Florida SB 154 and Milestone Inspections: What Title Teams Must Know in 2026

Florida's Senate Bill 154, together with the earlier SB 4-D framework, has fundamentally changed how condominium buildings three stories and higher are inspected, funded, and sold. For title teams closing condo transactions in Miami, Tampa, Orlando, and Jacksonville, understanding milestone inspections, Structural Integrity Reserve Studies, and the new disclosure obligations is essential to protecting buyers and keeping files clear of last-minute surprises.

What Is Florida Senate Bill 154

Senate Bill 154 was enacted in 2023 as a follow-up to SB 4-D, which was passed in response to the 2021 Surfside condominium collapse. SB 154 refined the milestone inspection and Structural Integrity Reserve Study requirements, clarified deadlines, and adjusted the scope of components that must be evaluated. The bill applies to residential condominiums and cooperatives with buildings of three or more habitable stories.

The Legislative Context After Surfside

The partial collapse of Champlain Towers South exposed catastrophic gaps in Florida's condominium safety oversight. SB 4-D created the initial framework requiring structural inspections and reserve studies. SB 154 fixed ambiguities in the original law, pushed back certain deadlines to account for engineering capacity constraints, and refined the definition of structural components subject to reserve funding.

Key Provisions of SB 154

SB 154 amends Florida Statutes Section 553.899 and Section 718.112. It establishes that milestone inspections must be completed when a building reaches 30 years of age and every 10 years thereafter, with local agencies allowed to require inspection at 25 years based on local conditions. It also clarifies that a SIRS must be completed at least every 10 years, allows coordination of the SIRS with milestone inspections due through 2026, and prohibits owners from waiving reserve funding for SIRS-required items in budgets adopted on or after January 1, 2025.

Milestone Inspections for Condos Three Stories and Higher

A milestone inspection is a structural assessment of an aging building used to determine whether substantial structural deterioration exists. The inspection is performed by a Florida-licensed architect or engineer, or by a team with a licensed professional in responsible charge. It is not a building code compliance review; its sole purpose is to evaluate life-safety and structural adequacy.

Phase 1: Visual Examination

Phase 1 is a visual inspection of load-bearing elements and primary structural systems, including foundations, columns, beams, floor systems, and the building envelope. If no substantial structural deterioration is found, the building passes and the report is filed with the local building official.

Phase 2: Detailed Investigation

If Phase 1 identifies substantial structural deterioration, a Phase 2 inspection is mandatory. This involves destructive and non-destructive testing, load capacity analysis, and preparation of a repair plan with cost estimates and timelines. Phase 2 reports must be retained for 15 years and made available to current and prospective buyers.

Structural Integrity Reserve Studies (SIRS)

The SIRS is a mandatory reserve study that evaluates the funds required for future major repairs and replacement of structural components. It must be performed or verified by a licensed engineer, architect, or qualified reserve specialist with CAI RS or APRA PRA credentials.

Components Covered by the SIRS

The SIRS must address the roof; structure including load-bearing walls and primary structural members; fireproofing and fire protection systems; plumbing; electrical systems; waterproofing and exterior paint; windows and exterior doors; and any other item with a deferred maintenance expense or replacement cost exceeding $10,000 that would negatively affect the listed components if not maintained.

Reserve Funding and Waiver Restrictions

Beginning with budgets adopted on or after January 1, 2025, Florida law prohibits associations from waiving or reducing reserve funding for SIRS-required structural components. This is a seismic shift from prior law, which allowed owners to vote away reserves. Non-structural reserve items may still be waived by majority vote. Associations may now pool reserve accounts and fund reserves through special assessments, lines of credit, or loans with majority owner approval.

How SB 154 Affects Condo Closings

Title teams must now treat Florida condo closings as dual-compliance transactions: the file must satisfy both standard HOA disclosure requirements and the new structural safety regime. Failure to verify milestone inspection status or SIRS completion can expose the buyer to undisclosed special assessments and the title company to post-closing liability.

Document Review Expansion

In addition to the standard resale disclosure package, title teams should request proof of milestone inspection completion, a copy of the most recent SIRS, and any Phase 2 reports or repair plans. These documents are not typically included in a standard resale certificate and must be requested separately from the association or management company.

Timeline Risks

Associations that are behind on compliance may rush to complete inspections or SIRS work while a transaction is pending. This creates uncertainty. A Phase 2 finding discovered mid-transaction can trigger a special assessment vote that kills the deal. Title teams should verify compliance status at intake, not at the eleventh hour.

Disclosure Requirements for Buyers

Florida law requires that milestone inspection reports and SIRS findings be made available to unit owners and prospective buyers. Within 45 days of completing a SIRS, the board must notify owners and report completion to the Florida Division of Condominiums through the DBPR portal. Buyers have the right to review these reports before closing.

What Buyers Must Be Told

Title teams and sellers should disclose the building's inspection status, any open Phase 2 findings, the amount of current and projected special assessments, and the association's reserve funding level. Even if not explicitly required by the purchase contract, failure to disclose known structural deficiencies can lead to fraud claims.

Special Assessments Triggered by Milestone Inspections

The most immediate financial impact of SB 154 on condo owners is the wave of special assessments triggered by Phase 2 findings and SIRS funding shortfalls. Buildings that have deferred maintenance for decades now face multi-million-dollar repair bills that cannot be funded through operating budgets.

Assessment Timing and Closing Risk

Special assessments adopted before closing are typically the buyer's responsibility unless negotiated otherwise. Assessments that have been approved but not yet billed create a gray area that title teams must address in the closing instructions. Assessments that are projected but not yet voted on should be disclosed as a material risk.

Title Insurance Considerations

Standard title insurance policies do not insure against special assessments. Title teams should advise buyers to negotiate seller credits or escrow holdbacks for known assessments and to verify that the association has no open compliance orders that could result in liens.

How Title Teams Verify Milestone Inspection Status

Verification requires a multi-step process that goes beyond the standard resale certificate request. Title teams should build the following steps into their Florida condo workflow.

Request Directly from the Association

Ask the association or management company for a copy of the most recent milestone inspection report, the SIRS, and any outstanding repair plans. Confirm the date of completion and whether the report was filed with the local building official and DBPR.

Check Local Building Official Records

Some Florida jurisdictions make milestone inspection reports available through public records requests or online portals. If the association is unresponsive, the local building department may have a copy of the Phase 1 or Phase 2 filing.

Review the Budget and Reserve Schedule

The association's adopted budget should reflect SIRS-based reserve contributions for structural components. If the budget shows waived or reduced structural reserves, the association may be out of compliance, and a corrective special assessment is likely.

Differences from Previous Florida Inspection Laws

Before SB 4-D and SB 154, Florida had no statewide mandatory structural inspection program for condominiums. Some coastal counties, such as Miami-Dade and Broward, had local recertification programs, but compliance was uneven and enforcement was limited. The new regime is broader, stricter, and carries personal liability for board members.

From Local Recertification to Statewide Mandate

Miami-Dade's 40-year recertification program was the model for the new law, but SB 154 applies statewide and sets earlier timelines for coastal buildings. The shift from local to state oversight means title teams can no longer assume that a building outside South Florida is exempt from rigorous inspection requirements.

Reserve Waiver Elimination

The most consequential financial change is the elimination of reserve waivers for structural components. Under prior law, a majority of owners could vote to defund reserves, kicking maintenance costs down the road. That option no longer exists for SIRS items, forcing current owners to pay for decades of deferred maintenance.

Impact on FHA and VA Condo Approvals

FHA and VA project approval requirements have always included financial stability and insurance standards. In the post-Surfside environment, lenders and government agencies are increasingly scrutinizing structural safety and reserve adequacy. Condos with open Phase 2 findings, insufficient reserves, or missed inspection deadlines may find it difficult to obtain or maintain FHA or VA project approval.

FHA Condo Project Review

FHA's condo approval process includes a review of the association's budget, reserve funding, and insurance. While FHA has not formally added milestone inspection compliance to its published checklist, lenders are independently evaluating these factors. A building with a known structural deficiency is unlikely to pass a lender's risk assessment even if it is technically FHA-approved.

VA Guaranty Implications

VA lenders follow similar risk-management practices. A condo association with unpaid special assessments or an open repair plan may be deemed ineligible for VA financing. Title teams working with VA buyers should verify condo approval status and structural compliance before contracting.

Which Buildings Are Exempt

Not every Florida building is subject to milestone inspections and SIRS requirements. Title teams should confirm whether the property falls under the statutory definition before ordering documents.

Building Age / Height	Milestone Inspection	SIRS Required	Deadline Notes
3+ habitable stories, 30+ years old	Yes	Yes	Initial inspection by Dec 31 of milestone year; every 10 years after
3+ habitable stories, 25–30 years old (coastal)	Yes, if local agency requires	Yes	Local enforcement may justify earlier inspection
3+ habitable stories, <25 years old	No	Yes	SIRS due by Dec 31, 2025 (or Dec 31, 2026 if coordinated with milestone inspection)
1–4 family dwellings, ≤3 habitable stories	Exempt	Exempt	Not covered by SB 154 milestone or SIRS rules
New construction, <10 years old	No	Yes, within 10 years of creation	First SIRS generally due within 10 years of declaration recording

Using Prior Inspections to Satisfy Requirements

If a qualifying inspection was performed within the past five years and meets the statutory criteria, it may be accepted in place of a new visual inspection. Title teams should verify whether the association has a recent inspection on file that satisfies the milestone or SIRS visual inspection component.

Frequently Asked Questions

What buildings are required to complete a Florida milestone inspection?

All residential condominium and cooperative buildings in Florida with three or more habitable stories must complete a milestone inspection when the building reaches 30 years of age, and every 10 years thereafter. Local enforcement agencies may require inspection at 25 years if justified by local circumstances such as proximity to salt water.

What is the difference between a Phase 1 and Phase 2 milestone inspection?

Phase 1 is a visual examination by a licensed architect or engineer to determine whether substantial structural deterioration exists. If no substantial deterioration is found, the building passes. If deterioration is identified, a Phase 2 inspection is required, involving destructive and non-destructive testing, load capacity analysis, and a detailed repair plan.

What is a Structural Integrity Reserve Study (SIRS)?

A SIRS is a mandatory study that evaluates the reserve funds required for future major repairs and replacement of structural components in condominium buildings three stories or higher. It must be completed at least every 10 years and was initially due by December 31, 2024 for associations existing on or before July 1, 2022.

Can Florida condo owners still vote to waive reserve funding?

No. For budgets adopted on or after January 1, 2025, owners may no longer waive or reduce reserve funding for SIRS-required structural components. Non-structural reserve items may still be waived by a majority vote of the voting interests.

How do milestone inspections affect condo closings?

Buyers must be informed of the inspection status, any Phase 2 findings, and pending special assessments. Title teams must verify that the association has complied with inspection deadlines and that there are no open compliance orders from local building officials that could cloud title.

What happens if an association misses the SIRS or milestone inspection deadline?

Non-compliance exposes board members to claims of breach of fiduciary duty, exposes the association to fines from local enforcement agencies, and can result in the building being deemed unsafe for occupancy. It also affects insurability and financing eligibility.

Are there exemptions from Florida milestone inspection requirements?

Yes. Single-family, two-family, three-family, and four-family dwellings with three or fewer habitable stories above ground are exempt. Buildings that have undergone a qualifying inspection within the past five years may also satisfy the requirement without a new inspection.

How does SB 154 affect FHA and VA condo approvals?

FHA and VA lenders increasingly evaluate structural safety compliance and reserve adequacy as part of project approval. Condos with outstanding milestone inspection deficiencies or insufficient reserve funding may lose or fail to obtain FHA or VA project approval, limiting buyer financing options.

Key Takeaways

• SB 154 mandates milestone inspections for Florida condo buildings three stories and higher at 30 years of age and every 10 years thereafter.
• Structural Integrity Reserve Studies must be completed every 10 years and reserve funding for structural components can no longer be waived.
• Title teams must verify inspection status and SIRS completion beyond the standard resale certificate for every Florida condo closing.
• Phase 2 findings can trigger large special assessments that affect buyer willingness and lender approval.
• FHA and VA condo approvals are increasingly tied to structural safety and reserve adequacy.
• Exemptions apply to 1–4 family dwellings with three or fewer habitable stories and buildings with recent qualifying inspections.