Florida Condo Milestone Inspections and SIRS for Investors

Why these rules exist

After the 2021 collapse of a condominium tower in Surfside, Florida lawmakers adopted new requirements for building safety and association finances. The goal was to catch structural problems earlier and to stop associations from deferring major repairs indefinitely by keeping reserves unfunded. For investors, the rules have made condo ownership safer and more transparent, but they have also raised the monthly cost of owning in many older buildings.

Milestone structural inspections

Under Florida Statutes section 553.899, condominium and cooperative buildings of three or more habitable stories must undergo a milestone inspection, generally starting when the building reaches 30 years of age and repeating every 10 years after that. Local officials can require earlier inspections based on local conditions. The inspection proceeds in phases: a visual examination first, and a more detailed second phase if signs of substantial structural deterioration are found. Legislation in 2025 (HB 913) refined parts of the process.

The report goes to the association and the local building official, and the association must make it available to owners. If repairs are required, they come with deadlines.

Structural integrity reserve studies

Qualifying associations must complete a structural integrity reserve study, often called a SIRS, that evaluates major components such as the roof, load-bearing walls and primary structure, fireproofing and fire protection, plumbing, electrical systems, waterproofing and exterior painting, and windows and exterior doors. The study estimates remaining useful life and replacement cost, and the association must fund reserves for those items rather than waiving them. The SIRS must be updated every 10 years.

Many associations that had long kept reserves low have had to raise dues to fund them, levy special assessments, or borrow and pass the loan payments through to owners.

What it means for a DSCR loan

Two things happen. First, the unit’s full monthly payment rises if dues increase or an assessment is levied, and that lowers the ratio. Second, lenders review the building: its budget, reserve funding, insurance, any litigation and the status of required repairs. A building with open structural items, unfunded reserves or a large unfinished repair program may not meet some programs’ standards even if the unit itself is in excellent shape.

Documents to request before you sign

• The milestone inspection report (phase one and, if performed, phase two)
• The most recent SIRS and the current reserve balance
• The adopted budget and any proposed increases
• Special assessment resolutions and payment schedules
• Minutes from recent board meetings, which often reveal upcoming costs
• The master insurance declarations and the association’s leasing rules

Running the numbers with realistic dues

Imagine a unit in an older Broward building that rents for $2,300. Dues have been $700, but the budget adopted after the SIRS raises them to $925, and there is a special assessment that works out to $150 a month for three years. The dues-and-assessment line jumps from $700 to $1,075. With taxes, insurance and principal and interest of $1,250, the full payment goes from $1,950 to $2,325, and the ratio slides from about 1.18 to just under 1.00. That is why the current, realistic dues belong in the DSCR calculator, not last year’s.

Reading the documents like an underwriter

A milestone report and a SIRS can run long and technical, but a few items tell you most of what you need. In the inspection report, look for whether a phase two was required and whether any repairs carry deadlines. In the SIRS, compare the recommended annual reserve contribution with what the budget actually funds; a large gap signals future increases. In the board minutes, watch for discussion of financing a project, hiring an engineer, or disputes with contractors or insurers.

Then translate it into dollars per month for your unit. Ask the association manager what your unit’s share of any planned assessment would be and over what period. If the answer is uncertain, model a conservative figure in the ratio rather than zero. Lenders will form their own view of the building, and a buyer who arrives with these answers already in hand tends to move through the condo review with fewer surprises.

Buildings that are not affected

The milestone inspection and SIRS requirements apply to qualifying condominium and cooperative buildings of three or more habitable stories. Townhome communities governed by an HOA, single-family homes, and low-rise buildings under the threshold have different obligations, though HOAs can still raise dues and levy assessments. This is general orientation, not legal advice; confirm the requirements for a specific building with the association and your attorney, and read the DBPR condominium resources. When you are ready, apply here.