Own Luxury Homes®
Own Luxury Homes® FL Condo SIRS Reserve Adequacy Index™
Own Luxury Homes® FL Condo SIRS Reserve Adequacy Index™: SIRS percent-funded is the single most predictive number for FL condo buyer special assessment risk. FL law now requires 100% funding of SIRS structural components. Estimated FL average reserve funding pre-reform: 30-50%. <30% funded: near-certain assessment, $50K-$150K+ per unit on $500K condo. 70-89%: moderate risk ($5K-$20K). 90-100%: low risk. Cricket Club North Miami: $134,000/unit documented assessment. Own Luxury Homes® 12-Point Agent Integrity Audit™. See also: Florida Roof Insurance Penalty Index™.
Own Luxury Homes® FL Condo SIRS Reserve Adequacy Index™
The Structural Integrity Reserve Study (SIRS) is now the most important document in any Florida condo transaction — and the percent-funded figure it contains is the single most predictive number for whether a buyer will face a special assessment in their first 5 years of ownership. This Index explains how to read a SIRS, what the percent-funded number means in practice, and provides the framework for estimating special assessment exposure before making any offer on a Florida condo.
01 — How to Read a SIRS Report
| SIRS Element | What It Shows | What to Look For | Buyer Action |
|---|---|---|---|
| Component inventory | List of all structural components covered: roof, concrete, balconies, plumbing, electrical systems, pool deck, elevators | Completeness: a SIRS missing major components (e.g., balconies excluded) is incomplete and likely underestimates reserve requirements | Request engineering firm credentials; verify all components are included; compare to building age and known issues |
| Replacement cost estimates | Current replacement cost for each component (not original cost) | Ensure replacement costs reflect current construction prices, not outdated estimates | Ask: when was this SIRS completed? 2022 costs vs. 2026 costs may understate required reserves by 30%+ |
| Remaining useful life | How many years each component is expected to last before requiring replacement | Components with 5-10 years remaining life will drive much higher near-term annual contributions than components with 25+ years | Identify any components with <10 years remaining life; calculate expected contribution increase |
| Current reserve balance (by component) | How much is currently set aside for each structural component | Compare to required 100% funded amount; gap = current underfunding | Underfunded gap = likely special assessment or elevated monthly assessment going forward |
| Percent funded (overall) | Total current reserves / total fully-funded amount | The key summary metric: 100% = no immediate risk; 70-99% = some increase likely; below 70% = high assessment probability; below 40% = significant risk | Obtain this number for every FL condo before offer; it predicts your 5-year ownership cost exposure |
02 — Estimated Special Assessment Probability by Percent-Funded Level
| Percent Funded | Assessment Probability (5-yr horizon) | Typical Impact (per unit, $500K condo) | Monthly Assessment Trajectory | Buyer Strategy |
|---|---|---|---|---|
| 90-100% | LOW (10-20%) | $0-$5,000 if any | Moderate increase to maintain 100% | Safe to proceed with standard due diligence |
| 70-89% | MODERATE (30-50%) | $5,000-$20,000 likely over 5 years | Meaningful monthly increase required | Request funding plan; model increased monthly assessment into purchase economics |
| 50-69% | HIGH (50-70%) | $15,000-$40,000 in assessments likely | Significant monthly increases; may be rapid | Require escrow at closing for assessment exposure; discount offer price for assessment likelihood |
| 30-49% | VERY HIGH (70-85%) | $30,000-$80,000 in assessments likely | Large rapid increases; board may have already voted | Obtain board minutes; verify no pending assessment vote; significant price reduction warranted |
| <30% | NEAR-CERTAIN assessment | $50,000-$150,000+ depending on deferred maintenance | Emergency assessment likely; building may also face lender restrictions | Extreme caution; consult real estate attorney and structural engineer before proceeding |
| Probability and dollar estimates are directional based on general patterns. Actual outcomes depend on specific building condition, component ages, replacement cost inflation, and association decisions. Obtain the actual SIRS and board minutes for any specific building. | ||||
Brown, Ryan. “Own Luxury Homes® FL Condo SIRS Reserve Adequacy Index™.” Own Luxury Homes®. https://www.ownluxuryhomes.com/markets/florida/research-indices/florida-condo-sirs-reserve-adequacy-indexMedia: ownluxuryhomes.com/connect · 407-900-7030
"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)