canadafloridaThe reference manual

Chapter 02 · Topic 02.2 · HOA & Condo

Florida condo reserve study (SIRS): components, funding, how to read

SIRS = evaluation of structural components + RUL + replacement cost. Every 10 years. Drives 100% mandatory reserve contributions since 2025. ≥ 70% Funded = healthy; ≤ 30% = red flag.

Published 2026-04-28Last reviewed 2026-04-29Reading time ≈ 10 minAuthor CanadaFlorida Editorial Team

Direct answer · 60-second summary

The 60-second version

The Structural Integrity Reserve Study (SIRS) is a detailed assessment by a licensed professional of a condo's structural components, with their remaining life and replacement cost. Required by SB 4-D (2022) for any condo 3+ stories. Refreshed every 10 years. Drives mandatory reserve calculation since January 1, 2025 (waiver banned). First SIRS due by December 31, 2024 (or aligned with milestone). SIRS distinguishes structural components (roof, load-bearing structure, waterproofing, general plumbing/electrical, fire safety) from non-structural (clubhouse furniture, pool toys). For a condo buyer: checking the SIRS vs. current reserve fund is the #1 indicator of assessment risk.

REFERENCE · ACRONYMS USED IN THIS GUIDE

Acronyms used in this guide

Structural components covered (F.S. §718.112(2)(g)6)

  1. Roof (membrane, structure, drainage).
  2. Load-bearing structure (concrete, steel, foundations, columns).
  3. Facade waterproofing (caulking, windows, sliding doors).
  4. Exterior windows and doors.
  5. General plumbing (main drains, risers, water distribution).
  6. General electrical system (main service, distribution).
  7. Fire safety systems (sprinklers, alarms, fire escapes).
  8. Any other component at replacement cost ≥ $10,000 with structural impact.

The board may add components (clubhouse furniture, pool equipment) but cannot remove mandatory structural ones.

Methodology

  • Evaluator: reserve specialist (typically APRA-certified) or FL-licensed engineer/architect.
  • Physical visit to the building.
  • For each component: remaining useful life (RUL), current replacement cost, funding method (cash flow, percent funded, full funding).
  • "Full Funding" method is the standard required by F.S. §718.112(2)(f) since 2025. Calculation: (total structural cost ÷ avg RUL years) spread annually.
  • Inflation built in (typically 3-5% per year for construction costs).
  • Published report with component-by-component table.

Reserve fund level: crucial ratio

Compute "Percent Funded" = (current reserve balance ÷ theoretical balance recommended by SIRS) × 100%.

% FundedFinancial healthAssessment risk
≥ 100%ExcellentVery low
70-99%GoodLow
40-69%MarginalModerate
20-39%UnderfundedHigh (assessment likely)
< 20%CriticalVery high (imminent assessment)

Industry rule of thumb: ≥ 70% = financially sound. ≤ 30% = major red flag.

Impact on condo fees

Since January 1, 2025, the board must budget 100% of SIRS-recommended contributions, regardless of unit owner sentiment.

Worked example

80-unit condo, SIRS identifies $6M structural replacements over 25 yrs → $240,000/yr reserves needed.
Per-unit cost: $3,000/yr = $250/month added to condo fees.
If fees were $600/month → become $850/month.

In buildings underfunded for 10-20 years (Surfside-style cases), catch-up can mean +$200 to +$400/month per unit or a special assessment of $10,000 to $100,000 per unit.

Questions to ask before buying

  1. What is the date of the latest SIRS?
  2. What is the current reserve fund balance?
  3. What is the SIRS-recommended annual contribution?
  4. Does the board fully (100%) honor that recommendation?
  5. Which SIRS components are at < 5-year RUL?
  6. Is any assessment voted or discussed?
  7. What is the unit delinquency percentage?
  8. What is the master policy hurricane deductible?

Formulaires officiels et pages de référence

Responsabilité du lecteur

Toujours utiliser la dernière version disponible sur le site officiel cité ci-dessous. Les seuils, taux et délais évoluent. CanadaFlorida ne se substitue pas à un professionnel licencié.

Editorial team

CanadaFlorida Editorial Team

Research drawn from primary public sources cited at the bottom of every guide: U.S. and Florida statutes, U.S. and Canadian federal agencies, official Florida county and state authorities, and Canadian provincial bodies where applicable.

Every figure, rate, threshold, and deadline in this guide is drawn from a verifiable primary source listed at the bottom of the page. The article is updated whenever the underlying rules change, with a fresh review date stamped at the top.

Sources and references

Public sources verified as of the last review date (Florida Statutes, Florida Department of Revenue, Citizens, FEMA, DBPR).

  1. F.S. §718.112(2)(g) — Structural Integrity Reserve Study. leg.state.fl.us/§718.112
  2. F.S. §718.112(2)(f) — Mandatory full reserve funding. §718.112(2)(f)
  3. SB 4-D (2022) and SB 154 (2023). flsenate.gov/sb4d

Disclaimer

This guide is for educational purpose only. Figures, rates, thresholds, timelines and rules are drawn from public sources at the date shown and may change.

For any concrete decision, consult a Florida-licensed attorney, a cross-border tax attorney, or a Florida-licensed insurance broker.