Anita Byer

Florida condominium associations with buildings that are three habitable stories or higher are required to have a structural integrity reserve study (SIRS) at least every ten years. The SIRS is essentially a budgeting tool. Its purpose is to ensure that associations have sufficient reserves to fund future major repairs and replacement of various structural elements that are critical to the safety of the building. For some associations, however, adhering to a SIRS’s funding plan to maintain reserve cash balances above zero is easier said than done. The good news is that cash strapped associations were given a potential lifeline during the 2025 legislative session.

In addition to regular and special assessments, associations may now use loans and lines of credit to properly fund the items identified in their SIRS (e.g., roof; structure; electrical; windows; exterior paint and doors; and any other item with a deferred maintenance expense or replacement cost that exceeds $25,000). As of July 1, 2025, a unit-owner-controlled association that is required to have a structural integrity reserve study may secure a line of credit or a loan to fund capital expenses required by a milestone inspection or a SIRS.

• The line of credit or loan must be sufficient to fund the cumulative amount of any previously waived or unfunded portions of the required reserve funding amount and the most recent SIRS.
• Funding from the line of credit or loan must be immediately available for access by the board to fund required repair, maintenance, or replacement expenses without further approval by the members of the association.
• Information and related details of any such special assessments, lines of credit, or loans must be included in the association’s annual financial statement, which must be delivered to unit owners and provided to prospective purchasers of a unit.

Before an association may use a special assessment, a line of credit, or a loan to fund such reserve items, it must be approved by a majority vote of the total voting interests of the association. Note that the authority to secure a line of credit or a loan does not apply to: an association controlled by a developer; an association in which the non-developer unit owners have been in control for less than one year; or an association controlled by one or more bulk assignees or bulk buyers.

If a SIRS is performed before an association has approved a special assessment or secured a line of credit or a loan, it must be updated to reflect the funding method selected by the association and its effect on the reserve funding schedule, including any anticipated change in the amount of regular assessments. An association must also obtain an updated SIRS before adopting any budget in which the reserve funding from regular assessments, special assessments, lines of credit, or loans do not align with the funding plan from the most recent version of the SIRS.

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