Miami collapse exposes US condominium managers’ disinterest in building maintenance

The collapse of the Champlain Towers South complex in Surfside, Florida, has rekindled debate on an issue that has involved many years condominium boards in the USA: poor organization of monetary reserves for building maintenance.

Late repairs and insufficient savings in the Champlain Towers building are common dilemmas in condominium associations across the country, where volunteer board members, sometimes with little experience in fundraising, find themselves grappling with internal quarrels with their neighbors and with pressure to keep costs low.

A press investigation The New York Times warned that Only a dozen US states require homeowners associations to estimate how much they’ll need for repairs.

At Tours Champlain South condo, which partially collapsed last Thursday leaving at least 18 dead and 145 missing, the board has fought for years to secure the $ 15 million needed to repair roof cracks, pool cover and poorly designed support columns that were collapsing. He only had 800,000 USD And, to carry out this work, he had to come to an agreement with the 135 owners – of different nationalities – and try to increase the quotas to figures between $ 80,000 and $ 200,000 for each dwelling.

And in this case, the conflict over maintenance has lasted so long that several board members resigned in frustration. “People were quitting, and there were new people, and there were all kinds of things that weren’t nice,” revealed Max Friedman, a former board member. New York Times. “I guess that was partly due to the project. There were all kinds of ugly things, ”he said.

Robert Nordlund – founder of Association Reserves, which has researched thousands of condo groups in the United States – noted that about a third of associations across the country are lagging far behind in their savings, with 30% or less of the money needed for large projects that could arise with a sudden emergency.

Nordlund also warned that reviews of condominium properties have revealed a A slew of safety issues in all 50 states nationwide, including even ceilings unable to support weight and parts with standing water. And he said his company had informed boards of directors that the current maintenance expense would later yield better value for the property.

In Florida, associations are required by state law to include reserve accounts for components that cost more than $ 10,000 to repair, such as roofs or swimming pools. But there is a gap, because Local authorities may waive the obligation to dispose of these reserves if the majority of a quorum so decides, which may be less than a third of the owners. In addition, the law allows for flexibility, specifying that funds earmarked for a single purpose may be used for an alternative project or may be pooled.

In 2020, the financial records of Champlain Towers South in Florida show that a large portion of the approximately $ 800,000 available to the association they were intended for the insurance deductible.

Investigators have yet to identify the cause of the collapse building near Miami and wait for full access to where rescue teams they continue to search the rubble for missing people.

Experts noted that the process of assessing the possible causes that produced the collapse could take months. He understands an examination of the individual building components that may now be buried in the rubble, testing of concrete to assess its integrity, and an examination of the ground below to see if a sinkhole or other subsidence was responsible for the collapse.

KEEP READING: