Milestone Inspections and SIRS
The "Milestone Inspections and SIRS" page on the Board Synergy Club's website provides an overview of Florida's legislative requirements for condominium associations concerning building safety and financial preparedness. Key points include:
- Milestone Inspections: Mandatory for all condominium buildings three stories or higher and over 25 years old. These inspections aim to assess structural integrity and must be completed by December 31, 2024.
- Structural Integrity Reserve Study (SIRS): Condominium associations are required to conduct a SIRS every ten years for each building three stories or higher. This study evaluates the funding necessary for future major repairs and maintenance of structural components.
These measures were introduced following the 2021 Surfside condominium collapse to enhance building safety and ensure associations allocate adequate reserves for structural maintenance.
For comprehensive details on these requirements, including deadlines and procedures, please refer to the official resources provided by the Florida Department of Business and Professional Regulation.
From 2024-05-24 Seacrest Update
Since the passing of SB 154 and SB 4D, there has been some confusion regarding which associations these requirements apply to. Simply put, these inspections are required only for those associations that are three stories or higher as described in the bill. These requirements do not apply to the one (1) or two (2) story buildings at this time.
Although the requirement is not mandatory, it has always been recommended that every building consider having an Engineering Inspection and Reserve Study performed to ensure that the Associations are collecting enough Reserve Income to mitigate the need for Special Assessments to fund projects for the building.
But for those who must have these inspections performed, you have a deadline of December 31, 2024, to have these completed. The Milestone Inspection is mandatory for all structures three (3) stories and above that are over twenty-five (25) years of age. This age limit encompasses all the applicable buildings in Century Village. The Milestone inspection is composed potentially of two separate phases, as needed.
Phase 1:
This initial inspection of the property is to determine what damage is present on the structure, which is conducted by either a licensed engineer or, as of 2023, a team of personnel trained by the engineer to report back their findings. This inspection would be a visual inspection of the structure of the building.
Should the engineer find that there are no structural issues with the building, the Association will not need to proceed with the second Phase and the Milestone inspection report will be prepared.
Phase 2:
Should the first phase indicate that further, invasive, investigations be conducted, the engineer will notify the Association that a number of tests may be conducted. Within one hundred and eighty (180) days of this inspection, the engineer report will be submitted to the Local Enforcement Agency.
Regardless of the findings of the inspection, the engineer report will need to be sent to every unit owner of the Association within forty-five (45) days of receipt, either by US mail or electronically if allowed by those unit owners. A copy of the report must be posted conspicuity at the building, and should the Association have a website, it must be posted where unit owners may access the report.
Following the Milestone Inspection, the Structural Integrity Reserve Study (SIRS) will need to be completed. The purpose of the Reserve study is so that the Association will appropriately budget their Reserve Income to collect the replacement cost of the structural portions of the building. These projects will need to be collected on a “Fully Funded” schedule, meaning that the funds will be collected over the remaining useful life of the project, and unit owners will not be able to waive or reduce the funding of these projects.
The Structural projects of the building would be the following:
- Roofing
- Structural Systems
- Fireproofing & Fire Safety
- Exterior Painting and Water Proofing
- Plumbing
- Electrical Systems
- Windows and Exterior Doors (that belong to the Association)
- Other elements over $10,000 that are considered “Structural”
For more information, please visit the following articles:
View article here.
May 13, 2024
I’m thinking about that condo President, perhaps but not necessarily in a 55 and over community, who has been on the board for over 10 years. He or she has put in countless hours for the community and hasn’t been paid a dime. For the last decade, every day the residents of the community wave and say hello and thank g-d that he or she is handling the affairs of the condominium and not them.
Over the years, the assessments have gone up slightly each year, and would agree that the President is doing his or her best to keep the assessments down. They are thankful that they waived the funding of reserves year after year. Things are generally good.
Well………….it’s time for that President to get ready. The mood in the community is about to change, especially if the condominium is 3 stories or more.
The tragedy in Surfside at The Champlain Towers where 98 men, women and children died in that horrible building collapse has changed Florida condominium law forever. It’s about to get a lot more expensive to live in a 3 story or higher condominium. Those who don’t understand the law or don’t want to understand the law are going to do the one thing they can do and know how to do ……blame the board. Scream at the President. Disrupt Board meetings. Make terrible accusations about stealing money. It’s all coming Board members, so be aware!
What do we know? Condominiums 3 stories or higher now have to go through structural Milestone Inspections when the condo hits 30 years of age and every 10 years thereafter. In Dade and Broward, height doesn’t even matter. In Miami-Dade condominiums must go through electrical and structural “recertifications” if the condo is 2,000 square feet. In Broward, the condominium must go through “recertifications” of structural and electrical if the building is 3,500 square feet. These inspections aren’t cheap. But wait…..what happens if these inspectors (architects or engineers) find structural or electrical problems in the condominium(s)? Now it costs money to fix these problems. Sometimes it’s a lot of money. A real lot of money.
Then we move on to reserves. Condos three stories or higher have to have mandatory full reserve funding starting with the 2026 budget. That’s really right around the corner. The first thing that is required is an examination of the property by an architect, engineer or a person with CAI credentials. This is called a structural integrity reserve study which will include many categories that the condominium will now have to reserve for. This reserve study must be completed by December 31st, 2024. The amount to be reserved in the budget will no longer be determined by the Board, but by the person who performed the study. By the way……this reserve study is not free. If you have not funded your reserve accounts over the years and have not made repairs to the condo in a while, your new monthly payment for mandatory reserves may be a shocking number. Again……it’s the Board members who will get the blame. It always is.
So there you have it. A quick break down of what lies ahead throughout the state. If you’re a Board member who doesn’t have the stomach to do what the law requires because you know the fighting that will ensue in the community, now is the time to step aside. You are thanked for the time you already put in. Now is the time to have Board members who understand both what the law requires of the condominium, the ability to follow through on the law’s requirements, and the maturity and perhaps compassion to stand there and take some abuse from the unit owners. Their frustration will be obvious as the financial costs to remain in their condominium continue to rise. Despite the chaos, you must remain calm and level headed. It’s going to be pretty difficult to be a condominium Board member over the next few years. Are you up to the task?
Written by Eric Glazer, Esq.
Thank you for joining Campbell Property Management, Scott Harvey-Lewis and Corey Pruneski from Building Mavens for this "Milestone Inspections and SIRS “Need-to-Knows”" Webinar. This recording is from August 21st, 2024 and was hosted on Zoom.
Learn how this impacts your community association.
To learn more, please visit: Campbellmgt.com
