How Milestone Inspections and SIRS Are Changing Board Operations

By Emma Harrah / Published November 2024

If you live in a condominium or a homeowners’ association, you may have heard about milestone inspections and structural integrity reserve studies (SIRS) and wondered how they affect your board of directors. These regulations are all about keeping buildings safe, but they come with their own set of challenges for boards. Let us break down what’s going on, especially in terms of how boards are talking to residents and handling the costs that come with these new rules.

What Are Milestone Inspections and SIRS?

     First things first; let’s clarify what we’re dealing with here. Milestone inspections are like check-ups for your building. They happen at set intervals, usually every 40 or 50 years, depending on where you live. Inspectors closely examine crucial parts of the building, like the foundation and roof, to ensure everything is still in good shape. Currently single-family, two-family, and three-family dwellings are exempt from the milestone inspection requirement.

     SIRS, on the other hand, are more in-depth. They are detailed studies that assess the condition of your building’s infrastructure and help boards plan for future repairs. It’s all about making sure there’s enough money set aside for upkeep and avoiding any unexpected issues down the road. The SIRS report applies to condominiums and cooperatives. Owners must be notified within 45 days of the SIRS’ completion that it is available for their inspection. In addition, the DBPR must be notified within 45 days of completion.

     Lea Stokes, LCAM and senior vice president for Vesta Property Services, deals with these situations often. When asked about her opinion of milestone inspections and SIRS, she states, “These statutory changes and requirements have made an unanticipated financial impact on many associations. These reports are over and above reserve studies that have been done in the past and in many cases are not in the budget. This can create a budgetary deficit or the need for a special assessment. In addition to the expense of the inspections and the structural integrity reports, the associations will need to adjust their reserve funding accordingly. The financial fallout remains to be seen.”

How Are Boards Communicating with Residents?

     With all this new responsibility, boards are stepping up their communication game.  The following ways are how they’re making sure everyone’s on the same page:

     Clear and Open Communication—Boards are making a big effort to be transparent. They are holding informational meetings and workshops to explain why these inspections and studies are so important. They’re not just throwing around technical language; they’re breaking things down so that everyone understands what’s happening and why.

     Frequent Updates—These inspections and studies can take time, so boards are keeping residents in the loop with regular updates. Whether it’s through newsletters, emails, or community meetings, they’re sharing progress reports and answering any questions that come up. This helps keep everyone informed and reduces any confusion or anxiety.

     Detailed Reports—When inspections reveal needed repairs, boards aren’t just sending out vague notices. They provide detailed reports that outline what needs fixing, why it’s necessary, and how much it’s going to cost. This helps residents understand the scope of the work and the financial implications.

     Encouraging Feedback—Boards are also setting up ways for residents to give their input. This might be through surveys or community forums where people can share their concerns and preferences about repairs and costs. It’s all about making sure everyone feels heard and involved.

Tackling Increased Costs

     Managing the financial side of these inspections and studies is a big task. The following steps are how boards are handling the extra costs:

     Smart Budget Planning—Boards are adjusting their budgets to align with what’s recommended in the SIRS. They’re making sure there’s enough money set aside for future repairs, which helps avoid sudden financial hits and keeps things manageable.

     Special Assessments and Financing—Sometimes the costs are too high to be covered just by the reserve fund, so boards might need to implement special assessments. This is a one-time fee residents pay to cover urgent repairs. Boards are also looking into loans or lines of credit to spread out the cost over time, making it easier on everyone’s wallet.

     Cost-Benefit Analysis—Before jumping into repairs, boards are doing their homework. They’re weighing the costs and benefits of different options to make sure they’re spending money wisely. This way they’re prioritizing repairs that are most needed and getting the best value for their expenditures.

     Competitive Bidding—To keep costs in check, boards are getting bids from multiple contractors. This competitive process helps ensure they get the best deal. Plus, boards are negotiating contracts to get the most favorable terms, which can save money.

     Long-Term Planning—Finally, boards are using SIRS to plan for the long haul. By developing a comprehensive maintenance plan, they’re addressing both immediate needs and future repairs. This proactive approach helps spread out costs and avoid any big surprises.

Looking Ahead

     As regulations continue to evolve, boards will need to stay on top of changes and adapt their strategies. Keeping communication lines open with residents and being smart about financial management are key to navigating these challenges effectively. It’s all about balancing immediate needs with long-term goals and ensuring that the community remains safe and
well-maintained.

     In summary, milestone inspections and SIRS are leading to an evolution in how boards operate. By focusing on clear communication and careful financial planning, boards are managing these changes and helping to keep their communities in top shape. So, if you’re a resident, rest assured that your board is working hard to ensure everything runs smoothly and safely!

Emma Harrah

Marketing Coordinator, Vesta Property Services

     Emma Harrah plays a pivotal role in both online and traditional marketing efforts at Vesta while also offering indispensable support to the company’s Business Development Department. Her contributions span various strategic and operational functions, ensuring the seamless execution of marketing initiatives across diverse platforms. In her previous position within Vesta’s Amenity Management Division, Ms. Harrah demonstrated exceptional versatility, excelling in roles that included event planning, social media management, and newsletter development. Her hands-on experience in these areas allowed her to hone her creative and organizational skills, making her an invaluable asset in driving engagement and brand visibility.
     For more information email eharrah@vestapropertyservices.com, call 877-988-3782, or visit VestaPropertyServices.com.