HOAleader.com - Tip of the Week - September 10, 2021
Published: Fri, 09/10/21
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HOAleader.com - Tip of the Week - September 10, 2021
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In this week's tip, we get our experts' input on the actions they're advising their clients to take in light of the horrific condo collapse in Surfside, Fla.
The issue is very real for Joan Lewis-Heard, a senior associate at SwedelsonGottlieb in Los Angeles, who at any given time represents hundreds of condos and HOAs throughout California. "In my area, if you open the local newspapers, you'll see reports of issues with Marina City Club Towers—which isn't a client of ours," she explains. "Local authorities have had some issues with that condo building following inspections, and they're essentially saying, 'You have to do what you need to do to fix things, or we're going to red-tag you.'"
Red-tagging would force owners to be evacuated, and they'd be prohibited from returning to the property until it was deemed safe for habitation.
"Champlain Towers is a wakeup call," she says.
Christopher J. Shields, a partner at Pavese Law Firm in Ft. Myers, Fla., who has represented associations for decades, agrees the tragedy is a wake-up call, adding that, with any luck, some good will come from this heartbreaking loss.
"I think everybody in the United States is aware of what happened, and there may be a silver lining to this tragedy," he says. "If you look at news reports of the history at that property—and I don't think we yet know all the facts—it seems the board has known about problems for the last 15 years.
"From news reports, it looks like there was a board recall, then some turnover on the board, and unit owners fighting a special assessment saying they couldn't afford it or perhaps that it wasn't necessary—that the board was making a bigger deal out of the problems than necessary," says Shields. "They've been kicking the can down the road a long time, and this is a teachable moment. Perhaps people will finally recognize that buildings need to be maintained.
"What do boards have to do?" he asks. "They need to see what needs to be seen. They need to see things like concrete that's corroded. Many people are learning for the first time that maybe concrete buildings don't have an unlimited lifespan."
That may make your job as a board member easier. "I think many board members have been saying to owners, 'We have a fiduciary obligation to maintain the property, and this is serious business,'" says Shields. "The good news is I think the owners being special assessed will now recognize the board is doing the right thing. All too often they push back, saying, 'This isn't necessary! This is a wish list.'
"This is the first time anybody in the United States understood that we could have a high-rise collapse without any intervening cause," notes Shields.
Find out the three actions our experts say should be underway in your condo/HOA in our new article: https://www.hoaleader.com/members/4382.cfm
Best regards,
Matt Humphrey
President
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