Inspections

What is a MI?

A MI is a structural inspection of an aging building used to determine if substantial structural deterioration exists. The statutory definition of a MI can be found here.

What type of building or structure is required to have a MI?

All residential condominiums and cooperative buildings (including mixed-ownership buildings) in the state of Florida that are three or more habitable stories in height are required to have a MI when the building reaches a certain age:

• 30 years of age and every 10 years thereafter, or
• 25 years of age and every 10 years thereafter if the local enforcement agency has determined that local circumstances require the initial MI be performed at 25 years instead of 30 years.

The age of a building is determined by the date the certificate of occupancy was issued.

When is a MI required to be performed for a building over 30 years of age?

All buildings that reached 30 years of age prior to July 1, 2022 were required to have a MI performed by December 31, 2024.  If a building reached 30 years of age between July 1, 2022, and December 31, 2024, the building’s initial MI must be performed before December 31, 2025.

What does a MI entail?

A MI consists of two phases:

Phase 1 is a visual assessment of the building’s structure that determines if evidence of substantial structural deterioration is present. Once Phase 1 is complete, a report is submitted to the local enforcement agency.  If no signs of substantial structural deterioration are found, Phase 2 of the inspection is not required.

Phase 2 is only performed if substantial structural deterioration was identified during Phase 1. A Phase 2 inspection may involve destructive testing to confirm if the building is structurally sound and safe and will recommend a program for assessing and repairing the damaged portions of the building.

What is a SIRS?

A reserve study is a budget planning tool that looks at the parts of a building a condominium association is required to maintain, the status of the condominium’s existing reserve fund, and the amount of funding needed to offset anticipated expenses. A SIRS is a type of reserve study used to ensure condo owners are reserving the funds needed for future major repairs and replacement of structural elements on the condominium property. A SIRS includes eight specific structural elements that are critical to the safety of the building:

1. Roof
2. Structural Systems
3. Fireproofing & Fire Protection Systems
4. Plumbing
5. Electrical Systems
6. Waterproofing & Exterior Painting
7. Windows & Exterior Doors
8. Other elements over $25,000 that have an impact on the structural integrity of the building as determined by the visual portion of the SIRS. The Division is required to update this number annually, based on the Consumer Price Index for Urban Consumers. You can learn more here.

The SIRS must also include a recommended schedule for how much money to set aside for each year, based on the baseline funding plan. This plan ensures that there is always money available in the reserve account and that the account never drops to zero.

If the SIRS recommends collecting reserves for any item for which reserves are not required by law, the amount of the recommended reserves for such item must be separately identified in the SIRS as an item for which reserves are not required. The SIRS must take into consideration the funding method or methods used by the association to fund its maintenance and reserve funding obligations through regular assessments, special assessments, lines of credit, or loans. If the SIRS is performed before the association has approved a special assessment or secured a line of credit or a loan, the SIRS must be updated to reflect the funding method and its effect on the reserve funding schedule, including any anticipated change in the amount of regular assessments. The association must obtain an updated SIRS before adopting any budget in which the reserve funding does not align with the funding plan from the most recent version of the SIRS.

The Division is working in coordination with Florida Building Commission to develop a standardized SIRS Report.

Who can perform a SIRS?

There are two parts to a SIRS – the financial study and the visual inspection. The SIRS must be performed or verified by a licensed engineer, architect, a certified reserve specialist, or professional reserve analyst licensed by the Community Associations Institute or the Association of Professional Reserve Analysts.

How does a SIRS affect fee assessments?

To remain in compliance, condominium associations must meet the reserve funding schedule outlined in the SIRS. If a condominium’s SIRS finds that the association does not have enough reserve funding to cover the anticipated cost to maintain or replace major structural items,  it may be necessary for associations to levy fee assessments or secure a loan or line of credit, to meet the funding schedule in the SIRS.