Developer Turnover In Florida Condos: Using Milestone And SIRS Reports

Developer turnover is the moment when control of a Florida condominium passes from the developer to the unit owners’ association. Under section 718.301 of the Florida Statutes, this happens once certain sales or time thresholds are met and owners can elect a majority of the board. At that point the developer must hand over extensive records and reports to the association.

Recent changes mean that the turnover package is no longer just financial statements and building plans. The developer now has to provide a turnover inspection report that includes a Structural Integrity Reserve Study, covering major structural and building systems, plus a copy of the association’s most recent SIRS if one exists.

For new boards, that is a powerful starting point. Used correctly alongside milestone inspection data, it can help you avoid inheriting unsafe structures and underfunded reserves.

How Milestone Inspections And SIRS Fit Together

Florida law now layers multiple structural and reserve requirements on top of one another.

A milestone inspection is a structural inspection for condominium or cooperative buildings that are three stories or more in height. It normally occurs when a building reaches 25 or 30 years of age, depending on distance from the coastline, and then every 10 years after that. (Florida Senate)

A Structural Integrity Reserve Study focuses on the future funding needs for key structural and safety components such as the roof, structure, fire protection, plumbing, electrical systems, waterproofing, windows and exterior doors. SIRS requirements for condos are set out in section 718.112(2)(g).

At developer turnover, the law now ties these concepts together. The developer’s turnover inspection report must include a SIRS-style analysis for specified structural and building systems, along with cost and useful life estimates.

For a new board, that means you should have, at minimum:

• A snapshot of the building’s current structural condition.
• A list of critical components, expected remaining life and replacement cost.
• A starting reserve funding plan for those items.

If you need a deeper primer on how reserve studies work in general, you can cross reference PropFusion’s HOA Reserve Study Guide.

What To Ask The Developer For Before You Take Control

Well before the turnover meeting, the board-elect or transition committee should start asking for specific information. In addition to the standard turnover package listed in section 718.301, request:

• The full turnover inspection report that includes the SIRS level detail required by statute.
• Any milestone inspection reports already completed, or written confirmation if the building is not yet old enough to require one.
• A schedule of any structural repairs already completed or in progress, with contracts and warranties.
• Current reserve schedules and bank statements, showing how much money has been set aside for the components listed in the report.
• Copies of all engineering reports, geotechnical studies and repair specifications related to the structure, parking structure, balconies, waterproofing and facade.
• A list of open permits, building department notices and code enforcement issues that could affect structural work or reserve planning.

This is also the right time to line up your own professionals. Many communities hire an independent reserve study provider or engineering firm to review the developer’s SIRS and milestone documentation and advise on gaps or inconsistencies.

If your board wants an independent set of eyes, you can request proposals from multiple Florida reserve study companies through PropFusion’s Florida marketplace page.

Using Milestone And SIRS Reports To Build Your First Long Term Plan

Once you receive the turnover inspection report and any milestone reports, you can convert those technical documents into a working capital plan.

Start by mapping the SIRS component list into your reserve schedule. For each item, you should see:

• Current condition or remaining useful life.
• Estimated replacement or major repair cost.
• Recommended year for the next major project.

Use that information to build a 20 to 30 year funding plan that shows when big projects are likely to hit and how reserve contributions need to change over time. If the turnover study shows that some items are already near the end of their useful life, run separate scenarios that compare accelerated funding, phased projects and potential special assessments.

PropFusion’s reserve planning tools are designed for exactly this kind of work, allowing boards and managers to model different funding paths before deciding how fast to increase contributions. If you want more background on funding strategies, you can also reference PropFusion’s article on fully funded, threshold and baseline funding. 

Sample Timeline For A Florida Condo Approaching Turnover

Every community will be different, but a simple, realistic sequence for a new high-rise might look like this:

1. Twelve to eighteen months before turnover - Owners see that a turnover trigger is coming based on sales progress. A transition committee forms, engages independent legal counsel and begins reviewing governing documents and budgets.
2. Six to nine months before turnover - The developer commissions the required turnover inspection report with SIRS and begins assembling the rest of the statutory turnover package. The transition committee requests drafts and starts identifying questions.
3. Three to six months before turnover - The committee’s engineer or reserve specialist reviews the draft SIRS and any milestone report, flags inconsistencies and suggests clarifications. The committee compares the projected reserve contributions in the developer’s budget with what the study actually recommends.
4. Turnover meeting and first budget cycle - The new board receives the complete turnover package, formally accepts control and adopts an initial budget that aligns reserve contributions with the SIRS findings. The board communicates the plan to owners and sets expectations about upcoming increases or projects.
5. First one to two years after turnover - The board arranges its own follow-up reserve study or peer review, updates the funding plan based on actual performance and begins tracking progress against the SIRS recommendations using software rather than spreadsheets.
   
   

When You Should Consider Your Own Independent SIRS Or Reserve Study

The developer’s turnover SIRS is a legal requirement but it is still a developer-commissioned report. Boards should consider a fresh, independent study when:

• The turnover SIRS shows very low recommended reserve contributions compared with industry norms.
• There are obvious inconsistencies between the component list and the building systems you can see on site.
• Major structural repairs are already underway or being discussed, and the SIRS does not fully account for them.
• Owners have concerns about construction quality or premature failures.

An independent reserve professional or engineer can validate the original findings, adjust useful life assumptions and refine the funding plan based on how the building is actually performing. PropFusion’s Florida marketplace makes it easy to compare proposals from multiple reserve study providers if you want that second opinion before or soon after turnover.

For a detailed breakdown of how Florida reserve study and SIRS rules work in general, you can refer to PropFusion’s Florida reserve study law guide and Florida SIRS guide.