Reserve Studies 101

To help prevent another tragedy like the Champlain Towers collapse in 2021, Governor DeSantis signed Senate Bill 4D into law, which requires that all condo buildings taller than three stories and 30 years or older complete a structural reserve study every ten years. Buildings within three miles of the coast must complete their first reserve study at 25 years old.  The first study must be complete by end of 2024. The reserve study requires that an engineer or an architect review eight of the building’s key systems to determine their structural integrity and when they will need to be replaced. These systems are:

  • Roof
  • Structural Systems
  • Fireproofing and Fire Safety
  • Exterior Painting and Water Proofing
  • Plumbing
  • Electrical
  • Windows and Exterior Doors
  • Other elements costing more than $10,000 that impact the building’s structural integrity

In the reserve study, the inspector will determine the amount of useful life remaining for each of these building systems; the cost of repairing, upgrading, or replacing the item once its useful life ends; and how much funding must be reserved each year to cover these costs when they occur. Once the condo association receives the report, they must set aside reserve funds each year such that by the required date of replacement, the association will have enough money to cover the project. For example, if the inspector finds that the building will need an electrical system upgrade in 10 years that costs $250,000, the condo association must set aside $25,000 per year for the next 10 years so that they have the funding to cover this upgrade when it is due.

Historically, the law has not required that condo associations complete reserve studies, although many chose to do so anyway. Even among associations that  conducted the studies, many chose to disregard the recommendations from inspectors, creating a dangerous situation in which essential building upgrades and renovations were not completed, compromising the safety of residents. Under Senate Bill 4D, completing the studies is a legal requirement and disregarding the inspector recommendations is not an option – condo associations must adhere to the funding schedule outlined in their reserve studies to stay in compliance with the law.

This has major financial consequences for condo associations and owners who live in buildings that have deferred maintenance in the past. These condo association boards will need to issue special assessments as well as increase dues to fully fund the projects required by the reserve studies, likely angering and scaring residents who cannot afford the increases.

The next few years will be difficult ones for many condo associations that are facing high costs from deferred maintenance. Ultimately though, it will lead to safer buildings and help prevent another horrific loss of life.

Consolidated Community Management (CCM) is a full-service property management company specializing in condominium and homeowner association management in Broward and southern Palm Beach Counties.  We are committed to working together with community Boards of Directors to develop management plans tailored to the unique requirements of each community and their residents.

CCM provides a quality of service that is unique to our industry and consistently delivers a distinct competitive advantage.  Our concentrated, extensive local presence and knowledge of community associations results in lasting partnerships and superior service.  We have built our industry reputation on employing the best in the business and assigning only a limited number of properties to each Property Manager Team.

Our team at Consolidated Community Management provides expert property management services at competitive prices.  Contact us today by calling (954) 718-9903 or clicking on

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