How Do We Make Decisions?

• Kick the can down the road
• A penny wise and a pound foolish
• Dig your own grave and save
• A stitch in time saves nine

The recent tragic building collapse in Florida should give us some important lessons about how we can make better decisions for our wonderful building. At the moment, our building is solid and is unlikely to face a catastrophic event as in Florida, but there are a number of parallels that we should keep in mind when we make decisions. Our building:

• is more than 30 years old
• is in a seaside location
• has garden beds built over structural elements
• has signs of structural deterioration in several areas
• has had a number of patch works instead of remedial repairs
• would likely face greater remedial costs if some areas of concern are not properly addressed soon.

The following Wall Street Journal article provides some valuable lessons for the SP34151 (42 Victoria Parade) owners. I encourage you all to read it. [Note: The article refers to a "Board of Directors" which is the equivalent of our Strata Committee. And, it refers to "first aid" which means patches to conditions rather than a thorough remedy of the problem.]

Champlain Towers South Collapse Site (Surfside, Florida)

Miami housing complex, two-thirds built over 30 years, huge repair costs approaching
The decision to repair high-rise homes along the coast is often left to the board of directors.

By Laura Kusisto, Jon Kamp and Daniela Hernandez / Photographs by Maria Alejandra Cardona for The Wall Street Journal
July 15, 2021 09:09 JST

Housing construction engineers point out that 30 years after the condominiums in the United States, owners are unable to postpone significant repairs.
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In Miami, Florida, about two-thirds of all condos are over 30 years old. At the request of The Wall Street Journal (WSJ), the Jiro Group, a US real estate information site, has compiled the data. In at least seven cities in the state, 30-year-old condominiums make up about 75% of the total.

Many of the old high-rise condominiums are located along the beach, and their aging is accelerating due to salt corrosion. As a result, thousands of buildings have huge repair costs. Moreover, little is known about how to cover the cost.

The cause of the accident at Champlain Towers South (40 years old), which collapsed last month in Florida, is still under investigation. At least 95 people were killed in the accident. According to an engineering report in 2018, the building was pointed out with multiple problems such as corrosion of concrete and inadequate waterproofing of foundations.

Building materials such as stucco, windows and roofing boards are usually said to reach their "useful life" in just 20 years. This is an industry term that refers to the need for replacement of building materials and major repairs.

More than half of condos in the United States are at least 30 years old, according to Jiro. Many of these dilapidated buildings are concentrated in coastal cities. In Miami, nearly 40% of residential units are condominiums, the largest proportion in major US metropolitan areas. Building inspectors need to approve most condominiums before the first inhabitants move in, but subsequent surveillance is extremely limited in most counties.

In many cases, local authorities leave the decision of repairs to the board of directors of each condominium. Boards are usually made up of unpaid volunteers and rarely include people with expertise, building managers, engineers, and so on. The board needs to decide what repairs are needed and then convince the owner to cut down on savings or borrow money to bear the costs. Many of the owners are temporary residents and the elderly.

Search for missing persons continues at the site of the collapse

Condominiums that have been postponed for decades require huge costs to repair roof leaks and cracks in concrete columns. However, few condominiums know this amount at hand. I learned from interviews with construction lawyers and structural engineers. Immediately before the collapse of Champlain Towers South, the board's head told residents that repairs, such as concrete repairs, would cost more than $ 15 million.

"When the bill comes in, it's a ridiculous amount." David Haver, a Miami lawyer who specializes in condominium law, points out: "Everyone wants first aid, sometimes threatening the safety of life."

Residents of Manatees, an 11-story condominium in Surfside, Florida, had a hard time reaching an agreement a few years ago over how to cover the cost of a major repair. In Florida, there was a rush to build condominiums in the 1970s and 1980s, and the condominium was built in 1974.

Miami-Dade County requires building inspections 40 years old. As the manatees approached their deadline in 2014, millions of dollars of repairs were needed. This includes windbreak doors, electrical systems, and corrosion repairs.

Former accountant Islay Kirschner, 77, who served on the condominium's board for 12 years, was estimated to cost $ 3.5 million at the time. But in the end, the cost went up to nearly $ 7 million. He, who lives on the 9th floor, paid $ 47,500.

​Residents who were dissatisfied with the additional costs and the need for repairs continued to oppose the condominium, which took about five years to complete. Nelson Castellanos, who was a director at the time, revealed. A highway engineer before retirement, he said: "Suddenly, all the residents start to think that they are structural engineers."

Condominiums line up near the collapsed Champlain Towers South

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How do structural catastrophes occur?

"Two ways. Gradually, then Suddenly.”
      ― Ernest Hemingway, The Sun Also Rises