Because the infrastructure statute impacts each condominium development differently, communities should conduct a preliminary assessment now:
1. Do your condominium buildings contain any exterior elevated elements that the association maintains or re- pairs? If not, the statute does not apply.
2. Is your community less than ten years old? If yes, con- tact your general counsel to determine whether involv- ing a construction defect attorney would be of financial benefit. If you decide to take this route, your construc- tion defect attorney will provide the necessary guidance on compliance.
3. If you have already been through the construction de- fect process or your community is more than ten years old, try to locate your architectural and structural de- sign drawings. Check with your former CD attorney and experts and any former management companies. If you have a clubhouse or other facilities, check in stor- age rooms and attic space. If you still cannot locate the plans, your board president should be able to obtain the plans from your local building department if requested for maintenance purposes.
4. Once you have obtained the plans (or exhausted your ability to do so), locate a design professional who is of- fering SB 326 compliance inspections. Based on the plans, the design professional should be able to provide you with some basic information about your infrastruc- ture reserve project. For example, the design profes- sional will be able to conclusively identify the different exterior elevated elements that will fall within the scope of the statute. He or she will also be able to advise how many “plan types” there are of each of the elements. Te higher the number of elements and the more plan types of each element, the higher the associated costs.
5. Ask the design professional to provide you with a pro- posal to perform the initial round of inspections. Also ask whether the design professional is able to provide you with a guesstimate for any necessary further inspec- tions. Remember that until the initial round is per- formed, it will be difficult for the design professional to provide you with a correct number. Once you obtain the cost estimates, have management add a line item to your reserve budget and start budgeting for the inspec- tions as soon as possible. You may not want to schedule these inspections until 2022 or 2023, but at least you now have some information that will assist you in un- derstanding and planning the scope of your infrastruc- ture reserve project.
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Community managers and their boards should not delay in performing the preliminary assessment. If a community was well built and well maintained, the inspection costs may be the community’s greatest expense. If not, the inspection and repair costs associated with bringing your exterior elevated elements into a generally safe condition and compliant with applicable standards could be significant.
Raising regular assessments
within the statutory limits or conducting special assessments may be necessary, so start the planning process now.
ALLISON ANDERSEN represents community associations in corporate governance, operational, transactional, and civil litigation matters. She has over 15 years’ experience negotiating and litigating CC&R enforcement, real estate fraud and disclo- sure, contract interpretation and compliance, breach
of fiduciary duty, fair housing, free speech, due process, and insurance cover- age matters. She specializes in complex construction defect matters. Ms. An- dersen achieved notable success managing condominium conversion claims through settlement and trial.
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