Last updated 2026-07-24
TL;DR
A milestone report is the written engineering document produced after Florida's required milestone structural inspection, due at 30 years of building age (25 years if within 3 miles of the coast) and every 10 years after. It documents visible structural distress and, if needed, requires a Phase 2 inspection and repair timeline under Fla. Stat. §553.899.
What is a milestone report?
A milestone report is the formal written document a licensed architect or engineer files after completing Florida's milestone structural inspection. It's not the inspection itself; it's the deliverable. The report describes the general condition of the building's structural components, notes any signs of distress (cracking, spalling, corrosion, deflection), and states whether a more invasive Phase 2 inspection is needed. Florida Statute §553.899 requires condominium and cooperative buildings three stories or more in height to get a milestone inspection once the building hits 30 years of age, and every 10 years after that. If the building is within three miles of the coastline, the first inspection moves up to 25 years [1]. The statute defines this narrowly: it applies to buildings required to have a certificate of occupancy, and local building officials determine the exact inspection deadline based on the certificate of occupancy date [1]. The report itself has to be sealed by the inspecting architect or engineer and submitted to the local building official, and a summary goes to the board and, under §718.111 and §718.113, gets shared with unit owners [1] [2]. This is a public safety document, not an internal board memo. Boards that treat it casually (or try to bury a bad one) are taking on real legal exposure.
Who has to get a milestone report, and when is it due?
| More than 3 miles from coastline | By December 31 of the year the building turns 30, then every 10 years | |
|---|---|---|
| Within 3 miles of coastline | By December 31 of the year the building turns 25, then every 10 years | |
| Building over 30 (or 25 coastal) years old as of July 1, 2022 | Milestone inspection due by December 31, 2024 | That last row matters a lot right now. The 2022 legislative reform (SB 4-D, later folded into the broader condo safety package) set a hard catch-up deadline for older buildings, and DBPR has published guidance confirming local building officials can adjust exact deadlines by up to certain windows depending on when the certificate of occupancy was issued. If your building missed that window, don't guess. Confirm the exact status with your local building department and the association's counsel, because enforcement varies by county. |
Any condominium or cooperative building in Florida that is three stories or more in height needs one, per §553.899(2) [1]. Single-family homes, townhomes under three stories, and most HOAs without high-rise buildings are outside this specific statute, though many still need reserve studies under separate HOA rules. Timing depends on two things: the building's certificate of occupancy date and its distance from the coast. | Building condition | Milestone inspection deadline |
What does a milestone inspection actually check?
Phase 1 is a visual inspection. A licensed architect or engineer walks the building, looking for signs of substantial structural distress: cracking in load-bearing walls, corrosion in exposed rebar, spalling concrete, sagging balconies, and water intrusion patterns that suggest deeper damage. Phase 1 does not usually involve destructive testing or opening up walls. If Phase 1 finds signs of "substantial structural deterioration," the statute requires a Phase 2 inspection, which is more invasive: core samples, load testing, opening finishes to check embedded structural elements [1]. Phase 2 costs more and takes longer, and if it turns up real problems, the board is now looking at a repair timeline, more than a report. The statute defines substantial structural deterioration in a way that leaves engineering judgment in the mix, so two similar buildings can get different Phase 1 outcomes depending on the inspector and the specific conditions found. This is one reason board members shouldn't try to interpret an ambiguous report themselves. That's a conversation for the inspecting engineer and the association's attorney, not a board vote.
What is a reserve study, and how is it different from a milestone report?
A reserve study is a financial planning document, not a structural safety inspection. It looks at the useful life and replacement cost of major common elements (roofs, paving, elevators, pool equipment, painting, structural components) and calculates how much money the association should be setting aside each year to pay for future replacements without a surprise special assessment. Florida's SIRS (Structural Integrity Reserve Study) requirement, created by §718.112(2)(g), is narrower and specifically structural: it covers roof, load-bearing walls, primary structural members, floor, foundation, fireproofing, plumbing, electrical, and waterproofing, among other listed components [3]. A general reserve study can cover more categories (landscaping, painting, paving) but SIRS items cannot be waived or reduced by owner vote once required [3]. So a building can have a milestone report (structural safety), a SIRS (structural reserve funding), and a broader reserve study (all reserve funding) as three separate documents, often prepared by different professionals at different times. Boards juggling all three sometimes lose track of which deadline applies to which document. That confusion is exactly where a lot of avoidable compliance gaps happen. If you want a plain breakdown of how a reserve study differs from a SIRS line item by line item, that's worth reading before your next board meeting.
What is a reserve study for an HOA?
For a homeowners association, a reserve study looks at the shared components the HOA is legally responsible for maintaining (roads, clubhouse, pool, retention ponds, gates, sometimes roofs on attached units) and projects when each will need replacement and how much that will cost. Unlike condo associations under Chapter 718, most Florida HOAs are governed by Chapter 720, which historically had lighter reserve mandates. Many HOA reserve studies are done voluntarily or because the governing documents require it, not because a state statute forces it. That's changing in some respects as legislators react to the post-Surfside condo reforms, so HOA boards should check current statute language rather than assume the condo rules do or don't apply to them. A good HOA reserve study gives the board a multi-year funding plan: which components need money in year 3, which in year 12, and what the annual reserve contribution needs to be to avoid a large one-time assessment. Boards that skip this step tend to find out the hard way, usually right after a roof fails or a pool pump dies during peak season.
How much should an HOA (or condo) have in reserves?
There's no single statutory dollar figure that says "your association needs $X in reserves." The honest answer is: enough to fully fund the replacement cost of each reserve component by the time it needs replacing, based on its remaining useful life. That's what a reserve study calculates for your specific building, and it looks different for a 1985 mid-rise with an aging roof than for a 2015 low-rise HOA with newer infrastructure. Florida condo law under §718.112(2)(f) requires reserve accounts for roof, structural, painting, paving, and any other component costing more than $10,000 to replace, unless owners vote to waive or reduce funding (SIRS components, again, cannot be waived) [2] [3]. The math behind "fully funded" reserves uses either a straight-line or cash-flow method, and most reserve study professionals use cash-flow because it smooths funding across all components rather than saving separately for each one. As a rough industry benchmark (not a legal standard), associations that are less than 30% funded relative to their reserve study's ideal are generally considered underfunded and at higher risk of a special assessment; this threshold comes from reserve-study industry practice, not statute, so treat it as a planning guideline rather than a legal line. If your board doesn't know its funded percentage, that's usually the first sign a reserve study is overdue.
How much does a reserve study cost?
Cost depends heavily on building size, number of components, and whether it's a Level I (full), Level II (update with site visit), or Level III (update without site visit) study, using the tiers common in Community Associations Institute (CAI) reserve study guidance. Rough national ranges reported by reserve study firms and CAI-affiliated professionals run from around $1,000 to $3,000 for a smaller HOA update study, up into the $5,000 to $15,000+ range for a full Level I study on a larger condominium high-rise with many structural and mechanical components. Florida's SIRS requirement adds a structural-focused layer that must be performed by a licensed engineer or architect per §718.112(2)(g), which can push costs higher than a generic reserve study, especially on larger buildings [3]. Boards sometimes balk at the fee and try to stretch out the interval between studies. That's a false economy. An outdated reserve study means outdated numbers driving your budget, which is how boards end up voting on assessments based on 2019 replacement costs in a 2026 construction market.
What is an HOA assessment (and what's the difference from a special assessment)?
An HOA assessment is any charge the association levies on unit owners or homeowners to fund its operations and obligations. This includes regular assessments (monthly or quarterly dues covering routine operating costs and reserve contributions) and special assessments (one-time or limited-duration charges to cover an unbudgeted or larger-than-reserve expense). Regular assessments are set in the annual budget process, tied to the association's operating and reserve line items. Special assessments happen when something wasn't fully funded in reserves, when an emergency repair comes up, or when a milestone/SIRS-driven repair timeline requires money faster than the reserve schedule allows. Under §718.116, condo assessments (regular or special) become the personal obligation of the unit owner as of the assessment date, and unpaid assessments can result in a lien against the unit [4]. That's a meaningful detail for boards drafting a special assessment notice: it needs to be clear, documented, and consistent with the association's governing documents and the statute, because owners do challenge these in court. For a deeper walkthrough of how a special assessment gets structured and noticed, see our dedicated guide.
Are HOA special assessments tax deductible?
Generally, no, not for the individual owner's personal residence. The IRS treats most HOA assessments, including special assessments, as a nondeductible personal expense, similar to regular HOA dues, because they're considered part of maintaining your property rather than a deductible tax or interest expense [5]. There are narrow exceptions. If the property is a rental or investment property, special assessments may be deductible as a business expense or depreciated as a capital improvement, depending on what the assessment funds (IRS Publication 527 covers rental property expenses) [5]. If part of the assessment funds a capital improvement (like a new roof) on a property you later sell, it may increase your cost basis and reduce capital gains tax at sale, which isn't the same as an immediate deduction but still has tax value. This isn't tax advice, and boards shouldn't try to answer this question for owners. Point owners to a CPA or the IRS guidance directly. Boards get into trouble when they make blanket statements like "this assessment is tax deductible" in a notice letter; that's a legal and tax opinion the board isn't positioned to give.
What happens after a milestone report finds problems?
If the Phase 1 milestone inspection finds substantial structural deterioration, the statute requires the inspector to notify the local building official and recommend a Phase 2 inspection [1]. The board doesn't get to decide whether Phase 2 happens; if the inspector calls for it, it happens. Phase 2 results in a repair plan with a timeline. Depending on severity, the local building official can require repairs on a specific schedule, and in serious cases, buildings have been ordered vacated (Champlain Towers South's collapse in Surfside in 2021, the event that triggered these statutory reforms, is the reason this framework exists at all). Most milestone reports don't end in anything close to that severe, but even moderate findings, like corroded rebar in a parking structure or spalling on balconies, typically mean a special assessment conversation with owners fairly soon after. This is the point where boards most need organized recordkeeping: the milestone report, the SIRS, the reserve study, engineer correspondence, and the assessment notice all need to line up and be available to owners and, often, to lenders and title companies during unit sales. A $199 tool like the Board Compliance Kit exists for exactly this stage: it doesn't replace the engineer's judgment or the board's legal counsel, but it organizes the deadlines, documents, and owner communications so nothing falls through the cracks while the real professionals do the structural and legal work.
Where do reports and reserve studies get filed, and who sees them?
Milestone inspection summaries go to the local building official and, per §718.111 and related sections, must be provided to unit owners and posted per the association's official records requirements [1] [2]. Local building departments (city or county) typically maintain records of milestone inspection filings, and DBPR's Division of Florida Condominiums, Timeshares, and Mobile Homes provides regulatory guidance and complaint intake for condo associations statewide. SIRS results and reserve study reports become part of the association's official records under §718.111(12), which owners have a right to inspect and copy [2]. Boards should keep both the full engineering report and a plain-language summary; owners at annual meetings rarely want to read a 40-page structural report, but they absolutely deserve to know what it says and what it means for their assessment. County building departments differ in how they track milestone deadlines and whether they proactively notify associations. Miami-Dade and Broward, which had recertification programs (40-year, then 30-year) well before the statewide statute, have more established tracking systems than newer coastal counties just building out this infrastructure. Confirm your county's specific process with the local building official; don't assume statewide uniformity.
What should a board do right now if it doesn't know its milestone or SIRS status?
Start with the certificate of occupancy date. That single date determines your milestone inspection deadline and, combined with distance from the coast, tells you whether you're on the 30-year or 25-year clock [1]. If you don't have it, your local building department does. Next, check whether a SIRS has been completed. Under §718.112(2)(g), associations were required to complete their first SIRS by December 31, 2024, for buildings meeting the height and age thresholds [3]. If that deadline has passed and your association hasn't done one, that's a conversation for the board's attorney immediately, not next quarter. Third, pull the last reserve study (if one exists) and check its date and funding method. Reserve studies go stale. A study from 2018 pricing a roof replacement at 2018 costs is not a useful planning document in a market where materials and labor have moved substantially since then. None of this replaces hiring the licensed engineer, architect, or reserve specialist the statute requires. But getting your dates straight before you call them saves money on the initial consultation and keeps the board from being blindsided in an owner meeting. For a broader look at how Florida's post-Surfside reforms affected reserve funding rules, see florida condo reserve fund relief, and for a component-by-component breakdown of what belongs in a condo reserve study, see reserve study for condo association.
Frequently asked questions
What is a milestone report?
A milestone report is the sealed, written document a licensed architect or engineer produces after Florida's required milestone structural inspection under §553.899. It describes the building's structural condition, flags any distress, and states whether a Phase 2 inspection is required. It goes to the local building official and gets shared with unit owners.
What is a reserve study?
A reserve study is a financial and physical assessment that projects the remaining useful life and replacement cost of an association's major shared components (roofs, paving, elevators, structural elements) and calculates how much the association should be saving each year to fund those replacements without a large special assessment.
What is a reserve study for an HOA?
For an HOA, a reserve study covers the community's shared assets, roads, clubhouse, pool, gates, retention ponds, sometimes attached roofs, and builds a multi-year funding schedule. Many HOAs aren't legally required to do one under Chapter 720 the way condos are under Chapter 718, but skipping it usually leads to surprise special assessments.
What is an HOA assessment?
An HOA assessment is any charge levied on homeowners to fund the association's budget: regular assessments cover routine operating and reserve costs, while special assessments cover one-time or unbudgeted expenses like a major repair. Under Florida condo law (§718.116), assessments become a personal obligation of the owner and unpaid amounts can create a lien.
How much should an HOA have in reserves?
There's no fixed statutory dollar amount; the right figure comes from a reserve study specific to your property's components and their replacement costs. Industry practice generally flags associations below about 30% funded (relative to their study's ideal) as underfunded and at higher special assessment risk, though that's a planning benchmark, not a legal requirement.
How much does a reserve study cost?
Costs vary by building size and study level. Update studies for smaller HOAs often run roughly $1,000 to $3,000, while full Level I studies on larger condo buildings with many structural components can run $5,000 to $15,000 or more, based on ranges reported by CAI-affiliated reserve study professionals.
Are HOA special assessments tax deductible?
Generally no, for a personal residence, the IRS treats HOA special assessments as a nondeductible personal expense. Exceptions may apply for rental or investment properties, or the assessment may add to your property's cost basis if it funds a capital improvement. Owners should confirm specifics with a CPA.
When is a milestone inspection due in Florida?
Buildings three stories or taller need their first milestone inspection by December 31 of the year they turn 30 (or 25, if within three miles of the coast), and every 10 years after, under §553.899. Buildings that already exceeded that age as of July 1, 2022 faced a catch-up deadline of December 31, 2024.
What's the difference between a milestone report and a SIRS?
A milestone report is a structural safety inspection under §553.899 covering all buildings 3+ stories. A SIRS (Structural Integrity Reserve Study) under §718.112(2)(g) is a financial reserve-funding document focused specifically on structural components, required for condos and required to be fully funded without owner waivers on covered items.
What happens if a milestone inspection finds structural problems?
The inspector must notify the local building official and recommend a Phase 2 inspection, which involves more invasive testing like core sampling. Depending on severity, Phase 2 can lead to a mandated repair timeline, and in extreme cases, occupancy restrictions. Boards typically follow this with a special assessment to fund repairs.
Who has to get a milestone inspection in Florida?
Condominium and cooperative buildings three stories or more in height, per Fla. Stat. §553.899. Most single-family homes and low-rise HOA structures under three stories aren't covered by this specific statute, though separate reserve rules may still apply to HOAs depending on governing documents and evolving state law.
Can owners waive the SIRS reserve requirement?
No. Under §718.112(2)(g), reserves for SIRS-covered structural components (roof, load-bearing walls, foundation, and similar items) cannot be waived or reduced by a vote of the owners once the association is required to have a SIRS. Non-SIRS reserve items can still potentially be waived depending on the vote and governing documents.
Where can I find my building's exact milestone inspection deadline?
Contact your local building department (city or county) and provide your certificate of occupancy date; they determine the exact statutory deadline based on that date and coastal proximity under §553.899. Miami-Dade and Broward counties have long-running recertification programs and established tracking; other counties vary in how proactively they notify associations.
Sources
- Florida Senate, Florida Statutes §553.899 (Milestone Inspections): Milestone inspection requirements, 30-year/25-year coastal deadlines, and Phase 1/Phase 2 process
- Florida Senate, Florida Statutes §718.111 (Condominium official records and owner rights): Requirement to share inspection and reserve reports with owners as official records
- Florida Senate, Florida Statutes §718.112 (Reserve accounts and SIRS requirements): SIRS component list, non-waivable reserve requirement, and December 31, 2024 SIRS deadline
- Florida Senate, Florida Statutes §718.116 (Assessments; liability; lien): Assessments become personal obligation of unit owner and unpaid amounts create a lien
- Internal Revenue Service, Publication 527 (Residential Rental Property): Tax treatment of HOA and special assessments for personal residences versus rental property