Last updated 2026-07-25
TL;DR
Florida condo associations 3+ stories must fund reserves for roof, structure, plumbing, electrical and other SIRS components at 100% starting the fiscal year after Dec 31, 2024, per Fla. Stat. 718.112. A reserve study (typically $3,000 to $20,000 depending on building size) sets the funding target. Boards can no longer vote to waive or reduce these reserves.
What is a reserve study?
A reserve study is a physical inspection and financial analysis that tells a condo or HOA board two things: what major common-area components will need repair or replacement in the coming decades, and how much money the association needs to be setting aside right now to pay for it without a special assessment blowing up everyone's budget. A competent reserve study has two halves. The physical analysis inventories the big-ticket items (roof, paving, painting, pool resurfacing, structural elements, plumbing risers, elevators) and estimates each one's remaining useful life. The financial analysis then models the association's current reserve balance against those future costs and recommends an annual contribution schedule, usually using either a "straight-line" or "pooled/cash-flow" method. In Florida, the study doesn't have to be done by an engineer for routine reserve planning purposes, but the milestone structural inspection and the Structural Integrity Reserve Study (SIRS) required under Fla. Stat. 718.112(2)(g) do have licensing requirements attached, which we cover below. [1] Many associations hire a reserve specialist (often a CPA-adjacent reserve study firm or an engineer, depending on scope) to produce both documents together, since the SIRS folds into the broader reserve schedule. For background on how this connects to the physical building assessment required at 25 or 30 years, see our reserve study guide.
What is a reserve study for an HOA?
For a homeowners association (as opposed to a condominium), a reserve study serves the same basic function: inventory the common elements the HOA owns and maintains, like roads, clubhouses, pools, retention ponds, and gates, and calculate what needs to be saved annually to replace them on schedule. The legal requirement is different, though, and this trips up a lot of board members who assume HOA and condo rules are identical. Florida's homeowners association statute, Chapter 720, does not require HOAs to fund reserves at all unless the declaration or bylaws say so, and it does not impose anything like the condo SIRS mandate. [2] Chapter 718 (condos) is the one with the hard funding requirements. If your community is a single-family HOA rather than a condominium, your reserve obligations come from your own governing documents and whatever the board or membership has voted on historically, not from a state-mandated schedule. That said, plenty of HOA boards choose to commission a reserve study anyway because it's good practice and because lenders (Fannie Mae, for instance) increasingly want to see one before approving mortgages in the community. See our HOA reserve study page for how HOA practice differs from condo law.
What is an HOA assessment, and what are HOA assessments generally?
An HOA assessment (the term applies to condos too, under Chapter 718) is a fee the association charges owners to fund shared expenses. There are two basic kinds, and the difference matters a lot for your wallet. Regular assessments are the recurring monthly or quarterly dues that fund the operating budget and reserve contributions. They're set by the board (sometimes with membership approval caps written into the documents) as part of the annual budget process. Special assessments are one-time charges levied when the association needs money it doesn't have in reserves, most often after storm damage, an unexpected structural repair, or when reserves were underfunded for years and a big-ticket item finally fails. Florida law requires condo boards to hold a meeting with notice specifically describing the purpose and estimated cost of a special assessment before levying one (Fla. Stat. 718.112(2)(c)2). [1] Well-funded reserves exist specifically to avoid special assessments. When a board skips reserve funding to keep monthly dues artificially low, it's not saving owners money, it's deferring the cost and usually multiplying it, because deferred maintenance tends to get worse and pricier the longer it sits. For more on this trade-off, see hoa special assessment.
How much should an HOA (or condo) have in reserves?
| SIRS items (roof, structure, plumbing, electrical, waterproofing, etc.) | Must fund 100% of study recommendation | No, waiver eliminated as of the 2024/2025 fiscal year transition |
|---|---|---|
| Non-SIRS reserve items (pool furniture, landscaping equipment) | Board sets schedule; study still recommended | Yes, by member vote at noticed meeting |
| HOAs under Chapter 720 | No statewide mandate | Governed entirely by declaration/bylaws |
The honest answer is: enough to cover 100% of the funding recommended in a current reserve study for every applicable component, which is now the legal floor for Florida condos on structural items, more than a best practice. Under Fla. Stat. 718.112(2)(f) and (g), condominium associations with buildings three stories or more must complete a Structural Integrity Reserve Study (SIRS) at least every 10 years, and the reserves for the items that study identifies (roof, load-bearing walls, floor, foundation, fireproofing, electrical wiring, plumbing, waterproofing, exterior painting, and windows/doors, at minimum) must be funded at 100% of the amount recommended, starting with the fiscal year beginning on or after December 31, 2024. [1] Boards can no longer vote to waive, reduce, or pool those specific reserves the way they once could for ordinary line items. There's no single dollar figure that applies to every building; a 40-unit low-rise from the 1980s and a 200-unit high-rise on the coast will have wildly different numbers depending on square footage, age, and how much deferred maintenance has piled up. That's exactly why the SIRS has to be building-specific. For non-SIRS reserve items (say, a pool deck resurfacing schedule that isn't a required structural component), Florida law still lets owners vote to reduce or waive full funding at a duly noticed meeting, per 718.112(2)(f)2. [1] Just understand that anything on the mandatory SIRS list is off the table for that vote now. | Reserve category | Florida condo rule | Can owners waive it? |
How much does a reserve study cost?
Reserve study fees in Florida generally run from about $3,000 for a small, straightforward condo building to $15,000 to $20,000 or more for a large high-rise with complex mechanical and structural systems, though pricing varies by firm, region, and how much of the SIRS scope overlaps with the milestone inspection. The exact number depends on unit count, number of buildings, whether it's a first-time study or an update, and whether the firm doing it is also handling your milestone inspection at the same time (which can save money on site visits and travel). DBPR doesn't publish a fee schedule for reserve studies because it doesn't license the reserve-study profession as a standalone credential the way it licenses contractors or engineers. [3] Get at least two or three quotes and ask specifically what's included: physical inspection, funding plan, and whether it satisfies the SIRS requirement under 718.112(2)(g). This is a real cost, but it's tiny compared to a special assessment. A board that spends $8,000 on a proper study and then funds reserves accordingly is in a completely different financial position five years later than a board that skipped the study to save money and got hit with a $2 million concrete restoration bill split across 120 units. reserve study for condo association walks through how to scope and bid the work.
How does the SIRS connect to the milestone inspection?
The milestone structural inspection and the SIRS are two different documents required by two different subsections of the same statute, and boards often confuse them, but they're supposed to work together. The milestone inspection (Fla. Stat. 553.899) is a one-time structural safety check required at 25 years from the certificate of occupancy (30 years for buildings not within 3 miles of the coastline, and every 10 years after that), performed by a licensed architect or engineer, focused on whether the building is structurally sound right now. [4] The SIRS (Fla. Stat. 718.112(2)(g)) is a recurring financial planning document, done at least every 10 years, that translates the building's condition into a dollar-funded reserve schedule. A milestone inspection can feed directly into a SIRS, since both look at the same structural components, and many firms bundle the site visits to cut cost. But passing a milestone inspection does not mean your reserves are adequately funded, and having full reserves doesn't substitute for the inspection itself. You need both. See milestone inspection coverage for the age-and-distance triggers in detail.
Are HOA and condo special assessments tax deductible?
For most owners, no. A special assessment paid to your condo or HOA for building repairs, structural work, or replenishing reserves is generally treated as a nondeductible capital or personal expense on your individual federal tax return, similar to how routine HOA dues aren't deductible either. There are narrow exceptions worth knowing about. If you rent out the unit as a rental property, assessments related to repairs and maintenance may be deductible as a rental expense, and assessments for capital improvements may be added to your cost basis (recovered later through depreciation or when you sell). The IRS's guidance on rental property expenses (Publication 527) and on basis (Publication 551) covers how association charges get treated for rental and investment property, though neither publication addresses HOA assessments by that exact name; you're applying the general repair-versus-improvement and basis rules. [5] [6] If the assessment relates to a federally declared disaster and creates a casualty loss situation, different rules under IRC Section 165 may apply, but that's a narrow, fact-specific area. This isn't tax advice specific to your situation; talk to a CPA about your particular assessment and property use before you file.
What happens if a Florida condo doesn't fund reserves properly?
Short version: the association is out of compliance with state law, and the practical consequences range from DBPR complaints to real trouble getting insurance, financing, or unit resales closed. DBPR (the Florida Department of Business and Professional Regulation) has authority over condominium associations under Chapter 718 and can investigate complaints, though enforcement of the newer SIRS funding mandate is still developing case by case; check DBPR's condominium division page for current guidance and complaint procedures. [3] More immediately, lenders and title companies are asking condo associations for SIRS status and reserve funding documentation before closing loans, following the fallout from the Surfside collapse in 2021 that triggered this whole legislative overhaul. Fannie Mae and Freddie Mac have both issued guidance restricting loans in buildings with unresolved structural issues or significantly underfunded reserves. A building that can't produce a current SIRS or shows reserves way below 100% funding can effectively become unsellable or unrefinanceable for its owners, which is a much bigger financial hit to individual unit values than the assessment itself would have been. Boards that got caught flat-footed by the 2024 deadline are dealing with special assessments right now to catch reserves up fast. If your association is in that position, florida condo reserve fund relief covers what legislative relief options, if any, exist and how to talk to owners about the timeline.
Who has to do the reserve study and inspection, and who can a board rely on?
The board's job is to hire, schedule, and act on the professionals the statute requires, not to perform the technical work itself. Milestone inspections must be performed by a licensed engineer or architect. [4] SIRS work similarly needs to be grounded in a qualified inspection of the structural components, and boards should confirm with counsel which license the specific study requires for their building type and scope. A board that tries to eyeball its own structural condition or guesses at a funding number is taking on legal and financial risk it doesn't need to take on. Get the licensed professional's report, then use that report to build the actual reserve schedule and communication plan for owners. This is the gap a lot of volunteer boards fall into: they get the engineering report, then the report sits in a folder because nobody translated it into a line-item budget, a special assessment notice, or an owner FAQ. That's the organizational and communication work a board can and should own, distinct from the technical inspection itself. A $199 Building-Specific Board Compliance Kit (see /board-kit-builder) is built for exactly that gap: it takes your building's age, height, and coastal distance and organizes the applicable deadlines, required notices, and reserve schedule into one place so the board isn't reconstructing statute citations from scratch every budget cycle. It doesn't replace the engineer or the reserve study firm; it organizes what they hand you.
How do reserve requirements differ for condos vs. HOAs vs. co-ops?
Condominiums under Chapter 718 have the strictest and most specific rules: mandatory SIRS for 3+ story buildings, 100% funding of SIRS items starting the 2024/2025 fiscal year transition, and no more owner votes to waive those specific reserves. [1] Homeowners associations under Chapter 720 have no statewide reserve funding mandate. Reserves, if any, come entirely from the declaration, bylaws, or a board/membership vote, and can typically still be waived or reduced by owner vote unless the documents say otherwise. [2] Cooperatives under Chapter 719 largely mirror the condo rules through cross-references in the statute, including SIRS-equivalent requirements for qualifying buildings, though the exact mechanics differ slightly; check the current text of Chapter 719 with your association's counsel since cross-references get amended. If you sit on a board and aren't sure which chapter governs your community (some communities have both a condo association and an overlapping HOA for amenities), that's a question for your association's attorney, not a DIY read of the statute, because the wrong chapter means the wrong deadline.
What should a board do this year to get reserves on track?
Start with a current reserve study, not last decade's numbers rolled forward with inflation guesses. If your building is 3+ stories and hasn't had a SIRS done since the 2024 deadline created the mandate, that's the first call to make, and it should go to a firm that can document its findings against Fla. Stat. 718.112(2)(g) specifically. [1] Once you have the study, run the math on what 100% funding actually costs per unit per month or year, and compare that honestly against your current assessment level. If there's a gap (and for most buildings that deferred reserves for years, there will be), the board needs to decide, with counsel's input, how fast to close it: raise regular assessments, levy a special assessment, or some blend, and communicate that plan to owners well before the fiscal year the requirement kicks in. Document every step. Meeting notices for special assessments have specific content requirements under 718.112(2)(c)2, and boards that skip the notice language correctly can face challenges to the assessment's validity. [1] This is also where a compliance kit or a simple shared calendar earns its cost: tracking which fiscal year your 100% funding requirement starts, when your next 10-year SIRS is due, and when milestone inspection windows open again, all in one place your whole board can see, more than whoever happened to read the statute most recently.
Frequently asked questions
What is a reserve study?
A reserve study is a professional inspection and financial analysis of an association's major common-area components (roof, paving, plumbing, structure) that estimates remaining useful life and recommends an annual reserve contribution schedule so repairs get funded without a surprise special assessment. In Florida condos, the structural version is called a SIRS under Fla. Stat. 718.112(2)(g).
What is a reserve study for an HOA?
For an HOA, a reserve study inventories community-owned assets like roads, clubhouses, and pools and calculates annual savings needed to replace them. Unlike condos, Florida's Chapter 720 doesn't require HOAs to fund reserves at all; the requirement comes from the HOA's own declaration or bylaws, not state law.
What is an HOA assessment?
An HOA assessment is a fee charged to owners to fund association expenses. Regular assessments are recurring dues for operating costs and reserves. Special assessments are one-time charges, usually for unexpected repairs or underfunded reserves, and Florida condo law requires specific notice content before a board can levy one (Fla. Stat. 718.112(2)(c)2).
How much should an HOA have in reserves?
There's no statewide dollar mandate for Florida HOAs; it depends entirely on the governing documents and whatever reserve study or board policy the community follows. For condos, the legal floor is 100% of the amount a current SIRS recommends for structural components, starting the fiscal year after December 31, 2024.
How much does a reserve study cost?
Typically $3,000 to $20,000 or more in Florida, depending on building size, unit count, and whether it's bundled with a milestone inspection. Get multiple quotes and confirm the study satisfies the SIRS requirement under Fla. Stat. 718.112(2)(g) if your building is 3+ stories.
Are HOA and condo special assessments tax deductible?
Generally no for a primary residence; they're treated like nondeductible personal or capital expenses. If the unit is a rental, repair-related assessments may be deductible and capital-improvement assessments may add to cost basis. Check IRS Publication 527 and 551, and confirm with a CPA for your specific situation.
What are HOA assessments used for?
Regular assessments cover day-to-day operating costs (landscaping, insurance, management fees) and fund reserves for future big-ticket repairs. Special assessments cover unexpected or underfunded costs, most often structural repairs, storm damage, or catching up reserves that were previously waived or reduced by prior boards.
Which Florida buildings must have a SIRS?
Condominium buildings three stories or more in height, per Fla. Stat. 718.112(2)(g). The first SIRS deadline tied to milestone inspection cycles has largely passed for many buildings, and it recurs at least every 10 years going forward. Confirm your building's specific deadline with your association's counsel.
Can a condo board still waive reserve funding in Florida?
Not for SIRS-covered structural items (roof, load-bearing walls, plumbing, electrical, waterproofing, and similar components) as of the fiscal year beginning on or after December 31, 2024. Those must be funded at 100% of the study's recommendation. Non-SIRS reserve items can still be waived or reduced by member vote at a properly noticed meeting.
What's the difference between a milestone inspection and a SIRS?
A milestone inspection (Fla. Stat. 553.899) is a one-time structural safety check by a licensed engineer or architect, due at 25 or 30 years depending on coastal distance. A SIRS (Fla. Stat. 718.112(2)(g)) is a recurring reserve funding study, at least every 10 years, that turns structural findings into a dollar funding schedule. Both are required; neither substitutes for the other.
Does Florida law require HOAs (not condos) to do a reserve study?
No. Chapter 720, which governs Florida homeowners associations, has no statewide mandate requiring a reserve study or specific reserve funding levels. Any reserve requirement for an HOA comes from that community's own declaration, bylaws, or a board or membership vote, not from state statute.
What happens if a condo association doesn't fund its SIRS reserves at 100%?
The association is out of step with Fla. Stat. 718.112(2)(g), which can trigger DBPR complaint exposure and, more immediately, problems with lenders and title companies that now check SIRS status and reserve funding before approving mortgages or closings in the building. Confirm specific consequences with the association's counsel.
How is a SIRS funding schedule different from a regular reserve schedule?
A regular reserve schedule can use straight-line or pooled methods and, for non-structural items, can be underfunded or waived by owner vote. A SIRS funding schedule, for the specific structural components listed in Fla. Stat. 718.112(2)(g), must be funded at 100% of the study's recommendation starting the 2024/2025 fiscal year transition, with no waiver option for those items.
Sources
- Florida Senate, Florida Statutes Chapter 718.112: SIRS requirement, 100% reserve funding mandate for structural items, and elimination of waiver for those items starting the fiscal year after Dec 31, 2024
- Florida Senate, Florida Statutes Chapter 720: Florida HOAs have no statewide reserve funding mandate comparable to condo law
- Florida DBPR, Division of Condominiums, Timeshares, and Mobile Homes: DBPR's regulatory role over condominium associations and complaint process
- Florida Senate, Florida Statutes 553.899: Milestone inspection requirement at 25/30 years, licensed engineer or architect requirement
- IRS Publication 527, Residential Rental Property: Rules for deducting rental property expenses including association charges related to repairs
- IRS Publication 551, Basis of Assets: Capital improvement assessments may be added to property cost basis