Florida Statutes § 718.112(2)(f)-(g): Condo Reserves and SIRS Requirements

Quick Answer

Under Fla. Stat. § 718.112(2)(f) and (g), a condominium budget must include reserve accounts for roof replacement, building painting, pavement resurfacing and any other item whose replacement or deferred maintenance cost exceeds $25,000 or the Division's inflation-adjusted amount, whichever is greater (the Division lists $25,675 for 2026). Residential associations must also have a structural integrity reserve study, or SIRS, at least every 10 years for each building three habitable stories or higher. For unit-owner-controlled associations existing on or before July 1, 2022, the date was December 31, 2025, and the statute says "in no event" may the study be completed after December 31, 2026. For budgets adopted on or after December 31, 2024, associations that need a SIRS cannot waive or reduce funding for the SIRS items.

At a Glance

What the Law Says

Reserves in the budget

The budget must include reserve accounts "for capital expenditures and deferred maintenance," including "roof replacement, building painting, and pavement resurfacing, regardless of the amount of deferred maintenance expense or replacement cost, and any other item that has a deferred maintenance expense or replacement cost that exceeds $25,000 or the inflation-adjusted amount determined by the division ... whichever is greater." The amount is computed by a formula based on estimated remaining useful life and estimated replacement cost or deferred maintenance expense.

• For items with no readily ascertainable useful life, or more than 25 years remaining, an association need not reserve replacement costs but must reserve any deferred maintenance expense the SIRS recommends.
• The Division must adjust the $25,000 threshold annually using the Consumer Price Index for All Urban Consumers, and must post the amount on its website by February 1, 2026 and annually after that. The Division's reserve threshold page lists $25,000 for 2025 and $25,675 for 2026.
• Accounts may be pooled. Reserve funding for the SIRS items may be pooled only with other SIRS items. A board may switch between pooling and straight-line accounting without a member vote.

Waiving or reducing reserves

• Unit-owner-controlled associations may generally vote by a majority of the total voting interests to provide no reserves or less reserves. But for a budget adopted on or after December 31, 2024, an association that must obtain a SIRS may not do so for the items listed in paragraph (g). The statute makes an exception for multicondominium associations that have an alternative funding method approved by the Division.
• For those budgets, members also may not vote to use reserve funds or interest for any purpose other than replacement or deferred maintenance of the paragraph (g) components.
• If members vote to terminate the condominium under § 718.117, they may vote to waive reserves recommended by the most recent SIRS.
• Proxy questions on waiving reserves must carry the statutory capitalized warning that waiving reserves "MAY RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS."

Funding methods and pauses

• SIRS-item reserves may be funded by regular assessments, special assessments, lines of credit or loans. A special assessment, line of credit or loan needs a majority of the total voting interests.
• A unit-owner-controlled SIRS association may secure a line of credit or loan to fund capital expenses required by a milestone inspection or the SIRS. It must be sufficient to cover the cumulative previously waived or unfunded reserve amounts, and funds must be "immediately available for access by the board" without further member approval. It must be disclosed in the annual financial statement and the presale disclosure.
• If the local building official determines the entire building is uninhabitable due to a natural emergency, the board may pause or reduce reserve contributions until the building is habitable again, then must resume immediately.
• For a budget adopted on or before December 31, 2028, if the association completed a milestone inspection within the previous 2 calendar years, the board, with majority approval of the total voting interests, may pause or reduce contributions for no more than two consecutive annual budgets to fund repairs the inspection recommended. A SIRS must be performed before contributions continue.
• These funding-method and pause provisions do not apply to developer-controlled associations, associations in which non-developer owners have been in control for less than 1 year, or associations controlled by bulk assignees or bulk buyers.

The structural integrity reserve study

• Frequency: at least every 10 years after the condominium's creation, for each building on the property that is "three habitable stories or higher."
• Items studied: roof; structure including load-bearing walls and primary structural members and systems; fireproofing and fire protection systems; plumbing; electrical systems; waterproofing and exterior painting; windows and exterior doors; and any other item costing more than the reserve threshold whose failure would negatively affect those items, as determined by the visual inspection.
• Method: the study "is based on a visual inspection of the condominium property."
• Who may do it: 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 certifying bodies named in the statute.
• Contents: each item inspected, remaining useful life, replacement cost or deferred maintenance expense, and a reserve funding plan, including a baseline funding plan in which the reserve cash balance stays above zero. The study must reflect the funding method chosen and be updated if the association adopts a special assessment, line of credit or loan after the study.
• Exclusions: buildings under three stories, single-family to four-family dwellings with three or fewer habitable stories above ground, portions not submitted to condominium ownership, and portions maintained by someone other than the association.
• Deadline: associations existing on or before July 1, 2022 and controlled by unit owners must complete it by December 31, 2025. An association required to complete a milestone inspection on or before December 31, 2026 "may complete the structural integrity reserve study simultaneously with the milestone inspection," and "in no event may the structural integrity reserve study be completed after December 31, 2026."
• Using a milestone inspection: a milestone inspection within the past 5 years that meets the requirements may replace the visual inspection portion. An association that completes a milestone inspection may delay the SIRS for no more than the 2 consecutive budget years that follow.

Delivery, reporting and records

• Within 45 days after receiving the SIRS, the association must give each owner a copy or a notice that it is available for inspection and copying on written request.
• Within the same 45 days it must give the Division a statement that the study was completed and provided or made available to owners, on a form on the Division's website.
• An officer or director must sign an affidavit acknowledging receipt of the completed SIRS.
• Under § 718.111(12)(a)11.d. the association must keep SIRS reports for at least 15 years, and under § 718.111(12)(g)2.p. an association required to have a website posts its most recent SIRS there.
• A design professional or contractor who bids to perform the SIRS must disclose in writing any intent to bid on resulting work. Failure to disclose makes the contract voidable and can lead to professional discipline.

What This Means in Practice

For boards

The reserve rule and the SIRS work together. The SIRS sets the components and the funding plan, and the budget must then follow it: for SIRS associations, "the reserve amount for such items must be based on the findings and recommendations of the association's most recent structural integrity reserve study." If the budget's funding from assessments, lines of credit or loans does not match the latest funding plan, the statute requires an updated study before adopting that budget.

Deadline math (our arithmetic, for illustration): if the SIRS is received on September 1, the 45-day owner distribution and the 45-day Division statement are both due by October 16. The statute does not say how days are counted, so confirm with counsel.

For owners

Owners are entitled to the study or notice of availability within 45 days. Owners also vote on special assessments, lines of credit and loans for SIRS items (majority of total voting interests), and may no longer vote to skip SIRS-item reserves in budgets adopted on or after December 31, 2024.

What the law does not say

• It does not state a penalty for missing the December 31, 2025 date, other than the fiduciary breach for "willful and knowing" failure. Whether other consequences follow is an open question (our reading).
• The December 31, 2026 "in no event" sentence sits next to the milestone-inspection sentence. Our reading: it is an outer limit, and it does not extend the December 31, 2025 date. Confirm with counsel for an association that has not completed a study.
• The 2026 DBPR figure of $25,675 comes from the Division's web page, not the statute. The statute fixes only the $25,000 starting point and the annual adjustment.
• We did not read the Division's rule on the SIRS form or on the Florida Building Commission's coordination. The statute directs the Division to adopt the form by rule.

Timeline

Related Florida Law

• § 553.899: milestone inspections
• § 718.112: bylaws, meetings, elections and budgets
• § 718.111: official records, insurance and financial reporting
• Chapter 718: the Condominium Act
• SB 4-D (2022): building safety, milestone inspections and SIRS
• HB 913 (2025): reserves, SIRS and meetings
• Florida HOA law changes 2021 to 2025

Board Checklist

• List each building and its habitable stories to confirm which buildings need a SIRS.
• Confirm whether the study was completed by December 31, 2025, and if not, treat completion before December 31, 2026 as an urgent item and ask counsel about exposure.
• Check the Division's posted reserve threshold for the budget year, and re-run the reserve item list against it.
• Collect the written bid disclosures from the study provider and any contractor bidding on recommended work.
• Within 45 days of the study: distribute it or the availability notice to owners, send the Division statement, and have an officer or director sign the receipt affidavit.
• Build the budget from the SIRS funding plan, and request an updated study if the planned funding does not match it.
• If considering a pause after a milestone inspection, confirm the budget adoption date is on or before December 31, 2028, and calendar the owner vote.
• Retain SIRS reports for at least 15 years and post the latest on the website if one is required.

Frequently Asked Questions

What is the Florida condo reserve threshold for 2026?

The statute sets $25,000 as the base and requires the Division to adjust it annually for inflation, using whichever is greater. The Division's website lists $25,675 for 2026. Roof replacement, building painting and pavement resurfacing must be reserved regardless of cost.

Can owners vote to waive reserves for structural items?

Not for budgets adopted on or after December 31, 2024 in associations that must obtain a SIRS, for the items listed in paragraph (g). The statute makes an exception for a multicondominium that has an alternative funding method approved by the Division.

Who can perform a structural integrity reserve study?

A licensed engineer or architect, or a person certified as a reserve specialist or professional reserve analyst by the certifying bodies named in the statute. The study is based on a visual inspection.

How often is a SIRS required?

At least every 10 years after the condominium's creation for each building three habitable stories or higher, with an updated study required before adopting a budget whose funding does not align with the latest plan.

Can an association borrow money to fund reserves?

Yes. SIRS-item reserves may be funded by lines of credit or loans, with a majority vote of the total voting interests. A unit-owner-controlled SIRS association may also secure a line of credit or loan sufficient to cover previously waived or unfunded amounts.

Is a milestone inspection the same as a SIRS?

No, but they are linked. A milestone inspection within the past 5 years may replace the SIRS visual inspection, and completing one lets an association delay the SIRS for up to 2 consecutive budget years.

What must the association do after receiving the study?

Within 45 days, give each owner a copy or notice of availability, and send the Division a completion statement on its form. An officer or director must also sign an affidavit acknowledging receipt.

Where This Comes From

We read the full text of § 718.112, including paragraphs (2)(f), (2)(g) and (2)(h) and the history line, in the 2026 Florida Statutes at leg.state.fl.us. We also read § 718.111(12), the Division of Condominiums, Timeshares and Mobile Homes reserve threshold page, and the Senate bill summary and bill pages for HB 913 (2025) and SB 4-D (2022). We did not read the Division's rule on reserves or the SIRS form, or any appellate decision applying these paragraphs.

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Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed Florida attorney before acting.