The real estate and construction landscape in Florida is experiencing a significant shift with the introduction of the SIRS (Structural Integrity Reserve Study). If you’re a condo owner, property manager, or part of a Homeowners Association (HOA) in Florida, it’s crucial to understand what this study entails, why it was created, and how it may affect your property and finances.
What is the SIRS Structural Integrity Reserve Study?
The SIRS (Structural Integrity Reserve Study) is a newly mandated assessment designed to evaluate the structural integrity of condominium and cooperative buildings, specifically focusing on elements that are critical to the building’s safety and longevity. The study aims to ensure that buildings have adequate reserves set aside for future repairs and maintenance, thus preventing sudden and costly assessments or unsafe living conditions.
Why Was the SIRS Created?
The SIRS was introduced following the tragic collapse of the Champlain Towers South in Surfside, Florida, in June 2021. The disaster raised awareness about the aging infrastructure of many buildings, especially those near the coast, and the potential dangers of deferred maintenance. As a response, Florida lawmakers enacted new legislation requiring condo associations to conduct more thorough and regular inspections to ensure the safety of their buildings.
The goal of the SIRS is to prevent future disasters by making sure that condominium associations have adequate reserves for necessary repairs, particularly for critical components like:
- Foundations
- Roofs
- Structural walls
- Waterproofing elements
- Electrical and mechanical systems
Who Is Required to Conduct the SIRS?
The SIRS applies to condominium and cooperative buildings in Florida that are:
- Three stories or higher
- Over 30 years old (or 25 years old if located within three miles of the coastline)
Once a building hits the 30-year or 25-year threshold, the SIRS must be conducted by a licensed engineer or architect every 10 years to ensure the building remains structurally sound.
Key Dates and Deadlines
The law requiring the SIRS was enacted in 2022, and the deadlines for compliance vary depending on the age of the building:
- Buildings older than 30 years or 25 years (depending on proximity to the coast) must complete their first SIRS by 2024.
- Newer buildings will need to conduct their first study once they reach the age threshold, and thereafter, it must be repeated every 10 years.
Condo associations are responsible for initiating the study and ensuring compliance with the new law.
How Does the SIRS Affect Condo Owners and Associations?
The SIRS will have a significant impact on both condo owners and associations, as it requires them to set aside more funds for reserve accounts to cover future repairs. This could lead to:
- Increased HOA Fees: Condo associations may need to increase their monthly fees to build up the reserves required to meet the study’s recommendations. This can affect the affordability of living in certain buildings, particularly older ones that may need more significant repairs.
- Special Assessments: If the study identifies critical repairs that are not sufficiently covered by reserves, associations may levy special assessments on unit owners to make up for the shortfall.
- Property Value Impact: On one hand, a well-maintained and structurally sound building is likely to maintain or increase in value. However, the immediate impact of increased fees or assessments could make some properties less attractive to potential buyers, especially in areas where affordability is already a concern.
How Much Does the SIRS Cost?
The cost of conducting the SIRS depends on various factors, such as the size of the building, its age, and the complexity of the structure. Typically, hiring a licensed engineer or architect for the study can range from $10,000 to $40,000 or more, depending on the specific requirements and the condition of the building.
While this may seem like a significant expense, the long-term benefit is that it ensures the building’s structural integrity and prevents even more costly repairs down the line.
Will the SIRS Increase HOA Fees?
Yes, it is highly likely that the introduction of the SIRS will lead to increased HOA fees or special assessments for condo owners. Condo associations will need to ensure that they have adequate reserves to cover future repairs, which could mean setting aside more funds annually. As a result, owners may see their monthly fees rise to accommodate these new financial obligations.
Who Will Be Most Affected by the SIRS?
The SIRS will particularly affect:
- Owners of older condominiums: Buildings that are over 30 years old and located near the coast are most at risk of significant structural deterioration and may face larger costs for repairs and maintenance.
- Condo associations with inadequate reserves: Buildings that have underfunded reserves may be hit with large special assessments or steep fee increases to comply with the new law.
- Buyers and sellers: The new requirements may affect the real estate market, as buyers will need to be aware of potential upcoming assessments or fees. Sellers in older buildings may face lower demand due to increased costs associated with SIRS compliance.
How to Prepare for the SIRS
If you live in or manage a condominium building in Miami-Dade, Broward, or anywhere in Florida, it’s essential to prepare for the SIRS. Associations should start budgeting for the study now, while owners should be aware of potential fee increases. By staying proactive, both condo associations and owners can ensure the long-term safety and value of their properties.
For more information or assistance with conducting your SIRS Structural Integrity Reserve Study, contact us at GANEM CONSULTING ENGINEERING. Our team of licensed engineers is here to help you navigate this new requirement and ensure your building is structurally sound for years to come.
