In St. Petersburg Condos, the Engineer's Report Decides Who Can Make an Offer

Two St. Petersburg condos can share a list price, a water view and a monthly fee and still draw different groups of buyers. For one of them, a mortgage lender has to read the building's latest structural inspection before approving a loan. If that report flags a critical repair that hasn't been fixed, the building can drop out of conventional financing. When that happens, the buyers left are the ones who can pay cash.

That rule goes a long way toward explaining the current Pinellas condo numbers. The countywide median looks like an entry point, while the downtown skyline keeps adding towers priced in the millions. Those figures come from different parts of the same market.

The paperwork Florida requires is the paperwork lenders read

Since the Surfside collapse, Florida has required milestone structural inspections for condo buildings with three or more habitable stories once they reach 30 years of age. After that, inspections generally repeat every 10 years, and local agencies can set the first one at 25 years. A companion rule in section 718.112 requires covered associations to fund reserves for structural and safety components based on their most recent structural integrity reserve study, known as a SIRS.

Those inspections create a paper trail. Fannie Mae's Selling Guide section on ineligible projects says that when a structural or mechanical inspection was completed within three years of the lender's review, the lender must get the report and read it. The guide states:

"The report cannot indicate that any critical repairs are needed, no evacuation orders are in effect, and no regulatory actions are required."

Fannie Mae's list of critical repairs includes:

• failing a mandatory state, county or other jurisdictional structural inspection
• advanced physical deterioration
• unfunded repairs of more than $10,000 per unit that should be done within the next 12 months

Its examples of items to consider include sea walls, elevators, balconies, parking structures and other load-bearing elements. Freddie Mac's ineligible project rules work the same way. A project that needs critical repairs stays ineligible until the work is done and engineering documentation shows the problem is resolved.

So the inspection program Florida built to make older buildings safer also produces the documents conforming lenders have to underwrite. A building that has had its milestone inspection but hasn't finished the repairs can be in the toughest financing position of any building in town.

A special assessment does not clear the building

Many buyers assume that once an association votes a special assessment, the problem is handled. Lenders see it differently. Fannie Mae requires a lender to collect four facts about every current or planned special assessment:

1. its purpose
2. when it was approved, and whether it is only planned or already being collected
3. the original amount and the amount still to be collected
4. the date it is expected to be paid in full

If the assessment pays for a critical repair and that repair isn't finished, the project is ineligible. Freddie Mac asks lenders for the same four items.

Funding the repair is what eventually reopens the building to financing. Until the engineer signs off on the completed work, though, the assessment shows the issue still exists. Fannie Mae's $10,000 unfunded-repair test leaves out repairs paid for by a special assessment. The inspection-report test still applies, so a building can clear one rule and fail the other.

One downtown St. Petersburg tower shows how large these numbers can get. In August 2023, the Tampa Bay Times reported that engineers had found the 1975 building structurally sound. They also found problems with post-tension cables, metal framing and stucco, garage concrete and the roof, with estimated construction costs of $30 million to $45 million to be funded through special assessments. That figure is from 2023 and doesn't describe the building's status today. It shows how large one building's findings can be. The problem is also widespread. In July 2024, the St. Pete Catalyst reported that 225 St. Petersburg condo buildings were due to submit milestone reports that year.

What the September 2026 numbers look like with that in mind

The most recent monthly figures cover September 2026, from the Pinellas REALTOR Organization's report produced by Florida Realtors. They are countywide and include townhouses along with condos.

In September 2026, about 61% of closings were cash. Cash closings rose 23.6% from a year earlier, while total closings rose 13.3%. The gap between average and median price grew from roughly $95,000 to roughly $132,000. That points to the top of the market pulling away from the middle. The report doesn't show why any single buyer paid cash, and it doesn't separate older buildings from new ones. What it does show is that most of these sales happen without a lender, and that financing rules screen buildings on their inspection history.

Monthly medians move a lot. August 2026's townhouse and condo median was $275,000, with 74 days to contract. Basing a price judgment on one month's median is risky. The next monthly release is scheduled for November 16.

Downtown keeps adding buildings with no repair history

Meanwhile, developers keep adding new buildings that are decades away from their first milestone inspection. Kolter Urban alone has completed ONE St. Petersburg in 2019 with 253 condos, Saltaire in 2023 with 192, and Art House earlier this year, a 42-story tower with 244 condos. It also has approval for a 21-story, 62-unit tower on the former Fit2Run site along 2nd Street North.

On October 14, the Tampa Bay Times reported that Kolter had filed plans to replace the 56-year-old Hilton Bayfront at 333 First St. SE with two 44-story towers holding 325 condos. Kolter's regional president described it to the Times as an "ultra luxury" branded condo and said the company would close the hotel by mid-2028 if plans hold. St. Pete Rising noted that the project would have more residences than any completed condo tower in the city.

Demand at the top has been strong. The Nolen, a 31-unit tower near Beach Drive, sold out in October 2025, according to the St. Pete Catalyst. Under the statute, a tower completed in 2026 won't hit its 30-year milestone inspection until the 2050s.

Rules that are still changing

State law has eased some of the pressure on associations. The Florida Senate's summary of HB 913, which generally took effect July 1, 2025, says the law:

• raised the reserve-item threshold from $10,000 to $25,000
• allowed owner-controlled associations to fund required reserves through a special assessment, line of credit or loan with majority approval
• allowed some associations to pause or reduce reserve contributions for up to two consecutive budgets through 2028 to pay for repairs recommended in a milestone inspection

Under the current text of section 718.112, an association with a milestone inspection due on or before December 31, 2026, may complete its SIRS at the same time, and no SIRS may be completed after that date.

A pause in reserve contributions helps an association pay for the repair. The lender rules, however, are triggered by the repair findings themselves. For the reserves side, Freddie Mac's established-project rules generally look for at least 10% of the annual budget going to replacement reserves, with a qualifying reserve study accepted as an alternative.

Before writing an offer on an older St. Petersburg condo, these are the documents that tend to determine the outcome:

1. The most recent milestone inspection report and any engineer's letter confirming that repairs are complete
2. The current SIRS and the adopted budget's reserve line
3. Every approved or planned special assessment, including its purpose, amount, remaining balance and payoff date
4. The building's status with Fannie Mae, which lenders check through Fannie Mae's Condo Project Manager system

This is general information about published rules. It isn't legal, lending or financial advice, so please confirm how these rules apply to a specific building and loan with your lender and attorney.

FAQ

Does a special assessment mean I can't get a mortgage? Not necessarily. Fannie Mae and Freddie Mac both treat special assessments as something to review, not an automatic disqualifier. The deciding question is whether the assessment pays for a critical repair that is still unfinished.

Is the $246,750 Pinellas median a St. Petersburg number? No. It is a countywide figure for September 2026 that combines townhouses and condos.

Which buildings fall under the milestone inspection law? Under the 2025 statute, condo and co-op buildings at least three habitable stories tall, starting at 30 years of age, or 25 if a local agency sets it.

If you're considering a St. Petersburg condo and want an inspection report, reserve study and assessment history reviewed before you set a price, The Pithers Group can help you collect those documents early, while you still have time to act on what they show. Contact Us.