Last updated 2026-08-14
TL;DR
A reserve study is an engineer or reserve specialist's forecast of when your building's major components will need repair or replacement, and how much money you need saved for it. In Miami-Dade, Florida law (F.S. 718.112 and 718.103) now ties this to the SIRS requirement for condos 3+ stories. Studies typically cost $3,000 to $15,000+ depending on building size.
What is a reserve study?
A reserve study is a report, usually prepared by an engineer or a reserve specialist, that inventories a building's major shared components (roof, elevators, structure, plumbing, paving, pool, seawalls) and estimates two things: how many years of useful life each component has left, and what it will cost to repair or replace it. The report then translates that into a savings schedule, essentially a multi-year budget, so the association isn't caught flat-footed when the roof hits year 25 and needs $400,000 it doesn't have. In Florida, this concept got a lot more teeth after the Champlain Towers South collapse in Surfside in June 2021. The legislature responded with SB 4-D (2022) and later SB 154 (2023), which created a new mandatory version of the reserve study called the Structural Integrity Reserve Study, or SIRS, for condo and cooperative buildings three stories or higher. That's codified at Florida Statutes section 718.112(2)(g) [1]. A basic reserve study and a SIRS are related but not identical. A standard reserve study can cover almost anything the board wants tracked, paint, carpet, furniture. A SIRS is narrower and mandatory: it must cover specific structural and life-safety items listed in the statute, roof, load-bearing walls, primary structural members, floor and foundation, fireproofing and fire protection systems, plumbing, electrical, waterproofing, and windows and exterior doors, among others [1]. If your Miami building is 3 stories or taller, you need the SIRS version, more than any generic reserve study, and it has to be done by a licensed engineer or architect under section 718.112(2)(g)2 [1]. For buildings near Miami's coast, that structural list matters more than it might inland. Salt air, storm surge exposure, and higher humidity accelerate corrosion in rebar and steel connectors, which is exactly the kind of deterioration a SIRS inspector is trained to flag before it becomes a Milestone Inspection finding of "substantial structural deterioration."
What is a reserve study for an HOA (versus a condo)?
Homeowners associations (HOAs), meaning single-family and townhome communities governed by Chapter 720, are treated differently under Florida law than condos under Chapter 718. HOAs are not currently subject to the mandatory SIRS requirement, that's a condo- and co-op-specific mandate tied to buildings 3 stories or more [1]. An HOA can still choose to do a voluntary reserve study, and many do, especially communities with shared structural elements like clubhouses, parking garages, or elevated walkways. For an HOA, a reserve study serves the same basic function: inventory the shared components the association is responsible for (roofs on common buildings, pools, gates, roads if privately owned, drainage systems), estimate remaining life, and build a funding plan. The difference is legal, not practical. An HOA board that skips a reserve study isn't violating a state mandate the way a condo board of a 3+ story building would be. But it's still taking on real financial risk if a shared roof fails and there's no reserve money and no plan for a special assessment. If you're on an HOA board wondering whether you need one, the honest answer is: not required by statute in most cases, but strongly advisable if you own or maintain any building over 2 stories, a garage, or major infrastructure. See our hoa reserve study guide for what a voluntary HOA study should cover and how to scope it.
How much does a reserve study cost in Miami?
| Small condo (under 20 units, no elevator) | $2,500 - $5,000 | |
|---|---|---|
| Mid-size condo (20-75 units, 3-10 stories) | $5,000 - $10,000 | |
| High-rise (10+ stories, elevators, garage) | $10,000 - $20,000+ | |
| Full-service SIRS with structural site visit | Add $3,000 - $10,000+ to above, depending on square footage | These are planning ranges, not quotes. Get at least two proposals from Florida-licensed engineers or reserve specialists before you sign, and confirm scope: some "reserve study" quotes are financial-only and won't satisfy your SIRS obligation. |
Cost depends heavily on building size, number of components tracked, and whether you need a full SIRS (which requires an engineer's site visit and structural assessment) versus a basic financial-only reserve study. Industry estimates and reporting from reserve specialists and community association publications generally put full reserve studies in the range of $3,000 to $15,000 or more for a single condo building, with larger high-rises and multi-building complexes running higher [2]. A SIRS specifically requires a licensed engineer or architect to conduct a visual inspection of the structural components listed in section 718.112(2)(g), which typically costs more than a desktop financial reserve update because it requires an in-person site visit similar in scope to portions of a Milestone Inspection [1]. Some firms bundle the Milestone Inspection (required at 30 years, or 25 years for coastal Miami-Dade and Broward buildings under section 553.899) with the SIRS site visit to save the association a second inspection fee, since both require similar structural review. Ask your engineer directly whether they can combine these. Here's a rough range by building size, based on typical reserve-study industry pricing reported by community association management sources: | Building type | Typical reserve study cost range |
What is an HOA (or condo) special assessment?
A special assessment is a one-time (or sometimes installment) charge a board levies on owners, above and beyond regular monthly dues, to cover a cost the reserve fund doesn't have enough money to pay. Boards use special assessments when reserves are underfunded, when an unexpected repair comes up (a burst pipe, storm damage), or, increasingly in Florida, when a Milestone Inspection or SIRS reveals structural work that has to happen now. Florida condo associations get their authority to levy special assessments from the association's declaration and from Chapter 718, generally section 718.112(2)(c) governing budgets and assessments and section 718.116 on assessment liability [3]. The amount isn't capped by state statute in the way property tax increases might be; a board can levy whatever the documents and a proper board vote authorize to cover a real, documented expense. That's exactly why reserve studies matter: a well-funded reserve is the alternative to a large surprise special assessment. Miami has already seen this play out publicly. After the 2022 and 2023 reserve law changes, associations across Miami-Dade and Broward that had been underfunding reserves for decades faced special assessments in the tens of thousands of dollars per unit to catch up, particularly older buildings near the coast with deferred structural maintenance. If your board is staring down a SIRS or Milestone finding with no reserve cushion, read our hoa special assessment breakdown on how boards structure these, and consider whether condo special assessment insurance products (a newer, still-limited market) make sense for your building.
How much should a condo or HOA have in reserves?
There's no single statewide dollar figure, because the right reserve level depends entirely on your building's specific components, their age, and their replacement cost, which is the whole point of doing a reserve study instead of guessing. But Florida law now gives a clear floor for condos: as of the 2022 and 2023 reserve reforms, condo associations 3+ stories can no longer vote to waive or reduce reserves for the structural components covered by the SIRS, starting with the funding cycle after December 31, 2024 [1]. Full funding based on the SIRS component list became mandatory. That's a real change from the old rules, where owners could vote year after year to underfund or waive reserves entirely, which is a big part of how so many older Miami buildings ended up structurally sound on paper but financially unprepared. Florida's Division of Condominiums, Timeshares, and Mobile Homes under DBPR (Department of Business and Professional Regulation) is the state agency that oversees condo association compliance and financial reporting requirements. As a rough planning heuristic (not a legal standard), reserve specialists often suggest funding reserves to at least 50-70% of the "fully funded" level calculated by the reserve study, meaning the ratio of actual reserve cash on hand to the ideal balance given component age and depreciation. Below 30% fully funded is generally considered a red flag that a special assessment is more likely within the next few years. Your reserve study will calculate your specific fully-funded balance and percent-funded ratio; that number, not a generic rule of thumb, is what your board should budget against. For background on how the 2022-2023 law changed funding obligations and what relief options (if any) exist, see florida condo reserve fund relief.
What are HOA assessments (regular vs. special)?
"HOA assessment" and "condo assessment" both just mean the fees owners pay the association. There are two kinds. Regular (or annual/monthly) assessments are the recurring dues set in the yearly budget, covering operating costs (insurance, landscaping, management, utilities) and the reserve contribution. Special assessments are one-time or limited-duration charges for something the regular budget and reserves didn't cover. For condos, section 718.112(2)(c) requires the board to adopt an annual budget and, since the 2022-2023 reforms, requires that budget include full reserve funding for SIRS-covered components (again, no more waiving those specific reserves for 3+ story buildings) [1] [1]. Owners can still vote to waive reserves for non-structural items outside the SIRS scope, in some circumstances, depending on the specific governing documents; confirm with your association's counsel exactly what your documents currently allow, since this is an area where the statute has changed multiple times since 2022. For HOAs under Chapter 720, assessment rules are generally set by the governing documents (declaration, bylaws) rather than a uniform statutory reserve mandate, though Chapter 720 does have its own budget and assessment notice requirements under section 720.303 [4]. If you're unsure whether your community is legally a condo association (718), HOA (720), or cooperative (719), that governs which statute controls your assessment authority, and it's worth confirming with counsel before you assume one chapter's rules apply.
Are HOA or condo special assessments tax deductible?
Generally, no, not for the individual owner living in the unit as a primary residence. The IRS treats regular HOA and condo assessments, and special assessments, as nondeductible personal living expenses in most cases, similar to how you can't deduct your own home repair costs [5]. There are two situations where the tax treatment can shift. First, if you rent out the unit as investment or rental property, special assessments may be deductible as a rental expense, or may need to be capitalized and depreciated over time if the assessment funds a capital improvement (like a new roof or structural repair) rather than a routine repair; this is a real distinction the IRS draws in its rules on repairs versus improvements to rental property [6]. Second, if a special assessment specifically funds casualty-loss repairs tied to a federally declared disaster, there may be a partial tax angle, but this is a narrow and fact-specific area. This isn't tax advice, and the correct treatment depends on your occupancy status, whether the assessment funds a capital improvement or a repair, and your personal tax situation. Talk to a CPA, especially in a high-assessment year. Don't assume a $40,000 SIRS-related special assessment on your primary residence is deductible; for most owner-occupants, it isn't.
How is a Miami reserve study different from other parts of Florida?
The legal requirements (SIRS under section 718.112(2)(g), Milestone Inspections under section 553.899) are statewide, but Miami-Dade and Broward counties have their own older, county-specific building recertification programs that predate the 2022 state law and still run in parallel. Miami-Dade's 40-year recertification program, and its follow-up 10-year recertifications after that, has existed since the 1970s under county code, separate from and older than the state's newer Milestone Inspection statute [7]. This is exactly why Florida's Milestone Inspection statute sets the trigger at 30 years for most of the state, but 25 years for buildings within 3 miles of the coastline in Miami-Dade and Broward counties specifically, under section 553.899(2) . A huge share of Miami's condo stock, especially barrier island and coastal buildings, falls into that 25-year bucket. If your building is in unincorporated Miami-Dade or a Miami-Dade municipality, check with your local building department on whether the county's own 40-year recert cycle applies on top of the state Milestone/SIRS requirements; in many cases both apply and the inspections can sometimes be coordinated together. Practically, this means Miami boards often juggle three overlapping obligations at once: the state Milestone Inspection, the state SIRS, and a county recertification cycle. Getting one engineer to scope and (where possible) combine site visits for all three can save real money versus paying for three separate inspections.
Who can legally perform a reserve study or SIRS in Florida?
For the structural components covered by the mandatory SIRS, Florida law requires the inspection be performed by a licensed engineer or architect, per section 718.112(2)(g)2 [1]. DBPR's Division of Condominiums, Timeshares, and Mobile Homes provides guidance and licensing verification for professionals working with associations, and boards can confirm a professional's license status through the Florida Department of Business and Professional Regulation's license search. For the non-structural, financial-only portions of a broader reserve study (furniture, paint schedules, non-structural equipment), Florida doesn't require the same engineer/architect credential, and many associations use reserve specialists (some hold the Reserve Specialist, or RS, designation from the Community Associations Institute) for that side of the work. But don't let a financial-only reserve specialist sign off on your SIRS structural components; that part legally has to be an engineer or architect. Your board's job isn't to do the inspection yourself, it's to hire the right licensed professional, get the report on time, and then actually act on it: budget the reserves, schedule the follow-up repairs, and keep owners informed. That last part, organizing deadlines and required owner notices, is where a lot of boards fall behind even after a good report lands on the table. If your board wants a structured way to track your building's specific SIRS, Milestone, and reserve deadlines in one place, the $199 Board Compliance Kit organizes those dates and required notices by your building's age, height, and county, it doesn't replace your engineer's report, but it keeps the board from missing what the report requires you to do next.
What happens if a Miami board skips or delays the reserve study?
For condos 3+ stories, skipping the SIRS isn't really optional anymore; it's a statutory requirement under section 718.112(2)(g), and the association's own annual financial reporting to DBPR can reflect noncompliance [1]. Beyond the legal exposure, the practical risk is bigger: without a current reserve study, the board has no defensible basis for its reserve budget, no early warning on failing components, and no data to justify (or resist) a special assessment when something breaks. Delaying also tends to compound. A 25-year-old Miami coastal building that skips its reserve study and its Milestone Inspection prep work often finds out about a structural problem only when the Milestone engineer flags "substantial structural deterioration" during the mandatory inspection, at which point repairs become urgent and expensive rather than planned and budgeted. Florida's Milestone statute requires that if substantial structural deterioration is found, a more detailed Phase Two inspection and repair plan follow within statutory timeframes, which almost always costs more, and takes longer, than proactive reserve funding would have . Boards that get ahead of it, meaning they order the SIRS on schedule, fund reserves against the actual findings, and keep owners informed early, generally end up with smaller, more predictable special assessments instead of the six-figure emergency versions that make headlines. See reserve study for condo association and reserve study for the mechanics of getting one scheduled and funded correctly.
Frequently asked questions
What is a reserve study?
A reserve study is a professional assessment (by an engineer or reserve specialist) of a building's major shared components, their remaining useful life, and replacement cost, translated into a multi-year savings plan. In Florida, condos 3+ stories must get a Structural Integrity Reserve Study (SIRS) covering specific structural items, under Florida Statutes section 718.112(2)(g).
What is a reserve study for an HOA?
For HOAs (Chapter 720 communities), a reserve study is generally voluntary, unlike the mandatory SIRS for condos 3+ stories under Chapter 718. It still inventories shared components like clubhouses, pools, and roads, and builds a funding plan, but there's no statewide statutory mandate requiring it for most HOAs.
How much does a reserve study cost in Florida?
Typical reserve studies run $2,500 to $10,000 for smaller condos and $10,000 to $20,000+ for larger high-rises, based on industry pricing reported by reserve-study firms. Adding a mandatory SIRS structural site visit by a licensed engineer can add several thousand dollars more, depending on building size and complexity.
What is an HOA assessment?
An HOA assessment is any fee an association charges owners: regular assessments cover recurring budgeted costs (insurance, maintenance, reserves), while special assessments are one-time or limited charges for costs the regular budget or reserves don't cover, like an unfunded roof replacement or storm repair.
How much should an HOA or condo have in reserves?
There's no single statewide dollar amount; it depends on your building's specific components and their replacement costs, calculated by your reserve study. For Florida condos 3+ stories, SIRS-covered structural reserves can no longer be waived or underfunded starting with funding cycles after December 31, 2024, under section 718.112(2)(g).
Are HOA or condo special assessments tax deductible?
Generally no, for owner-occupants they're treated as nondeductible personal expenses by the IRS. If the unit is a rental property, the assessment may be deductible as an expense or depreciated as a capital improvement, depending on what it funds. Talk to a CPA about your specific situation.
What's the difference between a reserve study and a SIRS?
A reserve study can cover any component the board chooses to track (paint, furniture, roofs). A SIRS is a narrower, mandatory version for Florida condos 3+ stories, covering only the specific structural and life-safety components listed in section 718.112(2)(g), and it must be performed by a licensed engineer or architect.
Do HOAs in Florida have to do a SIRS?
No. The SIRS requirement under section 718.112(2)(g) applies to condominium and cooperative associations with buildings 3 stories or higher, not to HOAs governed by Chapter 720. HOAs can still choose to commission a voluntary reserve study for shared structural components.
Who is qualified to do a reserve study or SIRS in Miami?
For the structural components in a SIRS, Florida law requires a licensed engineer or architect. Non-structural financial reserve planning can be done by a reserve specialist without that specific license. You can verify a professional's license through Florida DBPR's license search.
What happens if my Miami condo doesn't have enough in reserves?
The board typically has to levy a special assessment to cover the shortfall for needed repairs, since Florida law no longer allows condos 3+ stories to waive SIRS-covered structural reserves. Underfunded buildings, especially older coastal Miami properties, have faced special assessments running into tens of thousands of dollars per unit.
Is Miami's 40-year recertification the same as the state Milestone Inspection?
No, they're separate but often overlapping. Miami-Dade's 40-year recertification is a county program dating to the 1970s. The state's Milestone Inspection statute (section 553.899) sets a 30-year trigger statewide, or 25 years for coastal buildings in Miami-Dade and Broward. Many Miami buildings must satisfy both.
Can a Florida condo board still vote to waive reserves?
For SIRS-covered structural components in condos 3+ stories, no, that waiver option was eliminated for funding cycles starting after December 31, 2024, under the 2022-2023 reserve law reforms. Waivers for non-structural reserve items may still be possible depending on your specific governing documents; confirm with your association's counsel.
Sources
- Florida Senate, Florida Statutes section 718.112: SIRS requirement, covered structural components, and licensed engineer/architect requirement for condos 3+ stories
- Florida DBPR, Division of Condominiums: State oversight of condo association reserve and financial reporting compliance
- Florida Senate, Florida Statutes section 718.116: Assessment liability provisions for condo associations
- Florida Senate, Florida Statutes section 720.303: HOA budget and assessment notice requirements under Chapter 720
- Internal Revenue Service, Publication 530: Tax treatment of homeowner association assessments for owner-occupied residences
- Internal Revenue Service, Tangible Property Regulations FAQ: Distinction between deductible repairs and capitalized improvements for rental property
- Florida Senate, Florida Statutes section 553.899: Milestone Inspection triggers at 30 years statewide, 25 years for coastal buildings in Miami-Dade and Broward