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Published June 28, 2021
I was lucky enough to be on vacation the past two weeks. On my last day, I woke up to the tragedy that was unfolding in Dade County as the Champlain Towers South Condominium came crashing down in Surfside. There are still over 150 people missing or unaccounted for. Before commenting on this devastation that will no doubt change the way Boards and counties and municipalities inspect condominiums going forward, let’s start by feeling terrible for the victims and families of this tragedy. My heart truly goes out to them.
I’ve seen a lot of strange things happen in my legal career. I’ve seen owners spray their unit with ammunition from an AK-47. I’ve seen unit owners throw contents of an entire apartment over their 20 story balcony from roid rage, I’ve seen owners store dangerous toxic chemicals in their unit. But, you know what I have never seen………..a building like the Champlain Towers simply collapse. Sorry, I’ve never seen that before. We have all seen buildings that collapsed after a terrorist attack and buildings that were destroyed by a hurricane. But I don’t believe we have seen anything quite like what happened here.
So…….what the hell really happened?
Apparently, an Engineer gave the Board of Directors a report in October of 2018 that found “failed waterproofing is causing major damage to the concrete slab. Failure to replace the waterproofing in the near future will cause the extent of the concrete deterioration to expand exponentially.” The engineer recommended a very expensive but necessary process to correct this. In the garage, there was evidence of cracking and spalling in the concrete columns, beams and walls —- with exposed rebar. “Most of the concrete needs to be repaired in a timely fashion. Clearly, the Board knew about structural defects that needed repair. The question is, did those necessary repairs go unanswered and if so, was that the cause of this tragedy. I am not blaming anyone for anything. However, the lawyer in me tells me that buildings don’t just simply fall down without any warning signs whatsoever. . But here is what I want to know and see:
The results of reviewing these documents are crucial for several reasons and may lead to a need to review additional documentation.
In addition to their unit, many people at Champlain Towers South lost every piece of personal property they owned. They lost all of their furniture, appliances, electronics, clothing, jewelry etc… If they did not have an HO-6 insurance policy, the only way they can get reimbursed for their loss is by proving negligence against the association. The above documents will be crucial in knowing whether or not there was or was not negligence here. If there was, owners can sue the association for damages . If there wasn’t, the owners suffered a total loss without a chance for recovering damages for their personal property. And by the way…….just because the building exploded and people died does not relieve any of these owners from having to continue to pay their mortgages while now having to find a new home. It is a tragedy on many levels.
As many of you know, in both Miami-Dade and Broward County, condominiums are required to undergo a 40 certification process whereby an engineer must attest that the building is structurally safe and electrically safe. If you can believe it, it appears that the Carlisle was in its 40th year. Apparently, there was a demand for certification by the county.
It would not surprise me if we see a change going forward, reducing the 40 year certification to 30 years or even less. I think engineers are about to be busy. I don’t think anyone in condominium buildings will ever turn a blind eye to cracks in the concrete that is so often done.
I pray for the families that have suffered a loss and/or still don’t know for sure if a loved one is among the rubble. I also pray that the Boards of Directors of every condominium understand the immense power they have to potentially save lives by making sure the property is always safe and sound. Too many times you hear about not being able to afford necessary repairs. Too many times the can is kicked down the road. The reserves are waived for the umpteenth year again and again and again. I’m not saying that this definitely happened here at the Champlain Towers. I am saying what I said at the top: buildings just don’t fall down. But every board everywhere has the solemn obligation to make sure something like this never happens again.
The truth be told the law that requires recertifications after 40 years and then again every 10 years after that is not a state law. or Miami/Dade County and Broward County law.
The law was first put in place by Miami Dade county in 2001 with Broward County essentially copying the Miami/Dade law in 2006.
The process is primarily a creature of Miami-Dade and Broward counties. It’s an inspection intended to ensure buildings are structurally and mechanically safe and intact as they age.
It requires an engineer to do a study of the building based on its structure, electrical, plumbing, and so on, the study is going to tell, what’s wrong with the building. In south Florida that often means issues with concrete and other structural systems. Living in paradise might be great for people but, sun, wind, salt air, and hurricanes takes a toll on buildings. Regular maintenance painting, waterproofing, and other repairs can slow the toll but not eliminate it.
To learn more, check out https://www.broward.org/CodeAppeals/Documents/40YBSI-INFO-Rev.6-15.pdf
Many of our members take the time to complete projects using the County Codes that are in place, While there are so many companies that cut corners or a Management company that looks at prices we have to ask? How do you Value the Buildings you manage?
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Office buildings are generally classified into one of three categories: Class A, Class B, or Class C. Standards vary by market, and each category is defined in relation to its counterparts. Building classification allows a user to differentiate buildings and rationalize market data — that said, classification is an art, not a science. While a definitive formula for each class does not exist, the general characteristics are as follows:
Class A
These buildings represent the newest and highest quality buildings in their market. They are generally the best looking buildings with the best construction, and possess high-quality building infrastructure. Class A buildings also are well located, have good access, and are professionally managed. As a result of this, they attract the highest quality tenants and also command the highest rents.
Class B
This is the next notch down. Class B buildings are generally a little older, but still have good quality management and tenants. Oftentimes, value-added investors target these buildings as investments since well-located Class B buildings can be returned to their Class A glory through renovations such as facade and common area improvements. Class B buildings should generally not be functionally obsolete and should be well maintained.
Class C
The lowest classification of office building and space is Class C. These are older buildings and are located in less desirable areas and are often in need of extensive renovation. Architecturally, these buildings are the least desirable, and building infrastructure and technology is outdated. As a result, Class C buildings have the lowest rental rates, take the longest time to lease, and are often targeted as re-development opportunities.
The above is just a general guideline of building classifications. No formal standard exists for classifying a building. Buildings must be viewed in the context of their sub-market; i.e., a Class A building in one neighborhood may not be a Class A building in another.
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