Florida SB 154 (Ch. 2023-203): Condo and Co-op Milestone Inspection and Reserve Changes

Quick Answer

CS/CS/SB 154 (2023), "Condominium and Cooperative Associations," refined the 2022 post-Surfside law. It narrowed milestone inspections to buildings with a residential condominium or cooperative, replaced the automatic 25-year coastal rule with a local option, changed structural integrity reserve study (SIRS) and reserve rules, and changed several budget, records and sales-disclosure provisions. It became Chapter 2023-203 after the Governor approved it on June 9, 2023. The bill page lists June 9, 2023 as the effective date "except as otherwise provided," and at least one provision starts later.

At a Glance

What the Law Says

We read the Senate bill page and the Regulated Industries Committee bill summary for CS/CS/SB 154. We did not read the enrolled text, so the points below follow the summary.

Milestone inspections

The bill revises milestone inspection requirements for buildings of three or more stories to:

• Limit them to buildings that include a residential condominium or cooperative;
• Apply them to buildings that are in whole or in part under the condominium or cooperative form, including mixed-ownership buildings, and make all owners of such a building responsible for compliance and for sharing inspection costs;
• Require a building that reaches 30 years before December 31, 2024 to have its milestone inspection before December 31, 2024;
• Delete the automatic 25-year requirement for buildings within three miles of the coastline, and instead let the local enforcement agency set a 25-year requirement "if justified by local environmental conditions, including proximity to seawater";
• Let the local agency extend a deadline on a petition showing good cause that the owner or owners have contracted with an architect or engineer who cannot reasonably finish in time;
• Let the local agency accept an inspection and report completed before July 1, 2022 if it substantially complies, although unit owner notice requirements still apply;
• Allow a team of design professionals, with an architect or engineer in responsible charge;
• Make the association responsible for inspection costs attributable to the portions of the building it is responsible for under its governing documents;
• Require the association to give unit owners notice of inspection deadlines, electronically or by posting on its website, within 14 days after receiving the initial notice from the local agency;
• Require the inspector to submit a phase two progress report to the local agency within 180 days of the phase one report; and
• Require the association to distribute a summary of the inspection reports to unit owners within 45 days of receipt.

The Florida Building Commission must also establish by rule a building safety program, specifying minimum requirements by December 31, 2024.

Records and budgets

The bill clarifies that any unit owner, and any person authorized by an owner as a representative, may inspect the official records. It also excludes insurance premiums from the calculation that lets members petition for a substitute budget when assessments increase by 115 percent.

Reserves

• Associations subject to the SIRS requirement must base a budget adopted on or after January 1, 2025 on the findings and recommendations of the most recent SIRS.
• Reserves are required for SIRS items the association is responsible for under the declaration.
• Reserves for replacement need not be kept for an item with an estimated remaining useful life of more than 25 years, though the SIRS may recommend a deferred maintenance amount.
• Associations not subject to the SIRS requirement may waive reserves by a majority vote of the total voting interests.
• Multicondominium associations may waive reserves if the Division approved an alternative funding method.
• Reserve assessments may be adjusted for inflation.

SIRS

• Limits the requirement to residential condominiums and cooperatives, and requires a recommended reserve funding schedule.
• Replaces "floor" and "foundation" with the building structure (load-bearing walls and other primary structural members and systems as defined in § 627.706).
• Lets an engineer or architect verify the visual inspection, and lets certain certified reserve specialists or analysts perform or verify it.
• Exempts dwellings of one to three families with three or fewer habitable stories above ground, and any part of a building not submitted to the condominium or cooperative form or maintained by someone other than the association.
• Lets associations with a milestone inspection due on or before December 31, 2026 do the SIRS at the same time, but the SIRS must be finished by December 31, 2026.
• Lets a previous milestone inspection, or one under a similar local requirement, satisfy the SIRS if done within the previous five years.

Disputes, turnover and sales

Effective July 1, 2027, unit owners may use presuit mediation for specified disputes over milestone inspection or SIRS compliance. For turnover, certified reserve specialists and professional reserve analysts may prepare the developer's turnover report, and the report is added to required presale disclosures. A developer or nondeveloper must give a buyer a turnover inspection report completed on or after July 1, 2023 and the inspector-prepared summary, where applicable. The summary says a contract that does not conform "is voidable at the option of the purchaser prior to closing."

What This Means in Practice

For boards

• Check whether your local enforcement agency has set a 25-year trigger. The bill leaves that to local choice.
• Build the 14-day owner notice and 45-day summary deadlines into your calendar once a local notice arrives.
• Budget from the SIRS. Budgets adopted on or after January 1, 2025 must follow the most recent SIRS for associations subject to it.
• Check your sales and resale documents for the turnover report and milestone summary.

For owners

You may now authorize a representative to inspect official records for you. You should receive a summary of inspection reports within 45 days of the association's receipt. If you buy, you should get the inspection summary or turnover report where applicable.

Later changes

HB 913 (2025) later moved the SIRS deadline to December 31, 2025, limited both programs to "habitable" stories, and raised the reserve item threshold to $25,000, according to the Senate summary of that bill. Our reading: do not use the December 31, 2024 and 2026 figures in this bill as current without checking § 553.899 and § 718.112 as they now read.

What we did not verify

• The full set of effective-date exceptions in the enrolled text.
• The § 558.002, § 627.351 and § 720.3085 changes listed in the citations table. The summary describes only a flood-coverage exemption for unit owner policies insured by Citizens.

Timeline

Related Florida Law

• SB 4-D (2022): the original milestone and SIRS law
• HB 913 (2025): later SIRS and reserve changes
• HB 1021 (2024): condominium association reform
• Section 553.899: milestone inspections
• Section 718.112: reserves and the SIRS
• Florida HOA law changes 2021 to 2025
• Florida HOA laws complete guide

Board Checklist

• Ask your local enforcement agency whether it uses a 25-year or 30-year trigger.
• Document the date of any local notice and the 14-day and 45-day owner deadlines that follow.
• Confirm the status of your SIRS and whether you rely on a prior milestone or similar inspection.
• Check that your budget follows the SIRS findings for the reserve items you are responsible for.
• Review any reserve waiver or alternative funding method against current § 718.112.
• Update resale and turnover document packages for the report and summary.
• Confirm with counsel which later amendments replaced the dates above.

Frequently Asked Questions

What did SB 154 change about the 25-year coastal rule?

It deleted the automatic 25-year milestone inspection for buildings within three miles of the coast and let local enforcement agencies set a 25-year requirement if justified by local environmental conditions.

Does SB 154 apply to commercial buildings?

It limits milestone inspections to buildings that include a residential condominium or cooperative. It also covers mixed-ownership buildings in which part is condominium or cooperative, and makes all owners share responsibility.

When must owners get inspection notices?

The association must give owners notice of inspection deadlines within 14 days after receiving the initial local notice, and distribute the summary of inspection reports within 45 days of receipt.

Can an association skip reserves for long-lived items?

Reserves need not be kept for an item with an estimated remaining useful life over 25 years, but the SIRS may recommend a deferred maintenance amount.

When can owners use presuit mediation for SIRS disputes?

The summary says that starting July 1, 2027, owners may use the mediation process for specified disputes over milestone inspection or SIRS compliance.

What happened to the SIRS deadline later?

The Senate summary of HB 913 (2025) says that bill moved the required SIRS completion deadline from December 31, 2024 to December 31, 2025. Confirm the current statute.

Can a representative inspect records for an owner?

The summary says any unit owner and any person authorized by an owner as his or her representative may inspect the official records.

Where This Comes From

We read the Florida Senate bill page for CS/CS/SB 154 (2023), including its history, votes and statute citations, and the Regulated Industries Committee bill summary, at flsenate.gov. We did not read the enrolled text of Chapter 2023-203, so we state only the effective dates the summary and bill page give.

How APM Helps

Association Property Managers provides remote HOA and condo management for associations in Florida, starting at a flat $99/month per community with no per-door fees or long-term contracts. See remote management in Florida, browse every Florida state-law guide, or request a free proposal, delivered within three business days. Laws and licensing rules differ by state, and we confirm the requirements for Florida when we build your proposal.

Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed Florida attorney before acting.