Posted on 06/27/2021 8:33:55 AM PDT by TheWriterTX
There is a lot of misinformation floating around FR on the Miami condominium collapse. As a high-rise condominium manager, this story hit home. So here is a quick primer to help people combat fake news.
First, this is not an apartment complex. In an apartment complex, an investor or group of investors owns the building and everyone is a transient tenant. It is a for-profit business. If there are major repairs needed, landlords can raise the rents to cover repairs.
This is a condominium. Each unit has a separate owner, they purchase it with a mortgage or cash.
Every month, unit pay assessments to cover the operational expenses of the building (water, electric, maintenance, staff, grounds, pool, portering, systems, etc.). The condominium functions under a non-profit Association.
Each year, the owners have an Annual Meeting to vote for a Board of Directors. The same way we elect representatives to make laws and spending decisions on our behalf, so too does this community.
It is important to note that condominiums and homeowners associations are self-funded. They only have the money that the owners give it. If there is a big, expensive repair needed, and the association does not have enough money set aside to do it, then the Board must call for a special assessment to raise the money. The special assessment is in addition to the regular monthly assessments and must be approved by the owners (usually 67% must vote yes).
If the manager brought this to the board and the board did not move ahead, the liability is now on the board and there is nothing the building manager can do other than resign. If the board brought this issue to the communuty and the owners did not vote to approve, there is nothing the building manager could do other than resign. The liability falls back on the individual owners for refusing to fix it.
Approximately 2.5 years ago, the building had a structural engineer evaluate spalling, cracking in the underground parking garage, and building envelope issues. The report warned then that major repairs were needed and that structural integrity was compromised.
The building manager should have recommended and the board should have voted to approve having the engineering firm create a scope and then gone out to bid ASAP while calling for a massive special assessment. If they did not, they are in trouble.
Another issue that was impacting this building was land movement. Parts of the building were shifting at different degrees. All of these were putting stressors on the building envelope, as evidenced by external cracks and lawsuits for water intrusion.
So, the long and short is this:
1. There were warning signs the building was in trouble.
2. There were engineer reports the building was in trouble.
3. This was not some McAfee conspiracy theory controlled demo false flag event.
4. If the manager raised the alarm and the board/community did nothing, the manager is not liable.
5. If the board raised the alarm and the owners did nothing, the owners are liable to each other. Let the lawsuit party begin.
6. Buildings are evaluated every 40 years by law. Annual building inspections typically only deal with fire life safety equipment, boikers, chillers, elebators and other components, not structural. That may change in light of this event.
7. People blaming DeSantis are delusional. Give them a dime and tell them to buy a clue.
Does anybody know if there were pilings or caisons in the foundation? Or it could have been a failure at the top.
I feel it should have been condemned in 2018 which would have forced the board and HO to bite the bullet and pay for repairs. Would have been cheaper than what they are now up against. If they voted no than insurance companies will probably tell them to pound sand
You’ve got to become a elebators inspector first... ;-)
Good post!
Clear and to the point. Thx.
One question could be clarified: was this originally built as a condominium property or the more likely, converted from apartments?
I want my elebator!
Great post.
I am not an attorney, but common sense suggests that they would. Remember, if there is a lawsuit against the Association, and there is insufficient or no insurance to cover it, the owners collectively are on the hook. This community will be bankrupted by this event. They are suing each other.
Further, most management contracts have an indemnification clause. If management gets sued, the Association pays. Managers act at the direction of the Board. They are facilitators of the board’s decisions.
I have personally authorized fire life safety repairs above my spending authority without seeking prior approval because my contract allows it. A project of this size could not be done without board and/or owner approval.
Very good write up. After 40 years of apparent stability it was easy to get complacent.I wonder how many of the dead would have voted to spend the money needed?
Thank you.
was this originally built as a condominium property
Always was a condo
Check out this security video from inside a condo unit, the building appears to be crumbling like snow then it falls.
Thanks CGAS
Sorry, I do not know if it was a conversion.
If it was, then foundation issues should have been addressed during the rehab prior to the City issuing the final certificate of occupancy.
Well done! Thanks.
If there is a big, expensive repair needed, and the association does not have enough money set aside to do it, then the Board must call for a special assessment to raise the money. The special assessment is in addition to the regular monthly assessments and must be approved by the owners (usually 67% must vote yes).
That is why the first suit filed yesterday was against the homeowners association.
Glad I am not a board member of that mess (or any other).
Not a constructive post.
Example:
“If the manager brought this to the board and the board did not move ahead, the liability is now on the board and there is nothing the building manager can do other than resign.”
So the management company kept collecting the management fees every month, even though the knew there were structural issues and had raised them to the board?
I would not want to be your insurer.
I was a security guard for seven years at the first large condo on the Beach here, buil in the 70s. The politics and stubborness and stupidity of the owners and even the Board was amazing. it determined me that I would never buy a condo nor would I have a house subject to an HOA. They paid fines for the faulty fire alarm and suppression system for many years until they were told that they had to replace the old and finally totally nonfunctional system with a new one or the building would be condemned and everyone would have to vacate.
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