Florida's SB 4D law — passed in the wake of the Surfside condo collapse — requires condominium buildings three or more stories tall to undergo mandatory structural inspections once they reach 30 years old (25 years in coastal counties like Pinellas). Phase 1 is a visual inspection by a licensed architect or engineer; Phase 2 is triggered only when Phase 1 finds "substantial structural deterioration." By 2026, most qualifying buildings in St. Petersburg have completed Phase 1, and buyers are now receiving these reports — along with a Structural Integrity Reserve Study (SIRS) — in their disclosure packages. Understanding what these documents say, and what the reserve funding percentage means for your HOA fees and special assessment risk, is one of the most important parts of buying a condo in Florida right now.
If you're buying a condo in St. Petersburg right now, there's a document in your disclosure package that deserves more of your attention than any other. It's called a milestone inspection report — and for many buyers, it's the most consequential piece of paper in the entire stack.
Florida passed SB 4D in May 2022, directly in response to the Surfside condo collapse that killed 98 people. The law requires older condo buildings to undergo mandatory structural inspections — and to demonstrate that their reserves are actually funded to cover what those inspections find. Deadlines hit at the end of 2024. Which means right now, in 2026, virtually every qualifying condo building in St. Petersburg has completed its initial inspection — and you're going to see those results in your disclosure package.
What you do with that information matters. A lot.
SB 4D applies to condominium and cooperative buildings that are three or more stories tall. In most of Florida, the inspection trigger is 30 years old — so a building completed in 1994 or earlier is already required to have completed Phase 1. In coastal counties — including Pinellas — the threshold drops to 25 years, meaning any building completed before 1999 qualifies.
That covers a significant portion of the condo inventory in St. Petersburg. Downtown high-rises, Shore Acres, Snell Isle, Crescent Lake, properties near the waterfront — many of these buildings are 30, 40, even 50 years old. This law applies to a lot of what's on the market right now.
Phase 1 is a visual inspection performed by a licensed architect or engineer. The inspector examines structural elements — foundation, framing, exterior walls, balconies, parking garages — looking for visible signs of deterioration. This is the baseline check. Most buildings complete Phase 1 and receive a clean report.
Phase 2 is the one to watch. It's triggered only when Phase 1 finds "substantial structural deterioration" — something is visibly, meaningfully wrong. Phase 2 is a detailed, invasive engineering analysis. The engineer may core through concrete, test materials, and produce a full assessment of repair costs. If your building has a Phase 2 report in the package, that's a signal worth taking seriously.
Separate from the milestone inspection, SB 4D also requires every qualifying condo association to complete a Structural Integrity Reserve Study — the SIRS. Think of it as a financial audit of the building's future repair obligations.
The SIRS identifies the major structural components of the building — roof, foundation, load-bearing walls, waterproofing systems, plumbing, electrical, elevators, windows — assigns each a useful life and estimated replacement cost, and tells the association how much it needs to keep in reserves to cover those costs as they come due.
The number that matters most is the reserve funding percentage. A fully funded reserve study shows 100%. Many Florida condo associations historically maintained very low reserves — sometimes 10–20% — because state law didn't require otherwise. SB 4D changed that. Associations must now fund reserves for structural components based on the SIRS, without the option to waive that requirement. In 2026, that transition is actively happening — and some associations are doing it through special assessments.
When you're reviewing a disclosure package, the question you need answered is: What is the current reserve funding percentage, and what's the association's plan to reach full funding?
Here's what I walk every client through when we're evaluating a condo purchase in Pinellas County.
If Phase 1 hasn't been completed for a qualifying building, that's a compliance problem. If Phase 1 came back clean, that's the result you want. Read the report yourself — don't rely on a verbal summary from the listing agent. If Phase 1 triggered Phase 2, you need to see that report: What did it find? Has the remediation been completed? An open Phase 2 finding that hasn't been addressed is a significant issue.
Get the reserve funding percentage. Below 50% means the association has real ground to cover. Below 25% means you're likely looking at a building that has been chronically underfunded and will need to catch up quickly — through higher monthly fees, a special assessment, or both. Also note when the SIRS was completed: a study done in 2023 using projected costs will be less accurate than one done in 2025.
During due diligence, request the board meeting minutes from the last 12 months. Boards are required to discuss SIRS findings and reserve funding. You'll often find conversations about upcoming fee increases or special assessments that don't appear in the official disclosure documents — but they're there in the minutes if you ask. This is worth doing on every condo purchase right now.
Not every building with an unfavorable inspection result is a deal-breaker. A Phase 1 report noting minor surface cracking is different from a Phase 2 report with unresolved structural findings. Context matters.
But here are the situations where I'd advise a buyer to walk — or at minimum negotiate hard before proceeding:
The inspection contingency exists precisely for this kind of due diligence. Use it. This is exactly the question to resolve during the inspection period, not after closing.
One more layer that often surprises buyers: your lender cares about this too.
Fannie Mae and Freddie Mac updated their condo project approval guidelines after Surfside. Lenders are now evaluating milestone inspection compliance and SIRS status as part of the loan approval process. A building that is out of compliance with SB 4D may not be financeable with a conventional mortgage.
If you're financing a condo purchase — especially a jumbo loan on a downtown St. Pete property — confirm with your lender upfront that the building passes project approval. I've watched deals fall apart at the wire because this check wasn't done early in the process. It's a preventable problem.
This review should happen alongside your insurance due diligence — older buildings in Pinellas County carry their own insurance considerations that are equally worth understanding before you commit.
A milestone inspection is a mandatory structural examination required by Florida's SB 4D law for condominium buildings three or more stories tall that are at least 30 years old — or 25 years old in coastal counties like Pinellas. A licensed architect or engineer conducts a visual inspection in Phase 1. Phase 2 is triggered only if Phase 1 finds substantial structural deterioration, and requires a detailed engineering analysis of the affected components.
SIRS stands for Structural Integrity Reserve Study. It's a financial assessment that identifies a building's major structural components, estimates their useful life and replacement cost, and determines how much the association needs in reserves to fund those future repairs. Florida now requires associations to fully fund SIRS-identified components — no more waiving reserve requirements. A low reserve funding percentage can signal that higher monthly fees or a special assessment is coming, which directly affects your true cost of ownership.
Yes — and that's exactly what the inspection contingency is for. If you receive a Phase 2 milestone inspection report with unresolved structural findings, or a SIRS showing critically low reserve funding, you can exercise your inspection contingency and terminate the contract within the inspection period, recovering your earnest money deposit. Never waive the inspection contingency on a Florida condo purchase in 2026.
Generally yes. If a special assessment is voted on and levied after your closing date, it becomes your obligation as the new owner. That's why reviewing board meeting minutes and asking about pending or anticipated assessments during the due diligence period is so important — before you close, not after.
SB 4D applies to condominium and cooperative buildings three or more stories tall. Single-story and two-story condo complexes are generally exempt. In Pinellas County — a coastal county — the age threshold is 25 years rather than 30, which means a broader range of buildings in the St. Petersburg market are subject to these requirements. If you're unsure whether a specific building qualifies, request the compliance documentation directly from the association.
Florida's condo laws changed significantly after Surfside, and in 2026, you're buying into a market where those changes are fully visible. Milestone inspection reports, SIRS documents, and reserve funding percentages are now a real part of every condo transaction — and knowing how to read them is the difference between a great purchase and a very expensive surprise.
If you're looking at condos in St. Petersburg, Clearwater, or anywhere on the Gulf Coast, I'll walk you through every document in the disclosure package before you commit.
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