Last year, we spent a lot of time helping Florida communities understand the changes to Structural Integrity Reserve Study requirements. Now that many associations have completed their initial SIRS, there’s another important question to keep in mind:
When does a SIRS need to be updated?
Under Florida law, the answer isn’t simply “every 10 years.” An association must obtain an updated SIRS before adopting a budget when its proposed reserve funding does not align with the funding plan in its most recent SIRS.
When an Update May Be Required
- Your reserve funding plan changes — If the association wants to adopt a funding approach that differs from the plan reflected in its current SIRS, the study needs to be updated before that budget is adopted.
- A special assessment is approved — If a special assessment will be used to meet reserve obligations and was not reflected in the current SIRS funding plan, an update may be required.
- The association obtains a loan or line of credit — If financing becomes part of the reserve funding strategy after the SIRS was completed, the study may need to be updated to reflect that change.
- The association uses the statutory reserve-funding pause or reduction following a milestone inspection — This can also create a need to revisit the SIRS as the association returns to reserve funding.
One More Deadline to Remember
Certain associations that coordinated their initial SIRS with a required milestone inspection have until December 31, 2026 to complete that initial SIRS.
What This Means for Your Community
A completed SIRS shouldn’t necessarily be viewed as something that goes on the shelf until the next 10-year cycle. Changes in how an association plans to fund its reserves can trigger the need to revisit the study much sooner.
If your board is preparing its next budget, considering a special assessment, or looking at financing options, now is a good time to make sure your current SIRS still aligns with the association’s plans.
