In Miami-Dade and Broward Counties, a valuable tool exists within the county code that requires all commercial buildings over 40 years of age, including condominium buildings, to undergo a safety recertification process.
Deaths are cause of rule
The reason for this rule is that about 25 years ago, there were several instances of walkways and balconies collapsing in both Dade and Broward Counties, which resulted in the deaths and severe injuries of several people. Unique stresses are placed on buildings in South Florida, being in a tropical environment so close to salt water and with high levels of rain and humidity. Another factor is the hurricanes and accompanying high winds that have struck South Florida over the past 15 years.
Boards are clueless
Many condo association boards and individual unit owners are not aware that this requirement applies to their building too, and they do not prepare for the arduous task of coordinating an assessment of the state of their building.
The “40-year rule,” as it’s known, comprises all components of a building and includes, but is not limited to, structural, columns, roof, plumbing, electrical, mechanical, fire alarm, fire sprinkler systems, elevators, exterior walls and paint, balcony structures, hallway and staircase railings, etc.
Every property is different and unique, so each assessment has to be modified to reflect the association one is working with.
Plan well in advance
An association board has a legal and fiduciary duty to begin planning and budgeting for the moment when the condo will be subject to inspection by the municipal authorities.
Unless an association facing the 40-year mark has been run impeccably from the start, and each board consistently maintained and replaced all building components at the conclusion of that component’s useful life, it pays to begin preparations now.
Negotiations are no cake walk
My experience has been that the majority of the associations or management companies were not properly qualified to begin negotiating with the architects, general contractors, engineers, elevator manufacturers, roofers and a host of sub-contractors and vendors that become part of a renovation project.
Get good advice
In addition to the above, an association must have qualified legal advice, preferably from a law firm that specializes in real estate, construction and zoning law, and that is familiar with municipal and county regulations and processes.
I’ve made some observations over the years that unfortunately occur time and again. The first is that you can never start planning and budgeting for the repairs and renovations too soon. The second is that repairs always take longer and cost more than expected. The others are that accidents happen, lawsuits occur and provisions have to be taken for construction defects and contractor default.
Use checklists
The most effective way I’ve found to work with implementing a plan to confront the 40-year rule was to design a series of checklists and flowcharts.
My checklist is very basic and essentially consists of bullet points of areas I need to make provisions for. An example would be roof, elevators, pool, plumbing, electrical, fire alarm, etc. There could be 20 to 40 bullet points, depending on the association and the complexity of the amenities. I conduct a preliminary inspection of the premises, write down my observations and submit a written report to the board with my findings and recommendations.
Call people you know
Since I have interacted with various architects, engineers, attorneys and contractors over the years, I advise the board of my experiences and explain to them in general terms both the good and bad they should expect. You’re never going to find any vendor that will satisfy all your needs or provide exceptional service every time. Something will most certainly go wrong or not meet your expectations at some point, so you will constantly be making new contacts and negotiating for this or that service. I provide board members with contact information on those vendors I’ve dealt with before and urge them to call for a consultation. They are of course under no obligation to use anyone or any firm I suggest, but it’s always helpful to have someone you’ve worked with before and already know.
The board must decide
Essentially it is up to the board to decide what firms they are going to contract with to handle the process of renovations.
In my role as a facilitator for the board, I simply explain the options available and try to convey risk-management concepts to them. The most important piece of advice that I give any board is to prepare and budget accordingly and seek qualified counsel. When I confront opposition from board members or individual unit owners that don’t want to incur the costs of renovations, I simply point out the fact that the building could face massive fines and penalties or even condemnation from the municipal authorities, including the fire department.
I think the cost of incurring $100 to $250 per day in fines and the potential of having dozens if not hundreds of families being forced to move out of their units far exceeds any expenses the unit owners would incur if they were to properly repair their buildings and prepare them for a mandatory inspection, which is going to occur whether they want it to or not.
Don’t count the pennies
This issue comes down to the old saying of being “penny wise and pound foolish.” Boards that thought they were saving money and keeping maintenance fees low at the expense of the deterioration of their buildings wake up one day facing emergency repairs at a cost that far exceeds what it would have cost if repairs had been done five or 10 years ago.
An association that consistently budgets for and replaces those components of a building within reasonable time frames would never have to face what the majority of associations face today in South Florida, an unnecessary scramble to prepare for the 40-year rule inspection.
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Author : Orestes Isa
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