Local Impact
SIRS findings are a big deal for coastal properties in the Daytona Beach and Brevard area. Corrosion on balconies, columns, and façades is accelerated by salt air. A lot of buildings from the 1970s and 1980s are fairly late into full reinvestment cycles for roof, plumbing and envelope systems. Assessments are uncovering maintenance that sellers have put off – and the resulting funding plans mean higher assessments.
The risk of non-compliance has real impacts, including the potential for a breach of fiduciary duty, DBPR investigation, issues with insurance underwriting, Fannie Mae and Freddie Mac eligibility, and property marketability.
Association Advice
If the SIRS has been done, confirm it has been filed with DBPR, sent to owners, and included in the budget. If not, find a qualified provider right away. Be open about results and how they affect assessment. Then, partner with an experienced property management team to develop a feasible funding transition plan.
SIRS isn’t going away. Those that view it as both a safety obligation and a tool for financial planning will be much better off over the long haul than those still hoping to postpone.