. ^[5]

what happens if a board ignores the reserve or milestone deadlines

Consequences range from financial exposure to, in the worst cases, safety risk that's exactly what the 2022 law was written to prevent. Boards that miss milestone inspection or SIRS deadlines can face local building official enforcement, potential unsafe structure declarations, and real liability exposure for individual directors if they knowingly ignored a known structural problem. Financially, an association that fails to fund SIRS reserves on schedule doesn't get to just skip it forever, the money still has to come from somewhere, usually a large special assessment landing all at once instead of years of smaller planned contributions. Lenders and buyers have also gotten more careful: Fannie Mae and Freddie Mac added condo project review requirements tied to reserve funding and structural inspection status, so associations behind on SIRS or milestone compliance can find their units harder to finance or sell. This is also where organizing the paperwork actually matters, more than having it done. A board that can produce its SIRS report, its funding schedule, its milestone inspection status, and its reserve account records on demand, for lenders, for owners at annual meetings, for county building officials, is in a much better spot than a board scrambling to reconstruct a timeline from email threads. That's the specific gap our $199 Building-Specific Board Compliance Kit is built to close: it organizes the SIRS, milestone, and reserve documentation and deadlines your specific building type needs, it doesn't replace the licensed engineer or reserve specialist who has to actually do the inspection and study.

how do reserve studies and milestone inspections fit together

They're related but legally distinct requirements, and boards often confuse them or assume one satisfies the other. It doesn't. The milestone inspection is a structural safety inspection performed by a licensed engineer or architect, resulting in a report on the building's structural condition, required at year 25 or 30 depending on coastal proximity, and every 10 years after. ^[4] The SIRS is a reserve funding study, it looks at the same categories of structural components but produces a financial plan, not a safety verdict. Many firms now offer to do both assessments in a single site visit, since an engineer walking the property for a milestone inspection is looking at a lot of the same components a SIRS needs (roof, structure, waterproofing). That can genuinely save money and scheduling headaches, but confirm the deliverable actually satisfies both statutory requirements, since a milestone inspection report and a SIRS report have different required contents under Chapter 718. See reserve study for condo association for how the two documents typically get bundled, and check whether recent legislative relief provisions (some associations got limited timeline flexibility) apply to your building; our florida condo reserve fund relief piece covers what relief has actually passed versus what's been proposed and failed.

Frequently asked questions

What is a reserve study?

A reserve study is a professional report, combining a physical inspection of a building's major components with a financial funding plan, that tells a condo or HOA how much money it needs in reserve accounts to pay for future repairs and replacements without a surprise special assessment.

What is a reserve study for an HOA?

For an HOA, a reserve study works the same way as for a condo: it inventories major shared components and projects how much money the association should set aside each year. Florida's mandatory SIRS law applies to condos under Chapter 718, not HOAs under Chapter 720, though many HOAs with multi-story buildings do studies voluntarily or under their declaration.

What is an HOA assessment?

An HOA assessment is a fee the association charges owners to fund operations and reserves. Regular assessments are the recurring dues billed monthly or quarterly. Special assessments are one-time charges for expenses reserves didn't fully cover, like a roof replacement or structural repair identified by a milestone inspection.

How much should an HOA have in reserves?

There's no single statewide dollar figure; it depends on what a qualified reserve study finds for your specific building's components and remaining useful life. For Florida condo SIRS components, the law now requires funding at 100 percent of the study's calculated amount, with no board discretion to underfund those categories.

How much does a reserve study cost?

Industry pricing commonly runs roughly $3,000 to $8,000 for a basic reserve study and $6,000 to $15,000 or more for a full SIRS requiring a licensed engineer's structural inspection, per reserve-study and engineering firm estimates. Cost scales with building size, component count, and complexity. Get several local quotes.

Are HOA special assessments tax deductible?

Generally no, for a personal residence, per IRS guidance treating HOA dues and special assessments as nondeductible personal expenses. If the property is a rental, special assessments may be deductible as a business expense or required to be capitalized if they fund a capital improvement. Confirm treatment with a CPA.

What buildings need a SIRS in Florida?

Florida condominium buildings that are 3 stories or higher generally must complete a structural integrity reserve study under Florida Statutes section 718.112, with full funding of SIRS-covered reserves required starting with fiscal years beginning on or after December 31, 2024. Confirm your building's exact deadline with counsel, since amendments have shifted dates before.

Can a condo board still vote to waive reserves?

Not for components covered by a completed SIRS. Section 718.112(2)(g) removed the board and membership's ability to waive or underfund SIRS reserve line items. Reserves outside the SIRS categories may still have some limited flexibility, depending on the specific fiscal year and any transition provisions; check with counsel.

What's the difference between a milestone inspection and a SIRS?

A milestone inspection is a structural safety inspection by a licensed engineer or architect, due at year 25 or 30 depending on coastal proximity, producing a safety report. A SIRS is a reserve funding study covering similar structural categories but producing a financial plan, not a safety determination. Both can sometimes be scheduled together.

Why did Florida pass the new condo reserve law?

The law (SB 4-D, 2022, later amended by SB 154 and HB 1021) followed the June 2021 Champlain Towers South collapse in Surfside, which killed 98 people. It was widely linked to years of deferred maintenance and underfunded reserves, prompting the legislature to end voluntary reserve waivers for structural components statewide.

Does the new reserve law apply to HOAs or only condos?

It applies to condominiums under Florida Statutes Chapter 718. Homeowners associations under Chapter 720 aren't covered by the SIRS or milestone inspection mandates, though HOAs with attached multi-story buildings or governing documents requiring periodic reserve studies may face similar practical obligations regardless.

What happens if my association misses the SIRS or reserve funding deadline?

Consequences can include local building official enforcement action, difficulty financing or selling units since Fannie Mae and Freddie Mac review condo project reserve and inspection status, and eventual larger special assessments once deferred structural work can no longer wait. Individual directors can also face liability for knowingly ignoring known issues.

Sources

1. Florida Senate, Florida Statutes section 718.103: Definition of structural integrity reserve study (SIRS) covered components
2. Florida Senate, Florida Statutes section 718.112: Board may not waive or underfund reserves for SIRS components once study is complete
3. Florida DBPR, Division of Condominiums, Timeshares, and Mobile Homes: DBPR oversight of condominium SIRS and milestone inspection compliance guidance
4. Florida Senate, Florida Statutes section 553.899: Milestone inspection required at 30 years (25 years if within 3 miles of coast) and every 10 years after
5. Internal Revenue Service, Publication 527, Residential Rental Property: Tax treatment of HOA dues and special assessments for personal residences versus rental property
6. Florida Senate: Statutory provisions governing transition of association control and related reserve funding obligations for condominiums
7. Florida Senate: HOA governance requirements including budgeting, reserve accounts, and special assessment procedures
8. Florida Department of Business and Professional Regulation: State guidance on milestone inspection requirements and deadlines for condominium buildings
9. IRS: IRS guidance on deductibility of homeowner association assessments and special assessments