Passed by the Florida Senate on May 25, 2022, the Building Safety bill primarily addresses mandatory structural inspections and reserves for condominiums and cooperatives with buildings 3 stories or more.

The goal of a healthy condo reserve fund is to ensure that the community has the financial resources to cover the costs of ongoing maintenance and repairs, which helps to protect property values and maintain the quality of life for residents.

Building Mavens recommends that a condo association should aim to have a reserve fund that is at least 70% funded of its total estimated reserve obligations. This means that the reserve fund should be able to cover 70% of the projected cost of all necessary repairs and replacements over the next 30 years.

A Structural Integrity Reserve Study (SIRS) is a study of the reserve funds required for future major repairs and replacement of the common elements based on a visual inspection. The study involves a visual check and estimates how long the roof, load-bearing walls, floors, foundation, fireproofing, fire protection systems, plumbing, and any other major item needing maintenance or replacement (costing over $10,000) can last. It will also estimate the cost to replace these elements. These inspections must be performed by an engineer licensed under chapter 471, an architect licensed under chapter 481, or a person certified as a reserve specialist or professional reserve analyst by the Community Associations Institute or the Association of Professional Reserve Analysts.

In South Florida, environmental factors like hurricanes and humidity can accelerate building wear and tear. A SIRS helps condo associations plan and budget for necessary repairs, enhancing building safety and value. Furthermore, SIRS are now required in Florida for all condominium and cooperative association buildings three stories or more in height. If your association existed before July 1, 2022, your first reserve study must be completed by December 31, 2024. Read more in our recent dedicated SIRS article.

Condominium and cooperative associations must complete a structural integrity reserve study every 10 years for each building in an association that is three stories or higher in height. Florida legislation mandates that condo associations in existence on or before July 1, 2022, complete their initial SIRS by the end of 2024. Subsequent SIRS studies must be conducted every 10 years.

A SIRS evaluation examines critical aspects including (but not limited to):

• The roof.
• The structure itself, such as load-bearing walls and main structural elements, according to the definition in s. 627.706.
• Fireproofing and fire protection systems.
• Plumbing
• Electrical systems.
• Waterproofing and exterior painting.
• Windows and exterior doors.

It also covers any other component that might need more than $10,000 in maintenance or replacement, especially if neglecting it could impact the above areas. This evaluation is based on a visual inspection to help plan for future maintenance and replacements.

By forecasting future repair and replacement costs, a SIRS allows for proactive budgeting and can prevent costly emergency repairs and complications, ensuring a more stable and predictable financial planning process.

A structural integrity reserve study may be performed by any person qualified to perform such study. However, the visual inspection portion of the structural integrity reserve study must be performed or verified by an engineer licensed under chapter 471, an architect licensed under chapter 481, or a person certified as a reserve specialist or professional reserve analyst by the Community Associations Institute or the Association of Professional Reserve Analysts.

The outcome of a structural integrity reserve study is a comprehensive report that includes:

1. Identification of each visually inspected item within the condominium property.
2. Estimates of the remaining useful life and the replacement cost or deferred maintenance expense for each inspected item.
3. A reserve funding schedule proposing an annual reserve amount designed to cover the replacement cost or deferred maintenance expense of each item by the end of its estimated remaining useful life.

Additionally, the study might suggest that no reserves are necessary for items whose useful life and replacement costs cannot be estimated, or it may propose a deferred maintenance expense for these items. For items with an estimated remaining useful life of more than 25 years, the study might recommend not maintaining reserves for replacement costs but could suggest a deferred maintenance expense amount. Learn more in the official statute.

The cost associated with your Structural Integrity Reserve Study can vary widely depending on several factors:

• Size and Complexity of the Property: Larger buildings or complexes with multiple units and facilities may require more extensive evaluations, leading to higher costs.
• Location: Geographic location within Florida can affect costs due to variations in market rates for professional engineering services.
• Scope of the Study: The detailed and depth of the requested analysis will influence the final cost.
• Special Requirements: The need for specialized inspections or assessments, such as those for historic buildings, buildings with unique architectural features, or buildings requiring specialized equipment (e.g., drone inspections), can add to the cost.

Absolutely. By helping property owners, managers, and community associations properly plan their reserve funding, they can be prepared for repairs and replacements in advance and get them in place before serious problems occur. These are especially important for community associations and cooperatives that are responsible for maintenance and repair of common areas and shared amenities. The lack of reserve funds directly contributed to the storied and tragic Surfside collapse.

Under past laws and regulations, Florida condo associations could vote to waive their reserve contributions. In the years since the tragic Surfside condominium collapse, state and local governments have recognized this as a major oversight and have taken proactive steps to enhance building safety legislation significantly. Starting on December 31, 2024, associations may no longer waive their reserve contributions, and maintaining reserves is mandatory for all condominium and cooperative association buildings that are three stories or taller. Read more in our SIRS coverage here.

Yes, with some caveats. For budgets adopted on or after December 31, 2024, for associations required to obtain a structural integrity reserve study, the members can no longer vote to provide no reserves or less reserves for items listed in the study unless the division has approved an alternative funding method. While there’s some flexibility, certain reserves identified as critical in the structural integrity reserve study must be adequately funded according to the study’s recommendations.

These include:

a. Roof.
b. Structure, including load-bearing walls and other primary structural members and primary structural systems as those terms are defined in s. 627.706.
c. Fireproofing and fire protection systems.
d. Plumbing.
e. Electrical systems.
f. Waterproofing and exterior painting.
g. Windows and exterior doors.
h. 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 in sub-subparagraphs a.-g., as determined by the visual inspection portion of the structural integrity reserve study.

Read more in section (f) of the s 718.112.

Yes, structural integrity reserve studies are mandatory in the state of Florida (s 718.112).  Furthermore, failure to obtain a Structural Integrity Reserve Study is a breach of the officers’ and directors’ fiduciary relationship to the unit owners and may lead to personal liability. See our full article on SB 154 for relevant dates and details.

Reserves are funded as part of the annual budget, including accounts for capital expenditures and deferred maintenance for items like roof replacement, building painting, and pavement resurfacing, among others exceeding $10,000 in deferred maintenance expenses or replacement costs. The funding amount is calculated based on the estimated remaining useful life and estimated replacement cost or deferred maintenance expense of each reserve item. For associations required to conduct a structural integrity reserve study, the reserve amount must be based on the study’s findings and recommendations. Additionally, associations can adjust reserve assessments annually to reflect inflation adjustments and any changes in estimates or extensions of the useful life of a reserve item due to deferred maintenance. This structured approach aims to ensure that funds are available for significant repairs and replacements, contributing to the property’s long-term maintenance and value preservation. Read more in section (f) of the s 718.112.

To schedule a structural integrity reserve study, please contact us via our website or by phone. We’ll discuss your specific needs and arrange for an inspection at a time that works best for you.