Part 2: How the SIRS Process Works — Step by Step for Your Association
Demystifying the steps from hiring the professional to reviewing the report and budgeting for the future.
Step 1: Determine Applicability and Deadlines
Confirm if your building has three habitable stories or more. If yes, it’s covered. Existing associations must complete the first SIRS by December 31, 2025. Buildings constructed after that date will need a SIRS within 10 years of their certificate of occupancy.
Step 2: Hire a Qualified Professional
The visual inspection portion must be completed by a Florida-licensed engineer or architect, or a certified reserve specialist. Hire someone with relevant experience, good references, and no conflicts of interest.
Step 3: Conduct the Study
The professional inspects all required components, estimates remaining useful life and replacement costs, and creates a funding schedule that keeps reserves adequate through each replacement cycle.
Step 4: Review and Distribute the Report
The board should review the SIRS carefully and ask questions. Within 45 days of completion, the report or a summary must be shared with all owners. The association must also confirm completion with the Florida Division of Condominiums.
Step 5: Use SIRS Data in Budgeting
Boards are required to include SIRS reserve funding in their annual budget. Unlike traditional reserves, these cannot be waived or reduced by owner vote. The law mandates full funding for critical structural components.
Step 6: Maintain and Update
A SIRS is a living document. Boards should update it when major repairs occur, compare reserve balances annually, and plan updates every 5-10 years.
Up next: In Part 3, we’ll look at smart strategies for boards and how they can make the SIRS work for their community.
_____________________________________________________________
Kennedy Association Management provides guidance, project coordination, and trusted professional resources to help your community meet state requirements while protecting your owners and property values.
