Florida statute 718.112 SIRS: what condo boards must do

Last updated 2026-08-14

What does Florida statute 718.112 actually require?

Florida Statute 718.112(2)(g) is the section of the Condominium Act that created the Structural Integrity Reserve Study, usually called SIRS. It applies to condominium associations with at least one building that is three stories or more in height, and it forces boards to get a professional study of specific structural components, then fund reserves for those components at full, unwaived levels ^[1]. The statute was born out of the 2021 Champlain Towers South collapse in Surfside, which killed 98 people. The legislature responded with SB 4-D in 2022 and then refined it with SB 154 in 2023, and the SIRS requirement is the funding half of that response. The other half is the milestone inspection requirement under 553.899, which is a separate statute but works hand in hand with SIRS ^[2]. Here's the core mechanic: a licensed engineer or architect inspects ten specific components, estimates remaining useful life and replacement cost for each, and the association's board must then adopt a budget that fully funds reserves for those items line by line, with no vote to waive or reduce them. That last part is the real change. Under the old law, owners could vote every year to waive reserves entirely. SIRS reserves can't be waived once the study is done ^[1].

Which buildings does the SIRS requirement apply to?

The SIRS requirement applies to condominium buildings that are three stories or taller, regardless of whether they're on the coast or inland, and regardless of age, though the original December 31, 2024 deadline effectively targeted buildings that had reached the point where a study was overdue. Timeshare condominiums are excluded from SIRS under the statute ^[1]. Height is measured as the number of habitable stories, and DBPR's guidance and FAQ materials note that this generally follows the building's certificate of occupancy and how stories are counted for code purposes, more than the number as marketed. If your association isn't sure whether a building crosses the three-story line, that's a question for your engineer or the local building official, not a guess for the board. Multi-condominium associations (several separate condo buildings under one association) need a study for each building that qualifies. A community with one four-story building and one two-story building only needs SIRS for the taller one, but you'll want that distinction documented, not assumed.

What are the ten components a SIRS must cover?

Florida Statute 718.112(2)(g)3 lists the components a licensed engineer or architect must inspect and evaluate for remaining useful life and cost of replacement. These are: 1. Roof 2. Load-bearing walls or other primary structural members 3. Floor 4. Foundation 5. Fireproofing and fire protection systems 6. Plumbing 7. Electrical systems 8. Waterproofing and exterior painting 9. Windows and exterior doors 10. Any other item that has a deferred maintenance expense or replacement cost exceeding $10,000 and which the report's preparer determines should be included ^[1] That tenth category is a catch-all, and it matters. An engineer might flag elevators, seawalls, or garage structural steel under it if the cost threshold is met. This is one reason two SIRS reports from two different firms on similar buildings can look different in scope, the professional judgment on category 10 varies. For each item, the report has to state current status, remaining useful life, and the estimated cost of replacement or deferred maintenance for that component. This is materially more detailed than a standard reserve study, which often groups items more broadly. See our reserve study for condo association breakdown for how SIRS differs from the reserve studies HOAs typically use.

What is a reserve study?

A reserve study is a professional evaluation of a community's major shared assets (roofs, paving, pools, structural components, and similar big-ticket items) that estimates each asset's remaining useful life and future replacement cost, then models how much money the association needs to set aside now to pay for those replacements without a surprise special assessment. A standard, non-SIRS reserve study typically covers a longer list of common elements at a broader level and gives the board a funding plan option (full funding, threshold funding, or baseline funding). SIRS is narrower in component list but stricter in outcome: no waiver is allowed for the ten (or fewer, if some don't apply) components once the study is done. Most reserve study firms in Florida can produce both a general reserve study and a SIRS-compliant report, sometimes combined into one document. If your association has never had a reserve study at all, doing SIRS first and layering the broader study in afterward is a reasonable, budget-conscious sequence. For general background, see our reserve study explainer and hoa reserve study guide.

What is a reserve study for an HOA, and does 718.112 apply to HOAs?

Florida Statute 718.112 lives in Chapter 718, the Condominium Act. It applies to condominiums, not homeowners associations governed by Chapter 720. HOAs (single-family and townhome communities with an HOA rather than condo ownership) are not subject to the SIRS mandate or the milestone inspection statute ^[1][3]. That said, a reserve study for an HOA serves the same underlying purpose: a licensed or qualified professional (sometimes an engineer, sometimes a reserve specialist, depending on the asset) inspects common elements like roofs, roads, clubhouse structures, pools, and drainage, and projects future replacement costs so the HOA can set adequate reserve contributions. Florida did add some reserve disclosure and funding requirements for HOAs under 720.303, but nothing as prescriptive as SIRS ^[3]. If your community is a condo with 3+ story buildings, SIRS applies. If it's an HOA, you're working from 720.303 and your own governing documents, and a voluntary reserve study is still smart practice even without a statutory mandate. Confirm your association's classification and applicable statute with counsel before assuming either way.

What is an HOA assessment, and what are HOA assessments generally?

An HOA assessment is a fee the association charges owners to fund operations and reserves. Regular assessments are the recurring dues (monthly, quarterly, or annual) set in the approved budget. A special assessment is an extra, usually one-time charge levied when the regular budget and reserves can't cover a cost, commonly a major repair, an insurance shortfall, or a legal judgment. Condo associations under Chapter 718 have similar mechanics but with statute-specific rules. Since SIRS reserves can't be waived, and since many associations are discovering their structural components need more money than was ever budgeted, special assessments tied to SIRS findings have become common across Florida in 2023 to 2025. For HOAs and condos alike, the assessment process (how it's noticed, voted, and collected) is governed by your declaration and by statute. See our hoa special assessment guide for the mechanics, and condo special assessment insurance if you're weighing whether insurance can offset any of the cost.

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

There's no single dollar figure or percentage that's universally right, because the answer depends entirely on your building's age, component conditions, and the reserve study's projections, not a rule of thumb. The honest answer is: enough to match what a current, professional reserve study says you'll need when each component's useful life runs out. For SIRS specifically, Florida statute doesn't set a target dollar amount or percentage of reserves. Instead it requires full funding of the SIRS line items as calculated in the study itself, with no waiver vote allowed for those items starting with the fiscal year following completion of the study ^[1]. That's a structural requirement, not a numeric benchmark. As a rough industry comparison point, reserve study organizations and state task force reports have historically found that a meaningful share of associations nationwide are underfunded relative to their own reserve studies, though methodologies vary by study and this figure moves year to year. Rather than lean on a national average, get your building's own SIRS numbers and treat those as the floor, not a target to negotiate down. If your board is weighing options for phasing in funding, see florida condo reserve fund relief for what limited relief mechanisms have existed and how the legislature has adjusted deadlines.

How much does a reserve study (or SIRS) cost?

Costs vary by building size, number of components, region, and firm, and there's no statutory fee schedule, so get multiple quotes. Based on market reporting and reserve-study-firm pricing pages circulating since the 2022-2023 SIRS rollout, small to mid-size condominium buildings have commonly seen SIRS-specific study costs ranging from roughly $3,000 to $15,000+, with larger, taller, or more complex buildings (especially those needing structural engineering assessment of load-bearing elements) running higher. Milestone inspections, a separate but related requirement, have separately been reported in the low thousands to tens of thousands of dollars depending on building size and scope. Those figures aren't from a single government source, since neither DBPR nor the statute sets pricing, so treat any number you're quoted as building-specific and get it in writing from a licensed engineer or architect. What is fixed by statute is who can do the work: the SIRS study must be performed by a licensed engineer or architect ^[1], the same category of professional required for milestone inspections under 553.899 ^[2]. Boards sometimes try to save money by combining the milestone inspection and SIRS study with the same firm in the same site visit. That's a reasonable way to cut duplicate travel and access costs, but confirm the firm is qualified and willing to produce both deliverables to the separate statutory standards; they aren't the same document even if done in one visit.

When was the SIRS deadline, and did it change?

The original statutory deadline for completing the first SIRS was December 31, 2024, for qualifying buildings ^[1]. The legislature has revisited SIRS timing more than once since the 2022 law passed, including adjustments in 2023's SB 154 that softened some transition provisions and clarified funding start dates, so boards should not assume the original date is still the operative one for every situation without checking current statute text and any DBPR guidance issued since ^[1][4]. After the initial study, SIRS must be updated at least every 10 years, per the statute's ongoing requirement structure tied to the milestone inspection cycle ^[1]. Reserve funding based on the study's figures becomes mandatory (no waiver) beginning with the fiscal year immediately following the SIRS completion, whether or not the association has otherwise budgeted for it. Because the legislature has amended this law more than once in just a few years, and because emergency rulemaking or DBPR advisory opinions can shift interpretation, the safest move for any board is to confirm current deadlines with the association's counsel and with the county building department before finalizing a budget or vendor contract around a specific date.

Are HOA (or condo) special assessments tax deductible?

Generally, no, not for individual unit owners paying personal income tax, and this is an IRS tax question, not a Florida statute question, so confirm with a CPA for your specific situation. The IRS treats special assessments for capital improvements to jointly owned property similarly to home improvement costs: they typically aren't deductible in the year paid, but they can increase your cost basis in the property, which can reduce capital gains tax when you sell ^[5]. There are narrow exceptions. If part of a unit is used as a home office or rental property, a portion of an assessment tied to that use may be deductible or depreciable as a business expense, subject to normal IRS rules on mixed-use property ^[5]. Assessments that fund routine operating costs (not capital improvements) sometimes get treated differently than special assessments for major capital work, but the line isn't always simple. This is genuinely a case-by-case tax question, and neither this article nor your board can give you a tax verdict. Owners facing large SIRS-driven special assessments should talk to a CPA about basis adjustments and, if relevant, business-use deductions before assuming the cost is a total loss on their tax return.

What happens if an association doesn't complete SIRS on time?

Florida statute makes SIRS a legal requirement, not optional guidance, and associations that don't comply can face consequences including DBPR enforcement action, difficulty obtaining insurance, and exposure in litigation if a structural failure occurs later and the association had skipped or delayed its study. DBPR is the state agency with regulatory authority over condominium associations and can investigate complaints related to statutory compliance ^[4]. Beyond direct enforcement, there are practical consequences boards see faster: Fannie Mae's condo project eligibility standards flag buildings with unresolved structural or deferred maintenance issues as ineligible for certain financing, which can affect unit owners' ability to sell or refinance in projects that don't meet the standards ^[6]. Buyers' lenders increasingly ask for milestone inspection and SIRS status during condo questionnaires. If your board is behind, the fix isn't to panic, it's to get a licensed engineer or architect under contract now, document the timeline in board minutes, and communicate proactively with owners about what's coming. A board that's organized and transparent about a late SIRS is in a much better legal and practical position than one that stays quiet and hopes nobody notices.

How should a board actually manage the SIRS process from here?

Start by confirming, in writing from counsel, whether your building triggers the three-story SIRS threshold and what deadline currently applies given the statute's amendment history. Then get bids from at least two or three licensed engineering or architecture firms that specifically list SIRS experience, more than general inspection work. Once the study is in hand, the real board work begins: translating ten component-level findings into a reserve budget line, communicating the funding requirement to owners (many of whom will be surprised reserves can no longer be waived), and deciding whether a special assessment, a loan, or a phased funding approach makes sense for the shortfall. This is where most associations struggle, not with hiring the engineer, but with organizing the paperwork, deadlines, and owner communication across a multi-year process. This is the exact gap our $199 one-time Board Compliance Kit is built to close: it doesn't replace your licensed engineer or your attorney, but it organizes your building's SIRS and milestone deadlines, tracks reserve line items against the study, and gives you templates for owner notices so nothing falls through the cracks between board meetings. The kit doesn't render any compliance verdict about your building or interpret your governing documents; that judgment stays with your engineer, your attorney, and your board.

Where can boards find the actual statute text and state guidance?

The primary source is Florida Statute 718.112, available in full at the Florida Senate's official statutes site, and specifically subsection (2)(g) covers SIRS ^[1]. Boards should read the current version each budget cycle, since amendments have happened almost annually since 2022. DBPR, the Florida Department of Business and Professional Regulation, is the state agency overseeing condominium associations and publishes FAQ and guidance materials on SIRS and milestone inspection compliance ^[4]. DBPR's condominium division is the right first call for procedural questions, though it does not give legal advice on your specific building. For context on the broader legislative response, the milestone inspection statute (553.899) works alongside 718.112 and was also part of the post-Surfside reform package ^[2]; boards handling one should be reading both together, since a milestone inspection often surfaces the same structural issues a SIRS report has to cost out.

Frequently asked questions

What is a reserve study?

A reserve study is a professional evaluation of a community's major shared assets, like roofs, paving, and structural components, that estimates each item's remaining useful life and future replacement cost so the association can budget reserve contributions that avoid a surprise special assessment later.

What is a reserve study for an HOA?

For an HOA, a reserve study looks at common elements the HOA owns and maintains (roads, clubhouse, pool, drainage, sometimes roofs on attached units) and projects replacement costs and timing. Florida's HOA statute, Chapter 720, doesn't mandate a SIRS-style study, but a voluntary reserve study is still the standard tool for responsible reserve planning.

What is an HOA assessment?

An HOA assessment is money the association charges owners, either as a recurring regular assessment covering the annual budget, or as a special assessment, a one-time or limited-run charge to cover a specific unbudgeted cost like a major repair or a reserve shortfall identified in a study.

How much should an HOA have in reserves?

There's no fixed percentage set by Florida statute. The right amount is whatever a current, professional reserve study says is needed to fully fund replacement of major components on schedule. For condos with SIRS obligations, the statute requires full funding of the study's ten structural line items with no waiver allowed.

How much does a reserve study cost?

Costs vary widely by building size and scope. Market reporting since SIRS became mandatory shows condominium SIRS studies commonly running from roughly $3,000 to $15,000 or more, with larger or structurally complex buildings costing more. There's no state-set fee; get quotes from multiple licensed engineering or architecture firms.

Are HOA special assessments tax deductible?

Generally no for individual owners' personal income tax. The IRS typically treats special assessments for capital improvements as additions to your property's cost basis rather than a current deduction, which can reduce capital gains tax when you sell. Confirm your specific situation with a CPA, especially for home-office or rental-use portions of a unit.

Does Florida Statute 718.112 apply to my HOA?

No. Section 718.112 is part of Chapter 718, the Condominium Act, and applies only to condominium associations with buildings three stories or taller. Homeowners associations are governed by Chapter 720, which has different, less prescriptive reserve rules. Confirm your community's legal classification with counsel if you're unsure.

What buildings need a SIRS under Florida law?

Condominium buildings that are three stories or more in height need a Structural Integrity Reserve Study under Florida Statute 718.112(2)(g), regardless of age or coastal location. Timeshare condominiums are excluded. Multi-building associations need a separate qualifying study for each building that meets the height threshold.

What ten components does a SIRS have to cover?

Roof, load-bearing walls or primary structural members, floor, foundation, fireproofing and fire protection systems, plumbing, electrical systems, waterproofing and exterior paint, windows and exterior doors, and any other item with deferred maintenance or replacement cost over $10,000 that the preparing professional decides to include.

Can an association still vote to waive SIRS reserves?

No. Once a SIRS is complete, the statute does not allow a membership vote to waive or reduce reserve funding for the ten structural components, starting with the fiscal year after the study. This is different from non-SIRS reserve items, which some associations can still vote to waive depending on their documents and remaining statutory rules.

Who is allowed to perform a SIRS inspection in Florida?

Florida Statute 718.112(2)(g) requires the study be performed by a licensed engineer or architect. General reserve study specialists without that licensure cannot legally produce the SIRS portion of the report, though firms may combine a licensed professional's structural assessment with a broader reserve study prepared alongside it.

What happens if my association misses the SIRS deadline?

Consequences can include DBPR enforcement action, complications getting or renewing insurance, difficulty with buyer financing since lenders increasingly check SIRS and milestone status, and greater legal exposure if a structural issue later surfaces that a timely study might have caught. Getting a licensed engineer under contract immediately, even if late, is better than continued delay.

Sources

1. Florida Senate, 2024 Florida Statutes, Section 718.112: Text and requirements of the Structural Integrity Reserve Study (SIRS), including the ten components, the three-story threshold, the December 31, 2024 deadline, the no-waiver reserve rule, and the licensed engineer/architect requirement
2. Florida DBPR, Structural Integrity Reserve Study FAQ: DBPR's guidance on SIRS compliance, building height determination, and enforcement authority over condominium associations
3. IRS, Publication 530, Tax Information for Homeowners: Special assessments for capital improvements generally are not currently deductible but can be added to a property's cost basis; mixed-use or rental portions may qualify for different treatment
4. Florida Senate, 2024 Florida Statutes, Section 553.899: The milestone inspection requirement for buildings 3 stories or more, a separate but related post-Surfside statute that works alongside SIRS
5. Florida Senate, 2024 Florida Statutes, Section 720.303: Homeowners association reserve disclosure and funding requirements under Chapter 720, distinct from and less prescriptive than the SIRS mandate for condominiums
6. Fannie Mae, Selling Guide B4-2.1-03, Ineligible Projects (04-02-2025): Fannie Mae's condo project eligibility standards address unresolved structural or deferred maintenance issues, which can affect financing for units in noncompliant buildings