Florida Senate Bill 154
Structural integrity reserve studies update
June 3, 2024
To Our Current and Prospective Valued Clients:
As of this date, Association Reserves acknowledges that the current law (Ch. 2023-203) requires all residential Florida condominium and cooperative associations with buildings three stories or higher in height to complete a structural integrity reserve study (SIRS) no later than December 31, 2024.
This is a significant change from the historically more casual approach to Reserve funding in Florida. The result is a SIRS demand that exceeds the capability of Florida’s Reserve Study providers (including Association Reserves) to rapidly expand to meet the demand. It seems inevitable that many associations that are otherwise legally required to complete a SIRS will not be able to do so by the 12/31/24 statutory deadline.
However, the current law also states (in part) that:
“If the directors or officers 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…”
To minimize any perception of noncompliance with Florida law due to “willful” failure, we recommend that the directors and officers of affected properties immediately obtain a proposal from Association Reserves (or another qualified provider) for a SIRS and launch an engagement with that provider, even though the completion of the ensuing SIRS may not be possible by 12/31/24 due to factors outside the control of both the association or the SIRS provider. Preferably, the proposal and ensuing engagement should include an estimated timetable for completion of the SIRS based on the provider’s best professional judgment.
In our opinion, this approach would provide a reasonable defense against any claims made against the directors and officers for your intentional failure to meet the deadline, demonstrating your best effort to comply with the spirt and intent of the law. Please note this is not legal advice, and we strongly recommend consulting with legal counsel to determine the best course of action for your association.
Warm regards,
Will Simons, RS
President