Page 7 - New England Condominiium December 2021

NEWENGLANDCONDO.COM NEW ENGLAND CONDOMINIUM -DECEMBER 2021 7 pandemic status quo, even when corporate similar disasters. vaccination and testing mandates come on- line in 2022. The extended need for flexibility in living is both appealing and practical, legislators have such research done as they look to pur- arrangements has certainly changed buying have turned their attention to the oversight chase a home or investment property. and selling behavior from coast to coast. Our and inspection aspects of building integrity. homes have had to play new roles in our lives, Mayors of cities like Jersey City—which has tragedy,” says Cervera, “is that closer atten- accommodating new activities, arrangements, the largest number of high-rises in the Gar- schedules, and number of residents. In a co- op or condo, where adding another storey or inspection and repair requirements for build- an in-law unit is not an option, the new ap- peal of “flex spaces” has entered the market, July announcement of new laws that will “pro- in addition to the always-coveted outdoor vide the best protection for our residents and this since there will be stricter guidelines and associations that have reserves available to space, whether private to the unit or shared the community at large” came just weeks after more caution around building inspections.” with other owners/shareholders. Developers the Champlain Towers South collapse, osten- are building with these parameters in mind, sibly as a reaction to “Jersey City residents in suggesting that there is a widely held assump- tion that housing needs and wants inspired by knowledge that their condo boards are delay- COVID (if not the virus itself) are here to stay. Learning From Disaster As if the multifamily housing industry wasn’t seeing enough tumult in 2021, the sud- den, deadly collapse of a South Florida condo due diligence of prospective purchasers in the budget percentage or a set yearly contribution. tion to conduct a professional reserve study building in June focused attention on the dire wake of Surfside. More are giving close scru- consequences of climate change, deferred tiny to buildings’ maintenance history, reserve every five years or so, that details the useful the economic conditions, a healthy reserve structural maintenance, and questionable funds, and capital planning strategies. Alicia life of all of the association’s or corporation’s is a boost to property value. And coming out construction oversight. The Surfside tragedy Cervera, managing partner of Cervera Real major capital elements—roofs, sidewalks, el- that resulted in nearly 100 deaths and scores Estate, a luxury brokerage representing mul- of lost homes and upended lives might just be tiple large South Florida developments, and a ing, etc.—and how much money to put aside unprepared in the future. the wake-up the industry needed to prevent board member of the Miami Downtown De- Throughout the country, and particu- larly in urban centers where high-rise living and condo buyers paying out-of-pocket to den State—quickly enacted laws to intensify of these buildings, and condo associations want to make sure people pay for the use each ings of a certain height. Mayor Steven Fulop’s meet the maintenance needs. I think that we that elevator, or they get floor protection from several buildings \[who reached out\] with the spection laws, tighter oversight, and acceler- ing work because of the potential cost to resi- dents.” Brokers throughout the country are also do, and HOA in the country. The pros empha- seeing shifts in the concerns and attention to size that this does not necessarily equate to a ers/shareholders: make it a new year’s resolu- velopment Authority, tells real estate publica- tion Mansion Global that she sees more co-op and well. “The lesson learned from this horrible fiduciary responsibility of the board of direc- tion needs to be made to the maintenance to maintain the investment of the owners. We have to make sure they’re properly funded to year they live in their unit—each year they use will emerge stronger and safer as a result of that rug, they’re paying for the use. In general, A New Year’s Resolution With 2022 likely to see more enhanced in- ated maintenance schedules, establishing and sessments, because the money is not available maintaining a healthy reserve fund should be to take on a project in timely manner.” very much top of mind for every co-op, con- It has to be tied to a reserve study, conducted and follow its recommendations. Whatever evators, mechanicals, tiling, carpeting, fenc- each year so that when that element needs to be replaced, the funds are there to do it timely Todd Walter, Great Lakes Regional Ex- ecutive Director of national engineering firm Reserve Advisors, lays this issue bare: “The tors is not to save people money,” he says. “It’s take on projects in a timely manner, and with a scope of work that doesn’t cut corners, are far better off—and are far better run—than the associations that have to rely on special as- Ultimately, this might be the most impor- tant takeaway for boards, managers, and own- of these last couple of years, we know that di- sasters do happen; there’s no excuse for being n Darcey Gerstein is Associate Editor and a Staff Writer for New England Condominium.