What changed in Florida condo law after the Surfside collapse?

After the 2021 Champlain Towers South collapse in Surfside, Florida enacted SB 4-D (2022) and HB 919 (2023) creating new requirements for condominiums: mandatory Milestone Inspections for condos 3 stories or higher at 30 years (and every 10 years after), Structural Integrity Reserve Studies (SIRS) to assess reserve funding needs, and mandatory reserve funding for structural components by December 31, 2024 (with no longer the ability to waive reserves for these items). These changes significantly increased condo carrying costs in older buildings.

What is a Milestone Inspection for a Florida condo?

A Milestone Inspection is a two-phase structural inspection now required by Florida law for condominiums 3 stories or higher when the building reaches 30 years of age (or 25 years for buildings within 3 miles of the coast). Phase 1 is a visual inspection by a licensed architect or engineer. If Phase 1 reveals structural concerns, Phase 2 is a more detailed investigation. Results must be reported to the local enforcement agency and shared with unit owners. Failure to complete required inspections can affect the building's ability to operate.

How do I know if a condo association has a special assessment pending?

Ask your agent to request the condo association's most recent meeting minutes (at least 12–24 months), the current budget, the reserve study, and a written statement of any pending or recently passed special assessments. Florida law requires sellers to disclose pending special assessments. However, a special assessment can be approved by the board between listing and closing — which is why reviewing recent meeting minutes matters. Look for agenda items discussing structural repairs, reserve funding shortfalls, or Milestone Inspection results.

Is it harder to get a mortgage on a Florida condo than a house?

Yes — condo financing has additional layers of approval. Lenders must approve the condo association (not just the unit) to offer conventional Fannie Mae/Freddie Mac financing. Associations with litigation, low owner-occupancy rates, high delinquency, inadequate insurance, or significant deferred maintenance may be on lender 'do not approve' lists. FHA and VA loans have the strictest requirements. Cash purchases bypass this — which is one reason cash buyers have an advantage in condo transactions and why some condos trade below value because of financing difficulty.

Buying a Condo in Florida: What You Need to Know in 2026

Florida condo buying has always required more due diligence than purchasing a single-family home. Since 2022, it requires significantly more — and the financial stakes of buying into a poorly managed association have increased substantially.

Here's what you need to understand before you make an offer on any Florida condo.

The post-Surfside legal landscape

The June 2021 collapse of Champlain Towers South in Surfside, which killed 98 people, was a structural failure in a 40-year-old building with known maintenance issues. Florida's legislative response dramatically changed how condo associations must operate and fund reserves.

Key changes effective 2022–2025:

Milestone Inspections: Condos 3+ stories must undergo a Milestone Inspection when the building turns 30 years old (or 25 years if within 3 miles of the coast), and every 10 years afterward. A Phase 1 visual inspection is mandatory; Phase 2 detailed investigation is triggered by Phase 1 findings. Results must be provided to local enforcement agencies and unit owners.

Structural Integrity Reserve Studies (SIRS): Condo associations must conduct a structural integrity reserve study to assess the condition and funding needs for roofs, load-bearing walls, floors, foundations, fireproofing, plumbing, electrical, windows, and elevators. This study drives the reserve funding requirement.

Mandatory fully funded reserves: Beginning December 31, 2024, associations can no longer vote to waive reserves for structural components. This reverses decades of Florida practice where condo owners routinely voted to reduce or eliminate reserve contributions to keep dues low. The result: older buildings with underfunded reserves are facing dramatic assessment increases or large special assessments.

What this means for buyers: Condos built before 2000 — especially those in their 30s or 40s — are facing required inspections and reserve funding changes that are increasing monthly HOA dues and triggering special assessments. This is affecting pricing and saleability for many buildings.

What to review before making an offer

The association's financials

Request:

Most recent year's budget (current income, expenses, and reserve contributions)
Reserve study (what structural components need replacement and when, how much is funded)
Last 12–24 months of meeting minutes (look for discussion of special assessments, litigation, Milestone Inspection planning, and reserve discussions)
Pending and recently passed special assessments (Florida law requires disclosure, but recent board actions may not yet be in seller disclosure)
Current delinquency rate (units not paying dues affects association finances)

Milestone Inspection status

For buildings 25+ years old, ask:

Has the Milestone Inspection been completed?
If Phase 1 found concerns, has Phase 2 been completed?
What were the findings and what remediation is required?
If the inspection hasn't been done: when is it scheduled?

An association that is behind on required inspections is a red flag — it may face enforcement action that restricts occupancy or sale of units.

Reserve funding

Ask what percentage the reserves are funded at. A fully funded reserve is 100%. Many older Florida condo associations were running at 20–50% funded before the new law — which means significant catch-up contributions will be required. If the reserve study shows a large gap between current funding and required funding, expect HOA dues to increase or special assessments to follow.

Building insurance

Florida's property insurance market is difficult — some condo associations have faced dramatic premium increases or coverage gaps. Ask:

What is the association's current property insurance carrier and premium?
Has coverage changed in the last 2–3 years?
Does the policy cover interior unit fixtures ("bare walls" vs "all-in" coverage affects your individual condo insurance needs)?

Financing a Florida condo

Getting a mortgage on a condo is more complex than a single-family home because the lender approves both you and the association.

Lender condo approval: Fannie Mae and Freddie Mac require the condo association to meet specific standards:

Minimum owner-occupancy rate (typically 51%+ for standard approval)
Association's master insurance must meet coverage requirements
No active litigation involving the association for structural defects or construction defects
Reserves adequately funded
No pending special assessments of significant size
No single entity owning more than 10% of units

"Non-warrantable" condos: Associations that don't meet these standards are "non-warrantable" — they can only be financed with non-conforming (portfolio) loans, which carry higher interest rates. Many investor-heavy condo communities, vacation condo complexes, and mixed-use buildings fall into this category.

FHA and VA loans: Even more restrictive — the building must be on an approved list. Many Florida condos are not FHA or VA approved.

Cash advantage: Cash buyers sidestep lender approval of the association entirely. In buildings with financing challenges, cash buyers have a material negotiating advantage — which is why some condos in questionable financial condition trade at significant discounts.

Condo association rules: what matters to buyers

Before purchasing, review the Declaration of Condominium, HOA rules, and any amendments. Key areas:

Rental restrictions: Many Florida condo associations restrict short-term rentals (Airbnb/VRBO), some restrict long-term rentals (minimum lease terms), and some limit the percentage of units that can be rented. If you want rental flexibility, this is a deal-killer filter.

Pet restrictions: Weight limits, breed restrictions, and number limits are common. If you have pets, confirm the specific rules before contracting.

Parking and storage: Assigned vs unassigned parking, guest parking availability, and storage unit allocation vary by building. Review what's included with your unit.

Move-in/move-out fees: Many associations charge move-in and move-out fees — sometimes nonrefundable deposits up to $1,000. These show up at closing or after.

Subletting and occupancy rules: Some buildings restrict who can occupy the unit (no more than X unrelated adults, etc.), which affects your usage and rental options.

The 55+ condo category

Central Florida has significant inventory of age-restricted (55+) condominiums and HOA communities, particularly in Lake County (The Villages adjacent areas), Volusia County, and retirement-oriented communities throughout Orange and Brevard counties. These communities require that at least one resident be 55 or older and that 80% of units have at least one 55+ resident. Pricing in these communities can be significantly below market for comparable non-age-restricted product — which creates opportunities for eligible buyers.

Central Florida condo markets

Downtown Orlando / Thornton Park: High-rise and mid-rise condos in the $300K–$700K range. Walk score is one of the highest in Central Florida; Urban amenities within walking distance. Some buildings have non-warrantable financing challenges.

Winter Park: Limited condo inventory; premium pricing. Park Ave proximity drives demand. Low supply.

Lake Nona: Newer mid-rise condos in the Medical City area targeting healthcare and tech professionals. HOA dues reflect newer amenity packages.

Lake Mary / Sanford: Some condo inventory in the corporate corridor area; pricing accessible relative to Orange County.

Daytona Beach area: Significant oceanfront and beach-adjacent condo inventory, including vacation properties. Strong rental demand but insurance and financing complexity.

Cocoa Beach / Space Coast: Oceanfront and beach condos with vacation rental appeal. Insurance costs are elevated; some buildings have deferred maintenance issues.

Ryan Solberg works with condo buyers throughout Central Florida and the Space Coast. Evaluating a condo association's financial health, inspection status, and financing profile is as important as evaluating the unit itself. Connect before you make an offer — the due diligence process on a condo requires specific steps that differ from a single-family transaction.