Maintaining compliance with Florida’s latest condominium requirements is crucial for ensuring the longevity and safety of buildings and protecting the interests of unit owners. Two key areas that condominium associations must focus on are the Structural Integrity Reserve Study (SIRS) and the distribution of fiscal year-end financial statements. Here’s a quick guide to understanding these requirements and their timelines.
Structural Integrity Reserve Study (SIRS)
For condominiums in existence on or before July 1, 2022 operating with buildings of three stories or more, associations are required to complete the SIRS by December 31, 2024, and then every 10 years thereafter. This study assesses the condition of the building’s structural components and estimates the remaining useful life and replacement costs.
Key Steps and Deadlines:
Completion Deadline: December 31, 2024.
Distribution to Unit Owners: Within 45 days after receiving the SIRS, the association must either:
Distribute a copy to each unit owner, or
Deliver a notice that the completed study is available for inspection and copying upon written request.
Method of Distribution: The study or notice can be sent via:
United States mail
Personal delivery
Electronic transmission (email or fax) for owners who have consented to electronic notices.
Reporting to the State: Within the same 45-day period, the association must inform the Division of Florida Condominiums, Timeshares, and Mobile Homes that the study has been completed and provided to unit owners. The Division is expected to create a website for submitting this information, although it is not yet available as of the date of this post.
Year-End Financial Reports
Condominium associations must also provide their fiscal year-end financial statements within 120 days of the fiscal year’s end. The type of financial report required depends on the association’s total annual revenues:
Revenues less than $150,000: Report of cash receipts and expenditures.
Revenues $150,000 to $299,999: Compiled financial statements.
Revenues $300,000 to $499,999: Reviewed financial statements.
Revenues $500,000 or more: Audited financial statements.
Key Steps and Deadlines:
Preparation Deadline: Within 120 days from the close of the fiscal year.
Distribution to Unit Owners: Provide the financial statements or notify unit owners of their availability within the 120-day period.
Infographic: Compliance Timeline for SIRS and Fiscal Year-End Financials
Here’s a visual guide to help you keep track of these important deadlines:
Staying ahead of these deadlines is critical for compliance and maintaining the trust of unit owners. By adhering to these requirements, associations can ensure that their buildings remain financially transparent and in compliance with these state requirements.
Disclaimer: This blog post is intended to provide general information and does not constitute legal advice. It is recommended to consult with an attorney for advice regarding specific situations.