What the New SIRS Deadlines and Funding Rules Mean for Boards, Owners, and Real Estate Agents

Florida’s condominium laws are once again in the spotlight — and for good reason. The Structural Integrity Reserve Study (SIRS) requirements, milestone inspection rules, and new funding mandates taking effect through late 2025 are reshaping how condominium communities plan, budget, and maintain their properties.

For many condo boards and owners, these reforms are not just about compliance — they’re about financial survival. The new deadlines and funding rules are transforming budgets, testing community relationships, and influencing the entire Florida real estate market.

What Exactly Is the SIRS — and Why It Matters

The Structural Integrity Reserve Study (SIRS) is a comprehensive evaluation of a condominium’s critical structural components, designed to ensure that associations set aside enough money to repair or replace them when needed.

It covers major systems that affect safety and habitability, including:

• Roofs, load-bearing walls, and foundations
• Electrical, plumbing, and fire-protection systems
• Windows, waterproofing, and exterior painting
• Structural floors and mechanical equipment

Every condo association with three or more habitable stories must complete a SIRS and follow its funding recommendations. These studies must be prepared by a licensed engineer or architect and updated regularly.

2025 SIRS Deadlines: The Countdown Is On

By December 31, 2025, most Florida condominiums built before 1992 must complete:

1. Their milestone structural inspection, and
2. Their initial SIRS to determine the required reserves for structural components.

This deadline extension — granted after many associations struggled to meet the previous 2024 timeline — gives boards a small but critical window to complete compliance. However, failing to meet it could expose boards to state enforcement, owner lawsuits, and even insurance complications.

The End of Reserve Waivers

Perhaps the biggest shift in Florida condo law is the elimination of reserve waivers for certain critical items. For decades, associations could vote to “waive” or “partially fund” reserves — often to keep monthly dues low.

That’s no longer an option. Associations must now fully fund reserves for the components listed in the SIRS, including structural and life-safety elements.

This reform aims to prevent catastrophic underfunding — but it’s creating intense financial pressure for many aging communities.

New Funding Mechanisms for Condo Boards

Recognizing these challenges, Florida lawmakers have introduced new tools for associations to manage reserve funding responsibly.

1. Loans and Lines of Credit

Boards may now obtain loans or credit facilities to fund reserves or finance repairs, provided they secure majority approval of the total ownership interests — not just a simple quorum.

2. Phased Reserve Restoration

Associations can plan multi-year reserve restoration strategies, allowing owners to gradually adjust to higher assessments while still moving toward full compliance.

3. Limited Deferral Mechanisms

Under certain conditions, boards can temporarily pause reserve funding if:

• A milestone inspection was completed recently, and
• A current SIRS will be completed before reserve payments resume.

This limited deferral gives financially stressed communities short-term breathing room — but it comes with strict procedural rules and should be used cautiously.

How These Changes Affect Key Stakeholders

Condo Boards

• Administrative Burden: Boards must now coordinate engineers, accountants, and legal advisors to meet all new requirements.
• Financial Planning: Expect sharp increases in assessments as reserves are recalculated.
• Legal Risk: Failing to comply can lead to personal liability claims against board members for breach of fiduciary duty.
• Documentation: Boards should maintain complete records of votes, reserve budgets, inspection contracts, and funding schedules.

Condo Owners

• Higher Costs: Assessments and monthly dues will likely increase as full funding takes effect.
• Transparency Rights: Owners have a legal right to inspect the SIRS, milestone reports, and budgets.
• Protection of Investment: While painful in the short term, proper reserve funding preserves property values and marketability.
• Litigation Awareness: Owners can challenge boards that misuse funds or fail to follow statutory procedures.

Real Estate Agents and Buyers

• Disclosure Requirements: Buyers must now receive clear disclosures about a condominium’s inspection and reserve status before closing.
• Valuation Impact: Properties in compliant, well-funded buildings will command higher values — while those with poor SIRS results or missed deadlines could see devaluation.
• Due Diligence Priority: Real estate agents should encourage clients to review inspection reports and confirm reserve balances early in the purchase process.

Common Legal Disputes Emerging from the New Law

1. Failure to Comply with Deadlines: Boards that miss the 2025 SIRS or milestone inspection deadlines risk lawsuits and insurance cancellations.
2. Disputes Over Reserve Allocations: Owners may challenge how the board calculates or applies reserve funds.
3. Assessment Challenges: Some owners claim new special assessments are improperly adopted or disproportionately allocated.
4. Developer Conflicts: In newer communities, disputes arise over whether developers adequately funded reserves prior to turnover.

These conflicts are expected to dominate Florida’s real estate litigation landscape in 2025 and beyond.

Steps to Stay Compliant and Avoid Litigation

1. Engage Qualified Professionals Early
   Hire licensed engineers and financial consultants who specialize in condominium reserve studies and milestone inspections.
2. Follow Statutory Procedures Exactly
   Every vote, notice, and budget adoption must comply with Florida Statutes Chapters 718 and 719. Procedural mistakes can invalidate board decisions.
3. Educate Unit Owners
   Transparency builds trust and reduces backlash when assessments rise. Regularly publish updates and hold informational meetings.
4. Plan for Financing Options
   Evaluate loan or phased-funding strategies before imposing large one-time assessments.
5. Retain Legal Counsel
   Work with experienced real estate attorneys who understand both the compliance side and the litigation risks under the new SIRS regime.

The Bigger Picture: Stability and Safety

While the 2025 reforms may feel burdensome, they mark an important evolution in protecting Florida’s aging condominium infrastructure. The combination of stricter inspections, realistic reserve funding, and professional oversight will help prevent future tragedies and stabilize property values across the state.

For condo boards and owners, the message is clear: act now, document everything, and seek professional guidance before the deadline passes.

Feinstein Real Estate Litigation & Business Law

Address: 501 E Las Olas Blvd, Suite 300, Fort Lauderdale, FL 33301
Phone: (954) 767-9662
Website: www.feinsteinlaw.net

Feinstein Real Estate Litigation & Business Law represents condominium associations, unit owners, and developers throughout South Florida in complex real estate, construction, and HOA disputes.