For boards
SIRS and reserve funding, without the adjectives
Most of what is written about Florida’s reserve rules is either a law-firm client alert or a sales page. This is neither. It explains what the study is, what the numbers in it mean, and what a board actually has to decide once it has them — in the order a board hits those questions.
The short version
A SIRS prices the seven structural components and says when each runs out. Compare what should be reserved against what is reserved and you get a funded ratio. The gap gets paid either monthly over remaining life, or all at once in an assessment letter. Boards that run the numbers early pay the first way.
The seven categories
A SIRS covers the structural and weather-critical systems — roof; load-bearing structure; fireproofing and fire-protection systems; plumbing; electrical; waterproofing and exterior painting; and windows and exterior doors. Note what is not on that list: the pool, the lobby refurbishment, the parking-lot resurfacing. Those may still belong in your general reserves, but they are not what the structural rules are about.
The practical consequence is that a board can be diligently reserving for the things owners notice and still be badly behind on the things that fail expensively.
What a funded ratio actually is
Take one component. It cost C to replace, lasts L years, and has R years left. It has therefore used up L − R years of its life, so the amount that should already be sitting in reserves for it is:
fully funded balance = C × ( (L − R) ÷ L )
Do that for all seven, add them up, and divide the total actually on hand by the total that should be there. That percentage is the funded ratio. It is not an opinion and it does not depend on who prepared the study — two honest studies with the same component data produce the same ratio.
The number matters beyond the budget: it is what a buyer’s lender asks about, and a low ratio can affect whether units in the building finance easily. A reserve problem quietly becomes a resale problem.
See it done on a real set of numbers
We ran this calculation end to end on an example 48-unit building — all seven categories, every figure checkable by hand, ending in a funded ratio and what closing the gap costs per unit per month versus all at once.
Read the worked example →The decision a board actually faces
Once the ratio is known, there are only a few honest options, and they trade off against each other in predictable ways:
- Raise contributions. Cheapest per owner, because the cost spreads over the remaining life of each component. Politically hardest, because it shows up every month and owners feel it immediately.
- Special assessment. Fastest, and sometimes the only option when a component is nearly out of life. Most painful per owner, and the one most likely to force an owner to sell.
- Borrow. Converts a lump sum into instalments, at the cost of interest and a lien on association revenue. Useful for genuinely near-term structural work; expensive as a way of avoiding a hard conversation.
- Phase the work. Legitimate when the remaining lives genuinely differ. Not legitimate as a way of deferring the component that is closest to failure — which, in most buildings we look at, is waterproofing or the roof.
Almost every board arrives at some blend. What separates a good decision from a bad one is whether the board did the arithmetic before choosing, or chose and then went looking for arithmetic to support it.
Questions boards ask
What is a SIRS?
A Structural Integrity Reserve Study. It is a study of the building components that keep the structure standing and dry, with an estimate of what each will cost to replace and when. It is separate from a general reserve study, which may also cover things like pools, paving and clubhouse furniture.
Which buildings need one?
Florida ties the requirement to residential condominium and cooperative buildings of three storeys or more. Height is the trigger, not age or unit count — confirm your own building's status with your association attorney, because the thresholds and deadlines have been amended more than once since 2022.
What is a good funded ratio?
There is no statutory pass mark. In practice, above roughly 70% is generally treated as healthy, 30–70% as a building that is behind but manageable, and below 30% as one where a special assessment is a realistic near-term possibility. Lenders and buyers ask about this number, which is why it affects unit values and not just budgets.
Can our members still vote to waive reserves?
For SIRS components, the ability to waive or underfund was removed — that is the change that turned this from a discussion into a budget line. Non-SIRS reserves are treated differently. This is exactly the point to confirm with counsel, because it is the provision that has been amended most.
Do we have to fix everything the study finds?
A SIRS estimates and schedules; it is not a repair order. What it does is remove the option of pretending the cost is not coming. The board's real decision is how to fund it — contributions over remaining life, a special assessment, borrowing, or a combination.
Run the numbers on your building
The $24 Florida Condo & HOA Board Toolkit is this calculation as a spreadsheet you fill in: the seven-category reserve tracker, a budget model, a special-assessment calculator with payment plans, and a compliance calendar. No subscription, instant download.
Get the toolkit — $24 →Secure checkout via Gumroad · Planning guidance, not legal or engineering advice
Written 29 July 2026. Florida has amended its condominium statutes repeatedly since 2022 (SB 4-D, SB 154, HB 913), and deadlines and thresholds have moved more than once. Treat the structure described here as durable and the specifics as something to confirm — verify your association’s obligations with your association attorney and a licensed reserve study provider. See the worked example · document checklist · pricing.