Florida Condo Milestone Inspections and Reserves: How They Affect Your Mortgage

Under Florida law following SB 4-D, condo and co-op buildings with three or more habitable stories may be required to complete a milestone structural inspection once they reach 30 years of age, or 25 years if the building sits within three miles of the coastline. These inspections are meant to assess the structural condition of aging buildings.

Alongside milestone inspections, associations must complete a Structural Integrity Reserve Study (SIRS) and fund the reserve items it identifies. Associations can no longer vote to waive or reduce this reserve funding, which is a change from prior practice. Mandatory SIRS funding began January 1, 2026, and associations that are coordinating both the milestone inspection and SIRS process have until December 31, 2026 to complete that coordination.

HB 913, effective July 1, 2025, added disclosure requirements so buyers receive information about these reports as part of a condo purchase.

Broward County also operates its own Building Safety Inspection Program, which may impose requirements stricter than the statewide rules. Buyers and owners in Broward should check local program requirements in addition to state law.

Because these are legal and association-governance requirements, a Florida real estate attorney is generally the right resource to confirm how a specific building's inspection and reserve status may affect a transaction.

When financing a unit in a condo or co-op building, a lender typically reviews the association's budget, reserve funding, insurance coverage, and overall financial condition as part of the loan's project review. A building that has not completed a required milestone inspection, or that has not yet funded its SIRS reserves, may raise questions during underwriting.

Pending or recently completed structural repairs, along with any special assessments levied to pay for them, can also factor into how a lender evaluates the building and, depending on the loan program, the individual unit. The exact outcome depends on the lender's guidelines and the specific condition of the building, so buyers should not assume every building will be treated the same way.

Because reserve funding and special assessments can affect a buyer's monthly housing costs, it is worth asking for documentation on these items early in the shopping process rather than waiting until after an offer is accepted.

Before making an offer on a Florida condo or co-op unit, buyers may want to request the following from the seller or association:

• Most recent milestone inspection report, if the building has completed one
• Structural Integrity Reserve Study (SIRS) and current reserve funding status
• Association budget and reserve account balances
• Any pending or approved special assessments
• Insurance declarations pages for the association's master policy
• Minutes from recent board meetings discussing structural repairs or funding

Milestone inspections and SIRS funding often connect directly to a building's master insurance policy. Insurers may adjust premiums based on a building's documented structural condition and the adequacy of its reserves, and those costs typically flow through to unit owners via association dues. Buyers evaluating a unit should ask how recent inspection findings or reserve increases have affected, or may affect, association dues going forward.

A building that has recently completed repairs identified in a milestone inspection, and that is funding its SIRS reserves on schedule, may present fewer surprises for a buyer than one that has deferred both. Reviewing meeting minutes and financial statements alongside the inspection and reserve study can give buyers a fuller picture before committing to a purchase.

I encourage buyers to read the milestone summary, SIRS, and budget before they fall in love with a unit, not after.

Because these rules are relatively new and continue to be implemented across associations statewide, requirements and timelines can vary by building and county. Confirming current status directly with the association, and consulting a Florida real estate attorney for legal questions, is advisable before relying on any summary of the law.