Florida Building Safety Act Pro Tips Series
Pro Tip 1 – “Pre-funding SIRS”
Do the SIRS Early
The progressive management deadline is 1/1/2026.
First off, we want to encourage you to Do the SIRS Early. Many of you are focused on the Dec 31, 2024 deadline. The deadline we encourage you to focus on is 1/1/2026.
This is the deadline for your sirs funding chart to be fully funded. Your SIRS funding chart should be factored into your annual budget no later than the fiscal year 2025.
Example: (assuming your association met the 12/31/2024 deadline and started funding in FY2025)
During the SIRS process, we can work with your management team to suggest motions for BOD approval to move any applicable funds that are currently residing in your pooled capital reserves over to your SIRS account. (Roofing, Paint etc.…)
This can go a long way toward meeting your statutory finding requirements and avoiding unnecessary special assessments.
Example: (assuming your association met the 12/31/2024 deadline and started funding in FY2025 and your association has $128,500 in applicable reserves transferred to the SIRS account)
The earlier you adopt a SIRS funding schedule, the more months you will have to spread the costs over, prior to January 1st, 2026. This could further help your association avoid unnecessary special assessments.
Early adoption is based on FY 2024. The Electrical System now has a remaining useful life of 26 years. The association is not required to reserve replacement costs for items with a remaining useful life greater than 25 years. The association will recognize this as a 27% reduction in the SIRS funding requirement. This is a savings of $45 per unit per month.
Example: (assuming your association completed the SIRS early and started funding in FY2024)
How do I stay fully funded and in compliance?
In order to stay fully funded the funding schedule laid out in the reserve study must be followed and the appropriated funds must be accounted for. This may not mean that the entire projected funds laid out in the reserve study must be accounted for every year.
Fully Funded = Meeting Reserve Funding Schedule
The additional 12 months gained by early adoption can reduce SIRS funding requirements by as much as 10%!
Be prepared to have your SIRS contributions audited in 2026.
We strongly recommend that your association starts funding the SIRS chart as soon as possible.
Be prepared to have your SIRS contributions audited in 2026.
This will most likely be conducted on an oversight portal. You can reasonably expect a deadline to upload a copy of the sirs report with funding chart, the most recent bank account statement and a QB report on the reserves account as soon as Friday, January 2, 2026 .
Team Complete has a proven history of providing industry-leading expertise for clients in South Florida and the Gulf Coast including areas of Punta Gorda, Miami, Pompano Beach, Palm Beach, Naples and Port Charlotte.
