The second substantive change is the SIRS
Like the milestone inspection, the SIRS involves a visual examination of certain building components deemed critical to structural soundness and safety. Its purpose is to determine an annual reserve amount that achieves the estimated replacement or deferred maintenance cost for the components, by the end of their useful lives. Condominiums must then incorporate those amounts into their annual budgets, meaning associations can no longer waive reserves for the specific SIRS components. SB 4-D also set the initial SIRS deadline as
December 31, 2024
after December 31, 2024
– meaning one adopted beforehand is the last time a unit owner-controlled condominium association can provide no reserves or less reserves than required by the SIRS.It is important to note that there are many additional aspects to SB 4-D that continue to remain in place. Furthermore, SB 154 includes new provisions that were not originally part of SB 4-D. It will thus take some time to reconcile both bills to understand the full impact on condominiums going forward. But the general takeaway from this “glitch bill” is that milestone inspections, SIRS, and increased reserve requirements are here to stay.