Florida Condo Reserve Law Changes: What Buyers Need to Know About SB 4-D

Florida's condo landscape changed dramatically after the tragic Champlain Towers South collapse in Surfside in 2021. In response, the Florida Legislature passed Senate Bill 4-D in 2022, followed by additional legislation in 2023, 2024, and 2025. These laws rewrote the rules for how older condominium buildings are inspected, how reserves are funded, and what associations must disclose to buyers. If you're considering purchasing a condo in the Bradenton-Sarasota area, understanding these changes is essential.

What Is SB 4-D?

Senate Bill 4-D, signed into law in May 2022, established mandatory milestone structural inspections and structural integrity reserve studies for residential condominium and cooperative buildings that are three or more habitable stories in height. The law was designed to prevent another catastrophic building failure by requiring regular professional assessments of aging buildings and ensuring associations set aside adequate funds for critical structural repairs.

Since its passage, the Legislature has refined the law through subsequent bills including SB 154 in 2023, HB 1021 in 2024, and HB 913 in 2025, adjusting deadlines and clarifying requirements. Together, these laws represent the most significant overhaul of Florida condo regulations in decades.

Milestone Structural Inspections

Under the current law, every covered building must undergo a milestone inspection by December 31 of the year it turns 30 years old, based on its certificate of occupancy date. After the initial inspection, the building must be re-inspected every 10 years. The inspection must be performed by a licensed engineer or architect and has two phases: a visual examination and, if deterioration is found, a detailed investigation with testing.

Structural Integrity Reserve Studies

In addition to milestone inspections, associations must now complete a Structural Integrity Reserve Study at least every 10 years. The first SIRS deadline was December 31, 2025. The study must cover critical building components including the roof, load-bearing walls, foundation, floor systems, plumbing, electrical systems, waterproofing, and any other item with a deferred maintenance expense or replacement cost exceeding $10,000.

Starting in 2025, condo associations can no longer waive or reduce reserves for the structural components identified in the SIRS. This is a major change from prior practice, where many Florida associations routinely voted to underfund reserves to keep monthly dues artificially low. The result is that many associations have had to significantly increase their monthly assessments.

What This Means for Buyers

If you're buying a condo in a building that is 25 years old or older, request and review the milestone inspection report and the SIRS before making an offer. These documents tell you about the building's structural condition and whether the association has adequately funded its reserves for future repairs.

Buildings that have not completed their required inspections or reserve studies may face enforcement action, and units in those buildings may be difficult or impossible to finance. Lenders are increasingly scrutinizing condo association financials and requiring documentation of compliance with the new laws before approving mortgages.

Special Assessments and Rising Fees

One of the biggest financial impacts of SB 4-D is the wave of special assessments hitting condo owners across Florida. Associations that deferred maintenance for years are now required to fund those repairs immediately. In some buildings, special assessments have reached $30,000 to $75,000 per unit or more, with some exceeding $100,000 for major structural and waterproofing projects.

As a buyer, always ask about any pending, current, or anticipated special assessments. Review the association's most recent budget, reserve study, and meeting minutes. Under Florida Statute 718.503, these assessments must be disclosed to buyers in the condo questionnaire and estoppel certificate.

How to Protect Yourself

Before purchasing a condo in Florida, take these steps. Request the milestone inspection report and SIRS before making an offer. Review the association's reserve fund balance and compare it to the SIRS recommendations. Ask about any pending or anticipated special assessments. Check whether the building's insurance meets current requirements. Verify that the building is warrantable for conventional financing.

Working with an experienced local agent who understands Florida's evolving condo regulations can save you from costly surprises. John Belt with Keller Williams On The Water stays current on all Florida condo law changes and can help you evaluate any condo purchase in the Bradenton-Sarasota area. Contact John for expert guidance before you buy.