Worried about rising condo fees or sudden special assessments in The Palm Beaches? You are not alone. New Florida rules changed how buildings plan for big repairs, which affects your budget, financing, and timing. This guide shows you how to read a SIRS, understand reserves, and spot red flags before you buy or sell. Let’s dive in.
SIRS in The Palm Beaches: The basics
Florida adopted stronger inspection and reserve rules after the Surfside tragedy to reduce structural risk and improve planning. Lawmakers refined the program in 2024 and 2025 to add funding flexibility while keeping safety first. You can see a helpful overview of the statewide shift in recent AP coverage.
A Structural Integrity Reserve Study, or SIRS, applies to residential condominium buildings that are three habitable stories or more. Associations must complete it at least every 10 years. The study identifies key components, estimates remaining useful life and costs, and sets a funding plan. The rules and required elements are laid out in Florida Statute 718.112.
What a SIRS must include
- A visual inspection of structural and critical systems by a licensed engineer or architect, or a verified reserve professional.
- Remaining useful life and replacement or deferred maintenance costs for listed components.
- A funding schedule that keeps the reserve cash balance above zero in each budget year. See the baseline and funding rules in Florida Statute 718.112.
Components typically covered
Roofs, structure and load bearing elements, fire protection, plumbing mains, electrical systems, waterproofing and exterior paint, windows and exterior doors, plus any other item that meets the statutory cost threshold and affects those systems. The required list and thresholds are in Florida Statute 718.112.
Deadlines, filings, and owner rights
If your association existed on or before July 1, 2022 and is owner controlled, original deadlines required completion by December 31, 2024. Later amendments created limited extensions and alignment with milestone inspections, including phased outer deadlines in specific cases. Officers must acknowledge receipt of the SIRS, and the association must notify the state Division that the study is complete and available to owners. See the distribution and filing details in the Division’s condo and SIRS FAQ and statutory language in Florida Statute 718.112.
For budgets adopted on or after December 31, 2024, you generally cannot vote to waive or underfund reserves for SIRS components. The prohibition on waiving SIRS items and the baseline plan requirement both appear in Florida Statute 718.112.
Milestone inspections in Palm Beach County
Separate from SIRS, milestone inspections under Florida Statute 553.899 are required at 30 years, or 25 years if a local coastal rule applies, then every 10 years after. Palm Beach County enforces these rules and provides forms and online submission for Phase 1 and Phase 2 reports. Review the county’s process on the Mandatory Milestone Inspections page and the statewide framework in Chapter 553.
County updates show active enforcement. A sample January 2025 snapshot noted roughly 663 applicable buildings in unincorporated Palm Beach County and about 124 with outstanding Phase 1 filings at that time. Numbers change as filings occur. See the county’s referenced update in the Board of County Commissioners agenda.
How SIRS and milestone fit together
Associations often coordinate the milestone inspection with the SIRS so the visual work serves both needs. Statute allows limited timing relief to prioritize critical repairs after a milestone inspection, with owner approval and specific limits. Funding and timing flexibility are summarized in the 2025 bill updates in the Florida Senate bill summary and detailed in Florida Statute 718.112.
How to read a SIRS and reserves
Use this simple sequence to evaluate risk and cost:
- Confirm coverage and credentials
- Check that all required components are listed and that a licensed engineer or architect verified the visual inspection. Required roles are in Florida Statute 718.112.
- Scan remaining useful life
- Note items under 10 to 15 years of remaining life. High-cost items with short timelines drive assessments. The SIRS may recommend no reserves for items with more than 25 years of remaining life.
- Review the baseline funding plan
- The plan must keep reserve cash above zero each budget year. If the graph or schedule dips negative, funding is not compliant. The baseline rule appears in Florida Statute 718.112.
- Understand pooling vs straight line
- Pooled reserves allow funds for multiple SIRS items to be grouped. Budgets must show the pool can meet projected expenses. Boards can change methods without a member vote. See pooling permissions in Florida Statute 718.112.
- Match reserves to upcoming work
- Cross check the SIRS against any milestone findings or repair notices. If a major project is near-term, confirm the cash on hand and the contribution plan cover it.
- Identify funding tools and votes
- Required reserves may be funded through regular assessments, special assessments, or loans and lines of credit. Loans are expressly allowed for required capital expenses, and some uses may require owner votes. Funding tools and approvals are explained in Florida Statute 718.112.
- Confirm waiver limits
- For budgets adopted on or after December 31, 2024, members generally cannot waive reserves for SIRS components. This is a key protection for building health and for lenders.
What assessments really signal
A special assessment is not always a red flag. It can be a sign that a board is tackling required life safety work on schedule. That said, very large or repeated assessments can strain owners and affect lending. Underwriting has tightened for projects with unresolved structural issues, unfunded reserves, or large pending assessments. For a practical view from the lending and legal side, review this ABA commentary on post-Surfside underwriting.
Buyer due diligence checklist in The Palm Beaches
Request these before you write an offer:
- Most recent SIRS and any milestone inspection report. See what is required in Florida Statute 718.112 and Palm Beach County’s milestone guidance.
- Current budget, reserve balances, and the reserve schedule that shows contributions and projected balances. Funding rules appear in Florida Statute 718.112.
- Meeting minutes for the last 12 to 24 months that discuss major repairs, assessments, loans, delinquencies, insurance, and litigation. Lender focus points are summarized in the ABA underwriting overview.
- Any notices of pending or recently adopted special assessments and repair directives tied to milestone inspections. See county submission details on the milestone inspections page.
Seller prep in a SIRS world
Sophisticated buyers will ask for the SIRS, the milestone report, and the current budget. Assemble a clean disclosure package and be ready to discuss timing for repairs and reserve contributions. If a special assessment is approved or likely, prepare cost details and payment timelines so buyers and their lenders can underwrite the risk quickly.
Board and manager priorities
- Schedule and complete required SIRS and milestone inspections with qualified professionals, deliver reports to owners, and file required notices. Officer acknowledgments and distribution rules are covered in the Division’s condo FAQ and in Florida Statute 718.112.
- Build budgets that meet the baseline plan, and use pooled reserves if appropriate. When needed, evaluate special assessments and loans or lines of credit. 2025 legislative refinements that add flexibility are summarized in the Florida Senate bill summary.
- Communicate early and often. Town halls, clear line items, and phased financing can soften the impact on owners. The statewide conversation and relief measures are outlined in AP reporting.
Insurance and market impacts
Insurers often view well funded reserves and timely repairs as lower risk. Buildings with underfunded reserves or unresolved structural issues can face higher premiums or difficulty obtaining coverage. See a practical overview of insurance dynamics in this condo association insurance explainer.
Strong reserve planning also supports resale value and financing. In The Palm Beaches, that can be the difference between smooth closings and delayed deals.
Ready to discuss how reserves and SIRS affect a specific property along the Flagler Drive and Downtown West Palm Beach waterfront corridor? Connect with Haven Palm Beach for a discreet, high touch conversation tailored to your goals.
FAQs
What is a SIRS and who completes it?
- A SIRS is a reserve study with a visual inspection of key structural systems by a licensed engineer or architect, paired with a funding plan, as required in Florida Statute 718.112.
Do SIRS rules apply to low rise condos in Palm Beach County?
- SIRS applies to buildings that are three habitable stories or more, and milestone timing can be 25 years for coastal areas, as outlined by the county’s milestone guidance.
Can owners vote to waive SIRS reserves in 2025 budgets?
- For budgets adopted on or after December 31, 2024, members generally cannot waive or underfund reserves for SIRS components, as stated in Florida Statute 718.112.
How do special assessments and loans fit into funding?
- Associations may fund required work through regular assessments, special assessments, and loans or lines of credit, with approvals set by governing documents and Florida Statute 718.112.
Will lenders finance units in buildings with big assessments?
- Lenders have tightened standards, and projects with unresolved structural issues or unfunded reserves may be non warrantable, as discussed in the ABA underwriting overview.
