Understanding Structural Integrity Reserve Study & Milestone Inspection Reports, Deadlines and Board Responsibilities

By: Colby Keefe, Esq.

In 2022 and 2023, Florida condominiums saw the rollout of new mandatory inspections and reports in response to the collapse of the Champlain Towers South beachfront condominium in Surfside, Florida. These requirements aim to identify areas of substantial structural deterioration in condominiums, as well as outline the funding requirements for structural safety measures for associations to maintain the structural integrity of a condominium building.

What are the structural integrity reserve study and milestone inspection reports, and when does a condominium need to get one?

Residential condominiums which are at least three stories in height (excluding single-family, two-family, three-family, or four-family dwellings with three or fewer habitable stories above ground) must obtain a structural integrity reserve study (“SIRS”) at least every ten (10) years after the condominium’s creation. The SIRS is a visual inspection, performed by a qualified professional (including an engineer, architect, or certified reserve specialist), which evaluates the condition of the building and sets forth any recommended remedial or preventative repairs (and the estimated reserve funding necessary). For condominiums existing on or before July 1, 2022, the inaugural SIRS must be obtained by December 31, 2024; provided, however, that in the event the association will be completing its mandatory milestone inspection on or before December 31, 2026, it may opt to wait and complete the SIRS simultaneously with the milestone report by December 31, 2026.

Residential condominiums three stories or more in height must have a milestone inspection report (“MIR”) completed by December 31 of the year in which the building reaches 30 years of age based on the date of the certificate of occupancy and every ten (10) years thereafter. A MIR is a structural inspection of a condominium building, including an inspection of load-bearing elements and the primary structural members (structural element designed to provide support and stability for the vertical or lateral loads of the overall structure) and primary structural systems (assemblage of primary structural members).

The inspection must be done by a team of professionals which must include a licensed engineer or architect, and gets submitted to the Association and local building official. The MIR consists of up to two phases. If the Phase I MIR determines that the building is in satisfactory condition, there will be no further action needed until the next MIR is required. However, if substantial structural deterioration is identified, a Phase II MIR will be necessary. For condominium buildings which reached the 30-year mark prior to July 1, 2022, the deadline for receiving the MIR is December 31, 2024. For buildings reaching the 30-year mark between July 1, 2022, and December 1, 2024, the deadline for receiving the MIR is December 31, 2025.

What should the board of directors do when it receives the structural integrity reserve study?

Once the board of directors receives the final SIRS from its vendor, it will need to take the following steps to satisfy the requirements of the Condominium Act:

1. Within 45 days of receiving the SIRS, the association must distribute a copy of the study to each unit owner or deliver to each unit owner a notice that the completed study is available for inspection and copying upon a written request. Distribution of a copy of the study or notice must be made by United States mail or personal delivery to the mailing address, property address, or any other address of the owner provided to fulfill the association’s notice requirements under this chapter or by electronic transmission to the e-mail address or facsimile number provided to fulfill the association’s notice requirements to unit owners who previously consented to receive notice by electronic transmission.
2. Within 45 days after receiving the structural integrity reserve study, the association must provide the division with a statement indicating that the study was completed and that the association provided or made available such study to each unit owner in accordance with this section. The statement must be provided to the division in the manner established by the division using a form posted on the division’s website.
3. Although not required by the Condominium Act, the association should confirm whether a copy of the report must be provided to its local building official for their records.

What should the board of directors do when it receives the milestone inspection report?

Once the board of directors receives the final MIR from its vendor, it will need to take the following steps to satisfy the requirements of Chapter 553, Florida Statutes:

1. Within 45 days after receiving the applicable inspection report, the condominium or cooperative association must distribute a copy of the inspector-prepared summary of the inspection report to each condominium unit owner or cooperative unit owner, regardless of the findings or recommendations in the report, by United States mail or personal delivery at the mailing address, property address, or any other address of the owner provided to fulfill the association’s notice requirements under Chapter 718 or Chapter 719, as applicable, and by electronic transmission to the e-mail address or facsimile number provided to fulfill the association’s notice requirements to unit owners who previously consented to receive notice by electronic transmission; must post a copy of the inspector-prepared summary in a conspicuous place on the condominium or cooperative property; and must publish the full report and inspector-prepared summary on the association’s website, if the association is required to have a website.
2. If any substantial structural deterioration was identified in the Phase I report, a Phase II inspection will be required. If a Phase II inspection is required, within 180 days after submitting a phase one inspection report the architect or engineer performing the Phase II inspection must submit a Phase II progress report to the local enforcement agency with a timeline for completion of the Phase II inspection. An inspector who completes a Phase II milestone inspection shall prepare and submit an inspection report.
3. If any substantial structural deterioration was identified, the association must schedule or commence repairs within 365 days. However, you should check with your legal counsel to determine whether local ordinances impose additional requirements or deadlines following the receipt of the MIR.
4. Although not required by statute, the association should confirm whether a copy of the report must be provided to its local building official for their records.

Practical steps for the board of directors to take after receiving the SIRS and MIR

The above are action items that the board must take by statute, but there are additional action items that the board of directors should practically keep in mind. When the board of directors receives the SIRS and MIR, they should thoroughly review the information and incorporate the recommended reserve funding into the annual budget for the association. Additionally, the board of directors would be well-advised to include a standing agenda item at its annual meeting to confirm the next deadline for a follow-up SIRS and MIR. A SIRS and MIR is required at least every ten (10) years. Revisiting these important deadlines at the annual meeting each year will help ensure that future boards of directors adequately plan and fund for this requirement and timely obtain an updated SIRS.

The information provided in this article is current as of its original publication date. It is important to consult with legal counsel to confirm there have been no updates to the applicable statutes, codes, and ordinances which could affect the information herein.