Florida condo reserves and SIRS: what's changed, what's next

Last updated 2026-08-14

What's the latest on Florida condo reserves and SIRS law

Florida keeps tinkering with the reserve and inspection rules it passed after the Champlain Towers South collapse in June 2021. The core law lives in Florida Statutes section 718.112(2)(g), which requires condo associations to fund reserves based on a Structural Integrity Reserve Study (SIRS) for buildings three stories or more, and bars waiving or reducing those specific structural reserves starting with fiscal years after December 31, 2024 ^[1]. The legislature amended this framework in 2023 (SB 154), again in 2024 (HB 1029), and again in 2025 (SB 1742), mostly around deadlines, funding flexibility, and who can perform SIRS work. If you're reading an article (including this one) written before your board's current budget cycle, treat every deadline as "confirm this with your association's counsel and county" rather than gospel. Statutes get amended in Florida's spring legislative session almost every year now, and DBPR guidance updates alongside it ^[2]. The practical upshot for boards: the direction of travel is toward more reserve funding, not less, but the mechanics (grace periods, alternative funding plans, developer transition rules) keep shifting. Budget conservatively and build in a buffer for the next change. For background on the broader relief debate lawmakers have floated (partial waivers, extended phase-ins, state loan programs), see florida condo reserve fund relief.

What is a reserve study

A reserve study is a professional assessment of a building's common-area components (roof, structure, plumbing, paving, painting, and more) that projects when each will need repair or replacement and how much that will cost. It produces two things: a physical condition assessment and a funding plan showing how much money the association should be setting aside each year. Most reserve studies get updated every 3 to 5 years, with a full site visit at least every few cycles and a desktop update in between, though Florida's SIRS requirement now mandates its own inspection cadence (at least every 10 years) independent of a community's general reserve study practice ^[1]. A good reserve study isn't a guess. It's built from unit cost data, remaining useful life estimates for each component, and either a "straight-line" or "component" funding method. Boards often confuse a reserve study with a milestone inspection; they're related but not the same document. A milestone inspection (required at 25 or 30 years depending on coastal proximity under section 553.899) looks at structural safety. A SIRS looks at funding for structural components specifically. You can have one without the other depending on your building's age and history.

What is a reserve study for an HOA (and is it different from a condo's)

For homeowners' associations (not condos), Florida law doesn't currently impose the same mandatory SIRS and reserve-funding rules that apply to condominiums under chapter 718. HOAs are governed mostly by chapter 720, and while many HOAs voluntarily commission reserve studies for good financial planning, the mandatory structural reserve study and no-waiver rule is specific to condominiums three stories and up ^[1]. That said, an HOA reserve study works the same way functionally: an inspector or engineer catalogs common-element assets (roads, clubhouse, pool, drainage, sometimes roofs on attached townhomes), estimates remaining life, and builds a funding schedule. If your HOA has any building components with a shared roof or structural element, doing a reserve study anyway is smart practice even without a legal mandate. Insurers and lenders increasingly ask for one too. See hoa reserve study for a full breakdown of how HOA studies differ from condo SIRS requirements.

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

There's no single dollar figure regulators say every association "should" have. The honest answer is: enough to fully fund the components identified in your reserve study or SIRS, based on their remaining useful life and replacement cost, not an arbitrary percentage of the budget. A commonly cited industry rule of thumb from reserve-study professionals is that a healthy reserve fund is funded at 70% or more of its "fully funded" target (the amount you'd have if you'd contributed exactly on schedule every year). Associations below 30% funded are generally considered "weak" and at high risk of a special assessment, per guidance used across the community-association industry ^[3]. Florida statute doesn't set a specific percentage threshold, it requires that reserves for SIRS-covered components be funded at the level the study recommends, with no more voting to waive or underfund those specific line items for fiscal years starting after December 31, 2024 ^[1]. Realistically, for a 3-story-plus condo with a roof, structure, and major systems past the halfway point of their useful life, reserves in the hundreds of thousands to low millions of dollars aren't unusual for a mid-size building. The number depends entirely on your building's age, size, and what the study finds. Don't let anyone quote you a percentage-of-budget number without seeing your actual SIRS.

What are HOA assessments and condo assessments, and how do they differ from special assessments

An assessment, in plain terms, is money owners are legally required to pay to their association. Regular (or "annual") assessments cover routine operating costs and reserve contributions, billed monthly or quarterly based on the approved budget. A special assessment is an additional, one-time (or short-term) charge levied outside the regular budget, usually to cover an unexpected repair, a reserve shortfall, or a mandated project like SIRS-driven structural work. Under section 718.116, condo assessments become a legal obligation of the unit owner from the date the board approves them (or a shorter/longer period the documents specify), and unpaid assessments can result in a lien against the unit ^[4]. HOAs follow a parallel structure under chapter 720. Boards should treat special assessments as a last resort, not a planning tool. If you're using special assessments every year to cover routine reserve shortfalls, that's usually a sign of underfunded reserves, not bad luck. See hoa special assessment and condo special assessment insurance for how some associations are trying to insure against the risk of a large one hitting all at once.

How much does a reserve study cost

Reserve study costs in Florida typically run from about $3,000 to $15,000+ depending on building size, number of components, and whether it's a full study (with a site visit and engineering review) or an update. SIRS specifically must be performed by a licensed engineer or architect and, because it covers structural load-bearing components, tends to run toward the higher end of that range for larger or older buildings ^[1][2]. Costs scale with unit count and complexity: a small 20-unit low-rise might pay closer to $3,000 to $6,000, while a 200-unit high-rise with a parking garage, seawall, and multiple building sections can run well into five figures. Get at least two or three quotes from firms with Florida-licensed engineers, and ask specifically whether the quote covers the full SIRS scope required under 718.112(2)(g) (roof, structure, fireproofing, plumbing, electrical, waterproofing, pavement, and load-bearing walls, at minimum) ^[1]. For a state-by-state comparison of what triggers a mandatory reserve study, see reserve study and reserve study for condo association.

Are HOA and condo special assessments tax deductible

Generally, no, not for the individual unit owner, at least not as a straightforward personal deduction. Special assessments used for capital improvements (a new roof, structural repairs) are typically treated by the IRS as an addition to your cost basis in the property, not a deductible expense, similar to how home improvements work for any homeowner ^[5]. There are narrower exceptions. If you rent out the unit, a special assessment tied to repairs (not capital improvement) on a rental property may be deductible as a business expense in the year paid, subject to normal rules distinguishing repairs from improvements. And if a special assessment funds something the IRS treats as a casualty-loss-related repair, different rules can apply in limited disaster scenarios. This isn't a place to guess. Every owner's tax situation differs based on primary residence versus rental use, and IRS guidance on repair versus capital improvement is genuinely technical (see IRS Publication 523 for home basis rules) ^[5]. Talk to a CPA before assuming any assessment is deductible, and don't rely on board members or property managers for tax advice, they generally aren't qualified to give it and shouldn't.

What's the current SIRS deadline and who has to comply

Under section 718.112(2)(g), condominium associations with buildings three stories or more in height must complete a SIRS. The original statutory deadline for the first SIRS was December 31, 2024, but subsequent legislation has adjusted specifics around extensions and phase-in for some associations, so the exact date your building faces depends on when your legislature last touched this section and how DBPR has interpreted it ^[1][2]. Because this keeps moving, the safest approach is to check flsenate.gov for the current text of 718.112 and confirm with your association's counsel and your county building department what applies to your specific building right now. Don't rely on a blog post (including this one) as your final source for a hard deadline; verify against the live statute. Milestone inspections are a separate but related requirement under section 553.899, triggered at 25 years for buildings within 3 miles of the coast, or 30 years for others, then every 10 years after ^[6]. A building can be due for a milestone inspection, a SIRS, both, or neither depending on its age and location, so don't assume one requirement automatically triggers the other.

How do reserve funding rules interact with milestone inspection findings

If a milestone inspection turns up structural problems, that finding often forces an update to the SIRS and reserve plan, because the association now has new information about the remaining useful life (or immediate repair need) of a structural component. In practice, boards sometimes get a milestone inspection report back showing spalling concrete, corroded rebar, or waterproofing failure, and that pushes the associated reserve line item from "long-term" to "needs funding now." This is where special assessments most often get triggered in Florida right now: a building passes its 25 or 30-year milestone inspection with a Phase 2 finding requiring repair, the repair cost is larger than reserves on hand, and the board has to levy a special assessment to close the gap. DBPR's guidance materials note that associations should coordinate structural and reserve professionals rather than treating the two processes separately ^[2]. Boards that stay ahead of this (updating the SIRS promptly after any milestone inspection finding, rather than waiting for the next scheduled cycle) generally avoid the worst special-assessment shocks.

What should a board do right now, practically

Start with your documents, not the news cycle. Pull your last reserve study or SIRS, your last milestone inspection report (if applicable), and your current reserve account balances, and put them side by side. Most boards that get blindsided by a special assessment didn't have those three things in one place. Then build a simple compliance calendar: SIRS renewal date, milestone inspection due date, next reserve study update, and the fiscal year the no-waiver rule applies to your budget. Florida's rules move fast enough that a written calendar with citations to the actual statute section beats relying on memory or last year's management company email. This is genuinely the exact organizational gap the $199 one-time Board Compliance Kit is built for: it doesn't replace your licensed engineer or your reserve study preparer (those have to be the qualified professionals the statute requires), but it organizes the dates, documents, and disclosures your board needs to track so nothing falls through the cracks between inspections. Building-specific, one-time cost, no subscription. Whatever tool or process you use, the discipline matters more than the software: know your dates, know your numbers, and update your reserve funding the moment new inspection data comes in, don't wait for the next scheduled cycle.

Where to check for the most current Florida SIRS and reserve rules

Two sources matter most, and everything else (including this article) should be read as commentary on them. First, the live statute text at flsenate.gov, specifically chapter 718 for condos and section 553.899 for milestone inspections ^[1][6]. Second, DBPR's Division of Florida Condominiums, Timeshares, and Mobile Homes, which publishes guidance, FAQs, and sometimes advisory opinions interpreting the statute for associations and licensees ^[2]. County building departments also matter for milestone inspections specifically, since they set local submission deadlines and can vary in enforcement timing even under the same state statute. If your building is near the coast, check both your county's definition of the 3-mile boundary and DBPR's guidance, since disputes over which trigger date applies have already led to litigation and legislative patches in some counties. When in doubt: get it in writing from your association's attorney, dated, referencing the specific statute section. "I read online that..." is not a defense if a compliance deadline gets missed.

Frequently asked questions

What is a reserve study?

A reserve study is a professional evaluation of an association's shared buildings and components (roof, plumbing, structure, paving) that estimates remaining useful life and replacement cost for each, then produces a funding schedule showing how much the association should save each year to pay for those 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 a condo's: it inventories shared assets like roads, clubhouses, pools, and any shared structural elements, and builds a savings plan. Florida doesn't currently mandate SIRS for HOAs the way it does for 3+ story condos under chapter 718, but many HOAs commission studies voluntarily for financial planning and insurance purposes.

What is an HOA assessment?

An HOA assessment is a required payment owners owe their association, either a regular recurring charge covering operating costs and reserves, or a special assessment levied outside the normal budget for an unexpected or large expense. Nonpayment typically results in a lien against the property under Florida chapter 720 and, for condos, chapter 718.

What is an HOA special assessment?

An HOA special assessment is a one-time or short-term additional charge to owners, separate from regular dues, usually to cover a repair, reserve shortfall, or legally mandated project (like post-milestone-inspection structural work) that the regular budget and existing reserves can't absorb.

How much should an HOA have in reserves?

There's no fixed dollar or percentage figure required by Florida law for HOAs generally. Industry guidance commonly treats reserves funded at 70% or more of the "fully funded" target (based on an actual reserve study) as healthy, and below 30% as high risk for a special assessment, but the right number depends entirely on your specific components and their remaining life.

How much does a reserve study cost in Florida?

Typical costs run roughly $3,000 to $15,000 or more, depending on building size, unit count, and complexity. A SIRS specifically must be done by a licensed engineer or architect and often costs more than a general reserve study because it covers structural load-bearing components in detail under section 718.112(2)(g).

Are HOA or condo special assessments tax deductible?

Usually not as a direct personal deduction. Special assessments for capital improvements typically add to your cost basis in the property rather than being deductible in the year paid. Rental property owners may deduct repair-related assessments as a business expense in some cases. Confirm with a CPA, since repair versus capital-improvement classification is technical.

What is a SIRS in Florida condo law?

SIRS stands for Structural Integrity Reserve Study, required under Florida Statutes section 718.112(2)(g) for condo buildings three stories or more. It requires a licensed engineer or architect to inspect specific structural components and mandates that the association fund reserves for those items at the study's recommended level, with waivers no longer allowed for fiscal years after December 31, 2024.

How is a SIRS different from a milestone inspection?

A milestone inspection (section 553.899) is a structural safety inspection triggered at building age 25 (within 3 miles of the coast) or 30 (elsewhere), then every 10 years. A SIRS is specifically about funding reserves for structural components. A building can need one, both, or neither depending on age and location; they're related but legally separate requirements.

Can a Florida condo association still waive structural reserves?

No, not for the SIRS-covered structural components, starting with fiscal years beginning after December 31, 2024, under section 718.112(2)(g). Associations previously could vote to waive or reduce reserves; that option is now closed off specifically for the items a SIRS identifies. Confirm current status with counsel since this section has been amended multiple times.

Who can perform a Florida SIRS or milestone inspection?

A SIRS must be performed by a licensed engineer or architect. Milestone inspections likewise require a licensed engineer or architect under section 553.899. Boards should verify current Florida licensure through DBPR before hiring anyone for either report.

What happens if a Florida condo doesn't complete its required SIRS?

Consequences can include loss of eligibility for certain reserve waivers, exposure to owner lawsuits or DBPR complaints, and difficulty with lenders or insurers who increasingly ask for SIRS and milestone inspection status before writing new policies or mortgages. Specific enforcement mechanisms have changed with recent amendments, so confirm current consequences with association counsel.

Sources

1. Florida Senate, Florida Statutes section 718.112: SIRS requirement, no-waiver rule for structural reserves after Dec 31, 2024, and required SIRS scope
2. Florida DBPR, Division of Florida Condominiums, Timeshares, and Mobile Homes: State guidance on SIRS, milestone inspections, and licensee requirements
3. Community Associations Institute, Reserve Funding guidance: Industry rule of thumb that reserves funded at 70%+ of target are healthy, below 30% is high risk
4. Florida Senate, Florida Statutes section 718.116: Condo assessments become owner's legal obligation and unpaid assessments create a lien
5. IRS Publication 523, Selling Your Home: Capital improvement assessments generally add to cost basis rather than being directly deductible
6. Florida Senate, Florida Statutes section 553.899: Milestone inspection triggers at 25 years (coastal, within 3 miles) or 30 years (other), every 10 years after