Miami condo law firms, reserve studies, and budgeting basics

Last updated 2026-08-14

What is a reserve study?

A reserve study is a physical inspection and financial projection, done by a qualified provider, that tells a condo or HOA board what its major common-area components cost to replace, when they'll need replacement, and how much money the association should be setting aside now. Think of it as two documents in one: an engineering assessment of remaining useful life for things like roofs, pavement, elevators, and building envelope, and a funding plan that spreads the cost over years instead of hitting owners with a surprise bill. In Florida, reserve studies got a lot more teeth after the Surfside collapse in 2021. The legislature passed SB 4-D in 2022 and refined it with SB 154 in 2023, creating what's now called a Structural Integrity Reserve Study (SIRS) under section 718.112(2)(g), Florida Statutes ^[1]. A SIRS is not optional paperwork. It's a statutorily defined study, performed by a licensed engineer or architect, covering specific structural components: roof, load-bearing walls, floor, foundation, fireproofing and fire protection systems, plumbing, electrical, waterproofing, exterior painting, windows, and any other item that exceeds $10,000 in deferred maintenance expense and affects a building's ability to withstand loads ^[1]. A condo law firm doesn't perform the study. Engineers and architects do that under their own licensing boards. What a law firm does is tell the board what the study's findings mean for governing document amendments, funding disclosures to owners, board minutes, and the annual budget vote. Boards that skip the legal layer often get the engineering right and the paperwork wrong, which is where lawsuits and DBPR complaints tend to start.

What is a reserve study for an HOA?

For homeowners' associations (single-family and townhome communities governed by chapter 720, F.S.), a reserve study works the same way conceptually but the legal requirements differ from condos. HOAs are not currently subject to the SIRS mandate; that's a condo-specific requirement under section 718.112(2)(g) ^[1]. HOAs still must maintain reserve accounts for items the board is required to maintain if the declaration or bylaws call for reserves, and many Florida HOAs voluntarily commission reserve studies to avoid special assessments. An HOA reserve study generally looks at roads, drainage, pool structures, clubhouse roofs, fencing, and irrigation systems rather than the structural components a condo SIRS covers. If your community has both condo buildings and a master HOA (common in Miami-Dade and Broward high-rises with amenity decks), you may need both a condo SIRS for the building and a separate reserve study for HOA-owned common property. A reserve study for condo association buildings is legally distinct from an hoa reserve study, and boards sitting on both should not assume one document satisfies both obligations.

What is an HOA assessment (and what is a condo assessment)?

An assessment is the fee an association charges owners to fund operations and reserves. There are two kinds. Regular assessments are the recurring monthly or quarterly dues set in the annual budget. Special assessments are one-time or short-term charges levied when the association needs money the regular budget and reserves don't cover, usually because of an unexpected repair, an insurance shortfall, or a reserve funding gap identified in a SIRS. Under section 718.112(2)(f), Florida Statutes, the board must adopt an annual budget that includes reserve accounts for capital expenditures and deferred maintenance, and for buildings subject to SIRS, those reserve line items become non-waivable for the components covered by the study, effective for fiscal years beginning on or after December 31, 2024 ^{[1] [2]}. In plain terms: pooling reserves and voting to waive or reduce them, a common practice pre-Surfside, is no longer allowed for SIRS components in most condo associations once that funding requirement kicks in. This is exactly the moment boards call a condo law firm. The vote to approve a budget that fully funds SIRS reserves, versus one that doesn't, has real legal exposure attached to it now. A firm that handles Miami-Dade and Broward condo work daily will tell you whether your declaration allows any flexibility on timing, and whether your board resolution language will hold up if an owner challenges the assessment.

How much should a condo or HOA have in reserves?

There's no single dollar figure that applies to every building; it depends entirely on the age, size, and condition of your structural and mechanical components, which is the whole point of doing a study rather than guessing. That said, the industry has some useful benchmarks. The Community Associations Institute (CAI), the leading national trade group for association management, has published guidance suggesting healthy reserve funds should be funded at 70% or more of the fully funded balance to avoid special assessments, though many associations run well below that ^[3]. For SIRS-covered components in Florida condos, the statute itself now sets the floor: reserves for those items must be funded at the level the study recommends, with no waiver or reduction allowed by membership vote for the structural line items listed in 718.112(2)(g) ^[1]. A rough way to sanity-check your numbers: take each major component's current replacement cost, divide by its remaining useful life in years, and that's roughly what you should be setting aside annually for that item alone, before inflation and contingency. A 40-year-old roof with a 15-year remaining life and a $600,000 replacement cost needs about $40,000 a year going into that specific reserve line, not folded into a general pot. If your last budget cycle didn't break reserves out by component like this, that's a red flag worth raising with your engineer and your attorney at the same time.

How much does a reserve study or SIRS cost?

Small HOA (non-condo, under 20 units)	$2,500-$6,000	Not SIRS-required; voluntary
Mid-size condo, 3-10 stories	$5,000-$12,000	SIRS required if 3+ stories
High-rise condo, 10+ stories	$12,000-$25,000+	Multiple structural systems, more inspection time
Milestone inspection (Phase 1)	$10,000-$20,000	Required at 25 or 30 years per 553.899
Milestone inspection (Phase 2, if triggered)	$15,000-$50,000+	Only if Phase 1 finds substantial deterioration	These numbers move with market conditions and engineer availability, which tightened noticeably in Miami-Dade and Broward after the 2024 SIRS deadline pushed thousands of associations to book inspections at once. Get at least two bids from licensed engineers or architects [1], and don't assume the cheapest bid gets you a study that will hold up if a lender or buyer's attorney scrutinizes it during a unit sale.

Costs vary widely by building size, number of components, and whether you're doing a first-time SIRS or an update. Realistic ranges reported across Florida engineering firms and property management associations run from roughly $3,000 for a small, simple building's basic reserve study up to $20,000 or more for a large high-rise SIRS covering a dozen-plus structural components across multiple buildings ^[4]. Milestone structural inspections, which are separate from SIRS but often bundled by the same engineering firm, add their own cost, commonly in the $10,000 to $30,000-plus range depending on square footage and building height under section 553.899, F.S. ^[5]. Here's a rough cost table based on commonly cited ranges from Florida engineering and management industry sources: | Building type | Reserve study / SIRS cost range | Notes |

Are HOA and condo special assessments tax deductible?

Generally, no, not for individual unit owners paying regular income tax, and this trips up a lot of board members who get asked the question by frustrated owners. The IRS treats special assessments for capital improvements to the building similarly to how it treats the cost basis of the unit itself: they're typically added to your cost basis in the property rather than deducted as a current expense, which matters when you eventually sell ^[6]. There are narrow exceptions. If part of your unit is used for a qualifying home office or you own the unit as a rental property, a portion of a special assessment tied to repairs (not capital improvements) may be deductible as a business expense in the year paid, per general IRS rules on repairs versus improvements under IRS Publication 527 for rental property ^[7]. This is genuinely a question for a CPA, not your condo board attorney and not your property manager. Boards should never advise owners on the tax treatment of an assessment; that's outside your role and outside your liability protection.

What does a condo law firm actually do that an engineer doesn't?

Engineers and architects perform the physical study: they inspect the roof, walk the parking garage, test concrete, and write the technical report with remaining useful life estimates and funding recommendations. That's licensed work under Florida's engineering and architecture boards, and it has to stay with those professionals. A law firm's job starts after the report lands on the board's desk. A condo-focused firm in Miami will typically help with: drafting or reviewing the board resolution adopting the SIRS funding schedule, advising on whether a proposed special assessment notice meets the 14-day mailing and posting requirements under section 718.112(2)(c), F.S. ^[1], reviewing contractor agreements for the actual repair work once reserves or assessment funds are collected, and defending the board if an owner sues over assessment amounts or claims the board breached its fiduciary duty by underfunding reserves. The firms most active in this space in Miami-Dade and Broward tend to be full-service community association law practices, the kind that show up on the Florida Bar's condo and HOA committee rosters and speak regularly at CAI Florida chapter events. This article isn't a ranking of specific firms (rankings like that go stale fast and vary by building type and dispute history), but when you're vetting one, ask directly: how many SIRS-related budget disputes have you handled since the 2024 deadline, and can you show me a sample board resolution language you've used for a non-waivable reserve line item?

What's the actual SIRS deadline and does it still apply in 2025 and beyond?

The original deadline for condo and cooperative buildings three stories or more in height to complete their first SIRS was December 31, 2024, under section 718.112(2)(g), F.S. ^[1]. That deadline has passed. If your association hasn't completed its SIRS, you're already out of compliance and should be talking to your engineer and attorney immediately, not waiting for a renewed grace period. The legislature has continued adjusting related deadlines. SB 4-D and subsequent amendments gave some associations phased timelines for fully funding reserves, and DBPR's Division of Florida Condominiums, Timeshares, and Mobile Homes publishes updated guidance and FAQs on its site as the rules get clarified ^[4]. Because this area has changed twice in three years and will likely change again, confirm the current deadline and any local county extensions with your association's counsel before assuming last year's rule still applies.

How does milestone inspection timing interact with reserve study timing?

Milestone structural inspections (section 553.899, F.S.) and SIRS (section 718.112(2)(g), F.S.) are separate statutes but usually get triggered around the same building age and often get scheduled together for efficiency. Milestone inspections apply to buildings 3+ stories, due at 25 years from certificate of occupancy for buildings within 3 miles of the coastline, and 30 years for buildings farther inland, with recertification every 10 years after ^[5]. Many Miami-Dade and Broward engineering firms now bid milestone Phase 1 inspections and SIRS studies as a combined package, since the inspector is already walking the same roof, garage, and envelope. That's smart from a cost standpoint but doesn't mean the reports are legally interchangeable. A milestone inspection report and a SIRS report have different statutory content requirements and get filed with different local authorities. Your board needs both documents, filed correctly, and your management company or attorney should confirm both went to the right county building department, since Miami-Dade's process differs slightly from Broward's or Palm Beach's.

How should a board budget for reserves without overreacting or underreacting?

The instinct after a scary SIRS report is often to panic and propose a huge special assessment, or the opposite: to quietly hope the number is wrong and delay. Neither serves owners well. What works is treating the study as the floor for legally required reserves and then building a phased funding plan around it. Start by separating SIRS-mandated components (structural, non-waivable) from everything else in your budget (waivable by membership vote in many cases, subject to your declaration). Fund the SIRS items at 100% of the study's recommendation starting with your next fiscal year, per the statute's requirement ^{[1] [2]}. For non-SIRS reserves, CAI's national benchmark of aiming for at least 70% funded is a reasonable target if full funding isn't achievable in one cycle ^[3]. If the gap between current reserves and required funding is large enough to require a special assessment, spread it over multiple years where your documents and cash flow allow, rather than a single lump sum. Owners on fixed incomes in Miami's older condo stock (a lot of 1970s and '80s buildings along the coast) genuinely cannot absorb a $30,000 assessment in one year, and boards that try to force it often end up fighting delinquencies and foreclosure notices instead of collecting money. A board attorney experienced in Miami-Dade collections can tell you what payment plan structures actually hold up if owners default partway through.

Where do a $199 compliance kit and a law firm fit together?

They do different jobs and neither replaces the other. A licensed engineer performs your SIRS and milestone inspection. A condo law firm interprets what the results mean for your governing documents, drafts resolutions, and defends the board if something goes to litigation. Neither of those professionals typically tracks your filing deadlines, keeps your board's document folder organized, or reminds you three months out that your 10-year recertification is coming up. That's the gap a board compliance kit fills. BoardDeadline's $199 one-time Board Compliance Kit organizes your building's specific SIRS, milestone, and reserve deadlines into one schedule, tracks what's been filed and what's pending, and gives your board plain-language templates for the owner notices the statute requires. It doesn't replace your engineer's report or your attorney's legal opinion, and it won't tell you whether your specific building is compliant; that call belongs to your licensed professionals and counsel. What it does is make sure nothing falls through the cracks between the engineering report landing on your desk and the actual board vote six weeks later.

What happens if a board ignores SIRS or reserve requirements?

Consequences range from financial to legal to reputational, and Miami boards have seen all three since 2022. Financially, a building that hasn't funded reserves properly often can't get owners financed through Fannie Mae or Freddie Mac's condo lending guidelines, which now specifically ask lenders to check reserve funding status and deferred maintenance flags before approving mortgages in the building . That kills unit resale values fast, sometimes overnight once word gets around. Legally, board members who knowingly ignore a completed SIRS's funding recommendations can face breach of fiduciary duty claims from owners, particularly after a special assessment lands and someone asks why the board didn't act on findings from two years earlier. DBPR's Division of Florida Condominiums also has enforcement authority and can issue fines or corrective orders for associations that fail to complete required inspections and studies ^[4]. None of this is theoretical anymore in South Florida; it's the exact fact pattern from several ongoing disputes across Miami-Dade high-rises since the 2024 deadline passed.

Frequently asked questions

What is a reserve study?

A reserve study is a professional assessment of an association's major common-area components (roof, structure, mechanical systems) that estimates remaining useful life and replacement cost, then recommends annual funding levels. In Florida condos, the structural version is called a SIRS and is required by law under section 718.112(2)(g), F.S. for buildings 3+ stories.

What is a reserve study for an HOA?

For HOAs under chapter 720, F.S., a reserve study evaluates common property like roads, pools, and clubhouses rather than building structure. It's not currently mandated by Florida statute the way condo SIRS is, but many HOAs commission one voluntarily to avoid surprise special assessments and to set realistic dues.

What is an HOA assessment?

An HOA assessment is a fee charged to homeowners to fund the association's operations and reserves. Regular assessments are recurring dues set in the annual budget; special assessments are one-time charges for unexpected or underfunded expenses, such as a reserve shortfall found after a study.

How much should a condo or HOA have in reserves?

It depends on your specific components' age and replacement cost, which only a reserve study can determine accurately. As a benchmark, CAI recommends associations aim for at least 70% funded status to avoid special assessments; Florida condos with SIRS-covered structural components must now fund those at 100% of the study's recommendation with no waiver allowed.

How much does a reserve study cost in Florida?

Basic reserve studies for small associations run roughly $2,500 to $6,000. A full SIRS for a mid-size condo typically costs $5,000 to $12,000, and high-rise buildings with more structural components can run $12,000 to $25,000 or more. Get bids from at least two licensed engineers or architects.

Are HOA or condo special assessments tax deductible?

Generally no for a primary residence; special assessments for capital improvements usually get added to your cost basis rather than deducted currently. Rental property owners may deduct a portion tied to repairs under IRS rules for rental expenses. Always confirm with a CPA, not your board or property manager.

What's the deadline for a Florida condo's first SIRS?

The statutory deadline for the first Structural Integrity Reserve Study was December 31, 2024, for condo and cooperative buildings 3 stories or higher, under section 718.112(2)(g), F.S. If your building missed this, contact your engineer and association counsel immediately since the deadline has already passed.

Does an HOA need a milestone inspection too?

No. Milestone structural inspections under section 553.899, F.S. apply specifically to condominium and cooperative buildings 3 stories or more. Standalone HOA communities without a multi-story condominium building are not subject to this requirement, though local building codes may still require periodic inspections for specific structures like parking garages.

Can a condo board waive reserve funding for SIRS components?

No. Under current Florida law, reserves for the structural components identified in a completed SIRS cannot be waived or reduced by membership vote, unlike non-SIRS reserve items which may still be waivable depending on your declaration. Confirm the current rule with your association's counsel since this area has changed more than once since 2022.

What's the difference between a reserve study and a milestone inspection?

A milestone inspection (553.899, F.S.) is a structural safety check due at 25 or 30 years depending on coastal proximity, repeating every 10 years. A SIRS (718.112(2)(g), F.S.) is a financial and engineering study specifically for funding reserves on structural components. They're often scheduled together but are legally distinct documents.

How do I find a condo law firm in Miami that handles SIRS and reserve disputes?

Look for firms with dedicated community association practice groups, membership in the Florida Bar's Real Property, Probate and Trust Law section, and active participation in CAI's Florida chapters. Ask specifically about their experience with post-2024 SIRS funding disputes and special assessment challenges, more than general condo law experience.

What happens if my association can't afford full SIRS-required reserve funding?

Talk to your association's attorney about financing options, phased special assessments, or association loans, since simply not funding the required reserve line items isn't a legal option for SIRS components. Boards facing genuine hardship should document their efforts and get legal guidance before a fiscal year budget vote, not after.

Sources

1. Florida Senate, Florida Statutes section 718.112: Statutory requirements for SIRS, non-waivable structural reserves, and board budget/assessment notice rules
2. Florida Senate, Florida Statutes section 718.301: Fiscal year and funding timeline references for SIRS compliance
3. Community Associations Institute, Reserve Funding Best Practices: 70% funded benchmark recommendation to avoid special assessments
4. Florida DBPR, Division of Florida Condominiums, Timeshares, and Mobile Homes: SIRS and reserve study cost ranges and general guidance for associations
5. Florida Senate, Florida Statutes section 553.899: Milestone inspection requirements, 25/30-year triggers, and 10-year recertification
6. IRS, Publication 530 Tax Information for Homeowners: Special assessments for capital improvements generally added to cost basis, not currently deductible
7. IRS, Publication 527 Residential Rental Property: Rental property owners may deduct a portion of assessments tied to repairs under rental expense rules