SIRS-Exempt Doesn’t Mean Reserve-Exempt: A 2026 Reserve Playbook for Florida’s 1–2 Story Condos

If your condominium is only one or two stories, you’ve probably heard some version of this: “We’re exempt from SIRS, so reserves aren’t a big deal anymore.”

That sentence is half true—and it’s how low-rise associations walk into special assessments, failed sales, and fiduciary headaches.

Under Florida law, buildings under three habitable stories are generally outside the Structural Integrity Reserve Study (SIRS) requirement. Milestone inspection rules track a similar height line. None of that cancels Chapter 718’s everyday reserve rules for roofs, painting, pavement, and other big-ticket items. For SIRS-exempt communities, owners can still vote to underfund or waive those reserves. That waiver path is the trap.

This playbook is for property managers and boards running Florida’s garden and low-rise condos in 2026 and into 2027: what the statute actually requires, what “exempt” does not mean, and a practical checklist you can run this budget cycle.

Do 1–2 story condos need a SIRS?

Usually, no. Florida Statute §718.112(2)(g) requires a structural integrity reserve study for each building that is three habitable stories or higher, as determined by the Florida Building Code. The same paragraph expressly says the SIRS rules do not apply to buildings less than three stories in height (with additional carve-outs for certain small dwellings).

So a typical two-story walk-up or garden condo is not on the SIRS clock the way a mid-rise or high-rise is. Many of those same low-rise buildings also sit outside milestone inspection triggers that apply to taller structures.

Exempt from SIRS ≠ exempt from capital planning. Your association still owns a roof, exterior paint cycles, asphalt or concrete drives, and often elevators, pools, or seawalls that will fail on a predictable schedule—whether or not the State labeled your building “structural integrity reserve study” territory.

• The Difference Between Traditional and SIRS Reserve Studies
• Florida Condo Reserve Study vs. Milestone Inspection (2026)

What Chapter 718 still requires (even when SIRS does not)

Separate from SIRS, §718.112(2)(f) still requires the annual budget to include reserve accounts for capital expenditures and deferred maintenance. At minimum, those accounts must include:

• Roof replacement
• Building painting
• Pavement resurfacing
• Any other item with deferred maintenance expense or replacement cost above the Division’s inflation-adjusted threshold

The Division publishes that threshold each year. For 2026, the threshold is $25,675 (up from $25,000 in 2025). See the DBPR reserve threshold page.

Reserves are computed from estimated remaining useful life and estimated replacement cost or deferred maintenance expense. That classic traditional reserve-study math still applies to SIRS-exempt buildings. SIRS-required associations generally cannot waive or reduce paragraph (g) structural funding after December 31, 2024. SIRS-exempt associations can, by majority of total voting interests, vote for no reserves or less than the formula; the proxy must carry the bold special-assessment warning. Low-rise boards can legally underfund, but that does not make it smart or defensible.

SIRS-required vs. SIRS-exempt at a glance

Traditional cadence: why 3–5 years still matters

A SIRS runs on a roughly 10-year statutory rhythm for buildings that need one. Traditional reserve studies for low-rise communities should move faster. Refresh a full study every 3–5 years, or sooner after:

• A major roof, paving, or paint project
• Storm damage or insurance rebuilds
• Large swings in construction pricing
• A wave of unit sales where lenders ask hard questions

A Level I study builds the component inventory and funding plan from scratch. A Level II update recalibrates an existing study when the inventory is sound. If your last study is older than a full paint or roof cycle—or uses pre-2022 unit costs—you are budgeting on fiction. See Reserve Study Cost in Florida and Ultimate Guide to Community Association Reserve Studies.

Funding, sales, and lender risk for “exempt” buildings

• Special assessments after deferred roofs or paving
• Buyer pushback when estoppel / budget packages show thin or waived reserves
• Lender and investor friction on condo questionnaires (see Fannie Mae Condo Reserve Requirements 2026)
• Insurance and appraisal pressure (Florida Condo Insurance Appraisal + SIRS Guide 2026)

Property managers: make the tradeoff visible before the owner vote, not after the roof leak.

Failure modes we still see in low-rise Florida condos

1. “Exempt” becomes “ignore.” Boards cancel the reserve study line item.
2. Waivers pass quietly when apathy and “keep assessments flat” messaging win.
3. Threshold amnesia: components over $25,675 never get added after inflation.
4. Pooled vs. component confusion leaves accounts looking healthy until one big roof hits.
5. Storm optimism stretches useful lives without site evidence.
6. Manager turnover leaves the last study in someone’s email.

2026–2027 board & property manager checklist

1. Confirm height status in writing under the Florida Building Code.
2. Pull the last reserve study date, methodology, component list, costs, and funding goal.
3. Map minimums: roof, paint, pavement, plus every item at or above $25,675.
4. Document waiver votes, proxy warning, and special-assessment exposure in dollars.
5. Refresh on a 3–5 year clock, sooner after storms or major projects.
6. Align lender and buyer questionnaire packets with the budget and study.
7. Schedule the next site visit before assessment notices go out.
8. Ask counsel before a waiver vote for hybrids or multicondominiums.

FAQ

Do we need a SIRS if every building is two stories?

Generally no, if each building is under three habitable stories and no other statutory exception pulls you in. Confirm story count carefully; “two floors over parking” questions should go to counsel and your design professional.

If we’re SIRS-exempt, can we skip reserves entirely?

You can vote to provide no reserves or less than the formula requires, by a majority of total voting interests, with required proxy language. That does not erase fiduciary duty or physical reality.

What is the 2026 reserve dollar threshold?

$25,675, per DBPR’s posted inflation adjustment. Items at or above that amount (plus roof, paint, and pavement regardless of cost) belong in the reserve discussion.

How often should a low-rise condo update its traditional reserve study?

Plan on every 3–5 years, or after major projects, storms, or sharp construction-cost changes.

Who should perform the study?

Use a qualified reserve professional. For SIRS work on taller buildings, statute specifies licensed engineers/architects or CAI Reserve Specialist / APRA Professional Reserve Analyst credentials. Traditional low-rise studies benefit from the same caliber of expertise.

What’s the fastest next step for our board?

Commission a Level I traditional study (or Level II update if your inventory is current) and put the funding plan beside this year’s draft budget before the owner meeting.

Expert note

“Low-rise communities get told they’re ‘exempt,’ and too many hear ‘done.’ Exempt from SIRS just means you’re still running a classic Florida reserve program—roof, paint, pavement, and everything over the Division’s threshold—with owners who can still vote to underfund. The boards that sleep well are the ones who fund the plan, not the waiver.”

— Eric Dixon, RS / PRA, Felten Property Assessment Team (Safety Harbor / Tampa Bay)

Ready for a clear funding picture?

If you manage or serve on a Florida 1–2 story condominium board, FPAT can turn your component list and site conditions into a board-ready funding plan. Request a 24-hour proposal for a Level I traditional reserve study—or a Level II update if you already have a recent study—via Florida Reserve Study services.

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