Florida’s Mandated Reserve Studies (SIRS) & Board Accountability — 2025 Practical Guide for Condos and HOA's

By AIO Miami Property Management — October 2025

If you sit on a Florida community association board, the runway for “optional” planning is gone. For condominiums and cooperatives with buildings that are three (3) or more habitable stories, the Structural Integrity Reserve Study (SIRS) is not just kicking the can down the road anymore—it’s the law. Budgets adopted on or after December 31, 2024 must fund the SIRS components at the levels recommended by the most recent SIRS, and there are tight distribution/reporting deliverables plus personal accountability for directors. Homeowners’ associations (HOAs) operate under a different statute (Ch. 720) and do not have a SIRS mandate, but once reserves are established, HOAs must follow statutory funding/waiver rules.

Downstream impact: Failure to comply can trigger DBPR investigations, result in civil penalties of up to $5,000 per violation, lead to removal/prohibition from serving, breach of fiduciary duty claims, and owner recalls, as well as significant insurance/financing headwinds for the entire community.

Who Must Do What in 2025

Condominiums / Cooperatives (Chapter 718)

·       Buildings covered: Any building with 3+ habitable stories.

·       SIRS cadence: Every 10 years per building; visual inspection by a licensed engineer/architect or certified reserve professional, with component list (roof, structure, fire protection, plumbing, electrical, waterproofing/exterior paint, windows/doors, and other qualifying items), remaining useful life, replacement/deferred maintenance costs, and a baseline funding plan that keeps the reserve cash balance above zero.

·       Deadlines:

o   Associations existing on or before July 1, 2022, must have a SIRS completed by December 31, 2025. If a building’s milestone inspection is due on or before December 31, 2026, the SIRS can be completed simultaneously, but no later than December 31, 2026.

·       Budgeting rules (effective for budgets adopted on or after 12/31/2024):

o   Members may not vote to provide no reserves or less than required for SIRS-listed items.

o   Reserve pooling: SIRS items may only be pooled with other SIRS items; the reserve plan must be sufficient to meet projected expenses across the pool based on the SIRS schedule.

·       Temporary relief controls:

o   For budgets adopted on or before December 31, 2028, if the association has completed a milestone inspection in the past 2 calendar years, the board may, with approval of a majority of the total voting interests, pause or reduce reserve contributions for up to two consecutive annual budgets to fund milestone-recommended repairs. A fresh SIRS is required before resuming contributions to recalibrate funding.

Homeowners’ Associations (Chapter 720)

·       No SIRS mandate.

·       If the membership adopts statutory reserves, they must be calculated/funded per statute; members may vote each year to waive/reduce, and required disclosures must appear in the financial report when reserves are not fully funded. HOAs must also follow restrictions on the use of reserve funds, unless repurposing is approved by the members.

Non‑Negotiables for Condo Boards in 2025

1.      Complete and adopt a compliant SIRS by 12/31/2025 (or by 12/31/2026 if aligned with a 2026 milestone inspection deadline), covering all required components and a baseline funding plan.

2.      Budget to the SIRS: Your 2025–2026 budgets (and onward) must fund SIRS components at the levels recommended; no membership vote can undercut SIRS items.

3.      Distribute & report within 45 days of receiving the SIRS: deliver to owners (or provide notice of availability) and file the required statement with DBPR that the SIRS is complete and has been provided/made available to owners.

4.      Affidavits: Each officer/director must sign an affidavit acknowledging receipt of the completed SIRS.

5.      Keep alignment: If you later finance or special‑assess for capital work, update the SIRS so the budget and funding schedule remain in lockstep.

Enforcement & Director Exposure: What Happens If You Ignore It.

Breach of Fiduciary Duty (Condominiums)

·       Willful & knowing failure to complete a SIRS is expressly deemed a breach of an officer’s/director’s fiduciary relationship to the unit owners.

·       Practical translation: Even absent DBPR notice, disregarding professional guidance (e.g., your engineer’s SIRS or warnings from your licensed community association manager) creates a litigation vector for owners alleging breach—especially if the board overrides management and adopts a budget below the SIRS schedule or fails to distribute/report as required.

DBPR Administrative Penalties (Condominiums)

·       Civil penalties up to $5,000 per violation; penalties can run per day for continuing violations (capped per offense) and can include removal from office and temporary prohibition from serving on the board.

·       The statute defines “willfully and knowingly” for DBPR civil penalties as a violation after the division informs the officer/director of non‑compliance and they refuse to comply within the cure period. Translation: once DBPR sends you a written notice, the clock is ticking—non‑action is high risk.

Other Real‑World Consequences

·       Insurance & lending friction: Non‑compliant buildings face coverage/pricing challenges and reduced buyer financing, depressing values.

·       Owner recalls: Members can recall directors who fail to perform statutory duties.

·       Litigation risk: Budget shortfalls vs. SIRS plan fuel breach claims, D&O disputes, and injunctions compelling compliance.

Decision Traps to Avoid

·       “We can vote to waive SIRS reserves.” Not applicable to budgets adopted on/after December 31, 2024.

·       “We’ll pool everything.” You can only pool SIRS items with SIRS items, and the pool must still meet the SIRS cash‑flow schedule.

·       “Manager said it’s fine.” Your LCAM’s guidance is crucial—but directors own the fiduciary duty and personal exposure. Ignoring a SIRS or LCAM warning creates paper trails that plaintiffs love.

·       “We’ll fix it next year.” Distribution/reporting deadlines, as well as daily violations, make procrastination expensive.

HOA (Chapter 720)

·       No SIRS requirement today. However, once statutory reserves are established, HOAs must compute based on remaining useful life and replacement cost, restrict usage to designated purposes, and follow annual waiver mechanics. Required consumer disclosures must be included when reserves are not fully funded.

Bottom Line

This is a compliance-critical, value-protecting, safety-first mandate. High-functioning boards will operationalize SIRS as a standing governance process, rather than a one-off deliverable. Fund to plan. Document decisions. Communicate early and often. When in doubt—escalate questions to counsel, your engineer, and your LCAM.

This article is for general educational purposes and is not legal advice. Consult association counsel for application to your community’s governing