Do you have a SMART financial blueprint to
your building?
Are you an unit owner or a Property Manager building 3-stories or taller?
The current requirement is for all buildings 3-stories or taller, regarless of the buildings’ age, to have a structural integrity reserve study performed by December 31st, 2024. Structural integrity reserve studies must then be performed every (10) years after the initial study.
Get now the guide to determine what reserves a building must have on hand at any
given time to properly care for their property and address all repairs and replacements of building components as they arise.
Have any question?
A structural integrity reserve study provides critical information to the unit owners as to the costs and useful life of critical buidling components. The S.I.R.S. provides a detailed breakdown of the remaining life and cost, similar to a salvage value, of a given building components, whereas a property inspection identifies the overal condition of building component.
Smyth Engineering provides a breakdown of S.I.R.S. components and
non-S.I.R.S.
components, breaking down our reports in critical building components that
must be addressed and fully funded and non-critical buidling components.
There is a clear list provided by SB154 but the primary S.I.R.S. components are:
• Structural building components
• Waterproofing
• Painting
• Roofing
• Exterior windows and doors
• Plumbing
• Fire protection systems
• Fire alarm systems
• Electrical building components
The above referenced items are building components that affect the overall structural integrity of building.
Structural Integrity Reserve Study (S.I.R.S.)
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A We additionally provides non-S.I.R.S. building components that do not need to be fully
funded or addressed, but as a guide to the unit owners and property manager.
These building components include, but not limited to:
• Elevator systems
• Intercom system
• Flag pole
• Mailboxes
• Trash chutes
• Asphalt
• Gym Equipment
ATENTION Unit Owners and Property Managers!
A Structural Integrity Reserve Study, commonly referred to as a S.I.R.S, is a study of the
reserve funds required for future major repairs and replacement of the condominium
property as required to maintain its structrual integrity. Only the building components such as
the structural components and waterproofing, that directly affect the buildings’ structurally
integrity and life safety of the residents, is assessed for the primary S.I.R.S. components.
The property management company need to be fully aware of the existing condition of their
building, not only to check a box for the legislative requirements per SB154, but as a means
to care for the well being of their property and residents, which should be one of the primary
focuses of a property manager.
S.I.R.S. provides a financial blueprint to the unit owners and property manager of necessary
repair, maintenance and replacement as necessary of critical building components. For
instance, if the building knows that the useful life of their building is (20) years and remaining life is (5) years, they have to come up with (15) years of reserves for the roof in fiscal year (1) and the remaining percentage over the next (5) years. After (5) years, the building is awawre they need to replace the roof, and have the funds on hand for the replacement. This way there are no surprises or emergency assessments. Some buildings have a healthy balance of reserves on hand, and are better equipped to care for thier property.
Source: https://www.nytimes.com
Are there legal or regulatory requirements for conducting structural integrity reserve studies in Florida?
Per SB154, all buildings 3-stories or higher must complete a structrual integrity reserve study
by December 31st, 2024. There are personal legal and financial ramifications for not
completing a structrual integrity reserve study and related inspections. One must always
recall the tragedy at Champlain Towers South, where the condo association had to pay
approximately $100,000,000 out of the $1,200,000,000 settlement.
Smyth Engineering uses the Marshall Swift Valuation book for the useful life and costs for
each built components. There are some specialty building components that are not listed in
aforementioned reference, but the maintenance/repair, and replacement costs for the
various building components are provided based on the visual inspection of Smyth
Engineering, and costs/useful life based on the Marshall Swift Valuation book. Typically, all
units need to pay an equal share of the required reserves; However, there are some
buildings where there are 1-bedroom and 2-bedroom units that must pay a different share.
WHY HIRE A COMPANY LIKE OURS?
It is best to hire a company who understands construction and specialty building
components such as electrical systems and HVAC systems. An associate or property
management firm wants to get their money worth. Smyth Engineering will inspect all building components with a construction mindset including the cooling towers systems, elevator systems, electrical systems, and so on that are usually vague in description and sometimes deferred to the respective professional.
“Although there are specific repalcement costs and useful lives included in the Marshall Swift
Valuation book, Smyth Engineering will work with you to ensure you are fully satisfied with
your structural integrity reserve study. We will set up a post inspection meeting to go over all
of the components and reasonably adjust to your building needs.”
FLIR THERMAL IMAGER
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Smyth Engineering uses high-tech tools when performing their inspections and studies. For
instance, a Flir thermal imager can detect heat signatures in electrical wires and determine if
there is an issue that needs to be addressed right away, such as replacing an electrical
panel or modernizing the electrical systems prior to the end of the stated useful life.
Age and type of construction affect the
recommendations.
The Marshall Swift Valuation book classifies building as poor, fair, good, and excellent. Most
buildings generally fall into the good construction category. Excellent construction would be
high-tech buildings with the most luxurious finishes and amenities, such as the Porsche
Design Tower in Sunny Isles Beach, FL. The replacement and restoration cost is going to be
high in a building with excellent construction; however, the useful life for the building
components is longer.