Last updated 2026-07-25
TL;DR
Non-SIRS reserves cover components not on Florida's mandatory Structural Integrity Reserve Study list, like paint, landscaping, or amenities. Florida law (Fla. Stat. 718.112) lets associations still waive or reduce funding for these items by member vote, unlike SIRS components, which must be fully funded starting with budgets adopted on or after December 31, 2024.
What counts as a non-SIRS reserve item?
Non-SIRS reserves are the reserve line items your association funds for building components that don't appear on Florida's mandatory Structural Integrity Reserve Study (SIRS) list. Think painting, pavement, landscaping features, pools, fitness equipment, and interior common area finishes. These still need funding decisions, but the board and members have more legal flexibility over them than they do for SIRS items. Florida Statute 718.112(2)(f) spells out which components a SIRS must cover: roof, load-bearing walls or other primary structural members, floor, foundation, fireproofing and fire protection systems, plumbing, electrical systems, waterproofing and exterior painting, windows, and any other item that has a deferred maintenance expense or replacement cost exceeding $10,000 and affects the structural integrity of the building [1]. Everything else your reserve schedule tracks, carpet in the lobby, the tennis court resurfacing, the clubhouse HVAC, falls into the non-SIRS bucket. The distinction matters because since the 2022 and 2023 legislative response to the Champlain Towers South collapse, Florida law treats SIRS components as non-waivable. Non-SIRS components are still governed by the older, more flexible reserve rules under 718.112(2)(f), which allow a majority of the total voting interests to vote to waive or reduce reserve funding for those items in any given year [1].
What is a reserve study?
A reserve study is a physical inspection and financial analysis that identifies an association's common-area components, estimates their remaining useful life, and calculates how much money needs to be set aside each year to pay for future repair or replacement. It's the tool that turns a wall of aging concrete and a leaky pool deck into an actual number in next year's budget. A standard reserve study has two parts: the physical analysis (what components exist, their condition, expected remaining life) and the financial analysis (current reserve balance, funding plan, contribution schedule). Reserve professionals typically categorize funding plans as "full funding," "threshold funding," or "baseline funding," a framework documented by the Community Associations Institute (CAI) and widely used across the industry [2]. For Florida condos with SIRS obligations, the study must be prepared by a licensed engineer or architect and follow the statutory requirements in 718.112(2)(g), including a visual inspection of load-bearing elements [1]. For non-SIRS items, the law doesn't mandate a specific credential, though many associations hire the same reserve specialist or engineering firm to do both studies at once, since it's more efficient and cheaper than running two separate inspections.
What is a reserve study for an HOA (as opposed to a condo)?
Homeowners' associations (HOAs) in Florida are governed by Chapter 720, not Chapter 718, and the reserve rules are different and generally less strict. HOAs are not currently subject to the SIRS mandate at all; that requirement applies specifically to condominiums under Chapter 718 and cooperatives under Chapter 719. Under Florida Statute 720.303(6), an HOA board can adopt a budget with reserves, but members retain broad authority to waive reserve funding entirely or fund it at a reduced level by a vote of the majority of voting interests present at a meeting with quorum, unless the declaration says otherwise [3]. There's no statutory list of mandatory reserve components for HOAs the way there is for SIRS in condos. That said, a reserve study for an HOA works the same way mechanically: inspect common elements (the roads, the gate, the clubhouse, the drainage system), estimate remaining life, and build a funding schedule. The difference is legal, not technical. Read more on hoa reserve study for how the study process itself typically runs, and reserve study for the general mechanics that apply to both condos and HOAs.
How much should an HOA (or condo) have in reserves?
There's no single dollar figure that's right for every association, because it depends entirely on the age, size, and condition of the property's components. What matters is whether the reserve balance matches what an independent study says you'll need by the time each component needs replacing. The industry benchmark most reserve professionals use is the "percent funded" ratio: your current reserve balance divided by the ideal balance (what you'd have if you'd fully funded on schedule since day one). A 2023 study surveying reserve fund health across community associations found many associations sitting well under 50% funded, a level considered high risk for needing a special assessment or loan when a big-ticket item finally fails [1]. As a rough planning guide, reserve professionals generally treat anything above 70% funded as healthy, 30-70% as adequate but requiring attention, and under 30% as a red flag likely to trigger a special assessment down the line [2]. For Florida condo SIRS items specifically, the math is no longer optional: starting with the budget adopted on or after December 31, 2024, boards must fully fund reserves for SIRS components with no vote allowed to waive or reduce that funding [1]. For non-SIRS items, the board still has room to phase in funding gradually, but delaying too long just means a bigger catch-up number, and possibly a special assessment, later.
What is an HOA assessment, and what's the difference between regular and special assessments?
An HOA assessment is the recurring or one-time charge a homeowners' association levies on its members to cover operating costs, reserve contributions, or unexpected expenses. "Assessment" is just the legal term for what most owners think of as HOA dues, plus any extra charges layered on top when the regular budget doesn't cover something. There are two basic types. A regular assessment is the routine, budgeted charge, usually monthly or quarterly, that funds operating expenses and reserve contributions as laid out in the annual budget. A special assessment is a one-time or short-term additional charge the board levies outside the normal budget cycle, typically to cover an emergency repair, a shortfall, or a large capital project the reserves didn't fully cover. For condos under Chapter 718, special assessments require board approval per the association's bylaws, and in many cases notice to owners of the specific purpose and amount, per 718.112(2)(l) and related board meeting notice provisions [4]. For more detail on how these charges get triggered and what boards are required to disclose, see hoa special assessment.
What are HOA assessments used for, exactly?
HOA and condo assessments fund three broad categories: day-to-day operating expenses (landscaping contracts, insurance premiums, utilities, management fees), reserve contributions (the savings account for future big-ticket replacements), and, when those two aren't enough, special assessments to cover a gap or emergency. A well-run reserve fund is supposed to reduce the frequency and size of special assessments, because the association has already been saving for the roof replacement or the elevator overhaul instead of scrambling for it when the bill comes due. That's the entire logic behind Florida's post-2021 reserve reforms. When boards waived reserves for years to keep monthly dues artificially low, the bill eventually came due as a lump sum, often at the worst possible time, right when a structural problem or storm damage forced the issue. Non-SIRS assessments still get waived more often than SIRS items will going forward, since owners sometimes vote to keep dues low and defer painting or landscaping upgrades. That's legal for non-SIRS components. It's just a bet that the item won't need replacing sooner than expected, and a bet that the next board (and the next set of owners who might be selling units) won't be stuck holding the bag.
How much does a reserve study cost?
Reserve study costs in Florida generally range from about $1,500 to $10,000 or more, depending on the size of the property, the number of components inspected, and whether it's a full study (with an on-site physical inspection) or an update study (using existing data with a desk review). CAI's professional standards distinguish between a "Level I: Full Reserve Study" (an on-site visual inspection of every component, the most expensive and thorough option), a "Level II: Update With Site Visit" (a periodic update that revisits some components in person), and a "Level III: Update, No Site Visit" (a desk-based refresh of the financial numbers using prior data) [2]. Larger high-rise condos with elevators, pools, and extensive amenities will land at the higher end of the range; smaller HOAs with fewer shared components can come in well under $3,000. For Florida condo associations that also need a SIRS, the engineering component of that study (which must be done by a licensed engineer or architect per 718.112(2)(g)) is typically priced separately or bundled, and can run several thousand dollars more depending on building height and structural complexity [1]. Confirm current pricing with a few licensed firms directly, since costs vary by region and have moved with material and labor inflation over the past few years.
Are HOA special assessments tax deductible?
For most owners, no. Special assessments paid to an HOA or condo association are generally not tax deductible on a personal residence, according to IRS guidance on homeowner expenses, because they're treated as a capital improvement to jointly owned property rather than a deductible personal expense [5]. There's a narrow exception: if the special assessment funds a capital improvement (not routine maintenance) and you own the unit as a rental or investment property, you may be able to add the assessment to your cost basis or depreciate it over time, similar to how you'd treat any other capital improvement to a rental property, per IRS Publication 527 guidance on rental property expenses [6]. If the assessment covers a casualty loss, like storm damage repair, there may be limited deduction options tied to casualty loss rules, but those have been significantly narrowed since 2018 for personal-use property. This isn't tax advice specific to your situation. Every owner's basis, use of the property (primary residence vs. rental), and the underlying purpose of the assessment change the answer. Talk to a CPA before assuming any assessment, special or otherwise, reduces your tax bill.
How do non-SIRS reserves interact with the SIRS mandate and milestone inspections?
SIRS and milestone inspections are related but separate requirements, and non-SIRS reserves sit outside both. The milestone inspection (required under 718.301 for condos 3 stories or higher, generally at 30 years, or 25 years if within 3 miles of the coast, and every 10 years after) is a structural safety check performed by a licensed engineer or architect . The SIRS is a financial planning document that inventories structural components and sets a mandatory funding schedule for them [1]. Non-SIRS reserve items don't have a parallel statutory inspection requirement the way SIRS components do. There's no law requiring an engineer to inspect the pool deck or the clubhouse roof on a fixed cycle for reserve purposes, the way there is for load-bearing walls. That means the quality and frequency of non-SIRS reserve planning is really up to the board's own diligence, and it's an area where boards regularly under-invest because there's no statute forcing the issue. In practice, most reserve professionals recommend doing a combined study, SIRS components and non-SIRS components together, on the same visit and same report, because it's more cost-effective and gives the board one complete financial picture instead of two disconnected documents. For background on how the milestone requirement itself works, see the hub on milestone inspections, and for how the two mandatory studies fit together financially, see reserve study for condo association.
Can a board still waive or reduce non-SIRS reserve funding?
Yes, for condos under Chapter 718, non-SIRS components can still be waived or reduced by a majority vote of the total voting interests present (or by written consent, depending on the association's process), the same mechanism that used to apply to all reserve items before the 2022 reform [1]. This is the key legal difference from SIRS items, which cannot be waived at all starting with budgets adopted on or after December 31, 2024. For HOAs under Chapter 720, the flexibility is even broader: 720.303(6) allows members to waive reserves or fund at a reduced level for essentially any component, since there's no SIRS carve-out at all in that chapter [3]. Waiving reserves isn't automatically reckless, but it's a bet. If the board and members vote every year to underfund the pool resurfacing reserve to keep dues flat, that's a legal choice today, but it becomes tomorrow's special assessment, and often at a worse price because deferred repairs tend to get more expensive, not less. Boards that want to avoid that trap generally treat non-SIRS reserve waivers as a short-term, explicitly time-limited decision (say, one or two budget cycles while a specific expense is absorbed), not a permanent policy.
What should a board actually do with this information?
Get a combined reserve study that covers both SIRS and non-SIRS components in one report, from a licensed engineer or reserve specialist, so the board is working from one number, not guessing at two. Then decide, with the membership, how aggressively to fund the non-SIRS side, since that's the part where you actually have legal room to phase things in. Document every reserve waiver vote properly (Florida statute requires specific notice and disclosure of the effect of waiving or reducing reserves, per 718.112(2)(f)) [1], and revisit the vote every year rather than treating an old waiver as permanent. Track your SIRS deadlines separately, since those funding requirements are no longer optional regardless of how the vote goes. This is exactly the kind of scheduling and paperwork problem a $199 one-time Board Compliance Kit is built to organize: it won't do your engineering inspection or interpret your governing documents, but it keeps your milestone inspection dates, SIRS deadlines, and reserve vote documentation in one place so nothing slips through a busy board's inbox. Confirm every statutory deadline and funding requirement with your association's counsel, since these rules have changed multiple times since 2022 and county-level enforcement varies.
Frequently asked questions
What is a reserve study?
A reserve study is a physical inspection and financial analysis of an association's common-area components (roofs, pools, pavement, structural elements) that estimates remaining useful life and sets a funding schedule so the association saves enough to pay for replacements without a surprise special assessment.
What is a reserve study for an HOA?
It's the same inspection-and-funding-schedule process used for condos, applied to an HOA's common property, roads, gates, clubhouses, drainage. Florida HOAs fall under Chapter 720, which gives members more flexibility to waive or reduce reserve funding than condos have for SIRS components under Chapter 718.
What is an HOA assessment?
An HOA assessment is a charge levied on members to fund the association's budget, either a regular recurring assessment for operating costs and reserves, or a one-time special assessment to cover an emergency, shortfall, or major project the reserves didn't fully cover.
How much should an HOA have in reserves?
There's no fixed dollar figure; it depends on your components' age and replacement cost. Reserve professionals generally consider over 70% funded (actual balance vs. ideal balance) healthy, 30-70% needs attention, and under 30% is high risk for a special assessment.
How much does a reserve study cost?
Typically $1,500 to $10,000+ depending on property size and study depth. A full Level I study with an on-site inspection costs more than an update-only Level II or III study. Larger condos with pools, elevators, and amenities land at the higher end.
Are HOA special assessments tax deductible?
Generally no, for a personal residence. Special assessments are usually treated as a capital improvement to shared property, not a deductible personal expense. Rental property owners may be able to add the cost to their basis or depreciate it. Confirm with a CPA.
What's the difference between SIRS reserves and non-SIRS reserves?
SIRS reserves cover the statutory list of structural components (roof, load-bearing walls, plumbing, electrical, waterproofing, and more) under Fla. Stat. 718.112(2)(f), and cannot be waived starting with budgets adopted on or after December 31, 2024. Non-SIRS reserves cover everything else and can still be waived by member vote.
Do Florida HOAs have to do a SIRS?
No. The SIRS mandate under Florida Statute 718.112 applies to condominiums (and cooperatives under Chapter 719), not to homeowners' associations governed by Chapter 720. HOAs still may choose to do reserve studies, but there's no statutory SIRS requirement for them.
Can a condo board waive reserves for non-SIRS items?
Yes. Under Fla. Stat. 718.112(2)(f), a majority of total voting interests can vote to waive or reduce reserve funding for non-SIRS components. SIRS components cannot be waived at all for budgets adopted on or after December 31, 2024.
Who is required to perform a Florida SIRS?
A licensed engineer or architect must perform the Structural Integrity Reserve Study, per Fla. Stat. 718.112(2)(g). Non-SIRS reserve studies aren't held to that same statutory credential requirement, though many associations use the same licensed firm for both to save on inspection costs.
What happens if an association underfunds non-SIRS reserves for years?
Nothing happens legally, since it's allowed by vote, but the practical result is usually a special assessment when the underfunded component (say, a pool deck or clubhouse roof) finally needs replacing, often at a higher cost than if it had been funded gradually over time.
Is a reserve study the same thing as a milestone inspection?
No. A milestone inspection is a structural safety check required at 25 or 30 years (and every 10 years after) under Fla. Stat. 718.301, done by a licensed engineer or architect. A reserve study, including the SIRS, is a financial planning document with a funding schedule, not a safety report.
Sources
- Florida Senate, Fla. Stat. 718.112 (2024): SIRS component list, reserve waiver rules for non-SIRS items, and the December 31, 2024 full-funding requirement
- Community Associations Institute, Reserve Study Standards: Full/threshold/baseline funding framework and Level I/II/III reserve study definitions
- Florida Senate, Fla. Stat. 720.303(6): HOA members can vote to waive or reduce reserve funding under Chapter 720
- IRS, Publication 530, Tax Information for Homeowners: Special assessments for capital improvements on a personal residence are generally not deductible as a current expense
- IRS, Publication 527, Residential Rental Property: Capital improvement assessments on rental property may be added to basis or depreciated
- Florida Senate, Fla. Stat. 718.301: Milestone inspection timing (25 or 30 years depending on coastal proximity, every 10 years after) and licensed engineer/architect requirement