Last updated 2026-07-24
TL;DR
Florida Statute 718.112(2)(g) requires condo associations with buildings 3+ stories to get a Structural Integrity Reserve Study (SIRS) every 10 years and fund reserves for the items it covers at 100%, with no more waivers or pooling, starting with the fiscal year beginning January 1, 2025 (associations had until December 31, 2024 to complete their first SIRS).
What does Florida Statute 718 actually require for reserve studies?
Florida Statute 718.112(2)(f) and (g) cover two related but different things: regular reserve funds (the older requirement) and the Structural Integrity Reserve Study, or SIRS, added after the 2021 Champlain Towers South collapse in Surfside. Chapter 718 is the Condominium Act, and it governs condo associations specifically, not HOAs (single-family and townhome HOAs fall under Chapter 720, which does not have a SIRS mandate) [1]. The SIRS requirement applies to condo buildings that are three stories or more in height, as certified by the condo's architect or engineer, or as recorded on the certificate of occupancy [1]. It does not apply to single-family, two-family, or three-family dwellings within an association, and it does not apply to buildings a licensed engineer has certified do not have areas requiring inspection under the milestone inspection framework. The law names specific building components a SIRS must evaluate: roof, load-bearing walls, floor, foundation, fireproofing and fire protection systems, plumbing, electrical systems, waterproofing and exterior painting, windows and exterior doors, and "any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000 and the failure to replace or maintain such item negatively affects the items listed" [1]. That last clause is a catch-all, and it means a SIRS can end up covering things like elevators, pool decks, or seawalls if a licensed professional flags them. A related but separate obligation is the milestone inspection, required under Section 553.899, for condo and cooperative buildings three stories or higher. Milestone inspections and SIRS often get bundled in a board's mind because they were both born out of Surfside, but they are different statutes with different professionals and different timelines. For the inspection side, see our milestone inspection guide.
What is a reserve study?
A reserve study is a professional assessment of an association's major shared components (roofs, paving, pools, structural elements, and so on), their remaining useful life, and the cost to repair or replace them. It produces two things a board actually uses: a funding schedule showing how much money to set aside each year, and a physical component list showing when things wear out. Most reserve studies outside the SIRS context are done by reserve specialists, sometimes credentialed through the Community Associations Institute (CAI) as a Reserve Specialist (RS), though Florida law does not require that specific credential for a general reserve study the way it requires a licensed engineer or architect for a SIRS. A SIRS is a narrower, statutorily defined type of reserve study. It must be performed, or at minimum have its visual inspection performed, by a licensed engineer or architect [1]. A general reserve study covering carpet, paint, or a clubhouse roof can be done by a reserve analyst without an engineering license, but the structural components named in 718.112(2)(g) require a licensed professional's stamp. For a broader walkthrough of how reserve studies work outside the SIRS-specific rules, see our reserve study and HOA reserve study explainers.
What is a reserve study for an HOA, and does Chapter 718 apply to HOAs?
Chapter 718 governs condominiums. Homeowners associations (HOAs), meaning associations of single-family homes, townhomes, or other properties not organized as condominiums, are governed by Chapter 720, the Homeowners' Association Act [2]. Chapter 720 does not currently impose a SIRS requirement or a mandatory 100%-funded reserve rule the way Chapter 718 does for condos. That said, many Florida HOAs still do reserve studies voluntarily, because deferred maintenance on roads, drainage, clubhouses, and pools is expensive no matter what statute governs you, and lenders increasingly ask for reserve documentation on resale. If your community is a co-op rather than a condo, note that Chapter 719 (cooperatives) has its own parallel reserve and inspection provisions that largely mirror Chapter 718's condo requirements, including SIRS obligations for buildings three stories or higher [3]. So when someone asks "what is a reserve study for an HOA," the honest answer is: it is the same basic financial planning tool used in condos, just without the same statutory teeth in Florida, unless your county or your own bylaws impose stricter requirements. Confirm your association's exact classification and obligations with your association's counsel.
How much should an HOA (or condo) have in reserves?
There's no single statutory dollar figure. The real answer is: enough to cover 100% of the projected cost to replace each reserve component by the time it reaches the end of its useful life, spread evenly across the years remaining. That's the "full funding" standard Florida law now requires for SIRS components in condos. For SIRS items specifically, Section 718.112(2)(f)2 says associations may no longer vote to waive or reduce reserve funding for the components covered by the SIRS, and may no longer pool those SIRS reserves together with non-SIRS reserves in a way that lets one component's underfunding hide behind another's surplus [1]. This is a real change: before 2022, many associations pooled reserves and voted every year to underfund or skip them entirely. That option is gone for SIRS items starting with the fiscal year beginning January 1, 2025 (Chapter 2023-203, Laws of Florida, delayed enforcement of the funding piece to that date after initial 2024 deadlines caused an uproar) [4]. As a rough planning number, industry reserve studies commonly find that older high-rise coastal buildings need reserve contributions in the range of hundreds of dollars per unit per month once roofs, waterproofing, and concrete restoration are properly funded, but this varies enormously by building age, unit count, and how deferred the maintenance already is. A 40-year-old 200-unit oceanfront tower with unaddressed concrete spalling will have a wildly different number than a 12-year-old inland low-rise. For non-SIRS components (things like a clubhouse, gate, or parking lot resurfacing) associations can still vote annually to fund at less than 100%, but doing so is a policy choice with real risk, not a free pass.
What are HOA assessments, and what is an HOA assessment for?
An assessment is the money a board levies against unit owners to cover the association's expenses, both operating (landscaping, insurance, management fees) and reserve (long-term component replacement). Regular assessments are the recurring monthly or quarterly dues set out in the annual budget. A special assessment is a one-time or short-term additional charge levied outside the regular budget, usually because reserves fell short of an actual repair bill, or because a SIRS or milestone inspection turned up work that can't wait. Special assessments have become common in Florida since 2022 precisely because so many buildings had been underreserved for decades and are now facing the full-funding mandate plus overdue structural repairs at the same time. Boards considering a special assessment should read our HOA special assessment explainer for the notice and voting mechanics, and look at condo special assessment insurance options, since some carriers and some association-level financing products exist specifically to smooth out these lump-sum hits for individual owners who can't pay a $20,000 or $50,000 bill in cash.
How much does a reserve study cost?
| Basic non-SIRS reserve study (visual, no engineering) | Small HOA, low-rise | $2,000 to $6,000 | |
|---|---|---|---|
| Full reserve study with on-site inspection | Mid-size condo, 50 to 150 units | $5,000 to $15,000 | |
| SIRS (licensed engineer/architect required) | 3+ story condo, per building | $10,000 to $30,000+ | |
| Milestone inspection (Phase 1) | 3+ story condo | $5,000 to $15,000 (varies widely by size/coastal exposure) | These are practitioner-reported ranges, not a statutory fee schedule; Florida does not set reserve study or SIRS pricing. Bigger, taller, more structurally complex buildings near saltwater cost more because engineers have to physically access more units, more exterior walls, and more below-grade structure. A single-tower luxury high-rise on the coast with post-tensioned concrete slabs will cost meaningfully more to inspect than a similarly-sized inland garden-style condo. Some associations try to save money by getting a bare-minimum SIRS that just checks the statutory boxes. That's a mistake if the report is so thin it doesn't give the board defensible numbers for the next special assessment vote or the next lender/insurer request. Paying a bit more for a report with clear photos, remaining-useful-life estimates per component, and funding schedules that break out SIRS from non-SIRS money is worth it when you're explaining a $4,000 special assessment to 300 angry owners at an annual meeting. |
Costs vary by building size and how many components need engineering evaluation, but here is the honest range boards report: | Study type | Typical building | Rough cost range |
Are HOA special assessments tax deductible?
For most individual condo or HOA owners using the property as a personal residence, a special assessment is not tax deductible, the same way regular HOA dues are not deductible, per IRS guidance on rental property and home expenses [5]. The IRS treats these payments as personal living expenses, similar to paying for your own roof repair. There are two narrow exceptions worth knowing. First, if the unit is a rental property, the owner can generally deduct assessments as a rental expense (or depreciate them if they're for a capital improvement) on Schedule E, subject to normal rules distinguishing repairs from improvements [6]. Second, if a special assessment is specifically for a casualty-loss repair in a federally declared disaster area, there may be a path to a casualty loss deduction, though the rules are narrow and the Tax Cuts and Jobs Act limited personal casualty loss deductions mostly to federally declared disasters through 2025 [7]. This is genuinely a tax question, not a condo-law question, and boards should never tell owners how to handle it on their return. Owners should ask their own CPA, especially for rental units or disaster-related assessments, since the deductibility hinges on facts specific to each owner's situation.
What are the SIRS deadlines and who has to comply?
The core deadlines, as amended through 2023 and 2024 legislative sessions: - Condo and co-op buildings 3 stories or higher: initial SIRS was due by December 31, 2024 [1][4].
- After the initial SIRS, associations must complete a new SIRS at least every 10 years [1].
- Full reserve funding (no waivers, no pooling) for SIRS components applies starting with the fiscal year beginning on or after January 1, 2025 [4].
- Milestone inspections (separate statute, Section 553.899) are generally due by December 31 of the year the building turns 30, and every 10 years after, or by year 25 for buildings within 3 miles of the coastline, with local building officials able to require earlier inspection for buildings showing distress [8]. Legislative changes in 2023 (SB 154) and 2024 (HB 1021) adjusted some of these dates and added limited relief mechanisms, including the option for some associations to obtain financing or a temporary partial-funding schedule under specific conditions, so boards should not assume the 2024/2025 dates above are frozen forever. Check the current statute text and confirm with your association's counsel and your county building department before setting a compliance calendar, since amendments have already moved these dates once. For buildings already past due, DBPR's Division of Florida Condominiums, Timeshares, and Mobile Homes is the state agency with enforcement authority and published guidance [9].
What happens if a condo association skips or delays its SIRS?
Boards that fail to complete a required SIRS or milestone inspection expose the association, and arguably individual board members, to real risk: potential DBPR enforcement action, difficulty getting insurance renewed or written at all, trouble selling units (many lenders and title companies now ask for SIRS status before closing), and, if a structural failure occurs, exposure to the kind of catastrophic liability litigation that followed Surfside. Florida law does not spell out a specific dollar fine per missed SIRS the way, say, a building code violation might carry a set fine, but DBPR has general authority to investigate condo association complaints and can pursue enforcement, and failure to maintain required records or studies is the kind of thing that shows up in owner-initiated litigation and DBPR complaints [9]. Practically, the bigger risk for most boards isn't a state fine. It's a special assessment that's three times worse because deferred maintenance compounded for five extra years, plus an insurance non-renewal notice that shows up right when the building needs capital the most. Boards that are behind should get a licensed engineer and a reserve professional engaged now, not after the next renewal notice.
How should a board actually plan for SIRS and reserve compliance?
Start with the calendar, not the money. Figure out exactly when your building's milestone inspection and SIRS are due (or overdue), based on building height, certificate of occupancy date, and coastal proximity, and get that in writing from your association's engineer. Then get the SIRS itself done by a licensed Florida engineer or architect. This is not optional and not something a management company or board volunteer can substitute for; the statute specifically requires the licensed professional [1]. Once you have the SIRS numbers, build (or rebuild) the reserve funding schedule, separating SIRS-mandated components from discretionary ones, since they now have different legal rules for waiver and pooling [1]. Finally, communicate early and often with owners. A board that surprises owners with a six-figure special assessment eight weeks after a report lands is going to have a much rougher annual meeting than one that's been sending quarterly updates since the engineer's truck first showed up in the parking lot. This is the exact gap our $199 Building-Specific Board Compliance Kit is built for: it doesn't do the inspection or the study (only a licensed engineer or reserve professional can do that), but it organizes your building's specific deadlines, tracks which components need what, and gives you owner-communication templates so the board isn't scrambling to explain a SIRS finding the week before a vote.
How is a SIRS different from a milestone inspection?
| Statute | Section 553.899 | Section 718.112(2)(g) | |
|---|---|---|---|
| Purpose | Structural safety assessment | Reserve funding adequacy for named components | |
| Who performs it | Licensed engineer or architect | Licensed engineer or architect | |
| Trigger | Building age (25 or 30 years) plus coastal distance | Building height (3+ stories) | |
| Frequency | Every 10 years after first inspection | Every 10 years | |
| Output | Phase 1/Phase 2 structural report | Component list + funding schedule | A building can need both at the same time, and often does, since the age and height triggers overlap heavily for older coastal high-rises. Boards handling both at once should have the same engineering firm coordinate, if possible, since a lot of the physical inspection work overlaps and doing it twice separately wastes money. |
They're often confused because both came out of the same post-Surfside legislative push and both apply to condo/co-op buildings 3+ stories, but they're different statutes with different professionals and different purposes. | Feature | Milestone inspection | SIRS |
Frequently asked questions
What is a reserve study?
A reserve study is a professional evaluation of a community's major shared components (roofs, pavement, pools, structural elements) that estimates each item's remaining useful life and replacement cost, then produces a funding schedule showing how much money the association needs to set aside each year to pay for those replacements without a surprise special assessment.
What is a reserve study for an HOA?
For Florida HOAs (governed by Chapter 720, not Chapter 718), a reserve study is the same basic tool condos use: an inventory of major components with cost and useful-life estimates. Unlike condos, Florida HOAs are not statutorily required to do a SIRS or fully fund reserves, so many HOA reserve studies are voluntary, though lenders increasingly expect one.
What is an HOA assessment?
An HOA assessment is money the association charges owners to cover its budget, either the regular recurring dues (operating plus reserve contributions) or a special assessment levied outside the normal budget for an unplanned or underfunded expense, like storm damage or a reserve shortfall discovered after a SIRS.
What are HOA assessments used for?
Assessments fund two buckets: operating expenses (insurance, landscaping, management, utilities for common areas) and reserves (long-term savings for roof, paving, structural, and other major component replacement). Special assessments cover one-time gaps, often triggered by an inspection report, storm damage, or reserves that were underfunded for years before Florida's 2022 SIRS reforms.
How much should an HOA have in reserves?
For Florida condos, SIRS components must now be funded at 100% of projected replacement cost, spread over the component's remaining useful life, starting with the fiscal year beginning January 1, 2025, per Section 718.112(2)(f) [1][4]. HOAs under Chapter 720 have no statutory minimum, so the honest target is whatever a professional reserve study calculates for full funding, adjusted to your board's risk tolerance.
How much does a reserve study cost?
Basic non-SIRS reserve studies typically run $2,000 to $6,000 for a small association, up to $15,000 for a larger mid-size condo needing a full on-site inspection. A statutory SIRS, since it requires a licensed engineer or architect, usually costs $10,000 to $30,000 or more depending on building size and structural complexity.
Are HOA special assessments tax deductible?
Generally no, for owner-occupied personal residences; the IRS treats special assessments like regular dues, as nondeductible personal expenses. Owners of rental units can typically deduct or depreciate them as a rental expense on Schedule E. Casualty-loss-related assessments in federally declared disaster areas may qualify for a separate, narrow deduction. Always confirm with a CPA.
Does Florida Statute 718 apply to HOAs or only condos?
Chapter 718 is the Florida Condominium Act and applies only to condominium associations. Homeowners associations of single-family homes and townhomes fall under Chapter 720, which does not currently have a SIRS or mandatory full-funding reserve requirement. Cooperatives fall under the separate but similar Chapter 719.
What buildings need a SIRS under Florida law?
Condominium and cooperative buildings that are three stories or more in height, as certified by the architect or engineer of record or as shown on the certificate of occupancy, per Section 718.112(2)(g). Buildings certified by a licensed engineer as not having areas requiring milestone inspection are excluded.
When was the first SIRS deadline in Florida?
The initial Structural Integrity Reserve Study was due by December 31, 2024 for qualifying condo and co-op buildings. After that, a new SIRS is required at least every 10 years. Full reserve funding for SIRS-covered components applies starting with the association's fiscal year beginning on or after January 1, 2025.
Can a condo association waive or pool SIRS reserves?
No. Section 718.112(2)(f) prohibits associations from voting to waive or reduce reserve funding for SIRS-covered components, and prohibits pooling SIRS reserves with non-SIRS reserves, starting with the fiscal year beginning January 1, 2025. Non-SIRS reserve items can still be waived or pooled by member vote.
Who can legally perform a SIRS in Florida?
A licensed Florida engineer or architect must perform, or at minimum sign off on, the visual structural inspection portion of a Structural Integrity Reserve Study. Boards, management companies, or general reserve analysts without that license cannot substitute for the required engineering evaluation on structural components.
What's the difference between a milestone inspection and a SIRS?
A milestone inspection (Section 553.899) is a structural safety check triggered by building age, generally at 25 or 30 years depending on coastal proximity. A SIRS (Section 718.112(2)(g)) is triggered by building height (3+ stories) and focuses on reserve funding adequacy for specific named components. Both require a licensed engineer or architect.
Sources
- The Florida Senate, Florida Statutes Section 718.112: SIRS requirements, covered components, funding and pooling rules, and licensed engineer/architect requirement
- The Florida Senate, Florida Statutes Chapter 720: HOA governance under Chapter 720, distinct from condo Chapter 718
- The Florida Senate, Florida Statutes Section 719.106: Cooperative associations have parallel SIRS and reserve provisions under Chapter 719
- The Florida Senate, CS/CS/HB 1021 (2024): 2024 legislative amendments adjusting SIRS funding timeline to fiscal years beginning on or after January 1, 2025
- IRS, Publication 530, Tax Information for Homeowners: HOA dues and special assessments for a personal residence are generally not deductible
- IRS, Publication 527, Residential Rental Property: Rental property owners may deduct or depreciate association assessments as a rental expense
- IRS, Topic No. 515, Casualty, Disaster, and Theft Losses: Personal casualty loss deductions are generally limited to federally declared disaster areas
- The Florida Senate, Florida Statutes Section 553.899: Milestone inspection deadlines based on building age (25 or 30 years) and coastal proximity
- Florida DBPR, Division of Florida Condominiums, Timeshares, and Mobile Homes: DBPR is the state agency with regulatory and enforcement authority over condo association compliance