Florida Condo Reserve and SIRS Rule Amended Effective October 4, 2026

The Florida Department of Business and Professional Regulation (DBPR) has amended Rule 61B-22.005 of the Florida Administrative Code, the rule on condominium reserves. The amended rule took effect October 4, 2026. It covers how residential condo associations calculate reserves, when they may switch between pooled and straight-line reserve accounting, and when a structural integrity reserve study (SIRS) must be updated. If you sit on a condo board or own a condo unit in Florida, this rule shapes your association's budget.

Who Is Affected

• Residential condominium associations in Florida, including boards and managers who prepare budgets

• Associations required to complete a SIRS under section 718.112(2)(g), Florida Statutes

• Associations not required to complete a SIRS that still must fund reserves under section 718.112(2)(f), Florida Statutes

• Developers funding converter reserves under section 718.618, Florida Statutes

• Unit owners, who vote on certain reserve decisions

Key Changes

The rule as amended effective October 4, 2026 provides the following. (Rule 61B-22.005, F.A.C.)

• Switching accounting methods. An association may change between straight-line and pooled reserve accounting without a unit owner vote, as long as the change does not alter the original authorized purpose, the required level of funding, or the restricted use of reserve funds. (Rule 61B-22.005(3)(e))

• Conditions for reclassifying balances without a vote. All transferred funds must stay restricted for reserve purposes, the total reserve balance may not be reduced, resulting balances must be clearly disclosed in financial reports and the adopted budget, and no reserve funds may be used for anything other than repair or replacement of reserve components. (Rule 61B-22.005(3)(e)1.a. to c.)

• Interest on conversion. Right before converting from pooled to straight-line accounting, interest earned in the pooled account must be allocated among reserve components in proportion to each component's share of the pooled principal balance. (Rule 61B-22.005(3)(e)1.d.)

• When an owner vote is required. A vote is required if the change reduces or eliminates funding for any reserve component, uses reserve funds for a purpose not originally approved by owners, or transfers funds in a way that amounts to a waiver, reduction, or repurposing of reserves. (Rule 61B-22.005(3)(e)2.)

• Annual review for non SIRS associations. The association must evaluate each year whether the total deferred maintenance expense or replacement cost of each line item needs adjustment, and must keep the reserve balance above zero unless properly waived or reduced. (Rule 61B-22.005(3)(a))

• SIRS associations. Reserve funding for each item in the SIRS must align with the funding amount in the most recently completed SIRS. (Rule 61B-22.005(3)(b))

• Full SIRS every ten years. The ten year requirement is met only by a Full Structural Integrity Reserve Study covering all statutory items. (Rule 61B-22.005(9)(a))

• Required SIRS updates. An updated SIRS is required if the projected year end reserve balance differs from the most recent SIRS by at least fifty percent of the association's most recent annual cash inflows to reserves, or if a scheduled repair, replacement, or maintenance item is completed more than two years earlier or later than the SIRS projects. (Rule 61B-22.005(9)(b)5. and 6.)

• Forms. A SIRS must be completed on DBPR Form CO 6000-10, and notice of completion is filed with DBPR Form 6000-11, Affidavit of Acknowledgement, both effective August 2026, through the association's online account. (Rule 61B-22.005(9) and (9)(c)2.)

• No altering the study. Associations must fund reserves according to the most recent SIRS and may not alter or manipulate its findings. (Rule 61B-22.005(9)(d))

Practical Implications

• Before switching accounting methods, confirm the change meets each condition in Rule 61B-22.005(3)(e)1. If it does not, plan for a unit owner vote.

• Allocate pooled interest first when moving from pooled to straight-line accounting, and keep records that show how it was allocated.

• Compare your budget to your SIRS each year. Watch for the fifty percent reserve balance trigger and for projects that move more than two years off schedule.

• Use the current DBPR forms for any new or updated SIRS and for the Affidavit of Acknowledgement.

• Review the statute alongside the rule. The reserve and SIRS requirements come from section 718.112 of the Florida Statutes.