Page 6 - New England Condominium March 2021

6 NEW ENGLAND CONDOMINIUM -MARCH 2021 NEWENGLANDCONDO.COM compromise structural integrity. Sidewalks must also be well maintained, so as not to create potential tripping hazards, which can result not only in injury to users, but also cre- ate costly liability issues for the association or corporation. In some communities, particularly large suburban HOAs, internal roads are a critical infrastructure system that those communities are responsible for maintaining (unlike mu- nicipal roadways, which are overseen by the city or county). Drainage and maintenance — especially the repair of cracks and potholes between the financial health of their associa- — are just as important on driving surfaces as tion or corporation and the physical health fessionally-trained eye is critical. they are on footpaths or sidewalks. Another area that should be of particular pretty much intertwined. While most board concern for boards is any element that con- nects their building to the outside world, control, ignoring deterioration or delaying require more serious treatment,” says Lynch. which includes things like windows, doors, repair of the exterior building systems can “They have a leak, so they hire somebody to and balconies. Maintenance and care for these lead to sudden (and usually large) emergency work on a specific window. When they do the systems are critical to maintain the structural expenses—and special assessments that resi- integrity of the building or buildings. Balcony railings must be code compliant for safety; waterproofing and proper routing of rainwa- ter runoff must be maintained to prevent not only leaks, but dangerous structural deterio- ration as well. Windows and doors must be competently installed and vigilantly main- tained to avoid drafts and water infiltration; the former can negatively impact a building’s energy use profile, and the latter can lead to mold, rust and corrosion, and eventual struc- tural damage. Of course, some priorities and consid- erations may differ depending on a com- munity’s location and climate. Properties in New England or New York are more prone to damage from cold weather, salt (both from dents may not be prepared for, and to which that the board will need advice about all these the ocean and from snow-melt products), they’re likely to respond negatively. The solu- and snow accumulation, while hurricanes are tion to avoiding this is vigilance. the top priority consideration for boards and homeowners in Florida. Out west in places derstand the importance of maintaining these situation in their building that’s complicated, like Las Vegas, extreme dry heat and intense systems,” says Ehrman. “Many boards have and they demand a simple answer or solution. UV exposure are the main culprits when it deferred maintenance of these systems with- comes to exterior maintenance challenges. Richard Lynch, Director of Project Man- agement for Massachusetts-based manage- ment firm Brigs, points out that “roofs are part expensive problem.” of the building envelope, as are windows, gut- ters, and anything else on the exterior surfac- es. These systems are critical, and are designed plete and update a reserve study on a regular for energy efficiency and water tightness. This basis — most pros advise doing so every five should be as vigilant about the physical condi- is crucial, especially in New England.” Urban vs. Suburban Clearly, building design and construction differ between urban and suburban com- munities. But even within the same neigh- borhood there can be differences in building type — and that’s particularly true of denser suburban areas. While we might not see many townhouse-style developments in city centers, it’s not surprising to see a glass fronted high- rise in a suburban neighborhood lying just outside the city proper. Jamey Ehrman is a senior engineer with RAND Engineering, based in New York and consulting widely throughout New England and the Northeast. According to Ehrman, problem areas,” says Lynch. “Obviously, if you “The difference in systems is from property to start seeing sinkholes on the road, you’ve got property. So, not only will urban style multi- family properties differ from suburban-style That can help with budgeting down the road.” townhouse properties, but two urban-style Some exterior cracks and deterioration are multifamily properties can differ just as much obvious to an untrained eye; some are not. as two suburban-style townhouse properties Sometimes, deterioration of façades —wheth- can. This is why it is necessary for an archi- tectural engineering consultant to learn the agnosed by spotting related interior damage details for the system being evaluated.” Essentially, the old rule of real estate ap- plies: While real estate is a ‘commodity,’ it is walkthroughs or perfunctory examinations of unlike any other commodity in that no two a building from the street or sidewalk. Your pieces of real estate are identical. Maintaining Physical Systems Is Critical Boards must maintain a delicate balance ence—but to catch everything that could lead of the property. The truth is that the two are members want to keep costs under tight often try to put Band-Aids on problems that “Both new and veteran boards must un- out understanding the ramifications of this how much I can do that. I always make every choice. What might have been a minor incon- venience becomes a bigger, more serious and stand a situation; however, even with the best The first and most accessible solution to or upkeep situations can just remain compli- avoiding this headache is for boards to com- years. The extensive inspections completed tion of their community as they are about its for a reserve study or update establish or re- set a baseline for the health of your property’s ing a team of on-site staff and trusted outside various exterior building systems. Capital professionals who can catch problems early, project plans can be mapped out based on present those findings to the board, and rec- the findings of the reserve study. Supplement- ing — but not replacing — a full, basement- to-rooftop inspection by a licensed profes- sional is having management or building staff conduct less rigorous annual inspections of your board to keep things in shape and run- the exterior building systems to look for any ning smoothly; just a commitment to being emerging problems. “There should be regular walkthroughs lems arise. by the board and the property manager ide- ally every quarter to keep an eye on potential a problem; you need to repair all the asphalt. er wood frame or masonry—may only be di- in common areas or individual units. That’s why it’s not advisable to rely purely on staff superintendent or building manager may be extremely capable and have years of experi- to potential problems down the road, a pro- What I’d Like Them to Know… “What I’ve noticed is that board members repair, they will find that there are other more serious problems underneath the exterior — and the whole property is likely to have the same issue as that one window, since it was all built at the same time. They’re repairing something for a small amount of money, but it will happen again — it’s a rolling effect. So don’t just make patch repairs; get a profession- al, analyze the whole situation for the whole property, and if the problem is widespread, fix the whole thing.” Ehrman observes that “I don’t have any expectation that board members will have much if any knowledge about the construc- tion, maintenance, and upkeep of their build- ings — it’s all way too complicated. So I always approach every project from the perspective aspects. However, the most common dif- ficulty I experience is when board members have a construction, maintenance or upkeep Even with my best effort, there is a limit to reasonable effort to help my clients under- efforts, building construction, maintenance, cated.” In the final analysis, board members financial health. The smart money is on hav- ommend a path forward. While a basic un- derstanding of building systems is something every board member should have, it’s not nec- essary to have an engineer or an architect on proactive and acting decisively when prob- n A J Sidransky is a staff writer for New England Condominium, and a published novelist. EXTERIOR BUILDING... continued from page 1 Boards and managers should note, however, that the application form for a First Draw PPP Loan will require an of- ficer of the co-op to swear and attest to the following representations: • The Applicant was in operation on February 15, 2020, has not permanently closed, and had employees for whom it paid salaries and payroll taxes; • Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant; and • The funds will be used to retain workers and maintain payroll; or make payments for mortgage interest, utili- ties, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker pro- tection expenditures as specified under the PPP Rules. While the board certification re- quirement may seem like a formality, it shouldn’t be taken lightly; any board member certifying their co-op’s need for a PPP loan will be doing so in a fiduciary capacity as a board member, and could possibly be held personally liable if he or she certifies false information or rep- resentations. To make clear the gravity of the process, the application form also requires the co-op officer executing the application form to agree to the following statement: “I understand that if the funds are knowingly used for unauthorized pur- poses, the federal government may hold me legally liable, such as for charges of fraud. I understand that knowingly mak- ing a false statement to obtain a guaran- teed loan from SBA is punishable under the law, including under 18 U.S.C. 1001 and 3571 by imprisonment of not more than five years and/or a fine of up to $250,000; under 15 U.S.C. 645 by impris- onment of not more than two years and/ or a fine of not more than $5,000; and, if submitted to a federally insured institu- tion, under 18 U.S.C. 1014 by imprison- ment of not more than thirty years and/ or a fine of not more than $1,000,000.” Based on the above, it is extremely important for co-ops and the officers who may execute PPP loan application forms to make very certain that an ap- plication for a PPP loan is legitimate and above-board, and does not subject the co-op and its officers to liability, ei- ther personally or as a body. So if your co-op has suffered a drop in maintenance revenue, rent revenue from commercial tenants, and/or incurred other costs re- lated to emergency supplies or property damage, it would seem reasonable to ap- ply for PPP funds. However, if you are not sure whether your co-op is suffering financially from COVID-related circum- CO-OPS... continued from page 1 continued on page 8 “There should be regular walkthroughs by the board and the property manager ideally every quarter to keep an eye on potential problem areas.” — Richard Lynch