reserve studies

 A reserve study is a financial planning tool commonly used by homeowner associations and property management organizations to estimate and prepare for future capital expenditures and maintenance needs. It assesses a property's physical components, provides timelines for necessary repairs or replacements, and creates a funding plan to ensure adequate reserves are available, preventing unexpected financial burdens on property owners. These studies are vital for transparent and prudent financial management within a community or property.

 
A Structural Integrity Reserve Study (SIRS) is a non-invasive, visual inspection focused on critical infrastructure for a building's safety. The assessment includes various key components like roofs, structural elements, load-bearing walls, fire protection systems, plumbing, electrical systems, and more. It extends to common areas such as windows, doors, and other items with significant deferred maintenance expenses or replacement costs exceeding $10,000. 

 Previously, standard Reserve Studies primarily focused on four key components: roofing, painting, paving, and items exceeding $10,000 in cost. These studies were voluntary and didn't necessarily require professional input.

The legislative changes in Florida brought about by SB 154 have significantly impacted the approach to reserve studies in Florida, ushering in the concept of Structural Integrity Reserve Studies (SIRS, as per 718.112(2)(g)). 

The new Florida legislation now mandates that condo associations established on or before July 1, 2022, must complete their initial SIRS by the end of 2024. Subsequent SIRS studies will be required every 10 years, with only potential extensions under specific circumstances. These changes mark a significant shift in ensuring the structural integrity and safety of condominium associations in the state. 

Is your condo in need of a Reserve Study o SIRS? Please contact us for a consultation and quote!