Do not stop at “the study is complete.” Ask what it recommends, how the association is funding that recommendation and whether the physical work is being completed when needed.
Milestone inspections and SIRS answer different questions
A milestone inspection evaluates an aging building's structural condition. A SIRS studies specified components and the funding needed for maintenance and replacement. One can identify work that informs the other, but neither is a generic certificate that guarantees a building is safe, financially sound and mortgage eligible.
| Record or issue | ** What it helps establish** | ** What remains to check** |
|---|---|---|
| Milestone report | Structural findings and required follow up | Completion and acceptance of any required work |
| SIRS | Component costs, useful lives and funding plan | Actual funding and updates when assumptions change |
| Adopted budget | Current planned collections and expenses | Whether it implements the study and covers other needs |
| Reserve bank and financial records | Money actually held or committed | Restrictions, near term spending and shortfalls |
| Unit's current assessment statement | What this owner currently pays | Upcoming changes and project wide obligations |
Use the condo approval guide for the overall financing process and the assessment article for a specific new charge.
Which buildings are covered?
Florida's milestone law generally applies to covered residential condominium and cooperative buildings with at least three habitable stories, with an initial inspection at thirty years and recurring ten year inspections. A local enforcement agency can require the first at twenty five years based on local circumstances. Statutory exceptions and transition deadlines also apply. [1]
Section 718.112 requires covered residential condominium buildings of at least three habitable stories to have a SIRS on the statutory cycle. The rules address specified components, funding and updates; they do not reduce the review to the age of the roof alone. [2]
Have the association and local building department confirm applicability, building age, notices, due dates and any exemption. A three story looking structure is not a legal determination of habitable stories. A low rise building outside a particular inspection requirement can still need significant repairs or fail a lender's project review.
Be precise about the SIRS deadlines
For covered unit owner controlled associations existing by July 1, 2022, the initial SIRS deadline was December 31, 2025. A qualifying association with a milestone inspection due by December 31, 2026 may complete the study with that inspection, subject to the December 31, 2026 limit described in the statute and DBPR guidance. [2][3]
That is not a blanket statement that every association received an extra year. Request the association's explanation and supporting documents if it relies on that timing provision.
Because these dates can already have passed when a buyer reads this article, ask for the actual completed reports and current compliance status. An old promise that a study is scheduled is not a substitute for a report that is now due.
Read the funding schedule with the budget
Locate the components, estimated remaining useful lives, replacement or deferred maintenance costs, existing reserve balances and recommended contributions. Identify what is due soon and whether the recommendation assumes increases in collections or future borrowing.
Compare that schedule with the adopted budget and latest financial records. A large reserve balance may be committed to work about to begin. A small balance can be part of a funded plan, but that requires evidence rather than reassurance.
Ask whether the study has been updated for completed repairs, changed costs or the funding method actually chosen. The statute addresses updating the study when selected financing changes the schedule. [2] A loan approved after the original study can change future association payments and the cash available for other components.
Include expenses outside the SIRS. Insurance, routine operations and other common facilities can create additional dues increases even when the structural reserve recommendation is being funded.
A legal funding plan may still fail the mortgage review
Florida law permits defined funding methods and conditional flexibility. That does not compel a mortgage investor to accept the resulting reserve plan.
Fannie Mae's Lender Letter LL-2026-03 discontinued the Limited Review route for applications dated on or after August 3, 2026 and changed reserve study requirements. A baseline funding study cannot be used under its reserve study flexibility for those applications. The letter also increases its Full Review minimum reserve allocation from 10% to 15% for applications dated on or after January 4, 2027. [4]
Those effective dates matter. As of this article's October 2026 review, the baseline change is already effective and the 15% change is upcoming. The lender must apply the requirements for the actual application and review route; a state accepted SIRS does not automatically qualify for the agency's reserve study alternative.
Ask the lender to review the actual study and budget. Do not multiply a budget by one percentage and declare the project eligible. Financial adequacy, physical condition, insurance and other project requirements remain relevant. [5]
A reserve increase changes the real housing payment
Suppose a hypothetical fifty unit association currently collects $600 monthly from each unit, using an equal allocation solely for this example. Its annual collections are $360,000. Of that, $30,000 is allocated to the relevant reserves, while $330,000 supports other budgeted uses.
Assume the updated accepted funding plan requires $150,000 annually for those reserves and all other costs remain unchanged. Total collections must become $480,000. That is $800 per unit monthly, an increase of $200, if every owner has the same share.
| Buyer budget item | ** Current collections** | ** Revised funding illustration** |
|---|---|---|
| Mortgage, taxes and individual insurance | $2,500 monthly | $2,500 monthly |
| Association payment | $600 monthly | $800 monthly |
| Total before other ownership costs | $3,100 monthly | $3,300 monthly |
| Additional annual cash required | None versus current amount | $2,400 |
Actual allocations follow the declaration and adopted plan, not necessarily an equal division. The example does not claim that a SIRS must produce these figures or that a percentage minimum overrides a larger documented need.
If a separate $600,000 repair shortfall were divided equally among the same fifty units, the simple allocation would be $12,000 each. Whether that is collected at once, through installments or association financing determines the actual payment and timing. Do not add that amount to the first example unless it is a separate, nonduplicated obligation.
Ask who pays when the plan changes
Identify approved dues increases, special assessments and association loan payments before relying on a listing's monthly fee. Ask whether the current budget is a transition arrangement and when the next one will be adopted.
The lender determines the payment used for qualification. Your personal forecast should also include documented upcoming costs and an allowance for uncertainty. Passing the current debt ratio does not establish that next year's fee is comfortable.
For a purchase contract, have the agent and attorney review allocation of adopted and potential assessments and the time available for document review. A seller paying one charge does not promise there will be no more.
Documents to obtain before the buyer's deadlines
Request the complete latest SIRS and updates, adopted and proposed budgets, recent financial statements, reserve balances, meeting minutes, milestone reports and related notices, engineering recommendations, repair contracts and completion evidence.
Add assessment schedules, association borrowing terms and master insurance information. Ask the lender which questionnaire and direct responses it requires. The condo due diligence guide organizes the full package.
Compare dates across the records. A new study paired with last year's budget and an older financial statement may leave the funding question unanswered. Ask for an explanation of any difference rather than treating the newest cover date as sufficient.
Set review checkpoints before waiving protections
Before the financing deadline, confirm that the lender has the applicable inspection and reserve records and has identified unresolved project conditions. Before the inspection period ends, obtain professional advice on physical findings affecting the purchase.
Before closing, reconcile the current dues, effective increases, assessment allocation, required payoff and cash remaining. Negotiate an extension before a deadline expires if needed; do not assume document delays automatically preserve contractual rights.
Standard and specialized financing
Begin with the selected conventional, FHA or VA project process. Each route needs its own eligibility review. A previously financed unit does not establish approval for your application date and current project facts.
Some portfolio or non warrantable products accept particular project exceptions. Obtain a written assessment of the actual reserve and repair issue before comparing those terms. Specialized financing is not a guarantee that an unresolved structural problem is acceptable.
If the available loan is costly or temporary, evaluate future sale and refinance options and the association's actual repair plan. Waiting for documented completion or selecting another building may be the better answer.
Questions about reserves and SIRS
Does a completed study mean the association is fully funded?
No. Review the recommendation, current balances, approved contributions and timing of the work. A study can be the document that reveals a shortfall.
Are low monthly dues always a benefit?
Only if they support the property's actual obligations. A low current bill paired with deferred funding can shift the cost to future assessments.
Does an exemption from SIRS establish mortgage eligibility?
No. Physical condition, financial adequacy and other applicable project requirements still need review. The exemption answers a specific legal applicability question.
Look at the next budget before choosing the unit
When a building has an upcoming funding decision, I want to compare today's payment with the one the documented plan requires. That gives you a useful ownership budget before you become responsible for the association's next collection.
Bring the study, current budget, reserve balances and proposed increases. We can identify the financing questions and cash exposure while there is time to get the association's answers.
Sources
- Reviewed October 17, 2026. Confirm current law and transaction requirements.