A Dictionary of Terms

Navigating the complexities of Florida’s Senate Bill 4-D can be challenging. Our structural integrity reserve study (SIRS) dictionary serves as a guide to clarify key terms relevant to the new Florida condo reserves law. Whether you’re a resident, board member, or property manager, understanding terms like “milestone inspection,” “association reserves,” and “structural integrity” is crucial for safeguarding the financial stability of your community.

Key Legislation

  • Florida Senate Bill 4-D (SB 4-D): Florida Senate Bill 4-D, also known as SB 4-D, establishes a statewide inspection program, requiring condominium and cooperative associations to conduct milestone structural inspections and perform structural integrity reserve studies.
  • Florida Senate Bill 154 (SB 154): Florida Senate Bill 154, also known as SB 154, revises provisions related to community association management, repairs, and the purchase of flood insurance. Additionally, the bill addresses the distribution of inspection reports and the mandatory structural inspections for condominium and cooperative buildings.

Reserve Fund & Management

  • Replacement and Repair Costs: Replacement costs refer to the amount needed to replace an item or structure at its current market value, without considering depreciation. On the other hand, repair costs entail the expenses associated with fixing or restoring an item or structure to a satisfactory condition.
  • Reserve Fund: Reserve fund refers to the portion of funds designated within a condominium association or cooperative association’s budget and reserve fund specifically earmarked for future maintenance, repair, or replacement of common property assets or infrastructure.
  • Reserve Study: A reserve study, specifically tailored to condominium associations (COAs) and cooperative associations, assesses the reserve needs and funding requirements for common elements and shared amenities within condominium properties. It helps assure that adequate reserve funds are in place to cover future maintenance and capital improvement expenses.
  • Replacement Reserve: Replacement reserve refers to a specific portion of the reserve fund set aside for anticipated major capital expenditures related to replacing existing assets, such as roofs, HVAC systems, elevators, or building exteriors, when they reach the end of their useful life.
  • Structural Integrity Reserve Study (SIRS): A study of the reserve funds required for future major repairs and replacements of building components, such as the roof, load-bearing walls, foundation, and fire protection systems. The initial structural integrity reserve study for buildings that were issued a certificate of occupancy on or before July 1, 1992, must be completed by December 31, 2024.
  • Waiver: The Senate bill prohibits the waiver of reserves by associations for certain structural components and sets requirements for the funding of reserves for the continued maintenance and repair of condominium and cooperative buildings.


  • Condition Assessment: A condition assessment is a comprehensive evaluation of the physical condition and functional performance of a condo or cooperative and its assets. It involves a thorough inspection by a team of specialists, such as engineers, to determine the current condition of the building’s systems and components, forecast their effective lifespans, identify any deficiencies, and estimate the costs for corrective actions. It helps in prioritizing maintenance and renewal activities, developing capital budgets, and making informed decisions about future repairs, maintenance, and replacements.
  • Condo or Cooperative Inspection: A condo or cooperative inspection typically focuses on the interior of the unit and its immediate surroundings, assessing the condition of the individual unit, including its structural elements, systems, appliances, and fixtures. A condition assessment can be conducted on a condo or cooperative.
  • Milestone Inspection: A milestone inspection in Florida is a scheduled evaluation conducted at specific stages of a construction project to assess progress, quality, and compliance with building codes and regulations. Phase 1 and phase 2 confirm that construction milestones are met and helps identify any issues early in the process to avoid delays or costly rework.
  • Milestone Inspection Phase 1:
    • For buildings located 3 miles or less from the coastline and 25 years or older, the deadline for the first milestone inspection is December 31, 2024, and then every 10 years thereafter.
    • For buildings located more than 3 miles from the coastline and 30 years or older, the deadline for the first milestone inspection is also December 31, 2024, and then every 10 years thereafter.
  • Milestone Inspection Phase 2: Phase 2 of a milestone inspection is performed if any substantial structural deterioration is identified during phase 1. It may involve destructive or nondestructive testing at the inspector’s direction to fully assess areas of structural distress and confirm the need for maintenance, repair, or replacement of structural components.

Other Key Terms

  • Reserve Advisors: By adhering to state regulations, estimating and planning for future needs, and partnering with a qualified engineering firm like Beryl Engineering & Inspection, condo associations and cooperative associations can navigate the intricacies of SIRS and the Florida condo reserve requirements and cooperative reserve requirements with confidence.
  • Structural Integrity: Structural integrity refers to the overall soundness, stability, and durability of a building or infrastructure component, confirming it can safely support loads and withstand various environmental conditions without compromising its safety or functionality.
  • Useful Life & Remaining Useful Life:
    • Useful life refers to the estimated duration over which an asset is expected to contribute to cost-effective revenue generation. It is an accounting estimate used for depreciation purposes, and factors usage patterns, age at the time of purchase, and technological advances.
    • Remaining useful life is a subjective estimate of the number of years that an item, component, or system is expected to function in accordance with its intended purpose before requiring replacement.

We hope you find this dictionary of terms helpful. Remember, staying informed and taking proactive steps is crucial to the security and value of your community. For further questions or guidance, call us at 813-616-3301 or download our free e-book.

Schedule your Structural Integrity Reserve Study (SIRS) and take the first step toward a secure and prosperous future for your condominium association (COA) or Co-op.

Schedule your Milestone Inspections and take the first step toward a secure and prosperous future for your condominium association (COA) or Co-op.