Florida now requires condo buildings three stories or taller to complete structural milestone inspections at 25 or 30 years of age — and as of January 2026, associations can no longer vote to waive or underfund reserves for eight critical structural components. For buyers in Bonita Springs, Bonita Bay, and throughout Lee and Collier County, this changes what due diligence looks like. You'll need to review the building's milestone inspection report, Structural Integrity Reserve Study (SIRS), reserve fund balance, and at least 12 months of meeting minutes before you make an offer — or risk inheriting a special assessment of $50,000 to $200,000 or more.
We regularly see buyers fall for a beautiful unit, then find a SIRS showing the association is $1.2 million short of where it needs to be, a pending $40,000-per-unit assessment discussion, and a milestone inspection that was due last December and still hasn't happened. That buyer dodges an expensive bullet — but only because someone pulled the documents first.
What changed, and why it matters right now
The 2021 Surfside condo collapse triggered a complete overhaul of Florida's condo safety laws. SB 4-D (2022) and SB 154 (2023) created three mandates for buildings three stories or higher: mandatory milestone inspections by a licensed engineer or architect (25 years for coastal buildings within 3 miles, 30 years otherwise), Structural Integrity Reserve Studies projecting funding needs for eight critical components, and — new as of January 1, 2026 — no more reserve waivers. For decades, associations could vote annually to reduce or eliminate reserve contributions to keep fees low; that's over.
If you're buying an older condo — anything from the 1990s or earlier — the building is almost certainly in the milestone inspection window, and years of waived reserves may mean a significant funding gap that gets passed to owners through special assessments. In Florida, buyers are jointly and severally liable for association dues and assessments from the moment the deed is recorded — you inherit whatever is coming.
The documents you must request before making an offer
- The Milestone Inspection Report — has Phase 1 been completed? Was Phase 2 (invasive testing) triggered? If repairs are underway, understand the full scope, timeline, and cost to unit owners.
- The Structural Integrity Reserve Study (SIRS) — is the reserve fully, partially, or severely underfunded? Below 50% should raise questions; below 25% is a serious problem.
- The Reserve Fund Balance — compare actual balance against what the SIRS says it should be. A $200,000 balance against a $1.5 million target means that gap likely becomes a special assessment.
- The Annual Budget and Financial Statements — are reserve contributions actually being funded per the SIRS? What's the delinquency rate among owners?
- Meeting Minutes — at least 12 months — this is where the real story lives: repair issues, insurance increases, pending assessments not yet formally announced, litigation, contractor bids.
- Insurance Documentation — is the building fully insured, and at what deductibles? Some older coastal buildings have been forced to surplus-lines carriers at two or three times prior premium.
Meeting minutes are how we've caught pending assessments that weren't yet formally announced — they capture what the board is discussing before it hits a financial statement.
Red flags that should make you slow down
- No completed milestone inspection when one is required
- A SIRS severely underfunded (below 50%, and especially below 25%)
- A history of voting to waive or reduce reserves year after year
- Recent or pending special assessments
- High delinquency among unit owners (15%+ behind on dues)
- Difficulty securing insurance or dramatic premium increases
- Active litigation involving the association
None of these automatically mean walk away — but a vague or slow seller or association response to document requests is itself a signal worth taking seriously.
What the new laws mean for financing in 2026
Fannie Mae eliminated its Limited Review option — all condo purchases now require Full Review, meaning your lender requests the HOA budget, financials, reserve study, delinquency data, and insurance documents before committing. FHA and VA loans may be unavailable for buildings that have missed inspection deadlines or are significantly underfunding reserves. Roughly 5,000 Florida condos are already on lender ineligibility lists — worth checking financing restrictions before you fall in love with a unit. Even cash buyers should care: a building with structural issues and unfunded reserve liability affects resale value and your eventual buyer's own financing.
The good news: buildings that have completed inspections, have a current SIRS, and are funding reserves properly are in genuinely strong shape — there's real opportunity in finding well-managed buildings with transparent financials.