What Every Condo Association Needs to Know Before 2025
Florida’s Updated SIRS Law (HB 913)
Understanding the New SIRS Timeline and Requirements
Florida’s new Structural Integrity Reserve Study (SIRS) law—House Bill 913—has reshaped the way condominium and cooperative associations approach reserve funding and long-term planning. The deadline for completing initial SIRS reports has been extended to December 31, 2025, giving communities additional time to prepare while tightening other compliance and funding requirements.
At Edge Realty Advisors, we help associations navigate these evolving regulations through our Reserve Studies Consulting.
What Is a SIRS and Why It Matters
A Structural Integrity Reserve Study is a detailed evaluation by a Reserve Specialist, licensed engineer, or architect that analyzes the building’s most critical systems. It helps ensure your association sets aside sufficient reserves to protect property value and safety.
Every SIRS must evaluate at least eight essential components:
- Roof
- Structure, including load-bearing walls and other primary structural members and primary structural systems
- Fireproofing and fire protection systems
- Plumbing
- Waterproofing and exterior painting
- Electrical systems
- Windows and exterior doors
- Other major components exceeding the statutory cost threshold
The study outlines each item’s remaining useful life, estimated repair or replacement cost, and required reserve contributions.
The New December 31, 2025 SIRS Deadline
Under HB 913, the initial SIRS deadline has been extended from December 31, 2024 to December 31, 2025.
This one-year extension allows associations to:
- Secure qualified reserve study professionals
- Conduct thorough inspections
- Prepare compliant reserve funding plans
- Incorporate findings into the annual budget
However, we recommend starting early. Waiting until late 2025 could lead to scheduling backlogs and rushed financial decisions.
Tip: Associations with a Milestone Inspection due on or before December 31, 2026 may complete the SIRS at the same time—potentially extending their deadline to that date.
Who Must Complete a SIRS: Clarifying “Habitable Stories”
The law now applies to condominium and cooperative buildings that are three or more habitable stories tall. “Habitable” refers to areas used for living, sleeping, eating, or cooking. Spaces like garages, storage rooms, and mechanical levels don’t count.
Additionally, four-unit dwellings with three or fewer habitable stories above ground are exempt. If your association is unsure whether your building qualifies, consult legal counsel for clarification.
Enhanced Requirements: The New “Baseline Funding Plan”
HB 913 adds a new layer of financial accountability: the Baseline Funding Plan.
This plan must show how your association’s reserve balance will remain above zero for all SIRS-covered components throughout the study period. It transforms the SIRS from a static report into a dynamic financial roadmap—one that supports sustainable budgeting and responsible long-term planning.
SIRS and Milestone Inspections: Coordinated Flexibility
Recognizing the cost burden of Milestone repairs, HB 913 allows associations to adjust their timelines and funding strategies:
- Deferral Option: You may delay your next SIRS for up to two consecutive budget years if coordinating with a Milestone Inspection.
- Temporary Pause: Until December 31, 2028, with a majority membership vote, associations may pause or reduce reserve contributions for SIRS components to prioritize Milestone-related repairs.
- Re-Evaluation Requirement: If you exercise this pause, you must conduct a new SIRS before resuming normal reserve contributions.
Reserve Funding Flexibility and Financial Tools
HB 913 modernizes how associations can fund and manage reserves:
- Flexible Funding Options: Reserves may now be funded via special assessments, bank loans, or lines of credit, if approved by a majority of members.
- Accounting Methods: Boards may switch between pooled and straight-line reserve accounting without a member vote.
- Threshold Adjustment: The minimum cost threshold for “other” mandatory components increases to $25,000, adjusted annually for inflation.
- Investment Options: Reserve funds may be invested in FDIC-insured CDs or bank deposits without membership approval.
- Temporary Suspension: If a building is declared uninhabitable, reserve funding may be paused without a vote.
Transparency, Ethics, and Board Accountability
To ensure professional integrity and public trust, the law introduces new governance standards:
- Conflict of Interest Disclosure: Reserve Specialists, engineers, architects, and contractors performing a SIRS must disclose if they intend to bid on related work.
- Board Certification: Directors must sign an affidavit acknowledging receipt of the completed SIRS report.
- Statewide Standardization: The Florida DBPR and Florida Building Commission will issue an official SIRS form to streamline compliance.
What This Means for Florida Associations
The 2025 SIRS reforms bring a combination of relief and responsibility:
- Deadline Extension: Extra time to complete your initial SIRS without penalty.
- Stronger Financial Planning: The baseline funding plan encourages forward-looking reserve management.
- More Flexibility: Expanded funding options and accounting choices give boards new control.
- Increased Accountability: Stronger documentation and disclosure standards enhance transparency and governance.
💬 Need Help Navigating HB 913 or Planning Your SIRS?
Our Reserve Specialists help associations interpret Florida’s SIRS laws, prepare compliant reports, and build financially sustainable budgets.