Florida Condo Budget SIRS Reserves: No More Waivers
Quick answer: If your Florida condominium association must have a structural integrity reserve study (SIRS), the owners can no longer vote to waive or reduce reserves for the SIRS components in any budget adopted on or after December 31, 2024. Those reserves must be funded in the amounts the most recent SIRS recommends, under section 718.112(2)(f), Florida Statutes. Owners can still vote to waive or reduce non-SIRS reserves, and HOAs under Chapter 720 follow different, looser rules.
For most Florida condo boards, 2027 is the third budget cycle under the no-waiver rule. The questions have shifted from what changed to how to fund it. This post covers the budget rules in 718.112(2)(f), the limited ways around full funding, and how Chapter 720 HOAs differ.
The rule: no waivers for SIRS components
Here is the operative sentence from the statute:
For a budget adopted on or after December 31, 2024, the members of a unit-owner-controlled association that must obtain a structural integrity reserve study may not determine to provide no reserves or less reserves than required by this subsection for items listed in paragraph (g), except that members of an association operating a multicondominium may determine to provide no reserves or less reserves than required by this subsection if an alternative funding method has been approved by the division.
(s. 718.112(2)(f)2.b., Fla. Stat.)
A note on the date. You'll often see this described as starting with budgets adopted on January 1, 2025. The statute says on or after December 31, 2024. The practical effect is the same for most associations, but use the statute's date in your minutes and owner notices.
Which associations must have a SIRS?
Under 718.112(2)(g), a residential condominium association needs a SIRS for each building that is three habitable stories or higher. If none of your buildings reaches three habitable stories, the SIRS no-waiver rule doesn't apply to you, but the general reserve rules below still do.
Which components are SIRS components?
Paragraph (g) lists them:
| SIRS component | 718.112(2)(g)1. |
|---|---|
| Roof | a. |
| Structure, including load-bearing walls and primary structural systems | b. |
| Fireproofing and fire protection systems | c. |
| Plumbing | d. |
| Electrical systems | e. |
| Waterproofing and exterior painting | f. |
| Windows and exterior doors | g. |
| Other items over the $25,000 (inflation-adjusted) threshold whose failure affects the items above | h. |
The amount you reserve for these items is not a board judgment call:
In a budget adopted by an association that is required to obtain a structural integrity reserve study, reserves must be maintained for the items identified in paragraph (g) for which the association is responsible pursuant to the declaration of condominium, and the reserve amount for such items must be based on the findings and recommendations of the association's most recent structural integrity reserve study.
(s. 718.112(2)(f)2.a., Fla. Stat.)
What can still be waived
The no-waiver rule is narrower than many owners assume.
| Situation | Can owners waive or reduce? | Source |
|---|---|---|
| SIRS components, SIRS-required association | No | 718.112(2)(f)2.b. |
| Non-SIRS reserves (e.g., pool resurfacing, pavement), any condo | Yes, by majority of total voting interests | 718.112(2)(f)2.b. |
| Condo with no building of three or more habitable stories | Yes, by majority of total voting interests | 718.112(2)(f)2.b. |
| Multicondominium with a division-approved alternative funding method | Yes | 718.112(2)(f)2.b. |
| Association voting to terminate the condominium | Owners may waive SIRS-recommended reserves | 718.112(2)(f)2.a. |
| Developer-controlled association before turnover | No | 718.112(2)(f)2.f. |
The general waiver right is still in the statute:
The members of a unit-owner-controlled association may determine, by a majority vote of the total voting interests of the association, to provide no reserves or less reserves than required by this subsection.
(s. 718.112(2)(f)2.b., Fla. Stat.)
Note the vote threshold: a majority of the total voting interests, not a majority of those who show up. And only the units that pay into the reserves in question can vote on waiving them (718.112(2)(f)5.).
How you can fund SIRS reserves
Full funding doesn't have to come only from regular assessments:
Reserves for the items listed in paragraph (g) may be funded by regular assessments, special assessments, lines of credit, or loans.
(s. 718.112(2)(f)2.c.(I), Fla. Stat.)
A special assessment, line of credit, or loan for this purpose needs approval by a majority of the total voting interests. Some owner-controlled associations can also use a line of credit or loan to cover previously waived or unfunded SIRS amounts and milestone-inspection repairs, and must disclose it in the annual financial statement (718.112(2)(f)2.c.(II)). Confirm the details with your attorney before structuring a loan.
The milestone-inspection pause
There is one temporary relief valve. For a budget adopted on or before December 31, 2028, if the association completed a milestone inspection within the previous two calendar years, the board may, with approval of a majority of the total voting interests, pause or reduce reserve contributions for up to two consecutive annual budgets to fund the repairs the inspection recommended. A new SIRS is required before contributions resume (718.112(2)(f)2.e.). This isn't available to developer-controlled associations, associations whose nondeveloper owners have been in control for less than a year, or bulk-buyer-controlled associations.
Pooling
You can pool reserves, but SIRS components may be pooled only with other SIRS components, and the pooled funding must keep projected balances at or above projected expenses under the SIRS funding plan (718.112(2)(f)4.). The board can switch between pooled and straight-line accounting without an owner vote.
Using reserves for something else
For budgets adopted on or after December 31, 2024, owners of a SIRS-required association can't vote to spend SIRS reserves on anything other than the replacement or deferred maintenance of the SIRS components (718.112(2)(f)3.).
Condo vs. HOA: how Chapter 720 differs
Florida HOAs (Chapter 720) have no SIRS requirement and much more flexibility on reserves.
| Condo (Ch. 718) | HOA (Ch. 720) | |
|---|---|---|
| Reserves required in budget? | Yes (roof, painting, pavement, and items over the threshold) | Only if the owners have established reserve accounts under 720.303(6)(d), or the governing documents require them |
| Waiver vote | Majority of total voting interests; not allowed for SIRS components | Majority vote at a meeting where a quorum is present |
| How long a waiver lasts | Per budget | One budget year only |
| Structural study | SIRS for buildings of 3+ habitable stories | None under 720.303(6) |
For HOAs, the statute says a waiver is good for just one year:
Any vote taken pursuant to this subsection to waive or reduce reserves is applicable only to one budget year.
(s. 720.303(6)(f), Fla. Stat.)
And an HOA without statutory reserves must print a conspicuous disclosure in its annual financial report (720.303(6)(c)). For a broader overview of both chapters, see our Florida HOA laws 2026 roundup.
Budget-season checklist for Florida condo boards
- Confirm SIRS status. List each building and its habitable stories. If any building is three or more, the SIRS rules apply.
- Pull the most recent SIRS. Your budget's SIRS reserve lines must match its recommended funding. A SIRS is required at least every 10 years (718.112(2)(g)1.). If yours is older or missing, call your attorney before you finalize the budget.
- Check the inflation-adjusted threshold. The division must post the updated minimum threshold (starting from $25,000) on its website each year (718.112(2)(f)6.). Use it for both the general reserve list and the SIRS catch-all item.
- Split waivable from non-waivable. Show SIRS reserves and non-SIRS reserves as separate lines, so any owner waiver vote clearly covers only non-SIRS items.
- Decide on the funding mix. Regular assessments, a special assessment, a line of credit, or a loan (each non-regular option needs a majority of total voting interests).
- Consider the milestone pause only if it fits. It's limited to budgets adopted by the end of 2028 and requires a new SIRS before contributions resume.
- Adopt on time. The board must adopt the budget at least 14 days before the fiscal year starts (718.112(2)(f)1.). For a calendar-year condo, that's by December 18.
- Run the budget meeting correctly. Florida requires 14 days' notice to owners with a copy of the proposed budget, an affidavit of notice, and a substitute budget if proposed assessments exceed 115 percent of the prior year's (718.112(2)(e)). For running an HOA owner or board meeting (notice, votes and minutes), see HOA Board Minutes' guide on how to run an HOA annual meeting.
For building the budget itself, our HOA master budget guide covers reserve lines alongside operating expenses, and HOA Fiscal's HOA budget template for 2027 gives you a starting spreadsheet. Keep reserve cash separate from operating cash, too: see how much cash to keep in your operating account.
Dynamite Management prepares budgets and reserve schedules for Florida associations from the SIRS numbers, and works with your manager and reserve professional. Talk to us about backend financial management.
The statute quotes above are from the 2025 Florida Statutes. Confirm the current text with the statute / your attorney before adopting your budget. This is not legal advice.
FAQ
Can Florida condo owners still vote to waive reserves? Yes for non-SIRS reserves, by a majority of the total voting interests. No for SIRS components in associations that must have a SIRS, for budgets adopted on or after December 31, 2024.
Does the no-waiver rule apply to Florida HOAs? No. Chapter 720 HOAs have no SIRS requirement, and an HOA with reserve accounts can waive or reduce them for one budget year by majority vote at a meeting with a quorum.
Can we fund SIRS reserves with a loan? Yes. SIRS reserves may be funded by regular assessments, special assessments, lines of credit, or loans. A special assessment, line of credit, or loan needs a majority of the total voting interests.
Is there any way to pause SIRS reserve contributions? For budgets adopted on or before December 31, 2028, an association that completed a milestone inspection in the prior two calendar years can pause or reduce contributions for up to two budgets, with majority owner approval, to fund the recommended repairs.
When must a Florida condo adopt its budget? At least 14 days before the start of the fiscal year, under 718.112(2)(f)1.