⚠️ Important: Florida Condo Laws Have Changed

Following the tragic Surfside condo collapse in 2021, Florida enacted sweeping reforms (SB 4-D and SB 154) that significantly impact condo buyers. These new laws require mandatory inspections, reserve studies, and full funding of structural reserves.

Why this matters to you: Many condos are facing large special assessments to comply with these requirements. Some buildings that deferred maintenance for years are now confronting millions in required repairs. As a buyer, you need to understand a building's compliance status before purchasing.

NEW REQUIREMENTS

Understanding Florida's Condo Safety Laws

Milestone Inspections (Required)

All condos and co-ops 3+ stories must undergo structural inspections by a licensed engineer or architect.

When Required

  • • At 30 years of age (from certificate of occupancy)
  • • 25 years if within 3 miles of coast (local option)
  • • Every 10 years thereafter

Key Deadlines

  • • Buildings 30+ by July 2022: Due by Dec 31, 2024
  • • Buildings turning 30 in 2022-2024: Due by Dec 31, 2025
  • • Inspection results must be shared with owners

Structural Integrity Reserve Study (SIRS)

Required for all 3+ story condos. Must assess and fund reserves for critical structural components.

Components Covered

  • • Roof
  • • Load-bearing walls and foundations
  • • Floor/structural systems
  • • Fireproofing and fire protection
  • • Plumbing and electrical systems
  • • Waterproofing and exterior painting
  • • Windows and exterior doors
  • • Any other item over $25,000

Key Requirements

  • • Due by December 31, 2025 (extended by HB 913)
  • • Must be updated every 10 years
  • No more reserve waivers for these items
  • • Full funding required starting 2025

🚨 The End of Reserve Waivers

This is the biggest change. Previously, condo associations could vote to "waive" or reduce reserve funding to keep monthly fees low. Starting January 1, 2025, this is no longer allowed for structural components.

Impact: Many condos that have been underfunding reserves for years are now facing significant HOA fee increases or special assessments to get into compliance. Buildings that properly maintained reserves will be less affected.

DUE DILIGENCE

What to Check Before Buying a Condo

Essential Documents to Review

  • 1. Milestone Inspection Report — Has it been completed? What were the findings?
  • 2. SIRS (Reserve Study) — What are the projected costs? Is it fully funded?
  • 3. Reserve Fund Balance — How much is actually in reserves?
  • 4. Budget & Financials — Operating budget and year-end financial statements
  • 5. Special Assessment History — Any pending or recent assessments?
  • 6. Meeting Minutes — Last 12 months of board meeting minutes
  • 7. Insurance Certificate — Master policy coverage and deductibles

Red Flags to Watch For

  • ⚠️ Milestone inspection not completed (if required)
  • ⚠️ SIRS not completed or significantly underfunded
  • ⚠️ History of waiving reserves
  • ⚠️ Recent or pending large special assessments
  • ⚠️ High percentage of investor/rental units
  • ⚠️ Deferred maintenance visible in common areas
  • ⚠️ Active litigation involving the association
  • ⚠️ Difficulty obtaining insurance

UNDERSTAND THE COSTS

True Cost of Condo Ownership

Example: $250,000 Beachside Condo

Monthly Costs

Mortgage (P&I at 6.5%)$1,580
Property Tax$250
HOA Fee$400-$800
Condo/HO6 Insurance$100-$200
Flood Insurance (if req.)$75-$300
Total Monthly$2,405-$3,130

What HOA Typically Covers

  • ✓ Building exterior maintenance
  • ✓ Roof repairs/replacement
  • ✓ Common area upkeep
  • ✓ Master insurance policy
  • ✓ Pool/amenity maintenance
  • ✓ Landscaping
  • ✓ Trash/water (often)
  • ✓ Reserve contributions

Note: Expect HOA fees to increase as buildings comply with new reserve funding requirements. A building with a $300 HOA fee that waived reserves may see fees rise to $500-$700+ to fund proper reserves.

SMART QUESTIONS

Questions to Ask the HOA

Has the milestone inspection been completed? If so, what were the findings and are any repairs needed?

Has the SIRS been completed? What is the total reserve funding requirement?

What is the current reserve fund balance? What percentage funded is it?

Are there any pending or approved special assessments?

What major repairs/replacements are planned in the next 5 years?

When was the roof last replaced? Elevator modernized? Plumbing/electrical updated?

Is there any active litigation involving the association?

What is the owner-occupancy rate? Rental cap?

PROTECT YOUR INVESTMENT

Expert Guidance for Condo Buyers

Florida's condo landscape has changed. I'll help you navigate the new requirements, review HOA documents, and identify buildings that are well-managed vs. those heading for trouble.

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