Cracks in foundations are by far the most common structural complaint raised in either reserve fund studies or transition studies.  They can occur in the youngest or newest condo building.  As condo documents usually assign the maintenance responsibility of their repair to the association, board members and property managers take them very seriously.  Maine condo buildings have many types of foundations including concrete block; brick; and mortared stone with the most common being poured concrete.

Most basements and garages have 4 to 6 inch concrete slabs and unless this is a slab-on-grade foundation, the slabs were poured independently of the foundation walls.  They are said to be ‘floating’.  Often the construction joint between the slab and wall can easily be seen.  The common slab crack complaint is hairline cracks appearing in spider web-like patterns.  These cracks can show up shortly after construction and are normally caused by shrinkage during the curing process.  The key point here is this type of slab cracking is rarely a structural problem, for after all, the slab could be completely removed leaving a dirt floor while the foundation walls and columns with footings will easily maintain a stable building.

Therefore, slab cracking is often more of a cosmetic problem.  Cracks are often repaired with a variety of grout, caulk, or epoxy products primarily to prevent groundwater penetration, insect entry, or radon gas infiltration.  Cracks showing differential movement on opposing surfaces can be a tripping hazard but more importantly an indication of serious sub-surface conditions needing further investigation.

Regarding foundation walls, the most typical problem with concrete walls are vertical hairline cracks, often starting at the top of the wall and traveling down to the floor slab.  A sub-set of these types of cracks are those that propagate often in a diagonal direction from stress concentration points such as the bottom corners of basement window openings.  The key point to remember is these types of cracks, even when they penetrate the entire thickness of the wall, normally do not constitute a structural problem as the loads from above pass unobstructed on both sides of the crack to the footings below.

However, when the wall surfaces on both sides of the crack are moving out of plane or the structure above shows stress in the form of movement or cracking sheetrock walls and ceilings above, further structural evaluation is warranted.  Foundation cracks should be sealed if periodic water infiltration occurs.  Repairing cracks from the outside if often the best method, but due to the excavation costs involved, repairing the crack from the interior by injecting a crack filling material has become a routine solution.

When horizontal wall cracks; multiple closely spaced vertical cracks; or large diagonal cracks in basement corners are observed, these conditions may indicate more serious problems related to settlement or other structural problems.  Similarly, a single vertical crack that is much wider at the top of the wall may indicated foundation settlement problems stemming from poor soil conditions; hydrostatic groundwater pressures; or frost heaving.  These problems should be directed to a knowledgeable consultant.

Regarding concrete block foundation walls, most of the guidance above can be used with some exceptions.  By their nature concrete block walls are often not well reinforced and are subject to inward movement from various soil pressures causing these types of walls can bulge inward.  Ice lens forming about 3 feet below the ground surface can expand and push concrete block walls inward.  This can even occur from a vehicle’s weight being too close to the foundation, such as oil delivery truck.  When horizontal cracking is observed in block walls, steps should be taken quickly to prevent further movement.  These types of walls are also very susceptible to water penetration even when foundation drains are present often requiring serious water proofing repairs.

The key to maintaining a sound brick or concrete block foundation is periodic vigilance to ensure loose or dislocated masonry elements are not ignored.  If you observe a ‘stair step’ patten crack in the mortar joints of a masonry foundation wall, it typically means settlement has occurred under the ‘step’ section of the wall. .  Any observed bulges or horizontal movement, as well as new cracks, should be quickly addressed.

Many Maine condominiums have been converted from old multi-family apartment buildings with mortared or un-mortared stone foundations, some with brick foundation walls above the ground surface.  These foundations have stood the test of time and are more than 100 years old and if well maintained can last another 100 years.  They are more likely to allow the entrance of ground water due to their porous nature and the necessary steps should be taken to protect the structural elements and indoor air quality of the building if high moisture is a problem.  Old foundations are like people.  As they age, they need some extra care but they have already met the test of time.

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So what keeps you up at night? If you are a condo board member or a property manager, it might be that dreaded phone call reporting calamity at the condominium. Whether it is the report of a fire; or a frozen sprinkler leak; or an injury due to a common element failure, the association’s actions in the past, in the present, or in the future will determine the ultimate outcome of association liabilities.

Condominium associations can assume a wide range of liabilities in this litigious environment we live and this article will not address most of these occurrences such as employee or third party lawsuits; violations of board fiscal responsibilities; and failure to follow administrative directives found in the condo declaration documents, to name just a few. Instead, this article will focus solely on Breach of Duty issues associated with common or limited common elements that could have been foreseen or avoided with proper attention by the community leaders.

Water Infiltration

One of the most common problems facing any building complex is water. Moisture infiltration through the building envelope can develop in virtually any type of structure. Keep in mind the building envelope includes not just the roof surface and exterior wall siding but also windows and doors as well as the foundation itself. Water infiltration takes as many forms as there are states of water, that is, moisture damage can be caused by free running water, ice, steam, and vapor. One of the most important issues to remember is water in any form requires time to cause damage. A short duration wetting rarely caused serious or extensive damage.

A vigilant condo board will have in place protocols and procedures to discover the first signs of water problems through the use of routine building inspection of the common areas and a population of unit owners informed on how to advise the board on water problems in their units. The condo’s building maintenance plan will require a visual inspection of all roof surfaces after any wind event over 50 miles per hour or hail or ice storms. Common area basements and crawlspaces should be viewed after extended rain events. All unit owners should be warned about freezing pipes and sprinkler systems. This is especially true for communities with a large proportion of snow birds taking extended vacations during the winter months. Requirements for low temperature alarms; minimum year-round thermostat settings; and hot water overflow pans should be well understood by all owners.

There should be a guideline in place for what actions are needed when a building envelope water infiltration problem is reported. The action needs to be timely and documented with the issue directed to a pre-determined individual who has the knowledge to understand the seriousness of the problem and the authority to act.

Perils of Poor Maintenance

An example of what can go wrong can be illustrated by the recent case of a relatively new four-story condominium building with a flat rubber membrane roof in Portland, Maine. The top floor unit owner observed some signs of interior wall water stains on the north side of the building. The problem was reported to the property manager who advised the board to hire a roofer to inspect the roof. As the water infiltration appeared to come and go with the way the wind blew, the board felt the problem could be put off as there were more pressing projects. Time passes before the unit owner hires his own building inspector who discovers a tear in a roof membrane seam was allowing water to enter the exterior wall cavity. Further invasive inspection of the exterior wall revealed that not only was the wall oriented strand board (OSB) siding beginning to rot but most of that side of the building’s fiberglass insulation was water saturated and the sheetrock walls had significant mold contamination requiring the unit owner’s family to move out of the unit during the mitigation and costly repair project. All would agree this was an avoidable liability for the condo, if prompt action had been taken.

Similarly, if a unit owner reports recent sheetrock cracks or door molding seams opening and doors not closing properly, the board should not assume it is a unit owner’s responsibility to repair. The interior walls may not be a common element, but the causes of the reported problems may relate directly to a common element such as the foundation or building framing. Taking all such reports seriously will show the owners their concerns are being listened to and potentially head off a widespread global problem throughout the entire complex.

Trip and fall hazards should also be taken seriously to avoid Duty of Care liability. Whether it is missing tiles on the swimming pool deck; damaged carpet in the halls or stairways; or the depressed asphalt pavement that ponds and freezes every winter, these problems are usually well known before the accident happens. You do not want to be the board member in front of the judge when he asks you how easy would it have been to repair the tripping hazard. And don’t forget the hidden fire hazards such as uncleaned common dryer vent ducts or lapsed inspections of the sprinkler system. Don’t depend on hindsight when it comes to risk management.

Article written by Jack Carr, P.E., R.S., LEED-AP, Criterium Engineers
Published in Condo Media February 2020 edition
Download a PDF Version of this Condo Media Article

There is an old Chinese saying, ‘May you live in Interesting Times’. This statement is interpreted to be more of a curse than a friendly greeting, as the interesting times refer to upcoming periods of chaos or uncertainty. Ask any investor or economic forecaster what they fear most, it is uncertainty. Unfortunately, this is the economic environment today’s condominium and HOA board members find themselves in as they develop their future reserve fund budgetary plans.

No matter what your political persuasions are, the continuing blur of economic headlines about fluctuating international trade tariffs; economic retaliations; the price of eggs and cars; soaring housing entry costs; massive government job cuts; stagflation warnings; etc., leave many of us with feelings of uncertainty. For years we have recommended to our Maine clients the need to update reserve fund plans every 4 to 5 years. This rule of thumb needs to be reconsidered in this present climate, as international tariffs will have a significant impact on condo communities.

One thing we can be certain about is a tariff war with our closest neighboring trading partners, as well as China and Europe, will have unintended consequences. Whether the imposition of tariffs is for negotiating perceived trade imbalances or a long-term protectionist policy, there will be a direct impact on the future cost of goods and a reversal of any recent gains on inflationary pressures. While this is a countrywide problem and we are all in the same pool together, some US regions and industries are more in the deep end than others. For this reason, let us consider how an international trade war will affect Maine and more specifically our condominium and HOA communities and what we can do about it.

Canada is Maine’s largest trading partner with over $6 billion crossing our shared 600-mile border. Maine exports $1.5 billion worth of goods to Canada. Maine is highly dependent of Canadian energy importing over 80% of our home heating fuels. One of Maine largest industries is timber but due to historical overharvesting practices a large portion of our lumber goes into Maine’s pulp and paper industry as most of our harvested logs are too narrow to produce structural lumber. Instead, Maine imports from Canada over 85% of our structural lumber needs ($200 million) such as 2×4’s, 2×6’s, etc. to construct our residential and commercial buildings.

On average, lumber costs account for about 10% of a Maine building. It is expected that a 25% tariff on Canadian lumber will raise our lumber import cost by $50 million or 5 to 10% of a new condo unit cost based on estimates from the Maine Association of Home Builders and Remodelers. Similarly, Maine’s construction industry sources much of its cabinets, roofing materials, insulation, and windows from Canadian manufacturers while drywall and appliances are coming out of Mexico. China of course is a source for many other building supplies and products.

Unfortunately, all of this comes at a time when Maine is desperate for new multifamily and condominium units. Instead, the National Association of Home Builders has predicted the tariffs will cause a dramatic slowdown in residential construction due to the expected prohibitive cost increases which appear to conflict with the government’s executive order to increase housing supply and affordability. So, the question arises, what is a condo board to do in the face of rising future costs when preparing the next reserve fund budget?

In the recent past your engineer or reserve fund specialist would prepare a budget based on ‘in-kind’ asset replacement/ repair for each reserve component line item and adjust with a standard inflation rate 3 to 4% as approved by the board. This practice should be revised in today’s environment of uncertainty. Whether it be the talking heads on the evening news or your condo accountant, nobody knows what the future holds. It is uncertain which tariffs will be implemented or how long the trade war will last or what is the impact on your community’s specific project costs and schedule?

For these reasons, a standard reserve fund study may not be the best choice. Instead, discussions with your reserve fund consultant about changing to a more comprehensive reserve fund study approach would be in order. An enhanced engineering analysis will go beyond ‘in-kind’ replacement but instead consider upgrades or alternative materials taking into consideration life-cycle savings; maintenance ease; or operational efficiencies. Objectively reviewing the available options for modernization, maintenance, and repair may produce sufficient cost savings to offset the surprises in the future.

As an example, an enhanced study could reveal your community roof surfaces are not wearing equally due to sun exposure or construction methods. This could suggest a more economical roof resurfacing plan based on roof resurfacing phasing allowing the extension of capital spending to later years to spread cash flow needs. Similarly, the planned HVAC replacement program could convert from oil to natural gas or from conventional systems to heat pump driven systems. Thinking outside the box may be the solution to facing interesting times.

Written by Jack Carr, P.E., R.S., LEED-AP, Senior Consultant Criterium Engineers
Published in Condo Media

If your house, condominium or commercial office building is like most built in the last 50 years, it probably has a sloped roof with one of the following roofing materials:

• composition shingles
• composite tile
• cement or clay tile
• wood shingles
• metal roofing

Each type of roofing has its unique characteristics. However, there are also some common considerations to keep in mind:

1. Life – The actual service life of a roof varies according to the location and exposure to sun and weather. You should not assume that the age determines its condition.
2. Leaks – These are not usually the result of the roofing itself failing. Leaks usually occur due to the failure or improper installation of some related component such as flashing or underlayment.
3. Resurfacing – When resurfacing a roof, you should strip the existing material to the sheathing to allow for a visual inspection of the sheathing, and replacement of all of the related components.
4. Stains – If you have dark stains on a composition roof, it is probably mold. Diluted chlorine cleaners and products such as Shingle Shield are effective at removing the growth. New shingles are more fungus-resistant than some of those manufactured in the 1980s and ‘90s.
5. Trees – Cut back overhanging tree limbs. They can wear a hole in your roof from the wind blowing through the trees.
6. Gutters – If you have gutters, keep them clean. Gutters full of debris are far worse than no gutters. Debris encourages fungus, which can infect the roof sheathing. Rot and mold are the result.
7. Wood – If you have wood shingles, make sure that they are treated for fire resistance and that the treatment is kept current.
8. Clean – Keep your it clean, especially the details around skylights, dormers and valleys, and take note of any change in shape – this is where leaks start.

Your roof has an important job to do—to keep you dry in all kinds of weather. If you take care of it, you will get the most reliable protection and longest life.

There is no condominium community asset more overlooked than its site walls. They literally become part of the landscape and seem to disappear, yet they are vital to the health of the community. They are sometimes called retaining walls or sometimes simply landscape structures, but in the hilly interiors of Maine or the rugged slopes of the coastline, these structures allow the very existence of some condo communities.

They can be made of many different materials. They can be poured concrete, steel, or timber. They can be concrete block or stone or brick. They can be very tall or very short. Whatever they are, if they fail, they can be dangerous and costly to repair. So, a prudent grounds committee should schedule regular inspections and maintain a log of repairs.

Retaining Wall Inspection
Schedule and Checklist

It is recommended retaining walls be inspected four times a year, that is, before or after each season. Heavy rains or soil frost movement can have a significant effect on a retaining wall in a short time. At the very least, someone should perform an annual inspection and compare those findings with the year before.

Grounds Conditions

Like us, aging retaining walls deteriorate primarily because of gravity. This can be due to the excessive soil loading behind the wall or the weight of the wall overloading the soil conditions beneath the wall. The increase of forces behind the wall is often the result of water build up due to surface water above the slope percolating into the ground or a raising ground water table. Weep holes are designed to reduce this increase in hydrostatic pressure, but weep holes can be blocked by debris or overwhelmed by the quantity of water.

One of the first steps in the inspection process is to observe the conditions of the ground surfaces upslope of the retaining wall. Some walls have trench or other types of drains to intercept the water while some ground surfaces are designed to quickly drain water over or around the wall before it can enter the ground behind the wall. If water ponding above the wall is discovered, this problem must be corrected. Ponding will occur if the ground settles or is removed due to erosion. If the top surface is paved, cracking in the asphalt or concrete surface can allow unintended water to enter the soil.

Retaining Wall Surfaces

The surface of the retaining wall is the next and perhaps easiest element to inspect. Wall movement should be noted. Walls should lean back toward the slope uphill. If they lean forward or have signs of bulging in any locations this could indicate excess back pressure or failure in the underlying soils. Horizontal cracks are usually more serious than vertical cracks. The first time this is noted it should be brought to the attention of the facility manager or your engineer.

Timber retaining walls can move or crack due to both earth movement and insect attack. Timber wall elements can rot with age.  Any type of wall can crack and allow vegetation matter to grow from either side of the wall. All roots, weeds, or other growth should be removed when discovered, as they can apply considerable pressure to the crack and create localized weakening of the wall. Wall cracks in concrete surfaces can allow moisture to reach the reinforcing steel causing excess corrosion creating not only internal pressures from expanding rust, but also provide a passage for water infiltration creating further deterioration from expanding freeze/thaw cycles.

Missing wall stones or bricks can also be an indicator of severe developing problems.  These missing elements may weaken the structural integrity of the retaining wall and indicate excessive soil pressures forecasting future wall bulging, bowing, or bellying either vertically or horizontally.

Changes in Proximity

As the original retaining wall was designed for specific loading conditions, any changes in the general proximity of the wall should be considered. This could include the placement of a structure or other heavy mass on the ground surface at the top of the wall or changes in use of the land by your upslope neighbor. This could include a roadway, parking lot, or the use of road salts or deicers near the wall. It also includes any changes to the pattern of surface water drainage such as switching from a grassy surface to a mulched surface.

Slope Movement

One of the subtlest wall failures is the actual movement of the slope itself. In some circumstances it is possible for the entire hillside to shift or move in mass without damaging the wall itself. For this reason, it is important to document not only the wall but the peripheral areas in the vicinity to ensure any movement out of the ordinary is noted and reported. Especially note any ground movement at the foot of the retaining wall. A visible wall is a safe wall.

Article written by Jack Carr, P.E., R.S., LEED-AP, Criterium Engineers
Published in Condo Media June 2021 edition
Download a PDF Version of this Condo Media “The Invisible Wall” Article

Most Common Areas of Concern

As a member of the board or the property manager, what element of the condo complex poses the greatest danger to the unit owners and liability to the association? Slips and falls during the icy season? Decks collapsing from rot? Electrical fires? Well, if you picked “decks,” you are almost right.

If the condition of the complex’s decks is a concern, the good news is decks rarely collapse. Wood decks built more than 20 years ago can have some significant deficiencies by today’s standards. Most deck collapses are the direct result of inadequate attachment to the building, that is, the connection between the deck ledger and building band joist. The U.S. Forest Products Laboratory’s recent study of newspaper articles from around the country reported on collapsed decks and showed “nearly every collapsed deck had been attached with nails, rather than bolts, and investigators had pinpointed nails as the cause of the collapse.”

Deck Deficiencies & Inspections

More than 20 years ago many decks were attached to buildings using nails that rust away or simply do not have the lateral holding power of bolts. To make matters worse, developing problems are often not noticed in a casual visual inspection because the ledger board is hidden behind the siding. This problem is compounded by past deck building practices not protecting the ledger due to a lack of adequate flashing. On Maine’s coast, the salty air creates some very corrosive chemistry on deck components. Fortunately, these type of old decks are disappearing from Maine’s condo inventory.

If your building committee wants to perform an in-depth inspection of all components of the decks, there are many publications providing good technical information such as:

1. 1. Prescriptive Residential Deck Construction Guide (DCA6) published by the American Forest & Paper Association (AF&PA), available as a free download from its website, www.afandpa.org, or stream on YouTube. Though this is not a building code it helps to explain the nature of safe deck building and can serve as an invaluable supplement.
   2. Manual for the Inspection of Residential Wood Decks and Balconies. Written by researchers at Virginia Tech, this manual was published by the Forest Products Society in cooperation with the International Commercial Code (ICC) as a practical guide with good illustrations.
   3. How to Perform a Deck Inspection by the International Association of Certified Home Inspectors (InterNACHI).

Studying these documents could be a rewarding exercise for the members of the building committee, but as stated earlier to truly zero in on the most dangerous condo asset, “decks” is “almost right.” The actual answer is stair and guard rails of decks.

Deck Stairs, Handrails & Guard Rails

Accidents related to stairs are the second-leading cause of accidental injuries in the United States, according to the National Safety Council, responsible for 12,000 deaths annually and for non-fatal injuries costing $92 billion a year. Only automobile accidents take a higher toll.

Handrails must run continuous down the flight of stairs with four or more risers and should be 34 to 38 inches above the treads with a minimum distance of one and a half inches from a wall. Guard rails must be 36 inches above the deck (42 inches for multi-family buildings covered by IBC code) and able to withstand a 200-pound force from any direction. Balusters must be able to handle a 50 pound per square foot force while being spaced a maximum of four inches apart.

A common mistake builders make is to install a handrail not conforming to building code. There are only two approved shapes which do not include a 2×4 or other odd shape. However, the building committee’s primary concern should be safety and not code compliance. The question to be addressed is, “Does the stair, hand, or guard rail provide the safety needs given where the stairway or deck is located, and how it is used.” Accidents are preventable. Regular deck maintenance inspections will find where typical problems can be found. Providing guidance to your unit owners of what to look for and how to report observed deck component issues will go a long way in reducing accidents and raise the quality of life in a real sense.

Article written by Jack Carr, P.E., R.S., LEED-AP, Criterium Engineers
Published in Condo Media
Download a PDF Version of this Condo Media article

Fear, Uncertainty, and Doubt

Condo association unit owners’ meetings can be a challenge. Boards often need to make hard decisions. People can become very emotional when it comes to issues affecting their money and they feel a lack of control. From what I hear the New England meetings I attend are mild compared to the ones seen on You Tube or those described by our Florida associates where the guards wear Kevlar vests.

When Alan Mooney, PE, RS, and I were invited years ago to be speakers at Community Association Institute’s (CAI) National Conference held in New Orleans, we decided rather than plow through a tedious power point speech; we would use the case method style format. Our presentation would show how tough issues should be managed in condominium meetings by using actual events to illustrate the points we wanted to cover. The following are some of the highlights of two of these case studies.

In “Get the FUD off the Table” we discussed the methods of dealing with the classic condo curmudgeon who tries to disrupt every meeting with negativism and other disruptive tactics to postpone or avoid any decision that may create change or spend money. I refer to this as throwing FUD on the table. FUD as in Fear, Uncertainty, and Doubt.

Of course, the best method of controlling this type of behavior is to not lose control of the meeting. This requires discipline and training. They do not teach effective condo board management in school. It is often a learn-on-the-job type of education. I have always admired CAI’s role in training both board members and property managers in the art of meetings. Condos are not businesses, but they should be run in a business-like manner.

In This Together

The first step in meeting control is to maintain a system of consistent rules and policies. Having a prepared agenda is key to setting the tone of a meeting. It establishes a chart to navigate through the presentation of issues, orderly discussions, and framework for the decision process. Educating meeting attendees on how motions are made and seconded, time limits on discussions, and voting rules goes a long way in creating an environment for a successful meeting. A written policy statement handed out to all attendees is helpful as people have a tough time arguing with a piece of paper rather than a real person.

A wise board will be open to innovative ideas from all sources but will have the means to control the condo commando who wants to take over the session. Boards often set up Homeowner Forums of ½ to 1 hour at the front or end of a meeting with strict time limits for each speaker. A well-prepared board will have the facts and answers that will sweep the FUD off the table.

The second case study was called “Don’t Hang Out Your Dirty Laundry”. Associations often must face difficult problems and make hard decisions. Perhaps it has just been determined that all the exterior siding or roofs must be resurfaced. Or the plumber just advised the board that all the heat system piping in a 12-story high-rise must be replaced. When the initial sticker shock hits and the specter of a hefty special assessment soon is realized, unit owners begin to panic.

It is at this time firm leadership needs to step up and remind everyone they are all in it together and whether they know their neighbor or not they are all in a sense a family and as a family they must keep their family business within the family. This means one does not tell the hairdresser about the roof leaking, or the butcher about the siding falling off, or even the brother-in-law about the pipe failure. This is critical because when the hairdresser passes the rumor on no one in the association would recognize the story by the third iteration.

Today’s real estate world is much more in tune with condos in distress from either recent foreclosures or underfunded reserve funds. Disclosures should be made in an orderly way with a timely reserve funding plan in place.

These problems are not solved by hanging out the laundry but rather recognizing the problem and establishing a plan to fix it. A plan of action must be in place to allow the community of unit owners to feel confident their equity will be protected and by joining together their goals will be met.

Though these two cases have different stories they have a consistent theme. When the FUD hits the fan…run at the fan. A successful association will have a board prepared to deal with a difficult future and the rules to guide and the sense to follow.

Written by Jack Carr, P.E., R.S., LEED-AP, Senior Consultant Criterium Engineers
Published in Condo Media

Over the last twenty years I have had the privilege of meeting with many condominium and HOA boards and leaders. Some were seasoned and experienced while others were new and exposed to the culture of community living for the first time. All wanted to do their best, yet failings and mistakes were acknowledged. With the hope of being forewarned is being forearmed, I thought I would share with you some of my observations of the ten most common condo board mistakes to avoid future do overs.

Not Understanding the Governing Documents: It is so basic. New board members are asked to read all the governing documents, but long-time members should also periodically review the association’s rules and regulations, especially when an important matter is to be considered. And of course, the corollary to this recommendation is these governing documents must be consistently followed and fairly administered. Erratic enforcement of the rules will never foster harmony in the community.

No Confidence in Your Management Company: This problem can be avoided from the start by hiring the right firm for your community. Interview the best candidates; ensure their proposed scope of services meets the specific needs of your community; and periodically review the selected firm’s performance and share your concerns. Once the board sets the goals and policies it should step aside and let the management firm enforce them without micromanaging the daily operations.

Not Maintaining Accurate and Timely Financial Statements: Loss of control over your financial statements is a guaranteed path to chaos in the community’s future. Good financial statements promote confidence amongst the unit owners; good relationships with your bankers and insurance representatives; and accurate information for reserve and operational planning and budgets. Up to date financial information is the engine driving revenue collections; trouble-free payables; and payroll processing.

Unreliable Reserve Fund Studies: If your reserve fund study is over seven years old, it is almost useless. Having the study sitting in someone’s bottom drawer and not referring to in that time is almost worse. Reserve studies are living documents whose basis is always changing. Construction and repair costs have skyrocketed. Inflation over the last two years has made most budgetary schedules obsolete and underfunded. A board does not want to be in the position of releasing the start of a major project only to discover more money needs to be raised.

Contribution Shortfalls to the Reserve Fund: The source of this problem is a failure within the management team. Either your accountant has not billed the proper assessments; your engineer has not estimated the necessary capital repair budget; or your property management firm has allowed deferred maintenance to get out of hand. Underfunded reserve budgets can damage the community’s image; impact unit owners’ future sale plans; and require future special assessments. The board is ultimately responsible for maintaining adequate operational and reserve fund balances. Not facing the need to raise assessments or delaying the decisions for necessary capital expenditures are classic board mistakes.

Communication Failures: Condo communities not only must be transparent in their communications with the unit owners but must be perceived to be transparent. Confidence in the board is built over time and will be called upon when difficult decisions need to be made. When everyone has the same set of facts, common decisions are much more likely. Today the media to get the word out is vast including bulletin board postings; community websites; email bursts; postal flyers; texting; etc. A well-run community has its members fully engaged as much as possible. Good and bad news should be dealt with on a timely basis. The community motto should be: “When it hits the fan, run at the fan.”

Uninformed Team Members: We Yankees like to fix things ourselves. However, in community living this can get a board in trouble. When a problem arises, there may be a tendency to save some money by not calling the condo’s lawyer, engineer, or insurance agent. The other Yankee saying is ‘penny wise and pound foolish’. If a liability issue arises or a conflict over the interpretation of a bylaw phrase, a quick phone call to your condo attorney might avoid unpleasant future consequences. The same is true for building safety issues or the discovery of water infiltration in the condo complex. Building problems rarely improve on their own.

Board Disunity: Disagreement among board members is bound to happen. Everyone’ opinion matters but everyone can’t be right all the time. The board members must follow established decision-making protocols and once a decision has been made each board member must stand behind the consensus. Anger and lack of respect have no place in community governance.

Not Following the Chain of Command: In general board members and committee chairs want to do the right thing. Sometimes in their enthusiasm to get things done in a timely manner they may take matters into their own hands and act without authority. Condo leaders must be reminded from time to time that they are dealing with community money, and they should not direct on-site contractors and vendors to supply services or make repairs without specific direction from the board. This type of lack of discipline can create unnecessary liability or costs easily avoided.

Improper Vendor Selection: Perceived vender service dissatisfaction is often the reason for a new member joining the board. All should be reminded before terminating a vendor service an exit interview should be held to determine all the facts. With a bit of due diligence, the true problem can be revealed resulting in better service with less trouble.

Community living require forbearance and respect for volunteer efforts. All things are possible with village unity.

Written by Jack Carr, P.E., R.S., LEED-AP, Senior Consultant Criterium Engineers

Emergency Response Plan

You don’t have to be a weatherman to notice storms are more frequent and fierce. Nor do you have to be a news broadcaster to recall all of the reported residential damage from fire, floods, and wind. Nor do you have to be an accountant to recognize the cost of building repairs are skyrocketing up. What you do have to do is …be prepared.

Being prepared means your community has an Emergency Response Plan (ERP) in place. Disaster planning is all about saving lives; reducing suffering; and minimizing damage. These ERP plans are a group of strategies to protect both community members and their property. Key elements of the plan are Mitigation; Preparedness; Response; and Recovery:

• Mitigation includes identifying threats and eliminating potential danger with preventative maintenance to reduce vulnerabilities.
• Preparedness requires well documented and trained evacuation routes; established muster points; and a system to account for everyone with an emergency contact system.
• Successful Response in an emergency is greatly improved with a quick and decisive response requiring knowing the location of the key shut-off valves and safety features both within and outside of the units. It also includes updated lists of qualified repair contractors.
• The Recovery element of post-disaster management is often overlooked yet vital to the overall success of the community’s future. Recovery is not simply the clean-up after the disaster but a pro-active real estate marketing plan.  Whether the disaster issue is a simple sprinkler pipe leak causing flooding and mold in an empty unit or a fire destroying a wing of a complex; the planning is critical knowing what should be done after the final repair contractor’s truck is off the site.

ERP Planning Steps

So how do you start? The board should create and appoint a disaster team made up at a minimum a member of the property management staff and a board member. Residents with skills in insurance; legal matters; electrical systems; HVAC; plumbing; emergency response should be sought to join the team. There are many sources for general outline for an ERP. Your insurance company may have pre-prepared templates of these types of plans for easy customization for your community’s needs. This is very important as we all know every condo community is unique in its own way. High-rise communities will require a more detailed evacuation plan than a community with duplexes or townhouses. Urban condominiums will have different needs than rural or suburban communities. Amenities, special equipment, and landscaping may be important issues in the ERP. Demographics must always be considered as a community of young professionals may not present the same safety challenges as an association with a more senior population.

The written plan needs to be approved by the board. The plan should be easy to access in multiple locations. It should be periodically reviewed and rehearsed. A good plan will have a checklist of steps to be taken; procedures to follow; and basic supplies to have on hand. Your insurance carrier or property manager may also be able to provide disaster training guidance and other resources. Just ask. You may also want to consider seeking training grants or funding through CERT (Community Emergency Response Training).

The basic Emergency Response Plan outline should consider the following:

1. Assessment of disaster risks – both experience and potential
2. Planning – budget and financing
3. Property management coordination
4. Safeguarding important condo documents
5. Ledger of assets – written and digital
6. Communication plan – elderly and special needs; absentees; etc
7. Emergency equipment available – condo and resident owned
8. Lines of authority
9. Evacuation plan
10. Insurance audit
11. Vendor and contractor call list
12. Recovery plan

Future storms will not reduce in intensity. Weather related power outages will increase. Unit owners are becoming more reliant on reliable power for medical safety, home business needs, and family education. If emergency power sources are not currently available, the association should consider how emergency generators might be introduced into the community. Providing suggestions for unit owners’ personal protection during severe weather events can be in the ERP including recommendations for maintaining an inventory of flashlights; batteries; charged phones; a supply of food; and medical supplies/ prescription drug availability.

Post-Disaster Market Value Perception

The common denominator need of all condo unit owners is protection of their net worth. Therefore, it must be repeated, after any disaster, the impact on market value and sale potential must be considered. It should never be assumed just because everything has been brought back to ‘as good as it was’ before the disaster, that the real estate market perceives this to be the case. The association may need to take very positive steps to approach the local real estate professionals to clearly demonstrate the physical state of the current condo complex. This could include certified inspection reports or lab test results or whatever it takes to make market perception the reality.