Reserves

• The study is to:
  • State the estimated remaining useful life of each identified item, and
  • Provide the estimated replacement cost.

• The reserve study, performed by any qualified person or entity, may include other structural integrity inspections, besides visual inspections.

• Results of the reserve study must be included in the association’s annual reserve schedule.

• Results must be reflected in the association’s annual budget, starting in 2025, and quarterly maintenance assessment fees.

• Reserves must be fully funded, and association members are not permitted to vote to waive or partially fund the reserves.

• The Structural integrity reserve study needs to be kept in the official records for 15 years from the date of the report and posted on the association’s website.

• It is a breach of a board member or officer’s fiduciary duty if an association fails to complete a structural integrity reserve study. Furthermore, it could impact officer D&O insurance and property insurance premiums.

On July 1, 2022, the Florida legislature amended Condominium Law (Statute 718) to require Milestone Inspections of all residential buildings three stories or higher and Structural Integrity Reserve Studies (SIRS). Milestone Inspections determine whether a building has “substantial structural deterioration”, and SIRS assures sufficient reserve funding to cover structural repairs.

According to Florida statutes, the SIRS is a budget planning tool that ensures the availability of funding for future capital expenditures related to the safety and structural integrity of condominium buildings three stories or higher. It is a financial planning tool that helps ensure that funding will be available without the need for special assessments to maintain the safety and structure of the buildings. The SIRS estimates the replacement value and remaining useful life of each reserve component (major physical asset) for the purpose of financial planning. These estimates provide required funding for each component.

Jupiter Bay’s SIRS was conducted by Global Solution Partners, with the final SIRS report issued on 2/19/25. Their overall assessment was “the community is approximately 40 years old, but it appeared to be in good condition at the time of the site visit.”

Global reported Jupiter Bay’s results, with added SIRS and non-SIRS components, as follows:

• $9,319,586 – Total replacement value for all reserve components.
• $904,978 – Estimated 2026 reserve funding.

To arrive at these numbers, the Association had Global remove over 30 items from the report and reclassify them as Operational Expenses. Also, the Association told Global to assume that all East and West buildings would have their balcony and catwalk aluminum railings replaced in 2026. (Balcony railing replacements are included in the Concrete Remediation Project, but additional special assessments will be needed for catwalk railing replacements.)

Several changes were made after the report was received, increasing the replacement value to $9,463,034 and funding to $997,299 for 2026. These contributions significantly increased quarterly maintenance fees for 2026, and they will continue to influence fees for future years. The full SIRS report is displayed below on this webpage.

Additional SIRS funding was provided for Concrete Balcony & Structure Restoration to help ensure sufficient funds for completing this work over a 10-year period, addressing the most serious damage each year. However, Association management chose to sign a $6.86 million contract with Custom Group to have all the East and West building’s concrete balconies and walkways addressed as soon as possible ignoring the purpose of SIRS.

The resulting special assessments, as high as $27,074 per unit, plus additional special assessments expected next year, and significantly higher 2026 quarterly fees reflecting SIRS increases poses an ever challenging and unnecessary financial burden for Jupiter Bay unit owners.

Prior to Completing a Structural Integrity Reserve Study

Reserve accounts must include, but are not limited to:

• Roof replacement.
• Building painting.
• Pavement resurfacing.
• Any other item that has a deferred maintenance expense or replacement cost exceeding $25,000 or by a higher inflation-adjusted amount determined by the division.

The amount to be reserved must be computed using a formula based upon estimated remaining useful life and estimated replacement cost or deferred maintenance expense of the reserve item.

The association’s members 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.

After Completing a Structural Integrity Reserve Study

After an association has completed a structural integrity reserve study (SIRS), reserves must be maintained for the following items as related to the structural integrity and safety of the building:

• Roof
• Structure, including load-bearing walls and other primary structural members and primary structural systems as those terms are defined in s. 627.706.
• Fireproofing and fire protection systems.
• Plumbing.
• Electrical systems.
• Waterproofing and exterior painting.
• Windows and exterior doors.
• Any other item that has a deferred maintenance expense or replacement cost exceeding $25,000 or by a higher inflation-adjusted amount determined by the division.

Reserve Amounts: The reserve amount for these items must be based on the findings and recommendations of the association’s most recent SIRS.

An association is not required to reserve replacement costs for items for which an estimate of useful life is not readily ascertainable or with an estimated remaining useful life of greater than 25 years, but an association must reserve the amount of deferred maintenance expense, if any, which is recommended by the SIRS for such items.

The association may adjust replacement reserve assessments annually to account for an inflation adjustment and any changes in estimates or extension of the useful life of a reserve item caused by deferred maintenance.

Members of an association may not vote to provide no reserves or less reserves than required by the SIRS except that members of a multicondominium association may determine to provide no reserves or less reserves than required if an alternative funding method has been approved by the division.

Reserve Funding: Reserves for the SIRS items may be funded by regular assessments, special assessments, lines of credit, or loans. A special assessment, a line of credit, or a loan to fund the SIRS items requires the approval of a majority vote of the total voting interests of the association.

An association may secure a line of credit or a loan to fund capital expenses required by a milestone inspection or a structural integrity reserve study. The line of credit or loan must be sufficient to fund the cumulative amount of any previously waived or unfunded portions of the 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. A special assessment, a line of credit, or a loan secured under this sub-subparagraph and related details must be included in the annual financial statement and provided to prospective purchasers of a unit.

718.112(2)(g) Structural integrity reserve study. The following is an abridged version of the actual statute language.

1. Items to be Inspected: See list of required SIRS reserve accounts above.

2. Inspector Qualifications: A structural integrity reserve study is based on a visual inspection of the condominium property. A structural integrity reserve study may be performed by any person qualified to perform such study. However, the visual inspection portion of the structural integrity reserve study must be performed or verified by an engineer licensed under chapter 471, an architect licensed under chapter 481, or a person certified as a reserve specialist or professional reserve analyst by the Community Associations Institute or the Association of Professional Reserve Analysts.

3. Reserve Study Results: At a minimum, a structural integrity reserve study must identify each item of the condominium property being visually inspected, state the estimated remaining useful life and the estimated replacement cost or deferred maintenance expense of each item of the condominium property being visually inspected, and provide a reserve funding schedule with a recommended annual reserve amount that achieves the estimated replacement cost or deferred maintenance expense of each item of condominium property being visually inspected by the end of the estimated remaining useful life of the item. The structural integrity reserve study may recommend that reserves do not need to be maintained for any item for which an estimate of useful life and an estimate of replacement cost cannot be determined, or the study may recommend a deferred maintenance expense amount for such item. The structural integrity reserve study may recommend that reserves for replacement costs do not need to be maintained for any item with an estimated remaining useful life of greater than 25 years, but the study may recommend a deferred maintenance expense amount for such item.

4. Applicability: Associations existing on or before July 1, 2022, must have a structural integrity reserve study completed by December 31, 2024, for each building on the condominium property that is three stories or higher in height.

5. Failure of Responsibility: If the officers or directors of an association willfully and knowingly fail to complete a structural integrity reserve study pursuant to this paragraph, such failure is a breach of an officer’s and director’s fiduciary relationship to the unit owners under s. 718.111(1).

Original Reserve Accounts		Revised (Post SIRS) Reserve Accounts
Acct.	Description	SIRS	Acct.	Description
Common Areas
30010	Restoration - Bridge, Sidewalks, Lake, Tennis & Bocce Ball Courts, Entry Monuments.	No	30010	Restoration - Bridge, Lake, Tennis, Bocce
30020	East & West Pool - Resurface, Deck, Equipment, Furniture.	No	30020	East & West Pool & Spa
		No	30022	East & West Pool Equipment
		No	30024	East & West Pool Fencing & Awnings
		No	30026	East & West Pool Buildings
		No	30028	East & West Pool Furniture & Equipment
30030	Irrigation - Wells, Pumps, Pipes	No	30030	Irrigation
30040	Paving & Sealcoating - Parking Lots, Roadways, Lighting	No	30040	Paving & Sealcoating
30050	Restoration General - Common Buildings (Pool Cabanas, Pump House, Sewer Drains, Maintenance Shed), Fences	No	30050	Restoration General - Buildings
Buildings
30110	Building Restoration/Spalling - Exterior Walls, Balconies, Doors, Stairs, Walkways, Railings	Yes	30110	Building Concrete/Stucco Restoration/Spalling
		Yes	30112	Building Plumbing & Electrical
		No	30114	Building Doors & Fixtures
30120	Elevators - Refurbishment & Replacement	No	30120	Elevators
30130	Paint Building - Exterior sealing & Repainting	Yes	30130	Paint Building / Exterior Waterproffing
30140	Roof - Repair & Maintenance	Yes	30140	Roof
30150	Generator, Sprinkler Pumps, Fire Alarms, Life Safety	Yes	30150	Life Safety, Fireproofing & Fire Protection Systems
30160	Interest		30160	Interest