Worked example
What a Florida condo’s reserve numbers actually look like
Board members keep asking the same question — “are we going to get hit with a special assessment?” — and get answered with adjectives. This page answers it with arithmetic you can check by hand, on an illustrative 48-unit, 8-storey building built in 1984. It is the same calculation the $24 toolkit runs on your numbers.
The seven SIRS categories
Florida requires a Structural Integrity Reserve Study for buildings three storeys and taller, covering these seven structural components. Since 1 January 2025, associations subject to SIRS can no longer vote to waive or underfund them — which is why the funded ratio below stopped being a talking point and became a budget line.
| Component | Replacement | Life | Remaining | Fully funded | On hand | Annual need |
|---|---|---|---|---|---|---|
| Roof | $840,000 | 25y | 6y | $638,400 | $210,000 | $105,000 |
| Structure | $1,250,000 | 50y | 21y | $725,000 | $305,000 | $45,000 |
| Fireproofing & fire protection | $260,000 | 25y | 9y | $166,400 | $61,000 | $22,111 |
| Plumbing | $690,000 | 40y | 14y | $448,500 | $148,000 | $38,714 |
| Electrical | $410,000 | 40y | 17y | $235,750 | $92,000 | $18,706 |
| Waterproofing & exterior paint | $520,000 | 10y | 3y | $364,000 | $118,000 | $134,000 |
| Windows & doors | $760,000 | 30y | 12y | $456,000 | $141,000 | $51,583 |
| Total | $4,730,000 | $3,034,050 | $1,075,000 | $415,115 |
How each number is derived
- Effective age = useful life − remaining life. The roof: 25 − 6 = 19 years.
- Fully funded balance = replacement cost × (effective age ÷ useful life). Roof: $840,000 × (19 ÷ 25) = $638,400. That is what should be sitting in reserves today.
- Annual need = (replacement cost − on hand) ÷ remaining life — the straight-line contribution to reach full funding by replacement.
- Funded ratio = on hand ÷ fully funded balance. Below ~70% is where lenders and buyers start asking questions.
Funded ratio
35.4%
$1,075,000 of $3,034,050
Per unit / month
$721
to fund reserves on schedule
If assessed today
$40,814
per unit, to close the $1,959,050 gap
What this building should actually do
At a 35% funded ratio the association is not in crisis, but it is behind — and two components (waterproofing at 3 years remaining, roof at 6) arrive before the reserves for them do. The honest options are a phased contribution increase of about $721 per unit per month, a targeted assessment for the near-term items, or a combination. Doing nothing converts a $721/month problem into a $40,814 letter.
That is the entire point of running the numbers early: the same shortfall costs dramatically less when it is spread over remaining life instead of demanded at once.
Run this on your building
The $24 Florida Condo & HOA Board Toolkit is the same seven-category model as an Excel workbook — you enter your components, costs and balances, and the funded ratio, annual need and per-unit figures calculate themselves. It also carries the budget model, the special-assessment calculator with payment plans, and a 26-deadline compliance calendar.
Get the toolkit — $24 →Secure checkout via Gumroad · Planning guidance, not legal or engineering advice
Statutory references reflect the 2025 Florida Statutes including HB 913 updates. Florida has amended its condominium statutes repeatedly since Surfside — re-verify each session. See the SIRS guide · pricing · about.