The June 2021 collapse of the Champlain Towers South in Surfside, Florida — which killed 98 people — fundamentally changed Florida condo law. In response, the Florida Legislature passed SB 4-D in May 2022, creating sweeping new structural inspection and reserve funding requirements for condominium buildings. If you're buying a Florida condo, understanding these laws is essential — they can significantly affect the cost of ownership and the financial health of the association you're joining.
The Milestone Structural Inspection Requirement
Under Florida law, all condominium buildings 3 stories or taller must undergo a "milestone structural inspection" when the building reaches 30 years of age (25 years for buildings within 3 miles of the coastline), and every 10 years thereafter. The inspection must be performed by a licensed Florida engineer or architect and consists of two phases: Phase 1 is a visual inspection of structural elements; Phase 2 is a more detailed investigation triggered if Phase 1 identifies substantial structural deterioration.
Structural Integrity Reserve Study (SIRS)
Beyond milestone inspections, Florida law now requires condo associations to complete a Structural Integrity Reserve Study (SIRS) for buildings 3 stories or taller. The SIRS calculates the remaining useful life and replacement cost for major structural components: roofing, load-bearing walls, floors, foundation, fireproofing, plumbing, electrical systems, windows, and more. The association must then fully fund reserves based on the SIRS findings — and unlike pre-2022 law, associations can no longer vote to waive or reduce structural reserve funding.
What This Means for Your HOA Fees
The reserve funding requirements are the most financially significant change for existing condo owners and buyers. Many Florida condo associations were chronically underfunded for reserves — some by millions of dollars — because owners voted annually to waive reserve contributions to keep fees low. Under the new law, full funding is mandatory. This has resulted in significant HOA fee increases (sometimes $500–$2,000+/month per unit) and large special assessments at associations that must catch up on deferred maintenance and reserve shortfalls.
Before Buying a Florida Condo
Florida law requires condo sellers to provide buyers with the association's most recent milestone inspection report (if applicable), the SIRS report, current reserve balances, and the association's most recent budget and financial statements. Review these documents carefully before signing anything. Key red flags: reserve balances far below SIRS-recommended levels, any Phase 2 milestone inspection findings, pending special assessments, deferred structural maintenance, and HOA fees that seem unusually low relative to building age and condition.
Special Assessments and Their Impact
Special assessments are one-time charges levied on all unit owners when the association needs funds beyond what's in reserves — for major repairs, milestone inspection remediation, or catch-up reserve funding. Special assessments can range from a few thousand dollars to tens of thousands per unit. Ask the seller about any known or anticipated special assessments before closing. Florida law requires the association to disclose pending special assessments, but "anticipated" ones that haven't been formally voted on may not be disclosed — ask directly and get it in writing.
Condo Buildings vs. Age
The milestone inspection requirements most immediately affect older buildings. If you're considering a condo built in the 1970s, 1980s, or even 1990s, the building may be due for or already undergoing inspection. Ask for the current status, any findings, and the estimated cost of remediation. Newer buildings (built after 2000, especially post-2004 when Florida building codes were significantly strengthened after Hurricane Charley) generally have better structural baselines to start from.
Lender and Insurance Implications
Fannie Mae and Freddie Mac updated their condo lending guidelines after Surfside to exclude financing for buildings with known structural issues, deferred maintenance, or inadequate reserve funding. If you're financing a condo purchase, your lender will require an HOA questionnaire confirming the building's compliance status. Some older condos with unresolved inspection issues may not qualify for conventional financing — a critical issue to check before making an offer.
What If the Building Fails Inspection?
If a Phase 2 milestone inspection finds substantial structural deterioration, the local building official must be notified. The building official can order repairs, restrict occupancy, or in extreme cases — as seen in several Florida buildings since 2022 — require evacuation until repairs are completed. Buying into a building with known inspection issues carries significant risk of forced evacuation, major special assessments, and potential loss of financing or insurability.
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How to Read an Association's Financial Health
After the Champlain Towers South collapse in Surfside (2021), Florida passed SB 4-D (2022) and subsequent legislation mandating structural inspections and adequate reserve funding for condominium and cooperative buildings. Before buying a Florida condo, understanding association financials has become more important than ever.
Reserve Funding Percentage
Florida Statute 718.112 requires condo associations to maintain structural reserve funds for roofing, exterior painting, paving, and other common elements with remaining useful life of less than 25 years. As of December 31, 2024, associations of buildings 3 stories or higher can no longer waive or reduce structural reserve requirements — a major change from prior law when associations could and frequently did vote to waive reserves entirely.
When reviewing a condo's financials, request the most recent reserve study and look for the percent-funded figure. A reserve account that is 70 to 100% funded is financially healthy. Thirty to 50% funded is concerning and suggests deferred maintenance and potential special assessments ahead. Under 30% funded is a serious red flag, especially for older buildings. Ask specifically: was a special assessment required to comply with the new reserve law, and has it been paid in full?
Operating Budget vs. Reserve Budget
Request both the current operating budget and the reserve fund balance. The operating budget covers day-to-day expenses: maintenance, landscaping, utilities, management fees, insurance. The reserve fund covers future capital replacements: roof, elevators, pool resurfacing, painting, structural repairs. A building with a healthy operating budget but depleted reserves is living on borrowed time. Compare the monthly maintenance fee to the operating budget per unit to assess whether the association is actually collecting enough to cover current costs, or running a deficit that will require fee increases.
Special Assessment History
Florida law requires associations to disclose pending and known special assessments to prospective buyers. Ask your real estate attorney to review the association's meeting minutes for the past 3 to 5 years — special assessments, deferred maintenance decisions, contractor disputes, and reserve waiver votes all appear in the minutes. A pattern of deferred decisions, contentious board meetings, or multiple special assessments signals governance problems beyond just financial ones.
Questions to Ask Before Buying a Florida Condo
Florida's condo inspection laws have changed the due diligence calculus. Here are 15 specific questions and what the answers reveal:
- Has the building received its Milestone Inspection Phase 1 report? (Required by December 31, 2024 for buildings 30 or more years old that are 3 or more stories.) If not, when is it scheduled?
- Did the Phase 1 report recommend a Phase 2 structural analysis? A pass on Phase 1 means a licensed architect or engineer found no visible evidence of substantial structural deterioration. A Phase 2 recommendation means there is something to investigate further — this is a significant flag.
- What is the current reserve fund balance and percent funded?
- Was a special assessment levied in 2022, 2023, or 2024 to fund reserves? If so, what was the per-unit amount and is it fully paid?
- Are there any pending special assessments not yet voted on?
- What is the building's current master insurance policy premium, and how has it changed in the past 3 years? Dramatic increases signal insurability concerns.
- Has the building's master policy been renewed for the upcoming year?
- What is the roof age and replacement timeline?
- When were the elevators last modernized? A 30-plus-year-old elevator in a high-rise represents a significant capital expenditure approaching.
- Has the building had any water intrusion or concrete spalling issues in the past 5 years?
- Are there any current or pending construction defect lawsuits?
- What percentage of units are owner-occupied vs. rented? High rental percentages affect HOA governance quality and can affect conventional mortgage qualification — Fannie Mae requires 50% or more owner-occupancy for standard condo financing.
- Are there any rental restrictions or waiting lists for rental approval?
- What do the condo documents say about short-term rental (Airbnb) use?
- Has the association completed or commissioned a Structural Integrity Reserve Study (SIRS)? Required by December 31, 2024 for qualifying buildings.
Red flag answers include any "I don't know," refusal to produce minutes, outstanding Phase 2 inspection results, reserve funding below 30%, or insurance policy lapses or non-renewal. These are grounds for extensive additional due diligence or walking away entirely.
The Inspection Timeline: What Happens When a Building Reaches 30 Years
Florida's Condominium Building Safety law (SB 4-D, 2022, amended 2023) created a structured inspection and certification timeline for older buildings. Understanding this timeline helps both buyers and existing owners anticipate what is coming.
Milestone Inspection Trigger
Milestone inspections are required for condominium and cooperative buildings that are 3 stories or more in height. The inspection is triggered at 30 years from the certificate of occupancy date, or 25 years if the building is within 3 miles of the coastline. After the initial milestone inspection, subsequent inspections are required every 10 years. For buildings in existence before July 1, 2022, Phase 1 inspections were required by December 31, 2024.
Phase 1: Visual Inspection and Timeline
Phase 1 is a visual inspection of the building's exterior, roof, and primary structural components by a licensed Florida architect or structural engineer. The inspector does not perform destructive investigation — only what is visible. Phase 1 typically takes 1 to 3 days for a mid-size condominium of 50 to 150 units and costs the association $3,000 to $8,000 for a typical multi-story Florida building. The inspector produces a written report within 60 days. If Phase 1 finds no substantial structural deterioration, the process is complete until the next 10-year cycle.
Phase 2: Engineering Analysis and Costs
If Phase 1 identifies potential structural concerns, the association must proceed to Phase 2 — a detailed structural analysis that may include destructive testing, removal of cladding or finishes to expose structural members, core samples, or engineering calculations. Phase 2 timelines vary considerably: a focused investigation of one identified problem area may take 4 to 8 weeks; a comprehensive investigation of a building with multiple concerns may take 4 to 6 months. Phase 2 costs for mid-size Florida buildings commonly run $25,000 to $80,000, and for high-rise buildings in South Florida, $100,000 to $300,000 or more is not unusual.
The Phase 2 report must be presented to all unit owners and the local building official. If the report identifies necessary repairs, the association must commence repairs within a timeframe specified by the local building official. Failure to make required repairs triggers the local government's authority to order the building evacuated — as happened to several South Florida buildings in 2023 and 2024 following their milestone inspection reports. For buyers, a building in active Phase 2 or with a repair order outstanding requires thorough legal review before any offer is made.