Florida Building Collapse Highlights Serious Challenges Facing Condo Boards
Category: Active adult communities
Note: We are once again grateful to Joe West of the Community Associations Network, LLC, for helping us research this topic.
July 10, 2021 — The collapse of Champlain Towers South near Miami, built in 1981, has made owners and buyers nervous. The dream of living near the ocean has been interrupted by the fear that some buildings might not be safe, and that owners’ investments could be in danger. It also highlights the problems that condo, community, and home owners associations (HOAs) face all around the country. Some 70% of homes and condos in Miami were built prior to 1970 – more than 50 years ago. Since then they have been exposed to all kinds of problems like those at Surfside – salt air and salt water incursions, rising water tables, aging concrete, and older building codes. The problems are worse along the coasts, but, like us baby boomers, even buildings far inland are not exempt from the vicissitudes of age. And who are the people who are going to have to deal with these expensive, highly technical problems – you and your condo board!
The causes of the Surfside collapse and the actions of its condo board members have been a staple of discussion in the news. The problems with the building were well known for a long time. After great struggles and almost a complete turnover of its board members, a $15 million plan was approved to correct water incursion and corrosion issues in the 167 unit building, although work had not started on it. Board members and residents fought over the expensive plan, which was going to represent a hardship for many owners. Some experts believe even those repairs might have too late, and still not have prevented the building’s collapse.
Comments on "Florida Building Collapse Highlights Serious Challenges Facing Condo Boards"
Admin says:
I think this article highlights the difficult and important job that members of condo boards and HOAs have. Lots of people like to bash their boards, but these are usually the same people that say they won't serve on them because they are "too busy". Finding and electing qualified board members and participating in board discussions of the issues is critical. As we saw in the Surfside building collapse, it appears that owners were not willing to support difficult decisions and thus paralysis set in. If you live in an HOA and you have some board experience of management experience, consider running for the board next year.
Admin says:
There is a fascinating short (4 minute) radio segment on NPR that everyone who either lives in a homeowners association or is thinking about buying into should listen to. It features an interview with
Robert Nordlund, founder and CEO of Association Reserves, about what what due diligence condo owners should be conducting in their communities. The steps are easy, such as looking at the last few Board meetings to see what issues are being discussed and how they are being resolved, and what the reserves look like. If there is a history of special assessments, that is clear evidence that the Board is not doing its job. Check it out!
https://www.npr.org/2021/07/19/1016940192/why-steady-low-condo-fees-should-raise-a-flag-and-other-tips-for-owners-and-buye
Admin says:
There is an interesting article in the NYTimes today by a Florida attorney who specializes in condominium law, "I Know All About Condo Living. Let's Fix It." The points he make are about how condo boards have important responsibilities, built in conflicts, and an often unreceptive audience. He thinks professionals should be more involved in insuring that important decisions about reserves and building maintenance are made. He makes the analogy that having board members make key decisions is like the passengers on an airliner choose the crew for the flight from among the passengers. Worth a read for anyone who lives in a condo or is thinking about it.
David M. Lane says:
Lets keep in mind that all condos are not bad and ready to fall to the ground and are not worth considering as a place to live and a lifestyle. Condos built clost to salt water and have a base of sand can be subject to problems that 95% of the condos in other oreas do not face. Lets keep in mind that all housing and not just condos need to be monitored for deterioration and need to be regularly checked and action taken and that takes money and advanced planning. Roofing, siding on single family detached housing have their problems. If you want to consider a condo as your next retirement home that it is in your best interest to consider a condo that has a strong maintenance plan and reserves. In buying a condo looking for the cheapest condo fee is probably not the way to go. Also remember in new construction condos the maintenance fee/reserve account is often set at a low rate to induce you to by newly built stuff. Condo living has many advantages for the person considering a change in residence as they look toward their golden years!
Clyde says:
There are many different styles of condos. Low rise (2-3 stories or less) garden-type units located no closer than 2-3 miles from salt water will likely become more in demand. Just as in our nation’s bridges and roads, etc., infrastructure issues are coming to the forefront in condo and apartment living, especially those built 20 or more years ago. As has been said, lower condo fees may mean that maintenance has been deferred. No board is likely deferring maintenance intentionally. It almost always boils down to cost/money. It’s either pay now, or over a set period of years (funded reserve funds), or pay later with possibly huge assessments. Not to mention the danger of living in a deteriorating building.
If your HOA has been skimping on maintenance or reserves, there is a way for an individual owner to cushion any future large assessments. For example, say your HOA monthly fee is $300, but it really needs to be about $375 in order to properly maintain the units and fund reserves. If you can, just put $75 a month into your own “reserve” fund and when a special assessment for maintenance/repair comes up, you won’t be hit so hard. This is a tip I read in an excellent condo living book before we bought ours. Fortunately, our HOA does fund reserves in accordance with Florida law. We have had no special assessments for years because when it is time to replace the elevator or roofs, or paint the buildings, the fully-funded reserves are there. And out of the 7200 units in our complex, non are more than two stories high. We’re also inland from the Atlantic Ocean about four miles. Our HOA fees are generally somewhat higher than similar condo complexes in the area, but there’s a good reason for that.