The Dreaded Milestone Inspection
After Miami’s infamous Surfside Champlain Towers condo building collapse in 2021, new FL laws required that any all ≥three-floor condo buildings built before 1992 (or ≥25 years old) within three miles of the coast must undergo a “Milestone Inspection” by 12/31/24, and then every ten years thereafter. Buildings that are ≤25 years old must get their first Milestone Inspection 30 years after being first occupied.
The point of the law is to take planned maintenance regarding structural safety away from condo associations (which tend to defer such costs down the road) and put it in the hands of objective architect or engineer who is licensed and can be sued it they underestimate those costs. This makes sense, but the real issue is that professional will what is needed and estimates the cost, and that amount of money must be placed into the condo reserve fund within two years.
What is Means
Google AI estimates that 40-50% of SRQ downtown buildings are over 25 years old and need this inspection now or soon in the future. There is an advantage to buying a building old enough to already have that inspection done, so you know what the cost of condo’s ongoing maintenance will be before you buy. If not yet done, it’s a crap shoot as to what the problems the inspection finds will cost you, and those costs must be paid by the condo owners within two years of being reported.
Even when no immediate repairs are needed, a required reserve study will dictate what amount of money the association should have in reserves to cover estimated future repairs based on the limited lifespan of concrete, windows, elevators, roofs, etc. Almost all older buildings will be found to be grossly underfunded due to years of kicking the can down the street, resulting in the potential of huge sudden assessments on condo owners for current and imagined future needed maintenance.
Again, if already done you know what to face in your condo fees for the coming 30 years. If not, you need to live with not knowing what your HOA maintenance fee will rise to regardless of whether you can afford it or not. The less expensive your condo, the older your building and the sooner this inspection will dictate your future costs.
Strategy: First and foremost, if at all possible buy in a building that is only one or two-stories tall. They are exempt for a reason, as they will not likely fall down even if allowed to deteriorate. Buy in the newest possible condo building you can afford. Avoid under-building garages, and buildings with pool decks above garage space, which is what caused the Surfside condo collapse. In fact, avoid swimming pools altogether.*
Review the condo association meeting notes which can reveal discussions about known problems the seller may not know and won’t disclose to you. Review any engineering reports and ensure adequate reserves are already in place. If not, ask teh association president what the estimated special assessment(s) will be. Avoid buildings in the flood plain – which is likely impossible if you want a water view. Again, seek a townhome, a free-standing house, or a condo in a building no taller than two-stories to avoid the Milestone Inspection and reserve study altogether. Control your own future costs with your neighbors rather than have a hired engineer do it for you.
What we did: We bought in a two-story concrete block building (no Milestone Inspection required) with a newer tile roof, built on a slab which is not in a flood zone. We probed into walls and above ceilings to find defects (none), and old plumbing and wiring was replaced. Our association voted to double our low HOA fees (which are still only $522/month) to build reserves. The association searched for the best insurance it could find and sought competitive bids. We installed cat. 5 hurricane rated roll down screens on the lanai, and hurricane film on the windows and bought easy-to-obtain NFIP flood insurance with comprehensive coverage as needed.
Hurricane, Insurance and Milestone Effects on SRQ Sales
The number of condos and townhomes for sale in 2024 increased by 92% as compared to 2023, and sales slumped 9.2% in 2024 indicating weakened demand (US News&World Report). Estimates in Miami expect average increases of 30–40% in reserve funding across FL due to the aforementioned Milestone Inspection law. This can and has amounted to a special assessment of over $100,000 to some owners. Multiple listing services compilations for 2024 found condo prices in buildings ≥30 years old dropped 21%, while in newer buildings 10–30 years old prices rose 9%.
Still Sarasota remains popular, and is considered a “balanced” buyer’s vs seller’s market. The biggest constraint on new sales are rising mortgage rates, which hit 7.4% in early 2025, not so much hurricane/insurance worry. However, it’s safe to say the price surge is over. Sarasota and Manatee counties home sales were down by 4% and prices down 5% in 2024 compared to 2023. Desirable downtown Sarasota is less affected, but still the 2024 downtown median home price of $1.3M was 4% less then for the prior year. But sales still remain strong, as Redfin reports 67 homes sold in 12/24 as compared to 36 homes in 12/23. In sum, it’s the right time to buy in Sarasota.
*Just head to the giant pool next to the ocean on Lido Key which has concession stands and plenty of parking. It cost $4/day, or $2 for seniors 55+ and seasonal passes are available to drop the kids of there every day as it’s designed as a youth “hangout.”
All About Hurricanes in the next section.
The point of the law is to take planned maintenance regarding structural safety away from condo associations (which tend to defer such costs down the road) and put it in the hands of objective architect or engineer who is licensed and can be sued it they underestimate those costs. This makes sense, but the real issue is that professional will what is needed and estimates the cost, and that amount of money must be placed into the condo reserve fund within two years.
What is Means
Google AI estimates that 40-50% of SRQ downtown buildings are over 25 years old and need this inspection now or soon in the future. There is an advantage to buying a building old enough to already have that inspection done, so you know what the cost of condo’s ongoing maintenance will be before you buy. If not yet done, it’s a crap shoot as to what the problems the inspection finds will cost you, and those costs must be paid by the condo owners within two years of being reported.
Even when no immediate repairs are needed, a required reserve study will dictate what amount of money the association should have in reserves to cover estimated future repairs based on the limited lifespan of concrete, windows, elevators, roofs, etc. Almost all older buildings will be found to be grossly underfunded due to years of kicking the can down the street, resulting in the potential of huge sudden assessments on condo owners for current and imagined future needed maintenance.
Again, if already done you know what to face in your condo fees for the coming 30 years. If not, you need to live with not knowing what your HOA maintenance fee will rise to regardless of whether you can afford it or not. The less expensive your condo, the older your building and the sooner this inspection will dictate your future costs.
Strategy: First and foremost, if at all possible buy in a building that is only one or two-stories tall. They are exempt for a reason, as they will not likely fall down even if allowed to deteriorate. Buy in the newest possible condo building you can afford. Avoid under-building garages, and buildings with pool decks above garage space, which is what caused the Surfside condo collapse. In fact, avoid swimming pools altogether.*
Review the condo association meeting notes which can reveal discussions about known problems the seller may not know and won’t disclose to you. Review any engineering reports and ensure adequate reserves are already in place. If not, ask teh association president what the estimated special assessment(s) will be. Avoid buildings in the flood plain – which is likely impossible if you want a water view. Again, seek a townhome, a free-standing house, or a condo in a building no taller than two-stories to avoid the Milestone Inspection and reserve study altogether. Control your own future costs with your neighbors rather than have a hired engineer do it for you.
What we did: We bought in a two-story concrete block building (no Milestone Inspection required) with a newer tile roof, built on a slab which is not in a flood zone. We probed into walls and above ceilings to find defects (none), and old plumbing and wiring was replaced. Our association voted to double our low HOA fees (which are still only $522/month) to build reserves. The association searched for the best insurance it could find and sought competitive bids. We installed cat. 5 hurricane rated roll down screens on the lanai, and hurricane film on the windows and bought easy-to-obtain NFIP flood insurance with comprehensive coverage as needed.
Hurricane, Insurance and Milestone Effects on SRQ Sales
The number of condos and townhomes for sale in 2024 increased by 92% as compared to 2023, and sales slumped 9.2% in 2024 indicating weakened demand (US News&World Report). Estimates in Miami expect average increases of 30–40% in reserve funding across FL due to the aforementioned Milestone Inspection law. This can and has amounted to a special assessment of over $100,000 to some owners. Multiple listing services compilations for 2024 found condo prices in buildings ≥30 years old dropped 21%, while in newer buildings 10–30 years old prices rose 9%.
Still Sarasota remains popular, and is considered a “balanced” buyer’s vs seller’s market. The biggest constraint on new sales are rising mortgage rates, which hit 7.4% in early 2025, not so much hurricane/insurance worry. However, it’s safe to say the price surge is over. Sarasota and Manatee counties home sales were down by 4% and prices down 5% in 2024 compared to 2023. Desirable downtown Sarasota is less affected, but still the 2024 downtown median home price of $1.3M was 4% less then for the prior year. But sales still remain strong, as Redfin reports 67 homes sold in 12/24 as compared to 36 homes in 12/23. In sum, it’s the right time to buy in Sarasota.
*Just head to the giant pool next to the ocean on Lido Key which has concession stands and plenty of parking. It cost $4/day, or $2 for seniors 55+ and seasonal passes are available to drop the kids of there every day as it’s designed as a youth “hangout.”
All About Hurricanes in the next section.
