Unmanned Aerial Vehicle (UAV) use is rising for condominiums and HOA community Reserve Fund and Transition building inspections. However, the use of UAV’s or drones is not for everyone. Condo boards will face future decisions regarding drone usage by either service providers or unit owners so the board should be prepared. For this reason, I wanted to share some thoughts based on my condo experiences and firm’s nation-wide drone operations.

Two things to remember. A drone is simply a tool and as such it is only as effective as the operator flying it. For a drone inspection to be successful, the operator needs to know what building element to photograph and what are the pertinent forensic issues. Secondly, a drone is an aircraft. A UAV may be unmanned but it still carries many of the same safety concerns and potential property damage liabilities as a larger aircraft. This is why state parks prohibit their use and the airspace in some cities is Class C airspace requiring special FAA permission before a drone can be airborne. However, before I drone on and on about all the restrictions and why you should leave UAV operations to certified professionals, let us review why drones are in your future.

Drones can perform building inspections that were not possible in the past. This is because some inspections may present unacceptable personnel risks or prohibitive costs. For this reason, high-slope or metal roofs are typically inspected from the ground. Even when observing the roof with binoculars, important defects or surface damage can be missed. As an example, a community of triplex units was experiencing chimney flashing leaks, and the roofs were too steep to directly inspect. The original project drawings showed the chimney flashings were protected by roof crickets designed to divert water away from the chimney. These crickets could not be viewed from the ground because they were behind the chimney on the up slope. By using a drone, it was quickly discovered the designed crickets were not present pointing to the probable cause of the water infiltration.

The use of drones can eliminate the need for repetitive inspection ladder or scaffolding set-ups. High-rise facades and their elements including balconies, windows, flashing, wall joints, etc. can be closely observed with a drone while documenting issues more regularly. In cities such as Boston and Chicago, buildings over 70 feet in height are required by ordinance to have their façade structurally inspected every five years. Even though periodic high-rise façade inspections are not required everywhere, it is still a good practice. Drones can make it more affordable.

As with any type of service, there are grades of quality in drone image capture. At a minimum, most projects will require a high-definition (HD) camera attached to the drone. An even better quality product will result from using a 4k camera providing higher detail and allowing the operator to zoom in for clearer images and study the structure with greater scope. While video images may be more entertaining, still photos are more useful for building analysis. On the other hand, video scans of the grounds and drainage structures can provide timely wide-scale evaluations where appropriate including 3-D models of the building complex or high-resolution maps.

While handheld thermography cameras have been available for many years, their use on drones has proved useful for investigating façade water infiltration and energy conservation evaluations. Thermal cameras flying over a low-slope membrane roof can ‘see’ areas of missing insulation and locations of water infiltration since wet insulation and other damp building materials show a different heat signature than dry materials. Similarly, gaps in insulation and flashing can be observed with subsequent guidance on eliminating these points of heat loss or air infiltration.

The best way to determine if your project would benefit from the use of drones is by asking your engineer or a certified UAV service provider. FAA estimates there will be more than 10,000 commercial drones flying in the next two years to support a $5 billion industry. Those wishing to use drones must comply with FAA’s new ‘UAS rule – Part 107’ requiring the drone to be registered under the Unmanned Aircraft System Registration Service (https://registermyuas.faa.gov).

Of course, the issue of drones gets more complicated with unit owners wanting to fly them for recreation and other uses. Nationwide the FAA has received millions of private drone registration applications. FAA now forecasts there will be more than two million licensed drone pilots by 2025. Imagine how that will affect the future skies over condo complexes.

Now is the time to develop the new drone condo Rules and Regulations. The FAA is concerned about safety issues not functional permitted uses. Questions for condo boards should include the use of onsite drones (photography, videos, recreation, etc.); privacy; delivery services; liability coverage; and identification of drones and their operators. And this is just the start. There will be future issues associated with drones we have not begun to have imagined. So, before the sky starts falling, be prepared because it is coming.

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

Typical Property Manager Responsibilities:

Over the last 20 years when things go wrong at condo complexes, I often get a call to provide solutions. Sometimes the call comes from the property manager and sometimes it is a member of the Board. Sometimes the call is from a unit owner. These types of inquiries remind me there is often confusion over the roles and responsibilities of the parties involved in condo living.

From my experience, often the real hero of a successful condominium community is the property manager. This manager is the glue holding together the many elements making up a modern condo. However, the property manager is not responsible for everything despite how it seems sometimes.

Let us first consider the typical property manager responsibilities:

• Financial Management – Preparing the budgets for the Board; preparing statements and tax returns; collecting fees from the owners; paying for services; maintaining the reserve funds; and scheduling audits to ensure financial transparency between the owners and the Board.
• Project Management – Overseeing maintenance and repair of common assets; preparing and overseeing service contracts; hiring condo personnel; and ensuring project schedules and work scopes are accomplished.
• Operations Management – Overseeing the daily operations of the complex; ensuring the facilities are safe for both owners and personnel; and confirming Board policies are followed.
• Communication Management – Provide meetings and newsletters to keep unit owners abreast of the condo’s status; serve in the role of liaison between the Board and the owners; and address owners’ concerns as they rise.
• Conflict Management – Monitor conflicts developing between the Board and unit owners or between owners; provide the initial interpretations of rules and regulations to avoid simple conflicts from rising to legal actions.

When Conflicts Arise

Problems arise, however, when issues develop that should be dealt with by the Board or between unit owners themselves and the property manager is dragged into the matter. When conflicting issues develop between unit owners the Board should have policies in place stating the manner and procedure how conflict between unit owners should be resolved. When this process does not resolve the issue, the matter should be presented to the Board not the property manager. Examples of typical unit owner conflicts are:

• Plumbing – Piping leaks or drainage problems between units should be overseen by the owners or their respective insurance companies. Only when common elements are damaged should the property manager be involved.
• Pest Infestations – Unsanitary or other conditions in one unit can create a pest infestation to spread to adjacent units. The Board should provide instructions on how to avoid this problem and how to promptly manage it when it does occur.
• Noise Complaints – Excessive noise from nearby units is a common issue in condo life. Complaint procedures and protocols should be in place to quickly resolve the matter with all parties. This can come in the form of eliminating the noise or suppressing the volume.
• Odor Complaints – Unpleasant odors can occur in close living conditions occasionally. When these odors persist for extended periods, the Board may need to investigate the odor source to review the options to eliminate the problem.
• HVAC Issues – Depending on the HVAC systems in the complex, some systems provide independent conditioned air while others have units more interconnected. The Board will have to determine whether the equipment is malfunctioning, or system changes are required.
• Parking Conflicts – When parking space conflicts arise the parking rules established by the Board should be enforced by the Board.
• Privacy Matters – The unit owners should resolve this issue with window curtains or blinds as needed or the addition of sound proofing materials.
• Rules Violations – Consistency in enforcement of the stated rules is often the best solution and the Board needs to promptly address the matter when it arises.

A well-run community is dependent on a property manager not distracted by unnecessary issues and more effectively managed by the Board or the unit owners themselves. This may require a change in the culture of the community and its prior practices, but the change will pay dividends for all to benefit.

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

Typically when I am discussing water problems with the condo’s property manager or the board, the focus is on leaking roofs, foundations, windows, or other building envelope points of water infiltration.  Instead, this article’s focus will be on water damage problems from inside sources and their prevention.

It is hard to talk about inside water damage without also considering a lengthy discussion of insurance matters, but I’ll try.  The short answer is both the board and the unit owner should confirm the correct policies are in place.  The association’s master insurance policy review should determine if the policy covers both as-built and upgrades (i.e. betterments and improvement clause) or just the walls, floors, and ceiling.  The unit owners should consider sewer/ drain back-up coverage, if the policy does not.  Keep in mind, insurance adjusters are looking for ways to avoid claim payouts.  They will look for the source of the water and whether it was caused by accidental reasons or old age wear and tear; lack of maintenance; or your negligence.

So why is internal water damage such a big deal?  It is because it is the number ONE insurance claim in the nation beating out other high profile claims including tornadoes, hurricanes, and wildfires.  And it is growing.  1 in 50 homes experienced an internal water claim in the five year period of 2013 to 2017 per Verish Analytics ISO who provides insurance industry statistical data.  This 5-year claim rate of 2.05% per dwelling is up from the prior 5-year statistical period rate of 1.44%.  This equates to an average $10,000 per claim and $13 billion in total claims for 2017.  It’s a big deal.

So why is this happening?  The short answer is the trends in condo and HOA development and the aging of residential building inventory across the country.  The burst in condo development in the 1980’s and 2000’s have resulted in many more water sourced appliances in risky locations.  Many homes built in the last 20 to 30 years have laundries on the second floor instead of the more traditional basement location where a leaking hose could be dealt with a mop and bucket.

Some homes can have more than 40 water connections including washing machines; water sourced heat pumps; ice makers; wet bars; filtration systems; extra bathrooms; dishwashers; garbage disposals; indirect hydronic floor heat; and the list goes on.  This partially explains why fire damage claims in the US have declined while water claims have increased, not only in numbers but in amount.  High-end properties are the worst for this increase in water claims.  For homes valued greater than $500,000 the claim sizes have doubled since 2015 while homes valued greater than $1 million have tripled in size according to the Wall Street Journal.

So what’s a property manager, board, or unit owner to do?  Protect the home.  Needless to say, each condo or HOA complex has its own factors of importance.  These factors must be considered and a plan should be established to minimize the potential problems each type of complex should address.  One place to start is the creation of a central maintenance log to record all reported internal water events to determine if there is a trend or pattern.  An aging condo may have experienced a rash of washing machine hose leaks.  This may prompt the property manage to notify unit owners to inspect their own hoses for wear or even hire a plumber to inspect all of the units’ water sourced appliances.  Another HOA may have a population of ‘snow birds’ who should be cautioned to maintain their unit thermostats at a certain level to avoid pipe freeze up while they are vacationing in warmer climates.  Sometimes a global reminder to all unit owners of the location of their central water shut off valve for future water emergencies is a good ounce of prevention.

Needless to say, no matter how much a property manager or board thinks about internal water damage, it often comes down to the individual unit owner being responsible to maintain the unit.  Investing in water sensors at some risky or perennial problem locations may be money well spent.  Educating the unit owners through the association’s newsletter or web site is also a step in the right direction.  Reminders of the importance of maintaining caulk in the tubs and showers; hose connections for all appliances; and periodic observations around the home looking for developing rust; drywall damage; and pooling water can go a long way in preventing a trickle becoming a sea of trouble.

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Published in Condo Media May 2019 edition

Save Energy, and Money

This article may not be for you but if it is, its message could save you thousands while improving the quality of your life. Maine has a wide range of condo and HOA communities with a variety of configurations and bylaw restrictions. This article targets owners with units where they control appliance purchases; can penetrate exterior walls with utility piping; and in some cases, have a basement. There should also be a desire to be energy efficient while saving a lot of money.

Maine is currently offering a number of energy efficient programs ranging from insulation and weatherization improvements to the introduction of solar panels and geothermal systems. This article will focus on the most successful program sector where Maine has become a national leader in the conversion to heat pumps for both hot water and heating/ cooling of homes. Governor Janet Mills recently announced the state has exceeded the 100,000 heat pump installation goal by 2025 by two years ahead of schedule. This success has resulted in a new goal of 175,000 more heat pump installations by 2027. This new program is being funded by the Inflation Reduction Act providing $71.6 million in home-energy-rebate funding to the state.

Complimenting Maine’s success is the Federal tax credit program providing up to $3,200 per year tax credits for heating, ventilation, and cooling (HVAC) efficiency upgrades covering insulation ($1,200); energy audits ($150); windows ($600); and exterior doors ($500). There has been some confusion in the past about whether these rebate programs are only available to traditional homeowners, but they are also available to many condominium unit owners. Condo unit owners interested in participating in these programs should start by visiting the Efficiency Maine website (EfficiencyMaine.com) or calling this quasi-government agency’s office to learn about eligibility for the many programs available.

Efficiency Maine offers rebates for efficiency upgrades up to $8,000. Some rebates are based on household income levels e.g., Low ($8,000); Moderate ($6,000), and Any ($4,000). Many programs are not income related such as the clothes washer rebate of $50 for any Energy Star certified washer. It should be noted that based on the average household washer loads of three hundred per year, the Energy Star equipment uses 20% less energy and 30% less water while saving over $550 over the lifetime of the unit. Similarly, there are instant rebates of $1,000 available for installed certified appliance units from many dealers and big box retailers.

The conversion to a heat pump hot water heater from the typical electric, propane, or oil-fired hot water heater is not only more energy efficient but also provides the added benefit of acting as dehumidifier. Unlike an air conditioner moving heat from the home’s interior to the outdoors, a heat pump moves the room’s heat into the water tank. They can save $500 per year on electricity while having a 10-year warranty vs. the 5-year warranty provided on traditional water heaters. Heat pump water heaters are hybrid systems as they have traditional electric resistance heating elements for times when demands exceed the heat pump’s capacity.

For households using low volumes of hot water daily, an efficient alternate to a heat pump water tank is a tankless system sometimes called ‘instantaneous’ or ‘on-demand’ systems where water is heated as it exists the appliance thus avoiding the passive loss of energy of hot water sitting in a tank. The U.S. Department of Energy estimates demand water heaters are 24% to 34% more energy efficient than conventional storage tank water heaters.

Keeping Cool

Many Maine condominium units do not have any form of air conditioning except for window units. After surviving this past summer’s record heat conditions, good air conditioning is no longer a luxury but necessary for healthy living. Adding air conditioning to an existing Maine condo unit can present challenges and will require thorough research, but it will be worth it. Here again the first step in your research is to check with Efficiency Maine on installing a heat pump HVAC system to provide both cooling and heating for your unit.

The system selection may be determined by the physical location of your unit and the restrictions governing structural changes or penetration of common walls. For this reason, ‘ductless’ or ‘mini-split’ systems may be the answer. Mini-splits comprise two main components, namely, an exterior compressor/ condenser unit and interior air-handling unit. These units are connected by a conduit containing the refrigerant tubing; suction tubing; condensate drain line; and power cord.

The new mini-splits chief advantage is their diminutive size and their ability to heat and cool individual rooms or a network of up to four rooms allowing flexible zoning. Keep in mind a mini-split system uses electricity to move heat from the outside to the inside or the reverse. It does not use electricity to create heated or cooled air, resulting in heat pumps producing four times as much energy as they consume.

The slightly higher costs of retro-fitting a mini-split compared to a more traditional central air conditioning system is usually offset by the much lower operating costs and available rebates and financial incentives available not to mention the increase in market value of an air condition condo unit. A mini-split equipment package cost ranges from $1,600 for a small single zone system to $4,500 for a 3-zone system. The new mini-splits are now suitable throughout Maine and able to run at full capacity even at below zero outdoor temperatures.

As the winter approaches, now may be the time to plan for next summer’s heat wave and invest in a ductless air conditioning system. A modern heat pump system may also help to moderate the home’s interior temperature swings from watching too many election debates and speeches.

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

Homeowners Associations (HOAs) play a pivotal role in maintaining the quality and value of residential communities. While often associated with rule enforcement and fee collection, HOAs are also responsible for the upkeep of common areas, infrastructure, and amenities that enhance residents’ quality of life. Engineers, particularly those specializing in civil, structural, and mechanical disciplines, are integral to the effective functioning of HOAs.​

The Importance of Engineering Expertise in HOA Management

Effective HOA management goes beyond administrative tasks—it encompasses the planning, design, and maintenance of community infrastructure. Engineers contribute by:​

• Assessing Infrastructure Needs: Engineers evaluate the condition of roads, drainage systems, and recreational facilities to ensure safety and functionality.​

• Providing Technical Guidance: They offer expertise in areas like stormwater management, structural integrity of shared buildings, and energy-efficient systems.​

• Supporting Long-Term Planning: Engineers assist in developing capital improvement plans that align with the community’s goals and budget.​

Best Practices for HOA Success

To foster a thriving community, HOAs should consider the following strategies:​

• Regular Maintenance and Inspections: Implementing routine checks and maintenance schedules helps prevent costly repairs and ensures the longevity of community assets.​

• Transparent Communication: Keeping residents informed about projects, budgets, and decisions builds trust and encourages community involvement.​

• Collaborating with Professionals: Engaging engineers and other specialists ensures that projects are executed efficiently and meet safety standards.​

How Criterium Hardy Engineers Can Assist

At Criterium Hardy Engineers, we specialize in providing engineering solutions tailored to the unique needs of HOA communities. Our services include:​

• Property Condition Assessments: Identifying current issues and potential risks in community infrastructure.​

• Reserve Studies: Helping HOAs plan financially for future repairs and replacements.​

By partnering with Criterium Hardy Engineers, HOAs can enhance their operational efficiency, prolong the life of community assets, and provide a safe and enjoyable environment for all residents.​

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
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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
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