Collapse of Trust
Authorities in Miami-Dade County have confirmed 98 people were killed in the tragic building collapse at Surfside, FL on June 24th. Following the tragedy, standards of practice and legal requirements related to maintenance and structural integrity have understandably become a main point of focus for condominium and residential high-rise associations.
Integrity is Integral
Millions of people in the US reside in condominiums and high-rise communities, and government officials at all levels have started to consider what adjustments need to be made in order to prevent another building collapse tragedy.
Recently the Community Association Institute’s (CAI) Government and Public Affairs Committee held a meeting with experts representing condo association managers, attorneys, builders, reserve specialists, and insurance professionals to confer next steps. They discussed best practices and standards for public policies related to condominium structural integrity requirements, and formed groups based on the overarching themes of the discussion to help establish guidance and model language for committees, boards, and state legislators.
Inspecting the Inspections
Many counties in Florida have obligations for inspection that require an engineer or architect to certify the safety of all condominium buildings. In response to the recent tragedy, many states and municipalities are initiating processes to review their requirements, and ones similar in other localities, to help develop standards for condominiums and high-rise residential buildings.
Reservations Required
A Reserve study is a physical and financial analysis that identifies significant components of an association in order to plan for a budget. According to the Foundation for Community Association Research’s Best Practices report, reserve studies identify key components a community must maintain or replace, the status of the reserve fund, and an balanced funding plan to anticipate future spending needs.
Reserve studies for condo associations are currently only mandatory in nine states: California, Colorado, Delaware, Hawaii, Nevada, Oregon, Utah, Virginia, and Washington state. Washington has historically encouraged associations to perform a reserve study once every three years, unless reasonable explanation is given to do otherwise. Florida does not require a reserve study, but requires a reserve schedule for the repair and replacement of primary components in the association.
In 11 states (Colorado, Delaware, Florida, Hawaii, Illinois, Massachusetts, Michigan, Minnesota, Nevada, Ohio, and Oregon) reserve funding for condominium associations is required for maintenance, repair, and replacement of primary components. Many of these states are now exploring adding tax benefits in order to incentivize association reserve studies and special assessments.
Seeking Solutions
Ardent Residential has, and always will, engage in proactive conversations on structural integrity standards, best practices, and policy changes that benefit and protect our 25,000+ members, and the millions more living in condominium and high-rise associations around the world. We will continue our unwavering dedication at being a crucial voice for our members with experts and stakeholders. By working together with others, Ardent Residential helps strengthen existing standards and public policy in an effort to prevent future tragedies, like the one in Surfside, from ever happening again.
Be The First To See Articles Like This – Scroll Down To Follow Us or Sign Up For Our Newsletter!
