The reserve being so low for a building that size would have been an instant red flag for me as a buyer.
We asked to see some condos when we moved a few years ago and our realtor didn’t want to show us two buildings that were in our target area. One was known for having a ton of deferred maintenance with a very small reserve, and the owners constantly voting down the special assessments. The other had known building construction issues (parking garage collapsed during construction and the new windows leaking).
I would hope that if realtors are aware of those issues, that so would city building inspectors.
We haven’t had a lot of luck with local code enforcement officials. It seems like they don’t want to rock the boat a lot of times. We’re consulting on a legal case where a town should never have let a structure be built, but they did and now it’s a mess.
I hope a lot! It will put the fear of God into a lot of condo associations, I’m sure. Structural engineers are already swamped with work, so it will be challenging to get timely assessment reports.
I wonder if seeing a large building collapse due to negligence will cause enough people in power to care about the common areas in our country (like bridges) that also are showing their age and need significant fixes.
In my state, PA, this has been an ongoing battle to get funding. Most people will agree that they need fixing, but once paying for it comes up few are willing to agree with anything (tolls/user fees or similar) that will cost “them” money. Do we need one to come down first? I suppose if it did folks would just switch to wondering why nothing was done when they knew there were problems.
This is what frustrates me. Why do we have to wait until a tragedy happens. I realize hindsight is 20/20 but I also think it is pretty obvious to professionals that this was a tragedy waiting to occur. Yet so often it takes a terrible thing happening before others are moved to act.
Now I am sure there will be a lot of examinations of similar buildings and a spate of new regulations. Not necessarily a bad thing, but frustrating that we can’t be more proactive.
If anyone is considering buying into a condominium (or an HOA for that matter), I cannot stress enough requesting a copy of the previous three year’s financial statements of the Association, the current balance of the Association’s reserves, copies of all of the Association’s governing documents, and a copy of the most recent reserve study completed by the Association (if any). You may want to also request any recent structural reports of any improvements related to the Association. Your contract should be contingent upon your satisfactory review of this information.
A reserve study examines the existing reserves of the Association and looks at the physical needs of the Association based upon the common area or common elements to determine what the reserves should be. The study then offers analysis on how to align the finances of the Association to ensure that the reserves cover the long-term costs of the maintenance, repair, and replacement of such common area or common elements.
The intent of such a review is so that you are not hit by a surprise special assessment soon after buying and are aware of the financial health of the Association. Few buyers think of these things, but it is critical information.
I saw an interview with someone staying. She didn’t say that she was staying because she didn’t have other options, she said that she “just has a peaceful feeling inside that tells me it’s ok.”
Perhaps, but I would want to see a NEW study done before I moved back in. Also, could the collapse have shaken things up in the other building? I would want absolute answers on this.
From what I have seen, about 50% of the owners of the twin building units are snowbirds and left before the collapse. 28 of the 113 units are currently occupied.
The norm seems to be that people don’t want to spend money for maintenance. They kick the can down the road, with sometimes catastrophic results when they wait too long. It’s human nature … if it’s just a possibility, why worry? I don’t agree, I am just sharing my observations. Money is the issue, with folks reluctant to pay for it until they have no choice. Increased regulation is necessary, I guess.
According to this CNN report, the maintenance compliance between the two buildings is night and day, and the building HAS been inspected since the collapse.
This tragedy led me to reread parts of Why Buildings Fall Down by Levy and Salvadori. It discusses many building failures from antiquity to 1992 (when it was written) in an way that’s understandable to the lay person. While none of the disasters seem to be exactly what happened in Florida, they do include cases involving concrete slabs.