If you are buying a condo in Boca Raton, Delray Beach, or anywhere else in Palm Beach County, the age of the building now matters as much as the unit itself. Two Florida requirements that came out of the Surfside collapse in 2021 decide how a building is inspected and how its repairs get funded. Both leave a paper trail that a lender will read before it approves your loan.

This guide walks through what each requirement does, which buildings they cover, and how the results show up in a mortgage file. It is general information, not legal advice, and it is not a substitute for the association’s documents or your own inspections.

Two Rules, Not One

Buyers often use “milestone inspection” and “reserve study” as if they were the same thing. They are separate requirements with separate reports.

The milestone inspection lives in Florida Statutes section 553.899. It is a structural inspection of the building performed by a licensed architect or engineer. It answers a safety question: is the structure sound, and does anything need repair?

The structural integrity reserve study, usually called a SIRS, lives in section 718.112(2)(g) of the Condominium Act. It is a visual inspection of specific components plus a funding plan. It answers a money question: what will these components cost to replace, and how much should the association collect each year to pay for them?

A building can be current on one and behind on the other. When you review a condo file, check both.

Which Buildings Are Covered

The milestone inspection applies to a building that is three or more habitable stories in height under the Florida Building Code and is subject, in whole or in part, to condominium or cooperative ownership. Section 553.899 does not apply to a single-family, two-family, three-family, or four-family dwelling with three or fewer habitable stories above ground. Floor area used only for parking, storage, or mechanical equipment generally does not count toward the habitable story count.

The timing runs off the certificate of occupancy. A covered building must be inspected by December 31 of the year it reaches 30 years of age, and every 10 years after that.

There is a local wrinkle that matters in South Florida. Under section 553.899(3)(b), the local enforcement agency may determine that local circumstances, including environmental conditions such as proximity to salt water, require the inspection at 25 years instead of 30. That decision belongs to the city or county building department, so two buildings of the same age in different jurisdictions can be on different schedules. The current statute does not set a fixed distance from the coast. The trigger is the local agency’s determination. If you are buying near the water, ask the building department what schedule it has set rather than assuming 30 years.

The catch-up deadlines from the original 2022 law have both passed. A building that reached 30 years of age before July 1, 2022 had to be inspected before December 31, 2024. A building that reached 30 between July 1, 2022 and December 31, 2024 had to be inspected before December 31, 2025. The 2026 Florida Statutes contain no further extension of those dates.

The SIRS covers residential condominium buildings three habitable stories or higher. Unit owner controlled associations that existed on or before July 1, 2022 had a general deadline of December 31, 2025. The statute also allows an association that must complete a milestone inspection on or before December 31, 2026 to complete the SIRS at the same time, but in no event after December 31, 2026. An association that has already completed a milestone inspection may delay the study for up to the two consecutive budget years following that inspection.

What Happens During a Milestone Inspection

The process has fixed steps and deadlines.

Notice. The local enforcement agency sends written notice to the association by certified mail. The association then has 14 days to notify unit owners and give them the date the inspection must be completed.

Phase one. A licensed architect or engineer performs a visual examination of habitable and nonhabitable areas, including the major structural components, and provides a qualitative assessment. Phase one must be completed within 180 days after the owners receive the notice. If the inspector finds no signs of substantial structural deterioration, the inspection ends there.

Phase two. If phase one finds substantial structural deterioration, phase two is required. It may involve destructive or nondestructive testing and produces recommendations for repair. The statutory definition of substantial structural deterioration excludes ordinary surface conditions like cracking, sagging, or peeling finishes unless the inspector determines they signal something structural.

Reporting. The inspector submits a sealed report to the association and to the local building official. The association must distribute the inspector-prepared summary to every owner within 45 days, post it conspicuously on the property, and publish it on the association website if the association is required to have one.

Repairs. If a phase two report identifies substantial structural deterioration, repairs must be commenced within 365 days after the report is received. Local governments adopt ordinances setting the schedule. If the association cannot show the work has been scheduled or started, the local enforcement agency must review whether the building is safe for occupancy.

What the Reserve Study Actually Says

The SIRS is narrower than a full engineering report and broader than a routine budget line. It must cover, at a minimum, the roof, the structure including load-bearing walls and primary structural systems, fireproofing and fire protection systems, plumbing, electrical systems, waterproofing and exterior painting, windows and exterior doors, and any other item with a deferred maintenance or replacement cost above the statutory threshold that affects those systems.

For each item, the study states the estimated remaining useful life and the estimated replacement cost or deferred maintenance expense. It then provides a reserve funding plan with a recommended annual amount. The visual inspection portion must be performed or verified by a licensed engineer, a licensed architect, or a certified reserve specialist or professional reserve analyst.

The financial consequence is the part buyers underestimate. When an association is required to have a SIRS, section 718.112(2)(f) requires reserves to be maintained for the items the study covers, based on the study’s findings, and the statute does not let the association vote those reserves away. A transition rule let some associations adopt budgets before the end of 2024 with less than the recommended funding, but the Department of Business and Professional Regulation’s guidance is that SIRS funding begins with the 2026 budget year. Budgets adopted on or after January 1, 2025 do not carry the waiver option.

In practical terms, a building that spent 20 years underfunding its reserves can see a sharp jump in monthly dues once the study’s numbers reach the budget.

Why Reserve Shortfalls Turn Into Special Assessments

Reserves are collected gradually. Repairs are not gradual. When a roof, a seawall, a parking garage, or a full building waterproofing project comes due before the reserve account can cover it, the association has a limited set of options: raise regular assessments, take a loan or line of credit, or levy a special assessment on owners.

A special assessment is a one-time charge, sometimes payable in installments. For a buyer, it can arrive in three forms:

Already approved and being collected. The current owner may owe the remaining balance, and the estoppel or closing statement should show it.
Approved but not yet billed. These show up in board minutes and in the project questionnaire long before they show up on a statement.
Not yet approved but likely. This is the hardest to document. A SIRS that identifies large unfunded items, or a phase two report recommending repairs, is the clearest warning sign.

Do not assume the seller absorbs a special assessment. In Florida practice, who pays is set by the contract, and it is a negotiation point you should raise before signing rather than after.

How This Shows Up in Your Mortgage File

Conventional condo loans go through a project review, and the review is where these documents land. Under Fannie Mae’s project standards, a few points matter most.

Critical repairs. A project in need of critical repairs is ineligible. The definition includes material deficiencies that could cause a system failure within a year, mold or water intrusion, advanced physical deterioration, a project that failed a state or local mandatory structural inspection, and unfunded repairs costing more than $10,000 per unit that should be undertaken within the next 12 months. Routine maintenance and repairs funded through an approved special assessment within guidelines are treated differently.

Inspection reports. If a structural or mechanical inspection was completed within three years of the lender’s project review date, the lender must obtain and review the report. It cannot show unaddressed critical repairs, an evacuation order, or a required regulatory action. If it does, the project stays ineligible until the work is done and documented.

Special assessments. Lenders must review each current or planned special assessment, including its purpose, amount, remaining balance, and payoff date, and determine whether it addresses a critical repair. A special assessment tied to an unremediated critical repair is a problem, not a rounding error.

The budget and the payment. HOA dues count in your debt-to-income ratio. A budget that shows rising reserve contributions, or an assessment running alongside the regular dues, changes what you qualify for. That is why the same purchase price can produce two different approvals in two different buildings.

The resale package. Under section 718.503, a buyer who has a contract is entitled, at the seller’s expense, to the inspector-prepared summary of the milestone inspection report if applicable, and the association’s most recent SIRS or a statement that one has not been completed. Contracts entered after December 31, 2024 must include specific conspicuous statements about the status of these items. Read them. A statement that a required study has not been completed is information, not boilerplate.

If the building does not fit agency project standards, the financing conversation shifts to portfolio and non-agency options. That is a different loan with different pricing and terms, not a dead end. We cover those mechanics in non-warrantable condo loans in Boca Raton and in what can slow down condo financing.

What to Request Before Your Inspection Period Ends

Ask for these in writing, early, ideally before you make an offer:

The inspector-prepared summary of the most recent milestone inspection report, including any phase two report.
The most recent SIRS, not just a summary in the agent’s remarks.
The current approved budget and the most recent year-end financial statement, including the reserve schedule.
A statement of any approved, planned, or discussed special assessment, with amounts and payment terms.
The minutes of the last several board meetings. Structural repairs and assessments usually appear there first.
The project questionnaire once the lender sends it. Review the reserve and assessment answers against the documents above.
The HOA estoppel, which shows dues, assessments, and delinquency status for the unit.

Read the phase one report for what it recommends, and read the SIRS for the gap between recommended funding and actual reserves. A well-maintained building with a clean phase one report and a funded reserve plan reads very differently from a building with a phase two report and a study showing large unfunded items.

What This Does Not Mean

An inspection is not a warranty. A phase one report that finds no substantial structural deterioration does not promise the building will stay problem free, and it does not replace your own unit inspection. A SIRS is an estimate, and estimates move with construction costs.

It also does not mean every older condo is a financing problem. Plenty of Boca Raton and Palm Beach County buildings completed their inspections, funded their reserves, and finance normally. The point is to read the record instead of assuming either outcome.

Frequently Asked Questions

Does a 30-year-old condo automatically need a milestone inspection?

Only if it is a condominium or cooperative building with three or more habitable stories and the certificate of occupancy shows it has reached the trigger age. Smaller residential buildings are excluded. In some jurisdictions the local building department applies a 25-year trigger based on proximity to salt water, so confirm the schedule locally.

Can the association vote to skip funding the reserve study?

For the items the study covers, the statute requires reserves to be maintained and does not allow the association to waive them. A transition rule allowed some budgets adopted before the end of 2024 to fund less than recommended, but that path has closed for later budgets.

Will a special assessment stop my loan from closing?

Not automatically. It depends on what the assessment pays for, whether the work is a critical repair, and whether it is already funded or being collected. A special assessment for routine capital work handled within the project’s guidelines is treated differently from one covering an unremediated structural repair.

Can I buy a condo that failed its milestone inspection?

A project that failed a mandatory structural inspection is ineligible for standard agency financing until the repairs are completed and documented. Some buyers wait for the work to be finished. Others use non-agency financing or choose another building. The right answer depends on the scope of repairs and your timeline.

Do FHA and VA loans use the same project rules?

No. FHA and VA each have their own project approval or review processes, and they do not track Fannie Mae’s project standards line for line. A building that works for one program may not work for another, which is one reason to compare programs before you fall in love with a unit.

Where can I confirm a building’s inspection schedule?

Start with the city or county building department that enforces the Florida Building Code for that address, and with the association’s posted records. The Department of Business and Professional Regulation also publishes condominium guidance and reporting information.

Next Steps

If you are considering a condo in Boca Raton, Delray Beach, Boynton Beach, or elsewhere in Palm Beach County, we can review the project documents alongside your pre-approval so you know how the building’s inspection and reserve history affects your financing before you are under contract. That conversation is usually cheaper than discovering the issue during underwriting.

Get pre-approved with MJS Financial, or run your numbers with our mortgage calculator to see how HOA dues affect the payment. If you are still deciding between loan types, our conventional loan page covers the standard project review path. Call MJS Financial at 561-212-0002 to talk through a specific building.

This article is general information for Florida buyers, not legal advice or a promise of financing. Project eligibility rules, statutes, and local requirements change. Confirm current requirements with the association, the local building department, and your lender before you rely on them.