SB 4-D: Florida's milestone inspection and SIRS requirements for condo buildings 3 stories or more

Section 01Who must comply, who is exempt

In short. SB 4-D applies to every condominium (Chapter 718) and cooperative (Chapter 719) building in Florida that is 3 or more habitable stories tall. Single-family homes, duplexes, triplexes, and any homeowners association governed by Chapter 720 are excluded. A Canadian buying a single-family home in Cape Coral or a townhouse in a non-condo HOA is fully outside the regime; a Canadian buying a condo in a 4-story building in Hollywood Beach, Naples, or Sarasota is fully inside it.

The scope is defined jointly by §553.899 (milestone) and §718.112(2)(g) (SIRS). HB 913, effective July 1, 2025, clarified the meaning of "habitable stories": floors used exclusively for parking, storage, mechanical equipment, or a roof deck not designed for occupancy do not count toward the 3-story threshold. A 4-floor building with parking on the ground level, lobby on the second, and two residential floors above generally does not qualify. A 4-floor building with all 4 floors residential does qualify. The interpretation is left to the local building official; any ambiguity should be confirmed in writing by the local enforcement agency.

Cooperatives, which are less common than condos in Florida but exist primarily in older South Florida buildings, are governed by Chapter 719 of the Florida Statutes and are subject to the same milestone and SIRS regime. A homeowners association governed by Chapter 720, which is the legal vehicle for most master-planned single-family communities in Florida, is not subject to SB 4-D. An HOA may voluntarily adopt a similar inspection and reserve practice, but no Florida statute compels it.

Mixed-use buildings, where the residential condominium portion sits above retail or office space, are subject to milestone inspection on the residential portion and joint responsibility may apply between the residential and non-residential owners. The fact pattern is technical, and a Canadian buyer in a mixed-use building should ask the association directly which entity bears inspection costs.

Opinion. For a Canadian who values predictable carrying costs, a single-family home outside an HOA, or a single-family home inside a Chapter 720 HOA, eliminates exposure to SB 4-D entirely. A condo, regardless of building age, places the buyer inside the regime, which means inspection and reserve costs flow back to monthly fees and potential special assessments.

Section 02The milestone inspection, step by step

In short. The milestone inspection is a structural assessment performed by a Florida-licensed engineer or architect, due by December 31 of the year the building turns 30 (or 25 in certain coastal jurisdictions), and recurring every 10 years. It has two phases: Phase 1 is visual and non-destructive; Phase 2 is invasive and only triggered if Phase 1 finds substantial structural deterioration.

The age trigger is calculated from the date the original certificate of occupancy was issued by the local building department, not from the date of conversion to condominium form, not from any later renovation. For a building issued its certificate of occupancy in 1995, the milestone inspection deadline is December 31, 2025. For a building issued in 1980, the deadline was December 31, 2024. SB 154 (2023) clarified that the 25-year coastal trigger applies only when the local enforcement agency has determined by ordinance that local conditions justify it. The original SB 4-D language created an automatic 25-year trigger within 3 miles of the coast; that automatic trigger has been removed. In practice, several South Florida cities and counties have adopted the 25-year ordinance, so a Canadian buying a coastal condo should ask the local building department, not assume.

Phase 1 is a visual examination of the building's habitable and non-habitable areas, focused on load-bearing elements (foundations, columns, slabs, load-bearing walls), the primary structural systems, and visible signs of deterioration (cracking, spalling, corrosion of reinforcing steel, water intrusion, deflection). The inspector is required to be a licensed Florida professional engineer (Chapter 471, F.S.) or licensed architect (Chapter 481, F.S.). The Phase 1 report, sealed and signed, is submitted to the association and to the local building official. If no substantial structural deterioration is found, the process ends until the next 10-year cycle.

Phase 2 is required if Phase 1 finds substantial structural deterioration, defined as deterioration that compromises a structural component to the point of threatening safety. Phase 2 typically involves concrete coring, ground-penetrating radar, chloride and carbonation testing, scaffolding or rope-access inspection of facades, and removal of finishes to expose embedded steel. The Phase 2 report identifies the extent of deterioration and recommends a repair program. Repairs must commence within 365 days of receipt of the Phase 2 report, unless the local building official imposes a stricter timeline.

The notification chain has hard deadlines. The local enforcement agency notifies the association by certified mail. The association must notify all unit owners within 14 days. Phase 1 must be completed within 180 days of the notice. If Phase 2 is required, the inspector must submit a progress report within 180 days of the Phase 1 report. Within 45 days of receiving any inspection report, the association must distribute the inspector's summary to every owner by mail or personal delivery, with electronic copy to owners who have consented to electronic notice, and post the report on the association website (where one exists).

Verified fact. Failure to complete a required milestone inspection or to commence Phase 2 repairs within 365 days exposes the building to fines of up to USD 500 per day, code-enforcement referral to a special magistrate, and potential closure or evacuation orders by the local building official. Source: F.S. §553.899; Palm Beach County Planning, Zoning & Building Department; Chapter 18, Florida Building Code (Existing Buildings).

Typical range. Phase 1 inspection cost (per building, 2026 USD): USD 3,000 to USD 8,000 for small low-rises, USD 8,000 to USD 25,000 for mid-rise (4 to 7 stories, 20 to 80 units), USD 25,000 to USD 60,000 for larger mid-rises (30 to 100 units), USD 50,000 to USD 150,000 or more for high-rises (100+ units, especially coastal). Phase 2, if required, typically adds USD 40,000 to USD 250,000 or more depending on scope, scaffolding, and lab work. Source: aggregated from Florida engineering firm public price guides published 2025 to 2026 (M2E Engineers, FL Engineering LLC, Hammer Missions); not a statutory rate.

Section 03The Structural Integrity Reserve Study (SIRS)

In short. The SIRS is a reserve study restricted to safety-critical structural components, performed by a Florida-licensed engineer, architect, or qualified reserve specialist. Required for every condo or cooperative building of 3 or more habitable stories regardless of age, every 10 years, with funding plan baseline that prevents the structural reserve account from falling below zero across a 10-year horizon.

The SIRS is conceptually separate from the Milestone Inspection. Milestone is a structural pass-fail inspection; SIRS is a financial planning tool. They are governed by different sub-sections of the statute (§553.899 versus §718.112(2)(g)) and may be performed at different times by different professionals, although the law allows them to be combined when their schedules align.

§718.112(2)(g) specifies the components that the SIRS must evaluate. As amended by HB 913 (2025), the mandatory list is: roof, load-bearing walls and primary structural members, fire protection and life-safety systems, plumbing (general system, not unit fixtures), electrical (general system, not unit fixtures), waterproofing and exterior painting, windows and exterior doors, and any other item with a replacement cost above USD 25,000 whose failure would compromise the structural components above. HB 913 raised that "other items" threshold from USD 10,000 to USD 25,000 and required annual inflation adjustment of the threshold.

For each component, the SIRS estimates remaining useful life, current replacement cost, and a baseline annual funding amortization. The funding plan must keep the structural reserve account above zero throughout the funding horizon, even at the lowest projected balance. The historical "percent of common expenses" approach (commonly 5% to 10% of operating budget) is no longer sufficient; funding must match what the SIRS calculates is needed.

The first SIRS was originally due December 31, 2024 for any condo or cooperative existing as of July 1, 2022. SB 154 (2023) allowed associations whose milestone fell on or before December 31, 2026 to align the SIRS with the milestone (so the SIRS could be deferred to that same milestone deadline, no later than December 31, 2026). HB 913 (2025) further extended the general first-SIRS deadline to December 31, 2025 for many owner-controlled associations. Subsequent SIRS are required every 10 years.

The 45-day distribution rule for milestone reports also applies to SIRS reports. Within 45 days of receiving the completed study, the association must distribute the report or an inspector-prepared summary to every unit owner. The full SIRS must be made available on request and posted on the association's website if one exists.

Verified fact. The eight mandatory SIRS components and the USD 25,000 threshold for additional items are set by F.S. §718.112(2)(g) as amended by HB 913 (effective July 1, 2025). The first-SIRS deadline for owner-controlled associations existing on or before July 1, 2022 was extended from December 31, 2024 to December 31, 2025. Source: 2025 Florida Statutes §718.112; HB 913 (2025) enrolled text.

Typical range. SIRS cost (per building, 2026 USD): USD 5,000 to USD 30,000 depending on building size, age, and complexity. Coastal high-rises and buildings with limited maintenance documentation cost more. Source: aggregated from Florida engineering firm public quotes 2025 to 2026; not a statutory rate.

Section 04The funded-reserves rule and the end of the waiver

In short. For any condo association budget adopted on or after December 31, 2024, members of unit-owner-controlled associations may not vote to waive, reduce, or repurpose reserve contributions for the structural components identified in the SIRS. The historical 75% owner waiver is gone. Reserves for SIRS components must be tracked in a dedicated account and used only for those components.

This is the most operationally consequential change for owners. Before SB 4-D, an aging condo could maintain low monthly fees for decades by voting each year to waive reserve contributions. The mechanism was popular: it kept fees competitive, but it transferred the structural cost to the eventual owner who happened to be holding the unit when major repairs became unavoidable. Champlain Towers South had used the waiver mechanism repeatedly. SB 4-D abolishes the waiver for SIRS components.

The practical effect varies by building. A condo that was already funding reserves at SIRS-recommended levels will see little change. A condo that had been waiving reserves for years will see its monthly fees increase substantially when the first SIRS-aligned budget is adopted, often by 30 to 100 percent in 2024 and 2025 budgets. In several South Florida buildings, the gap was so large that the association issued a special assessment to bring the reserve to baseline before transitioning to funded operations.

A funded-reserves budget does not eliminate special assessments. It reduces the probability of large unplanned assessments by creating a savings cushion, but a Phase 2 inspection that uncovers severe deterioration can still trigger a multi-million-dollar capital repair program that exceeds the reserve. The published cases since 2024 illustrate the upper bound: The Cricket Club in North Miami assessed up to USD 134,000 per unit, Mediterranean Village in Aventura up to USD 400,000 per unit, and Palm Bay Yacht Club levied a USD 46 million total assessment translating to USD 140,000 to USD 175,000 per unit.

Verified fact. F.S. §718.112(2)(f) provides that for any budget adopted by a unit-owner-controlled condo association on or after December 31, 2024, members may not determine to provide no reserves or less reserves than required by the SIRS. Reserve funds and accrued interest may not be used for any purpose other than the replacement or deferred maintenance costs of the SIRS components. Source: 2025 Florida Statutes §718.112(2)(f).

Section 05Disclosure obligations and how a buyer accesses the reports

In short. A Florida condo seller is required by F.S. §718.503 to deliver to a prospective buyer a package of association documents that, since SB 4-D, includes the milestone inspection report and the SIRS. The buyer has a statutory 3-day right to cancel after receipt of the documents. A Canadian buyer who skips this review is signing without seeing the building's structural balance sheet.

The condominium disclosure regime predates SB 4-D. F.S. §718.503 requires the seller of a previously occupied condominium unit to provide the buyer, before the contract becomes binding, the declaration of condominium, articles of incorporation, bylaws, rules, and the most recent year-end financial statement, along with a statutory FAQ document and the "Condominium Governance Form" published by the Department of Business and Professional Regulation (DBPR). After SB 4-D, the milestone inspection report and the SIRS are part of the documents the association must make available to prospective buyers as part of this package. The buyer has 3 business days from receipt of the documents to cancel the contract without penalty.

Practical access varies. The association is required to make the reports available on request. Associations with active websites typically post them; smaller associations may require a written request through the property manager. A Canadian buyer working through a Florida-licensed real estate broker should require the broker to obtain these documents in writing and review them before the inspection contingency expires. A buyer who relies only on the seller's verbal assurance ("the building is fine") is not protected; the legal protection comes from the document review.

The 45-day distribution rule from §553.899(8) means that all current owners receive the milestone summary within 45 days of the association receiving the report. A Canadian who already owns a unit and does not receive that summary should request it directly from the property manager or board secretary; failure of the association to distribute is a breach by the directors.

Opinion. For Canadian buyers, the milestone report and the SIRS are more important than the four-point inspection or the home inspection on the unit. The unit may be in perfect cosmetic condition while the building is heading toward a USD 100,000-per-unit assessment. The unit-level inspection cannot detect that; only the milestone and SIRS can.

Section 06Florida vs Quebec: where Loi 16 lines up, where it does not

In short. Quebec has its own structural-reserve regime under the Civil Code of Quebec (CCQ), reformed by Loi 16 (2019) and operationalized by the regulation effective August 14, 2025. The two regimes share the same goal (force planned funding of structural reserves) but differ on inspection scope, recurrence, professional class, and waiver rules. Equivalent comparisons for Ontario, British Columbia, and Alberta will be published in companion guides.

The Quebec syndicate of co-owners has been required since 1994 to maintain a fonds de prévoyance under CCQ Article 1071. The historical floor was 5% of common expenses, which proved structurally insufficient. Loi 16, sanctioned December 5, 2019, introduced three new obligations: a carnet d'entretien (maintenance log, CCQ Art. 1070.2), an étude du fonds de prévoyance every 5 years (CCQ Art. 1071), and an attestation du syndicat delivered to a buyer within 15 days of an accepted promesse d'achat (CCQ Art. 1068.1). The implementing regulation (Décret 991-2025) was published July 30, 2025 and entered into force August 14, 2025. Existing copropriétés have until August 14, 2028 to obtain a compliant first étude du fonds de prévoyance and carnet d'entretien.

The structural delta a Canadian buyer should retain: Florida's regime is height-gated and condo-only, while Quebec's regime is universal across all copropriétés divises. Florida's milestone inspection has no Quebec equivalent at the building level; the closest Quebec parallel is the carnet d'entretien plus the étude du fonds de prévoyance taken together. Florida's prohibition on owner waivers is recent (December 31, 2024 budgets); Quebec's funding rule has always tied contributions to the size of the reserve obligation, but the historical 5% floor was a soft anchor that produced chronic underfunding.

Honest scope note. This comparison takes Quebec as the reference province because the largest Canadian snowbird population in Florida is from Quebec. Companion comparisons for Ontario (Condominium Act, 1998 and reserve study cycles), British Columbia (Strata Property Act and depreciation reports), and Alberta (Condominium Property Act) will be published as separate guides linked from this page when available.

Section 07Worked example: a 50-unit Hollywood condo in 2026

In short. This example illustrates the cash impact of SB 4-D on a typical mid-size Canadian-friendly building. All figures are in USD and reflect 2026 conditions.

Consider a 50-unit, 6-story condo in Hollywood, Florida, with a certificate of occupancy issued in 1990. The building is just over 35 years old. Assume the milestone inspection was completed in late 2024 (Phase 1 only, no Phase 2 triggered) and the SIRS was completed in 2025.

Phase 1 milestone cost. A 6-story, 50-unit building falls in the mid-range. The Phase 1 inspection costs approximately USD 20,000. This is a one-time cost for the 10-year cycle. Spread across 50 units, that is USD 400 per unit, paid through reserves or a small one-time assessment.

SIRS cost. The SIRS for the same building costs approximately USD 12,000. Also one-time for the 10-year cycle. Spread across 50 units, that is USD 240 per unit.

SIRS-recommended funding. Assume the SIRS identifies USD 5,000,000 of structural replacements over the next 20 years (roof replacement, waterproofing recoat, plumbing risers, electrical service upgrade, structural concrete repairs). On a baseline funding plan, that is USD 250,000 per year that the association must allocate to the structural reserve account. Spread across 50 units, that is USD 5,000 per unit per year, or approximately USD 415 per unit per month, additional to whatever the unit was already paying for operating expenses and non-SIRS reserves.

Total monthly impact for one unit. If the unit's pre-SB-4D monthly condo fee was USD 600, the new total is approximately USD 1,015. The pre-SB-4D fee was structurally too low because the association was waiving structural reserves; the new fee reflects the actual cost of operating and maintaining a 35-year-old mid-size building.

Sale-side impact. A Canadian who bought the unit in 2018 at USD 250,000 and listed it for sale in 2026 at USD 320,000 must disclose the SIRS, which now shows the USD 415 per month structural reserve add-on. Buyers compare condos on monthly fees, and in markets with 13 months of standing inventory (the current Florida condo state), the building with the higher SIRS-driven fee sells at a discount to the same building with no SIRS-driven add-on. The discount, observed in many South Florida transactions in 2024 and 2025, is approximately the present value of the future SIRS contributions, which can run to USD 30,000 to USD 50,000 on a unit of this size.

Currency and period. All figures USD, 2026, illustrative only.

Section 08What this means for a Canadian buyer

In short. For a Canadian buying a Florida condo of any age, the milestone inspection report and the SIRS are the two single most important documents to obtain and review before signing. For a Canadian already owning, the building's structural-reserve funding gap determines whether the next 5 years bring a USD 5,000 fee increase or a USD 100,000 special assessment.

The Florida condo market repriced structurally in 2024 and 2025 in response to SB 4-D. Statewide condo inventory is materially higher than pre-2022, time on market has lengthened, and several insurance carriers and conventional mortgage lenders (notably Fannie Mae, through its non-warrantable condo list) declined to finance buildings that have not completed the milestone inspection or that have not adopted a baseline-funded SIRS budget. A Canadian paying cash is insulated from the financing constraint but inherits the same structural risk.

For an investor analyzing acquisition, the SIRS funding plan is an off-balance-sheet liability of the unit. A condo with a SIRS-recommended monthly contribution of USD 400 per unit and a board that is already funding it transparently is structurally less risky than a condo with a SIRS-recommended USD 400 contribution and a board that has only adopted USD 150 in the current budget. The gap between the SIRS recommendation and the actual funded amount is the most reliable predictor of a future special assessment.

For a Canadian who is not specifically attracted to the lifestyle of high-rise condo living, the simplest avoidance strategy is structural: a single-family home, or a condo in a building of fewer than 3 habitable stories, places the buyer entirely outside SB 4-D. A new-construction condo (under 15 years old) with a developer-funded SIRS is materially less risky than a building approaching its 30-year milestone, because the structural deterioration of reinforced concrete in a Florida coastal environment is non-linear: most of the cost arrives in the third and fourth decades of the building's life.

Opinion. For a Canadian snowbird whose primary objective is reliable winter occupancy with predictable carrying costs, the lowest-risk profile in 2026 is a condo less than 15 years old with a board funding reserves at 80 percent or more of the SIRS recommendation, or a single-family home outside any HOA. The highest-risk profile is a 25- to 35-year-old coastal high-rise where the milestone has not yet been completed.

Section 09Common mistakes Canadian buyers make

The following are the most frequent traps observed in Canadian-buyer transactions in Florida condos since 2022.

1. Relying on the seller's verbal assurance about the building. "The building is fine" is not a substitute for the written milestone report. Sellers may not know, or may not disclose, the actual reserve funding gap. Always obtain the documents in writing, through the broker or directly from the property manager.
2. Skipping the SIRS in favor of the unit inspection. A unit-level home inspection costs USD 400 to USD 800 and tells the buyer about the unit's plumbing fixtures and HVAC. It tells the buyer nothing about whether the building's roof needs USD 1,500,000 of replacement in 3 years. Both inspections are needed; the SIRS cannot be replaced.
3. Assuming a recent paint job means the building is sound. Cosmetic refresh is the cheapest part of a renovation budget. The structural risk is in the concrete, the rebar, the post-tensioned slabs, and the waterproofing under the planters and pool deck. A freshly painted facade can hide every one of those issues.
4. Ignoring the gap between SIRS recommendation and adopted budget. The SIRS may say USD 400 per month is needed; the board may have adopted USD 200. The gap is a future special assessment, not a saving. Read both documents and compare line by line.
5. Buying in a coastal building near the 30-year mark without a completed milestone. A 28-year-old coastal building with no milestone is two budget cycles away from either a major fee increase or a special assessment. Treat that as the base case and price it in; do not assume it is hypothetical.
6. Treating Miami-Dade and Broward 40-year recertification as a substitute for milestone. Miami-Dade and Broward have local 40-year recertification programs that pre-date SB 4-D. They are separate from the statewide milestone inspection. A building in those counties must comply with both. A 40-year recertification certificate does not satisfy §553.899 and vice versa.
7. Believing that paying cash eliminates structural risk. Paying cash eliminates the financing-availability problem (Fannie Mae non-warrantable condo list) but does not change the underlying structural condition or the assessment exposure. The cash buyer still owns the unit when the special assessment is levied.

Section 10Actionable due-diligence checklist before signing

The following sequence applies before the inspection contingency expires in any Florida condo purchase contract. Execute it in order.

1. Identify the certificate of occupancy date of the building. Contact the local building department directly if the seller cannot produce it. This determines whether the milestone is in the past, current year, or future.
2. Request the most recent milestone inspection report, or written confirmation that no milestone is yet due. If the milestone was completed, read both the Phase 1 report and any Phase 2 report. If the building is past its statutory deadline and has no completed milestone, that is a red flag.
3. Request the most recent SIRS along with the inspector's summary. Confirm the date and the inspector's Florida license number. Read the eight mandatory components and the recommended annual funding amount.
4. Compare the SIRS-recommended funding to the adopted budget for the current and prior fiscal years. Calculate the shortfall in dollars. Multiply by the ownership percentage allocated to the unit to estimate exposure.
5. Request the last 24 months of board meeting minutes and search for the words "milestone," "SIRS," "reserve," "assessment," and "loan." Boards often document upcoming financial actions in minutes before they are formally proposed.
6. Ask the property manager directly, in writing: "Is any special assessment voted, proposed, or planned in the next 12 months for any reason?" Keep the response in writing.
7. Cross-reference the building against the Fannie Mae non-warrantable condo list if conventional US financing is contemplated. Buildings on the list cannot be financed with Fannie Mae or Freddie Mac mortgages and must use cash or non-conforming portfolio lenders.
8. For Miami-Dade or Broward properties, request the 40-year recertification certificate or evidence that a recent recertification has been performed. This is in addition to the statewide milestone, not a substitute.
9. Review the year-end financial statement for the structural reserve balance and the operating reserve balance. Confirm they are tracked separately, as required by §718.112(2)(f).
10. Calculate the all-in monthly carrying cost including current condo fee, prorated SIRS funding gap, projected insurance increases, and property tax. Compare to your underwriting tolerance before removing the inspection contingency.

Section 11FAQ

Does SB 4-D apply to a 2-story condo? No. The threshold is 3 or more habitable stories as defined by the Florida Building Code. A 2-story condo building is fully exempt from both milestone and SIRS, regardless of age.

My building is 28 years old. Do I need a milestone now? The statutory trigger is December 31 of the year the building turns 30, or 25 in certain coastal jurisdictions where the local enforcement agency has adopted that threshold by ordinance. At 28, the inspection is not yet due, but the association should be planning and budgeting for it. A board that is silent at 28 years is a yellow flag.

Can the association pass a special assessment to pay for the milestone or the SIRS itself? Yes. The cost of the inspection and the cost of the study are association expenses and may be funded through reserves, special assessment, line of credit, or a combination. Many South Florida associations levied a one-time assessment in 2023 or 2024 to fund the inspection.

What happens if the building fails Phase 2? The Phase 2 report lists the structural deficiencies and recommended repairs. The association must commence repairs within 365 days, or sooner if the local building official requires. If repairs are not commenced, the building may be declared unsafe and ordered partially or fully evacuated.

Can I sell a unit in a building that has not completed its milestone? Yes, the sale itself is not blocked by the statute, but the seller must disclose the status under F.S. §718.503. Buyers and especially conventional lenders frequently decline to proceed when the milestone is overdue.

Does a condo's age cap or Save Our Homes cap protect me from a special assessment? No. Save Our Homes caps the assessed value of homestead property tax (3% per year) and applies only to homesteaded property. A Canadian non-resident is ineligible for homestead. Even if the cap applied, it limits property tax, not condo fees or special assessments. See the homestead exemption guide and the 10% non-homestead cap guide for details.

Are HOA-governed townhouses in a 3-story building subject to SB 4-D? Generally no. SB 4-D applies to condominium and cooperative buildings. A townhouse community organized as a Chapter 720 HOA is outside the regime, even if individual units span 3 stories. The relevant test is the legal form of ownership, not the physical building.

What about a building with parking on the ground floor? HB 913 (2025) clarified that floors used exclusively for parking, storage, mechanical equipment, or non-occupiable roof decks do not count toward the 3-story threshold. A building with ground-floor parking, lobby, and 2 residential floors generally has 3 habitable stories under the post-2025 interpretation, but the local building official has the final word.