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Acquisition · Florida

Florida SB-4D and the Post-Surfside Condo Reform: A Canadian Buyer's Guide

Florida Senate Bill 4-D, enacted in 2022 in response to the June 2021 Champlain Towers South collapse in Surfside, fundamentally restructured the financial and engineering obligations of Florida condominium associations. The law, codified primarily in Florida Statute 553.899 and Chapter 718, was amended by SB 154 (2023) and HB 913 (2025). The three core requirements are: (1) mandatory milestone inspections by a Florida-licensed engineer or architect for any condo or cooperative building three stories or higher, performed at the 30-year mark (25 years if within three miles of the coast), and every 10 years thereafter; (2) Structural Integrity Reserve Studies (SIRS) every 10 years that identify the remaining useful life and replacement cost of the building's eight critical structural components plus any other component over 25,000 USD that affects structural integrity; and (3) full reserve funding of all SIRS-identified items, with the right to waive reserves for structural components eliminated for budgets adopted on or after January 1, 2025. For Canadian buyers eyeing South Florida coastal condos, this regime is the single biggest source of carrying-cost surprise in 2026, with monthly fees rising 20% to 40% in compliant buildings and special assessments of 50,000 to 200,000 USD or more per unit not uncommon in older high-rise beachfront buildings.

Published April 30, 2026 Last reviewed April 30, 2026 ≈ 3,129 words · 14 min read

Direct answer · 60-second summary

The 60-second version

Florida's post-Surfside condo law makes three things mandatory for buildings three stories or higher.

Milestone inspection. A licensed engineer or architect performs a structural inspection at year 30 (or year 25 if within three miles of the coast). If Phase 1 reveals deterioration, Phase 2 is required (destructive testing). Subsequent inspections every 10 years.

Structural Integrity Reserve Study (SIRS). Every 10 years, a licensed engineer or architect (or qualified reserve specialist) inventories eight critical structural components plus any item over 25,000 USD that affects structural integrity, estimates remaining useful life and replacement cost, and computes the required reserve contributions. The first SIRS for buildings existing as of July 1, 2022 was due December 31, 2024, or December 31, 2026 if performed simultaneously with a milestone inspection.

Mandatory reserves. Budgets adopted on or after January 1, 2025 cannot waive or underfund reserves for SIRS-identified structural items. The previous practice of waiving reserves to keep monthly dues low is no longer legal.

For a Canadian buyer: review the milestone report, the SIRS, two years of budgets and actual financials, special assessment history, and board minutes BEFORE removing the inspection contingency. Buildings that did not perform a Phase 1 milestone before the deadline, or buildings with low reserve funding (below 50% of SIRS-recommended), are now generally ineligible for conventional financing through Fannie Mae and Freddie Mac.

Reference · acronyms used in this guide

Acronyms used in this guide

Section 01Why this article exists for the Canadian condo buyer

A Canadian buyer comparing a Quebec condominium to a Florida condominium faces a structural difference that has nothing to do with construction quality. In Quebec, a syndicat de copropriété is governed by the Civil Code and is required to maintain a fonds de prévoyance funded annually based on a 5% to 10% of contributions rule (or, since the 2020 reform, based on a fund certification study every five years for buildings of more than five units). The mechanism is similar in spirit to SIRS but the scale, the inspection regime, and the enforcement machinery are much lighter.

In Florida, post-Surfside, the regime has teeth: state-mandated inspection deadlines, state-published lists of compliant and non-compliant associations, an online DBPR portal where every association must register, and legal liability on board members for non-compliance. For a Canadian buyer in a beachfront Hollywood, Sunny Isles, Miami Beach, or Sarasota high-rise built before 1996, the difference is dollars. The seller's listing might quote a monthly fee that does not yet reflect SIRS-required contributions; the buyer takes title and discovers a 30% increase or a six-figure special assessment 18 months later.

This guide is designed to help a Canadian buyer perform the diligence that catches this risk during the 7-business-day review window that became standard under HB 913 (2025), or during the inspection contingency period in the contract.

Section 02What SB-4D actually requires

Milestone inspections

Verified factFlorida Statute 553.899, created by SB-4D and amended by SB 154 and HB 913, requires a milestone inspection of any condominium or cooperative building three stories or more in height, by a Florida-licensed engineer or architect. The first inspection is required at the 30-year mark from the certificate of occupancy, or at the 25-year mark if the building is located within three miles of the coastline. Subsequent inspections are required every 10 years.[1][2]

The inspection has two phases:

Phase 1 inspection cost: 6,000 USD to 25,000 USD or more on a mid-size building, paid by the association (i.e., ultimately by unit owners). Phase 2 can multiply this several-fold and may trigger immediate-action repair orders.

Structural Integrity Reserve Study (SIRS)

Verified factFlorida Statute 718.112(2)(g), as amended by SB-4D, SB 154, and HB 913, requires every condominium association governing a building three or more habitable stories in height to complete a Structural Integrity Reserve Study at least every 10 years. The SIRS must identify, for each of eight specified structural components plus any other component costing more than 25,000 USD that affects structural integrity, the remaining useful life and replacement cost, and must compute the reserve contributions required to fund replacement. The eight specified components are: roof; load-bearing walls and other primary structural members; floor; foundation; fireproofing and fire protection systems; plumbing; electrical systems; waterproofing and exterior painting.[3][4]

For a typical 1980s South Florida high-rise that has never had a SIRS-style study, the first SIRS often reveals 2 to 5 million USD of underfunded structural reserves, sometimes more. This is the source of the 50,000 USD to 200,000 USD per unit special assessments that became common in 2024 and 2025.

Verified factThe first SIRS for an association existing on or before July 1, 2022 was due December 31, 2024, with an exception allowing simultaneous completion with a milestone inspection by December 31, 2026. After December 31, 2026, no further extension is available.[3]

Mandatory reserve funding

Verified factFor budgets adopted on or after January 1, 2025, condominium associations cannot waive or reduce reserve funding for the SIRS-identified structural components. Owner waivers of structural reserves, previously permitted under Florida law, are eliminated for these items. Associations whose budget was adopted before December 31, 2024 had until January 1, 2026 to begin funding SIRS reserves in accordance with the study.[3][4]

The practical mechanic: the SIRS reserve schedule converts to a line item in the annual budget. The board cannot vote to "skip" or "underfund" that line item. Owners cannot vote to waive it. The reserve contributions are now part of the monthly maintenance fee.

Enhanced disclosure and the buyer review window

Verified factHB 913 (2025) expanded buyer access to association financial records and inspection reports. The disclosure package delivered to a prospective buyer must include the milestone inspection report (if performed), the SIRS (if performed), the funding plan, and recent financial statements. Buyers have a 7-business-day review window after receipt of the disclosure package, during which they can void the contract and recover the deposit if the disclosures reveal a material concern.[2][5]

This 7-business-day window is the most important consumer protection in the new regime. A Canadian buyer should treat it as a hard internal deadline for forensic review of the building's condo financial and structural state.

Section 03CA-side and FL-side comparison

TopicFederal US (Fannie/Freddie)State (FL)Federal CAProvincial (QC)
Statutory authority for condo reservesN/A; Fannie Mae and Freddie Mac eligibility rulesFlorida Statute 718.112(2)(g), 553.899N/ACivil Code of Quebec articles 1071-1078, fund certification study (étude de fonds de prévoyance) for buildings 5+ units
Mandatory inspection regime for older buildingsN/AMilestone inspection at 25 (coastal) or 30 years; every 10 years thereafterN/ANo equivalent state-mandated inspection regime
Reserve study cadenceN/ASIRS every 10 years for 3+ story buildingsN/AÉtude de fonds de prévoyance every 5 years for 5+ unit buildings (since 2020)
Right to waive structural reservesN/AEliminated for SIRS items, budgets adopted on or after Jan 1, 2025N/AReserves contribution is mandatory; minimum based on certification study
Lender oversight of building eligibilityFannie Mae/Freddie Mac maintain "non-warrantable" lists; non-compliant condos may be ineligible for conventional financingDBPR maintains a list of associations and compliance statusOSFI does not police building condition for mortgage eligibilityCMHC and lenders increasingly evaluate fonds de prévoyance level
Disclosure to buyersN/AFlorida Statute 718.503 (governing docs, financials, milestone, SIRS, 7-business-day review)N/ACivil Code disclosure of fonds de prévoyance and procès-verbaux required at sale

The structural difference: Florida has gone further than Quebec on the engineering-inspection side (mandatory MI for older buildings; the étude de fonds de prévoyance is a financial study, not a structural inspection), and Quebec has moved sooner on the reserve-funding side (the post-2020 reforms apply to all 5+ unit buildings, while SB-4D applies only to 3+ story buildings). For a Canadian buyer, the practical effect is that Florida diligence requires reviewing both an engineering report and a reserve study, while Quebec diligence centers on the certification study and the procès-verbaux.

Section 04How this affects what you pay (and may pay)

Monthly maintenance fees

Verified factReports from Florida brokerage and management firms indicate that monthly condominium fees in compliant buildings have risen 20% to 40% on average since SB-4D took effect, driven by SIRS-required reserve contributions. Older buildings (pre-1990s, especially beachfront towers) have experienced 50% to 100% increases or one-time special assessments instead.[5]

For a Canadian buyer, this means the listing-quoted monthly fee may be a leading indicator, not the actual carrying cost. Verify what the budget for the next 12 months will require, not what the prior 12 months required.

Special assessments

Verified factIndustry reports indicate that special assessments of 50,000 USD to 200,000 USD per unit are not uncommon in older high-rise condominiums along Florida's coast, as associations confront decades of deferred maintenance under the new SIRS-mandated funding regime.[5]

A special assessment is a one-time cash call by the board, not a fee increase. It typically follows the SIRS revealing a major underfunded item (often the roof, the building envelope, or a balcony rehabilitation). The cash is due in a single payment or, in some cases, financed by a loan to the association passed through to owners.

Lender eligibility

Verified factFannie Mae and Freddie Mac, the two government-sponsored enterprises that purchase the majority of US conventional mortgages, have published guidelines under which a condominium project may be classified as ineligible for conventional financing. Common ineligibility triggers include: incomplete or significantly deferred milestone inspections; reserves below specified thresholds; pending or recent special assessments above specified thresholds; and material structural deficiencies. Buildings classified as ineligible can still be purchased with cash or with portfolio (non-conforming) financing, but the buyer pool shrinks.[6]

For a Canadian buyer, this is a re-sale risk. A condo eligible for conventional financing today might fall off the eligibility list before you sell, materially shrinking your future buyer pool.

Section 05Worked example: 1986 Hollywood beachfront condo

A Canadian couple is considering a 4th-floor unit in a 12-story 1986 oceanfront tower in Hollywood, Florida. Listed at 695,000 USD. Monthly maintenance fee listed at 1,150 USD. They get the 7-business-day disclosure package.

What they find:

What this means for the buyer:

OpinionThis building is not unbuyable, but it is mispriced as listed. A Canadian buyer should counter at a price that absorbs the imminent special assessment plus a discount for the financing-eligibility uncertainty. Or they should walk and look at a 1995-or-newer building where the SIRS shock is already partially absorbed in the asking price.

Section 06Common mistakes Canadian buyers make

  1. Reading only the listing's quoted monthly fee. The fee at listing is often the prior 12 months' actual. The next budget cycle may already include a 30% to 50% increase that the seller is not eager to highlight.
  2. Assuming a "luxury" coastal high-rise is a safer building. The opposite is often true. The most expensive special assessments and the worst SIRS findings are concentrated in pre-1990s coastal high-rises.
  3. Skipping the milestone inspection report review during the 7-business-day window. This is the most consequential single document in the package. Read the engineer's executive summary; if there are "immediate action" items, ask for the cost estimates and board's funding plan.
  4. Not modeling future special assessments as part of acquisition cost. A 695,000 USD listed price with an 80,000 USD imminent special assessment is, financially, a 775,000 USD acquisition. Underwrite accordingly.
  5. Confusing SIRS reserve funding with the operating reserve. They are separate. The SIRS reserve is a long-term capital fund. The operating reserve covers shorter-term unexpected expenses. A condo can have a healthy operating reserve and be 12% funded on SIRS.
  6. Trusting a verbal answer from the listing agent on reserve health. Get the SIRS document, the funding plan, and the most recent budget. The listing agent typically does not know the details and may share what the board asked them to share.
  7. Buying without confirming Fannie Mae / Freddie Mac eligibility. If the building is ineligible, your future buyer pool is restricted to cash buyers and portfolio-loan buyers (typically wealthier, fewer in number). This affects exit liquidity and price.
  8. Assuming a Canadian condo lawyer can review the documents. Florida condo statute is highly specific. Engage a Florida real estate attorney who specializes in condominium law for the disclosure review, not a Canadian lawyer.

Section 07Action checklist for a Canadian condo buyer

  1. Within 24 hours of contract acceptance, request the full HB 913 disclosure package: governing documents (declaration, bylaws, rules), most recent budget and prior year actual, milestone inspection report (Phase 1 and Phase 2 if performed), SIRS, special assessment history (last 5 years), and last 24 months of board meeting minutes.
  2. Verify on the DBPR online portal (https://condos.myfloridalicense.com) that the association has registered and submitted required information.
  3. Identify whether the building is within three miles of the coast (25-year MI threshold) or further inland (30-year threshold). Determine the certificate of occupancy date.
  4. If the building is past its milestone deadline and no MI report exists, treat this as a major red flag. Confirm in writing why.
  5. Read the Phase 1 milestone report. Note any "substantial structural deterioration" findings and whether Phase 2 has been ordered or completed.
  6. Read the SIRS. For each of the eight structural components, note remaining useful life and replacement cost. Compute the funding gap as: (recommended reserves) minus (current funded reserves). A funding gap above 30% of the SIRS-recommended is a warning sign.
  7. Read the budget. Confirm reserves are now funded according to the SIRS, not waived. (After January 2025 budgets, waivers are no longer legal for structural items.)
  8. Read board minutes for the last 24 months. Look for: pending litigation, pending special assessments, insurance non-renewal threats, banking changes, contractor disputes.
  9. Engage a Florida real estate attorney specializing in condominium law to review the disclosures within the 7-business-day window.
  10. If you are financing, request your lender's pre-approval of the specific building. Conventional loans require Fannie or Freddie eligibility; ineligibility means cash or portfolio financing only.
  11. Re-verify monthly maintenance fee on the next budget (not the current). Often the budget for the upcoming year is in draft form by November of the prior year.
  12. If a special assessment is imminent, negotiate either a price credit equal to the assessment, or include a clause that the seller pays the assessment in full at closing.

Section 08FAQ

Does SB-4D apply to single-family-house gated communities or only condos?

Strictly speaking, SB-4D's milestone inspection requirement applies to condominiums and cooperative associations with buildings three or more stories. A single-family-house gated community governed by a homeowners' association (Chapter 720) is not directly subject to MI or SIRS, though some master associations that include mid-rise buildings are.

Does SB-4D apply to a 2-story townhome condo?

The milestone inspection is for buildings three stories or higher. A 2-story townhome condominium is below the threshold for MI but may still have SIRS obligations under Chapter 718 if it is a condominium with a building three or more habitable stories.

Can the association still waive operating reserves?

Yes, owners can still vote to waive operating reserves (separate from the SIRS structural reserves). The new restriction is specific to SIRS-identified structural components.

My building is brand new (built in 2024). Does any of this apply?

Yes. Even new buildings are subject to SIRS (every 10 years), and reserve funding is mandatory from year one. The milestone inspection regime is staggered: the first MI for a 2024 building is due in 2049 or 2054 (coastal). New buildings have been modeling SIRS reserves into their financial plans since 2022, which is why monthly fees on new construction have risen 10% to 20% even without the catch-up shock.

What about cooperative buildings (co-ops)?

Same rules apply. Florida Statute 553.899 covers both condominium and cooperative buildings.

Are HOA fees deductible against my US rental income on Form 1040-NR?

If the unit is rented and you have made the IRC § 871(d) net-basis election, HOA fees (operating portion) are deductible against rental income on Schedule E of Form 1040-NR. Reserve contributions earmarked for capital improvements are typically not currently deductible but increase the property's basis. This is a US tax matter; consult a cross-border accountant.

Does the association have to share the SIRS with prospective buyers?

Yes, under Chapter 718.503 (as amended by HB 913), the disclosure package delivered to a prospective buyer must include the SIRS if completed. The 7-business-day review window applies after delivery.

Section 09Honest scope statement

This guide focuses on residential condominium and cooperative buildings three stories or higher in Florida. It does not address commercial condominium associations, mobile home associations, time shares, or homeowners' associations governed by Chapter 720 (which has different rules).

This article is not a substitute for engagement with a Florida real estate attorney specializing in condominium law for an actual building review. It is an introduction to the framework, not the framework itself. Inspection costs, reserve gaps, and special assessment magnitudes are building-specific.

Editorial team

CanadaFlorida Editorial Team

Research drawn from primary public sources cited at the bottom of this guide: U.S. and Florida statutes, U.S. and Canadian federal agencies, official Florida county and state authorities, and Canadian provincial bodies where applicable.

This guide was produced under the editorial standards of canadaflorida.com, the reference manual for Canadians who buy, sell, live, or inherit in Florida. Every figure is sourced to a primary regulatory or industry authority. Verified facts, typical ranges, and editorial opinions are explicitly labelled and never mixed.

Sources and references

  1. Florida Senate, SB 4-D Bill Text (Senate Bill 4-D, 2022 Special Session). www.flsenate.gov/Session/Bill/2022D/4D/BillText/e1/HTML
  2. DBPR, Division of Condominiums Inspections page (milestone inspection rules, SIRS deadlines). condos.myfloridalicense.com/inspections/
  3. DBPR, Division of Condominiums FAQs (SIRS deadlines, reserve waiver rules). condos.myfloridalicense.com/faqs/
  4. DBPR, Division of Condominiums Timeline (legislative history, SB-4D, SB 154, HB 913). condos.myfloridalicense.com/timeline/
  5. Broker One, Florida SB 4-D Explained for 2026 Condo Buyers (monthly fee impacts, special assessment ranges, 7-business-day window). mybrokerone.com/en/post/condo-buyers-guide/florida-sb-4d-...
  6. Florida Engineering LLC, SB 4-D Building Reporting Requirements (annual reporting, fiduciary duty, SB 154 amendments). flengineeringllc.com/sb4d-building-reporting-requirements...
  7. Beryl Engineering & Inspection, SIRS Ultimate Guide (eight structural components, professional qualifications). berylprojectengineering.com/structural-integrity-reserve-...
  8. AskDoss, Florida Condo Laws 2026 (special assessment ranges, lending impacts, buyer due diligence). askdoss.com/florida-condo-association-laws-what-owners-ne...

Source links have been verified as of the last review date shown at the top of the page. If you spot a broken link or outdated information, please write to [email protected] — the page will be updated promptly.

Disclaimer

This article is published for educational purposes only. It does not constitute legal, real estate, financial, or insurance advice, and no advisor-client or fiduciary relationship is created by reading it.

The information presented is current as of the last reviewed date shown in the front matter. Florida condominium law is amended by the Florida Legislature every session, often substantially. SB-4D, SB 154, and HB 913 are the major amendments to date, but additional amendments may be enacted in any future session. Funding thresholds, inspection deadlines, and disclosure requirements may all change.

Before relying on this guide for your specific transaction, consult a Florida real estate attorney specializing in condominium law for the disclosure review, and a Florida-licensed engineer for any inspection-related question. The condominium's own governing documents, milestone inspection report, and SIRS are the only documents that control the actual obligations of that specific building.

External links are provided for the reader's convenience. canadaflorida.com does not control or endorse third-party websites.

Limitation of liability: To the maximum extent permitted by applicable law, the publisher, the editorial team, and contributors disclaim liability for any direct, indirect, or consequential loss arising from reliance on this article.

Jurisdictions: this article addresses Florida state condominium law (Florida Statute Chapter 718, Florida Statute 553.899, SB-4D, SB 154, HB 913), Fannie Mae and Freddie Mac conventional loan eligibility guidelines on the US federal side, and Quebec as the reference province on the Canadian comparison side. Equivalent comparisons for other Canadian provinces are forthcoming.