Florida's post-Surfside condo laws — SIRS reserve studies, milestone inspections, and the ban on waiving structural reserves — have reshaped condo lending. Here's what buyers in Cape Coral, Fort Myers, Naples, and Marco Island need to know before making an offer.
Following the 2021 Surfside collapse, Florida enacted sweeping condo-safety laws that are now in full effect. Two rules matter most for buyers:
1. Structural Integrity Reserve Studies (SIRS) — Under Florida Statute 718.112(2)(g), condo and co-op associations with buildings three or more habitable stories must complete a SIRS at least every 10 years. It sets required reserve funding for eight major structural components. Critically, for budgets adopted after December 31, 2024, associations can no longer vote to waive or reduce reserves for those structural components — full funding was required as of January 1, 2026.
2. Milestone Inspections — Under Statute 553.899, buildings three or more stories tall must undergo a structural milestone inspection, generally at 30 years of age (25 where locally required) and every 10 years thereafter. A Phase 2 finding can trigger mandatory repairs within a year — and the special assessments that come with them.
Lenders check whether the association funds its structural reserves. Underfunding can block conventional financing.
Pending or likely special assessments affect both approval and your real cost of ownership.
Fannie/Freddie warrantability depends on reserves, SIRS, milestone status, insurance, and litigation.
When a project doesn't fit agency rules, portfolio and non-QM lenders can still finance the unit.
The costliest mistake in a 2026 Florida condo purchase is going under contract, waiting weeks, and then discovering the association can't pass lender review. Mike front-loads that risk:
You get a clear read on the building's health and a loan that fits it.
After the 2021 Surfside collapse, Florida now requires milestone structural inspections and Structural Integrity Reserve Studies (SIRS) for condo buildings three or more habitable stories, and it banned associations from waiving reserves for major structural components. Lenders review this. If an association is underfunded or has open structural findings, the project can be hard to finance until it's resolved.
A Structural Integrity Reserve Study (under Florida Statute 718.112) sets required reserve funding for key structural components — roof, load-bearing walls, fire protection, plumbing, electrical, waterproofing, windows, and exterior doors. Lenders (and Fannie Mae/Freddie Mac) care because an underfunded association signals risk of large special assessments, which affects the value and safety of their collateral.
Separate from the SIRS, Florida's milestone inspection law (Statute 553.899) requires a structural safety inspection of condo buildings three or more stories tall — generally at 30 years of age (or 25 where locally required), and every 10 years after. A failed Phase 2 inspection can trigger mandatory repairs and special assessments.
Yes — many SW Florida condos finance without issue. The key is checking the association's warrantability early: its reserves, budget, any SIRS findings, milestone status, and litigation. Mike vets the project up front so you don't spend weeks under contract only to hit a financing wall at underwriting.
A special assessment is a one-time charge an association levies on owners to cover a shortfall — often structural repairs the reserves didn't fully fund. In Florida these have run from a few thousand to well over $100,000 per unit in severe cases. Knowing whether one is pending or likely is essential before you buy, and it can be a negotiation point.
Yes. When a condo project doesn't meet standard Fannie/Freddie warrantability, there are portfolio and non-QM lenders that specialize in non-warrantable condos. The terms differ, but it means a great unit in an imperfect association isn't automatically off the table. Mike shops these programs as part of his 100+ lender network.
Mike reviews the association's reserves, SIRS, and milestone status before you're locked in — then finds financing that fits the building.