What percent of condos have a reserve study?

Last updated 2026-08-14

What percent of condos actually have a reserve study?

Nobody has a clean, government-verified national percentage, and anyone who tells you an exact number for "all U.S. condos" is guessing. What does exist is patchier: state mandates, a few trade association surveys, and Florida's post-Surfside statute, which converted reserve studies from optional to mandatory for a large slice of the country's condo stock. The Community Associations Institute (CAI), the main trade group for HOAs and condos, has cited survey-based estimates suggesting that a majority of associations nationwide have some form of reserve study, but these are member surveys, not census data, and response bias runs in an obvious direction (associations engaged enough to answer a CAI survey are probably more compliant than the average building). Treat any "X% of condos have a reserve study" claim you see online as directional, not authoritative, unless it cites a specific state agency or peer-reviewed source. Florida is the exception because it's no longer a matter of habit or board diligence. Fla. Stat. 718.112(2)(g) requires condominium and cooperative associations with buildings three stories or higher to complete a structural integrity reserve study (SIRS) and to fund reserves for the items that study covers, with the first SIRS deadline landing December 31, 2024 for most existing buildings ^[1]. That single law probably did more to raise the percentage of Florida condos with a real, engineer-backed reserve study in one year than a decade of voluntary adoption did nationally. So the honest answer: somewhere between half and two-thirds of associations nationally likely have some reserve study, of varying quality and age, based on soft survey data. In Florida, for buildings under SIRS jurisdiction, the number should be approaching full compliance by law, though enforcement lag, engineer backlogs, and association noncompliance mean actual completion rates in 2024 to 2025 almost certainly fell short of 100%. If your board hasn't done one yet, don't wait on statistics to tell you it's normal. Confirm your building's status with your association's counsel and county building department.

What is a reserve study?

A reserve study is a physical inspection and financial forecast, usually done by an engineer or a specialized reserve study firm, that identifies major common-area components (roof, paving, elevators, structural elements, plumbing risers) and estimates when each will need repair or replacement and how much that will cost. It results in two things: a capital needs list with remaining useful life for each item, and a funding plan showing how much the association should be setting aside each year. Most reserve studies have two parts. The physical analysis inventories the building's major components and estimates useful life and replacement cost. The financial analysis compares current reserve balances against future needs and recommends a funding schedule, either "full funding" (reserves stay near 100% of the ideal balance at all times) or "threshold funding" (reserves stay above some minimum floor, usually zero, to avoid a cash shortfall when a bill comes due). In Florida, a SIRS is a narrower, statutorily defined version of this: it only covers structural and life-safety components (roof, load-bearing walls, floor, foundation, fireproofing, electrical, plumbing, waterproofing, and other items listed in the statute), and it must be performed by a licensed engineer or architect, not a generalist reserve consultant ^[1]. A full reserve study can cover everything from paint to pool furniture; a SIRS is specifically about the structural bones. Boards need both, and the two studies increasingly get bundled by firms that do both scopes at once. See our reserve study guide for the full breakdown of what's inspected and how the report is used.

What is a reserve study for HOA?

For a homeowners association (as opposed to a condominium), a reserve study works the same way conceptually: an inspection of shared components (roads, clubhouse, pool, retention ponds, gates) paired with a funding forecast. The difference is legal, not technical. Florida's SIRS and mandatory reserve statutes under Chapter 718 apply to condominiums and cooperatives, not to most single-family HOAs, which fall under Chapter 720 instead. Chapter 720 HOAs in Florida have a much lighter statutory reserve requirement. Under Fla. Stat. 720.303(6), reserves are only mandatory if the original developer created them or if the membership affirmatively votes to establish them; otherwise, an HOA can legally operate with zero reserves, funding everything through periodic special assessments instead ^[2]. That's a meaningfully different risk profile than a condo building under a SIRS mandate, and it's worth knowing which statute governs your association before you assume a reserve study is legally required. Even where it's optional, a reserve study for an HOA is still good practice. Roads, irrigation systems, and amenity buildings age the same way condo components do, and an HOA board that skips the study is choosing to fund replacements reactively, with special assessments, rather than proactively, with steady reserve contributions. See hoa reserve study for more on how HOA studies differ from condo SIRS requirements.

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

An HOA assessment is any fee the association charges its members to fund operations and reserves. Most associations bill two kinds: regular assessments (the recurring monthly or quarterly dues that cover operating costs and reserve contributions) and special assessments (one-time or limited-run charges levied when the association needs money beyond what regular assessments and existing reserves can cover, usually for a large repair, an insurance shortfall, or a reserve gap). Special assessments have become common in Florida condos specifically because many buildings entered the 2024 SIRS deadline with reserves that were waived, underfunded, or pooled in ways that didn't match the actual structural needs the new law requires. When a SIRS comes back showing a shortfall, the board generally has three options: raise regular assessments gradually, levy a special assessment, or borrow against a line of credit and repay it through assessments. There's no statutory ceiling on how large a special assessment can be, which is why some Florida owners have seen five- and six-figure special assessment notices since 2023 tied to structural repairs and reserve catch-up funding. Boards should document the basis for any special assessment carefully: the SIRS or engineering report that triggered it, the board meeting minutes approving it, and the notice sent to owners under the association's bylaws and Fla. Stat. 718.112. For a deeper look at how these get triggered and calculated, see hoa special assessment.

How much should an HOA (or condo) have in reserves?

There's no single dollar figure or fixed percentage that's legally correct for every association, because reserves should be scaled to the actual replacement cost and remaining life of the specific building's components, not to a rule of thumb. That said, two broad funding philosophies dominate the industry: full funding, where reserves track close to 100% of the theoretical ideal balance based on each component's age and remaining life, and threshold or baseline funding, where the board keeps reserves above some minimum cushion (often just above zero) and relies on the funding plan to avoid running out at the wrong moment. In Florida, the law no longer lets a condo board decide the SIRS-covered items don't need full funding. Under the amended Fla. Stat. 718.112(2)(f), associations subject to SIRS may no longer vote to waive or reduce reserves for the structural components identified in the study, and reserves for those items must be funded based on the SIRS's stated useful life and replacement cost estimates ^[1]. That's a hard change from pre-2022 law, when membership could vote annually to waive reserve funding almost entirely. A rough industry benchmark some reserve specialists use: aim to keep the reserve fund's "percent funded" (current reserve balance divided by the ideal fully-funded balance) above 70%, since studies of underfunded associations show that anything much below that threshold correlates with a meaningfully higher chance of a special assessment within a few years. That threshold isn't codified in Florida statute; it's an industry convention, and boards should treat it as a planning guide, not a legal requirement. Talk to your reserve study provider about what percent-funded target makes sense for your specific building's age and component mix.

How much does a reserve study cost?

First-time full reserve study	$3,000 to $15,000+	Once, then updated
Annual reserve study update (desk review)	$500 to $2,000	Every year between full studies
SIRS (structural, by licensed engineer/architect)	$5,000 to $20,000+	Every 10 years per Fla. Stat. 718.112(2)(g)	These ranges are industry-typical estimates, not statutory figures; actual quotes vary by building size, number of components, coastal location, and firm. Get at least two or three quotes before committing, and confirm the firm's license and relevant experience with buildings similar in age and construction to yours.

Reserve study costs in Florida generally run from about $3,000 to $15,000 or more for a standard, full-scope study, depending on the number of buildings, the complexity of the property, and whether the study is a first-time "full" study (site visit plus complete component inventory) or an annual "update" (desk review of the existing study with minor adjustments). A SIRS specifically, since it must be performed by a licensed engineer or architect and covers structural and life-safety systems rather than the full amenity list, often runs in a similar or somewhat higher range once you include the engineer's site inspection, testing (like concrete or rebar assessment where warranted), and the written report meeting the statute's content requirements. DBPR, which licenses and regulates community association managers and oversees condo association compliance in Florida, doesn't set or cap reserve study fees; those are negotiated in the private market between the association and the engineering or reserve study firm ^[3]. A useful cost table for budgeting purposes: | Study type | Typical cost range | Frequency |

How often does Florida law require a reserve study or SIRS?

Under Fla. Stat. 718.112(2)(g), the SIRS must be performed at least every 10 years after the initial study, for each building on the condominium property that is three stories or more in height ^[1]. The statute also required the first SIRS to be completed by December 31, 2024 for most existing associations, based on the building's age and the milestone inspection schedule for that county. The SIRS and the milestone inspection are related but separate requirements. Milestone inspections, under Fla. Stat. 553.899, are structural safety inspections tied to a building's age (generally required at 30 years, or 25 years if within 3 miles of the coast, and every 10 years after) ^[4]. A SIRS focuses on funding the repairs those structural components will eventually need; a milestone inspection focuses on certifying the building's current structural safety. Many associations schedule both around the same engineering visit to save on inspection costs, but they're legally distinct filings with different statutory triggers and different recipients (milestone reports typically go to the local building official; SIRS informs the association's own reserve budget).

Are HOA special assessments tax deductible?

For most individual condo or HOA owners using the unit as a personal residence, special assessments are generally not tax deductible, the same way regular HOA dues aren't deductible for a primary residence. The IRS treats these as personal living expenses, similar to routine home maintenance, rather than as a deductible cost, and IRS Publication 530 confirms that most settlement and closing-related charges and homeowner association fees do not qualify as deductible expenses for a personal residence ^[5]. There are exceptions. If the unit is a rental property, special assessments tied to operating expenses or repairs can often be deducted as a rental business expense, and assessments tied to capital improvements may need to be capitalized and depreciated over time under the rules described in IRS Publication 527 for residential rental property, rather than deducted immediately ^[6]. If you use part of your home for a qualifying home office, a portion of the assessment may be deductible under the home office deduction rules. This is genuinely fact-specific and depends on whether the assessment covers a repair (often more immediately deductible for rental or business-use property) versus a capital improvement (generally depreciated). None of this is legal or tax advice, and there's no shortcut around confirming your specific situation with a CPA or tax attorney who can look at your closing documents, rental status, and the assessment's stated purpose before you file.

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

A reserve study (including Florida's SIRS) is a financial and physical planning document that tells the board what major components exist, how much life they have left, and how much money needs to be saved to replace them. A milestone inspection is a structural safety certification that tells the board and the local building official whether the building's structure currently meets safety standards. Florida's milestone inspection law, Fla. Stat. 553.899, requires buildings 3 stories or higher to get a structural inspection at 30 years of age (25 years if the building is within 3 miles of the coastline), and every 10 years after that ^[4]. The inspecting engineer or architect files a report with the local building official, and if the report identifies substantial structural deterioration, a more detailed "Phase 2" inspection follows. The SIRS, by contrast, doesn't go to the building official; it's an internal financial planning tool required by Fla. Stat. 718.112(2)(g) that determines how the association funds its reserves for structural components ^[1]. A building can pass its milestone inspection and still have inadequate reserves; the two processes measure different things. Boards juggling both deadlines on different timelines is one of the most common sources of confusion right now, which is part of why organizing tools built specifically around these Florida statutory deadlines, like the $199 Building-Specific Board Compliance Kit at boarddeadline.com/board-kit-builder, exist: they don't replace the engineer's inspection or the reserve study firm's report, but they help a board track which deadline applies to which building and keep the paperwork organized for owners and county officials.

What should a board do if it doesn't have a reserve study yet?

First, confirm whether your building is legally required to have one. If it's a Florida condo or co-op building three stories or higher, you're almost certainly under the SIRS mandate already, and the first deadline (December 31, 2024, for most existing buildings) has likely passed, meaning you may be out of compliance and should talk to association counsel immediately about next steps and any local enforcement exposure ^[1]. Second, get quotes from licensed engineers or architects experienced in SIRS work, not generalist reserve consultants without the required license, since the statute specifically requires a licensed engineer or architect to perform the study ^[1]. Ask for references from other associations of similar age, height, and construction type, and confirm current Florida licensure through DBPR's license verification tools ^[3]. Third, once the study is in hand, don't let it sit in a drawer. The board needs to update the budget to reflect the funding plan, communicate the findings (and any resulting special assessment) to owners in writing, and calendar the next required update, generally every 10 years for the SIRS itself, though many boards choose to do lighter annual updates in between full studies to keep numbers current. This is where a lot of boards lose track of deadlines across multiple buildings or multiple statutory requirements running on different clocks; a simple compliance calendar, whether built in-house or bought as a packaged tool like the Building-Specific Board Compliance Kit, solves that specific problem without replacing the engineer's actual inspection work.

Frequently asked questions

What percent of Florida condos have completed a SIRS?

There's no single published statewide completion percentage from DBPR or the state as of this writing. The requirement applies broadly to condo and co-op buildings 3 stories or higher, with a December 31, 2024 deadline for most existing buildings under Fla. Stat. 718.112(2)(g), but actual completion rates likely vary by county and association size, and full state-level compliance data isn't publicly tracked yet.

What is a reserve study?

A reserve study is an inspection and financial forecast, usually done by an engineer or reserve specialist, that inventories a building's major shared components, estimates how much life each has left, and recommends how much money the association should save each year to replace them without a surprise special assessment.

What is a reserve study for an HOA?

For an HOA, a reserve study inspects shared amenities like roads, clubhouses, pools, and irrigation systems and forecasts future replacement costs. Unlike Florida condos under Chapter 718, most Chapter 720 HOAs aren't legally required to fund reserves unless the developer set them up that way or the membership votes to establish them (Fla. Stat. 720.303(6)).

What is an HOA assessment?

An HOA assessment is a fee members pay to fund the association's operations and reserves. Regular assessments are recurring dues; special assessments are one-time or limited charges the board levies when a specific need, like a major repair or reserve shortfall, exceeds what regular dues and reserves can cover.

How much should an HOA have in reserves?

There's no universal dollar figure; it depends on each component's replacement cost and remaining life. Many reserve professionals treat 70% "percent funded" (actual reserves versus the ideal fully-funded balance) as a rough benchmark below which special assessment risk rises meaningfully, though that's an industry convention, not a Florida statutory requirement.

How much does a reserve study cost in Florida?

A first-time full reserve study typically costs $3,000 to $15,000 depending on property size and complexity, with annual desk-review updates running $500 to $2,000. A SIRS, since it requires a licensed engineer or architect, often falls in a similar or somewhat higher range once inspection and testing costs are included.

Are HOA special assessments tax deductible?

Generally no, for a personal residence, similar to regular HOA dues; IRS Publication 530 treats these as nondeductible personal expenses. Exceptions can apply for rental properties (where assessments may be deductible as a business expense or depreciated as a capital improvement under IRS Publication 527) or qualifying home office use. Confirm your specific situation with a CPA before assuming any deduction applies.

Is a reserve study the same as a milestone inspection in Florida?

No. A milestone inspection (Fla. Stat. 553.899) certifies current structural safety and is filed with the local building official at 30 years of building age (25 if within 3 miles of the coast), and every 10 years after. A SIRS (Fla. Stat. 718.112(2)(g)) is an internal financial planning document for reserve funding, not a safety certification.

Does Florida law require condo associations to have a reserve study?

Yes, for condominium and cooperative buildings 3 stories or higher. Fla. Stat. 718.112(2)(g) requires a structural integrity reserve study performed by a licensed engineer or architect, with the first deadline of December 31, 2024 for most existing associations, and updates required at least every 10 years after.

Can a condo association still waive reserve funding in Florida?

Not for SIRS-covered structural components. Since the post-Surfside statutory changes, associations subject to SIRS can no longer vote to waive or reduce reserve funding for the structural items identified in the study under Fla. Stat. 718.112(2)(f). Non-structural reserve items may still have different waiver rules; confirm specifics with association counsel.

How often must a SIRS be updated once completed?

At least every 10 years, per Fla. Stat. 718.112(2)(g), for each qualifying building on the property. Many associations also commission lighter annual reserve study updates between full SIRS cycles to keep cost estimates and component conditions current, though that interim update isn't itself a separate statutory mandate.

Who is qualified to perform a reserve study or SIRS in Florida?

A SIRS specifically must be performed by a licensed engineer or architect under Fla. Stat. 718.112(2)(g). Broader, non-structural reserve studies are sometimes performed by specialized reserve study firms without an engineering license, though many associations now use engineers for both scopes in a single combined report.

Sources

1. Florida Senate, Florida Statutes Section 718.112: SIRS requirement, deadline, licensed engineer/architect requirement, 10-year update cycle, and waiver restrictions for structural components
2. Florida Senate, Florida Statutes Section 720.303: Chapter 720 HOA reserve funding is optional unless established by the developer or voted in by the membership
3. Florida DBPR, Division of Florida Condominiums, Timeshares, and Mobile Homes: DBPR's role overseeing condominium association compliance and licensing verification in Florida
4. Florida Senate, Florida Statutes Section 553.899: Milestone structural inspection requirement at 30 years (25 years if within 3 miles of coastline) and every 10 years after
5. IRS Publication 530, Tax Information for Homeowners (2023): Homeowner association fees and special assessments are generally nondeductible personal expenses for a primary residence
6. IRS Publication 527, Residential Rental Property (2023): Capital improvements to rental property must be capitalized and depreciated rather than deducted immediately, while repair expenses may be currently deductible