In This Guide
Florida's 2026 condo crisis is driven by post-Surfside laws (SB 4-D, 2022; HB 913, 2025) that require SIRS structural reserve studies and banned reserve waivers for SIRS components as of December 31, 2024. A February 2025 report found 56% of Miami-Dade condo associations had missed the original December 31, 2024 SIRS deadline. Special assessments of up to $400,000 per unit have landed on owners in at least one Aventura building. Before buying, check three inputs to the GoverningDocs Warrantability Checklist: the SIRS report, the reserve funding level, and milestone inspection status.
You've found a beachfront Florida condo at what looks like a bargain price. But that "deal" could come with a $100,000+ special assessment bill that arrives months after you close.
Florida's condo market is in the middle of a structural safety reckoning. New laws passed after the 2021 Surfside collapse now require buildings to complete Structural Integrity Reserve Studies (SIRS), fund mandatory reserves, and fix decades of deferred maintenance. The result: a wave of special assessments hitting owners and buyers who didn't see it coming. As of May 2025, median Florida condo prices had fallen about 8% from their peak, down 4.5% year over year, according to TD Economics.
Some buildings are handling it well. Others are passing six-figure assessments to unit owners. The difference between a smart purchase and a financial disaster comes down to knowing what to check, and this guide shows you exactly what to look for.
What's Happening in Florida's Condo Market
Post-Surfside laws (SB 4D, HB 913) now require SIRS reports and mandatory reserve funding. For budgets adopted on or after December 31, 2024, reserve waivers are banned. A February 2025 report found 56-72% of associations in Miami-Dade, Broward and Palm Beach had missed the original December 31, 2024 SIRS deadline.
In June 2021, the Champlain Towers South collapse in Surfside killed 98 people and exposed a systemic problem: Florida condos had been deferring structural maintenance for decades, and the state had no mechanism to enforce repairs.
Florida's legislature responded with two landmark laws:
- SB 4D (2022): Required Structural Integrity Reserve Studies (SIRS) for buildings 3+ habitable stories, covering mandatory structural components, and barred owners from waiving those reserves for budgets adopted on or after December 31, 2024
- HB 913 (2025): Extended deadlines, tightened how reserve funds already collected may be spent, and added buyer protections including a 7-day review period
The December 31, 2024 budget cutoff was the inflection point. Associations can no longer vote to waive or reduce reserve contributions for the 8 SIRS components. Buildings that deferred maintenance for 20+ years now have to fund it all at once, and the bills are staggering. If you already own a Florida condo facing a SIRS assessment, see what options owners have.
A February 2025 Miami Realtors report shows how far behind buildings were at the original December 31, 2024 deadline (source: Condo Vultures / Miami Association of Realtors, Feb 2025):
| County | Finished SIRS by Dec. 31, 2024 | Had Not Finished |
|---|---|---|
| Miami-Dade | 44% | 56% |
| Broward | 41% | 59% |
| Palm Beach | 28% | 72% |
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Or get your first full report free →The Numbers That Should Scare You
Special assessments of up to $400,000 per unit have hit owners at one Aventura building. Our analysis of 38 SIRS reports found 26.9% of HOAs are critically underfunded below 30%.
Real special assessment amounts hitting Florida condo owners
These aren't hypothetical numbers. Real Florida condos are passing real assessments right now (sources: Brosda & Bentley, Yahoo Finance, reporting the Wall Street Journal). Rows marked * come from neither source: the Whitehall figure and the statewide range are illustrative of what owners are seeing, not a documented case or a published statistic.
| Building | Location | Assessment |
|---|---|---|
| Mediterranean Village | Aventura | Up to $400,000/unit |
| The Cricket Club | North Miami | $30 million building-wide |
| Williams Island (retired couple) | Aventura | $224,000/unit |
| Whitehall Condos | Palm Beach | $800/month increase* |
| Average older condo | Statewide | $30,000-$80,000 risk* |
The market impact is already visible:
- Average sale prices down 21% for South Florida condos 30+ years old, from 2023 to the third quarter of 2024 (Bisnow, reporting an ISG World study)
- HOA fees up 17.2% year over year in Tampa, the steepest of the 43 metros measured, against a 5.7% median (Redfin)
- 92.5% of Miami condos sold below their original list price in February 2025 (Maco Realty Group)
Other findings from our SIRS analysis:
- $10.1 million in total replacement costs identified across the sample
- 45% of components due for replacement within 10 years
- 92.1% of reports documented structural issues requiring attention
Based on GoverningDocs analysis of 38 Florida SIRS reports.
Why This Is Happening Now
For any budget adopted on or after December 31, 2024, Florida bars owners in buildings that need a SIRS from waiving reserves for 8 mandatory structural components. This ended decades of HOAs voting to skip reserve contributions. Over 1 million of Florida's 1.5 million condos are 30+ years old with deferred repairs now requiring immediate funding.
Florida's condo crisis didn't happen overnight. It's the result of decades of deferred maintenance colliding with new enforcement:
- Decades of waived reserves: Florida law previously allowed owners to vote to waive or reduce reserve contributions. Many associations did exactly that, keeping monthly fees artificially low while buildings aged.
- Over 1 million condos are 30+ years old: Florida has approximately 1.5 million condo units, and more than 1.1 million were built before the mid-1990s (Florida Policy Project). These buildings are now reaching the age where major structural components need replacement.
- Insurance costs far above the national average: Florida's property insurance market has been in crisis, with premiums far exceeding what associations budgeted for. Many buildings face non-renewal or dramatically higher rates.
- Structural repairs can no longer be deferred: The SIRS requirement means buildings must inspect and fund repairs for roofs, structural systems, fireproofing, plumbing, electrical, waterproofing, and windows/exterior doors.
What Buyers Must Check Before Making an Offer
Before buying a Florida condo, verify SIRS completion status, reserve funding percentage, pending special assessments, milestone inspection results, and insurance coverage changes.
SIRS compliance rates vary widely across South Florida counties
Five things to verify before you make an offer on any Florida condo:
1. SIRS Report Status
Ask: "Has the association completed its SIRS?" If the building is 3+ stories, a SIRS is required by Florida law. If it hasn't been completed, you're buying into unknown structural and financial risk.
2. Reserve Funding Level
The single most important number. Under 50% funded means special assessments are likely. Under 30% means they're almost certain. Our research found 26.9% of Florida HOAs fall into that critical zone.
Related: How to Read a Reserve Study in 5 Minutes →
3. Pending or Planned Special Assessments
Ask the seller, the HOA, and your agent directly. Check the last 12-24 months of board meeting minutes for any discussion of assessments, fee increases, or major repair projects.
Related: Understanding HOA Special Assessments →
4. Milestone Inspection Results
Condo buildings three stories or taller must complete a Milestone Structural Inspection once they reach 30 years old, and some coastal counties require it at 25 years, because the statute lets the local enforcement agency set an earlier age based on proximity to salt water. Ask your county which applies. Ask for the results. Phase 2 inspections (required when Phase 1 finds issues) are particularly important: they detail specific structural problems and repair costs.
5. Insurance Coverage and Premium Changes
Florida's insurance crisis compounds the condo crisis. Ask about recent premium increases, coverage reductions, and whether the building has had any difficulty renewing policies. Inadequate insurance is both a red flag and a cost risk.
Red Flags That Should Make You Walk Away
Walk away if the building hasn't completed a required SIRS, has multiple components at RUL=0, board minutes mention "defer" repeatedly, reserves are under 20%, or there's active structural litigation.
Not every issue is a deal-breaker. But these should make you seriously reconsider, or walk away entirely:
Walk-Away Red Flags
- ✗SIRS not completed and the building is required to have one, and you're buying blind
- ✗Multiple components at RUL=0: immediate repairs needed, assessments imminent
- ✗Board minutes repeatedly mention "defer":pattern of kicking problems down the road
- ✗Reserve funding under 20% with major repairs coming; special assessment is virtually guaranteed
- ✗Active structural litigation: legal costs, uncertainty, and potential assessments to cover damages
Related: How to Review HOA Documents Before Buying →
The Two-Tier Market: Compliant vs Non-Compliant
SIRS-compliant buildings hold value and attract financing. Non-compliant buildings sell 4-5% below asking, sit on the market longer, and face financing restrictions.
The Florida condo market is splitting into two tiers based on SIRS compliance
Florida's condo market is splitting in two. Where a building falls on SIRS compliance increasingly determines its market performance:
| Factor | SIRS-Compliant | Non-Compliant |
|---|---|---|
| Value | Holds value | Declining |
| Financing | Fannie/Freddie eligible | Difficult to obtain |
| Sale price | At or near asking | 4-5% below asking |
| Time on market | Normal | Sitting longer |
| Monthly fees | Predictable | Assessment risk HIGH |
This split matters for financing. Fannie Mae and Freddie Mac have tightened condo lending requirements, and as of April 2025 1,438 Florida condo buildings were on Fannie Mae's ineligible list, per Mortgage Professional America, reporting the Wall Street Journal and attorneys tracking it. Non-compliant buildings may not qualify for conventional mortgages, leaving buyers with limited (and more expensive) financing options.
In Miami, 92.5% of condos sold below their original list price in February 2025. In the non-compliant tier, that discount is steeper and the inventory is growing.
New Buyer Protections (Know Your Rights)
Florida's HB 913 gives buyers a 7-day rescission period (up from 3 days, and weekends and legal holidays don't count), keeps the rule that larger associations post documents online, and requires boards to share SIRS results with owners and to report any assessment or loan used to fund structural reserves.
The same legislation that's causing the crisis also created new buyer protections. Know your rights under HB 913:
Your Rights Under Florida Condo Law (Updated by HB 913)
- ✓7-day rescission period: up from 3 days, not counting weekends or legal holidays. Use every day of it.
- ✓Online document access: associations with 25+ units must post governing documents online.
- ✓Right to see the SIRS: once the association receives it, owners must get a copy or a notice that it is available (Fla. Stat. 718.112(2)(g)). If they won't share it with you before you buy, that's a red flag.
- ✓Assessment and loan disclosure: in an owner-controlled association, if the board funds structural reserves with a special assessment, a line of credit, or a loan, the details must be in the annual financial statement that owners get and that buyers must receive (Fla. Stat. 718.112(2)(f)). Ask for the latest one.
Questions to Ask Before Buying a Florida Condo
Ask about SIRS completion, reserve funding percentage, planned assessments, milestone inspection results, and recent fee increases. Get answers in writing before you close.
Use this checklist before buying any Florida condo in 2026
Ask these questions of your agent, the seller, and the HOA directly. Get answers in writing:
Essential Questions
- 1. "Has the association completed its SIRS?"
If required and not completed, you're buying into unknown structural risk. - 2. "What is the current reserve funding percentage?"
Under 50% is concerning. Under 30% is a serious red flag. - 3. "Are any special assessments planned or under discussion?"
Check board minutes too. Verbal answers may not match what's in the records. - 4. "Has the building passed its Milestone Inspection?"
Phase 2 results are critical. Ask specifically about structural findings. - 5. "What are the monthly fees, and when did they last increase?"
Recent large increases may signal the beginning of catch-up funding.
Check Your Building's Financial Health
Upload your HOA's reserve study and get instant analysis of percent funded, deferred maintenance, and special assessment risk. Free. No signup required.
Your first full property report is also free. See what you'll get →
Or get your first full report free →Frequently Asked Questions
Is it safe to buy a Florida condo in 2026?
It depends entirely on the building. SIRS-compliant buildings with healthy reserves (70%+) and completed inspections are reasonable purchases. Non-compliant buildings with low reserves carry significant financial risk. The key is doing thorough due diligence on the specific building, not making a blanket judgment about the market.
What is a SIRS report and why does it matter?
A Structural Integrity Reserve Study (SIRS) is a Florida-mandated inspection and funding analysis of critical building components including: roof, structure (load-bearing walls), fireproofing and fire protection, plumbing, electrical, waterproofing, and windows/exterior doors. It tells you what condition the building is in and how much needs to be saved for repairs. Without it, you're guessing.
How do I find out if a building has completed its SIRS?
Ask the seller's agent, request it from the HOA directly, or check the association's website. A condominium with 25 or more units has to post its official records online or in an app, under Fla. Stat. §718.111(12)(g). If they won't share it, consider that a red flag.
What reserve funding percentage is safe?
Generally, 70%+ is considered healthy. Under 50% is concerning; special assessments become more likely. Under 30% is a major red flag. Our analysis found 26.9% of Florida HOAs are critically underfunded below 30%. Context matters though: a building at 60% funded with a clear plan to reach 100% is different from one at 60% with no plan.
Can I get a mortgage on a non-compliant Florida condo?
It's getting harder. Fannie Mae and Freddie Mac have tightened requirements for condo lending. Non-compliant buildings may not qualify for conventional mortgages, limiting you to portfolio lenders or cash purchases, both of which affect the building's resale value and your financing costs.
What's the 7-day rescission period?
Under HB 913, Florida condo buyers now have 7 days (up from 3), not counting weekends or legal holidays, to review association documents and cancel the contract without penalty. The clock starts when you sign or when you receive the documents, whichever is later, per Fla. Stat. 718.503. Use every day of it. If you already had the documents more than 7 days before signing, the cancel window may not apply, so check which version of the notice your contract uses.
Are Florida condo prices going to keep dropping?
Non-compliant buildings will likely continue to face pricing pressure until they complete SIRS requirements and fund reserves. Compliant buildings in desirable locations are holding value better. The market is expected to stabilize as more buildings come into compliance, but that process will play out over 2026-2027.
Should I buy a non-compliant building at a discount?
Only if you fully understand the costs. A "discounted" non-compliant condo may seem like a deal until you factor in the special assessment, fee increases, and financing challenges. Calculate the total cost of ownership including likely assessments before comparing it to a compliant building at full price.
Sources & References
- Surfside condominium collapse - Wikipedia (98 deaths confirmed)
- Florida Senate Bill 4-D (2022) - Florida Senate, enrolled bill text
- Florida House Bill 913 (2025) - Florida House of Representatives
- DBPR Condominium FAQs - Florida Department of Business & Professional Regulation
- 62% of South Florida condo associations had not completed a SIRS by the Dec. 31, 2024 deadline - Condo Vultures, citing Miami Association of Realtors Condo Summit (Feb 2025)
- Aventura condo owners face unprecedented special assessments - Brosda & Bentley (Mediterranean Village, Williams Island)
- South Florida condo owners dumping homes after six-figure assessments - Yahoo Finance, reporting the Wall Street Journal (Cricket Club ~$30 million building-wide assessment)
- Prices have collapsed for South Florida condos 30 years or older - Bisnow, Oct 25, 2024, reporting an ISG World study (average sale prices for 30+ year old condos down 21% from 2023 to Q3 2024)
- Condo HOA fees surge in Florida amid insurance crisis - Redfin (2024)
- Cause and effect of Florida's new condo law - University of Florida Warrington College of Business
- The Future of Florida Condos: Facts & Statistics - Florida Policy Project (Jan 2025)
- New 2025 Florida Condo Laws (HB 913) - Perez Mayoral, P.A.
- Peeling Back the Layers to the Florida Condo Market Weakness - TD Economics (May 29, 2025)
Proprietary statistics (reserve funding distribution, component analysis, structural findings) are based on GoverningDocs analysis of 38 Florida SIRS reports totaling 1,730 pages. All other statistics are sourced from the publications listed above. This article is for informational purposes only and does not constitute legal or financial advice.