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and other components to be inspected. Decks with open joist bays and deck boards will be easy (and economical) to inspect. Decks with a walking surface covering the waterproofing, and cladding such as stucco covering the structural elements will require expensive destructive testing. Associations should work with inspectors and contractors as soon as possible to obtain an accurate estimate of their anticipated inspection costs; only with an accurate estimate can an Association properly set aside funds for future inspections.
Even setting aside the cost of any necessary repairs, these inspections will be a significant cost to the association. However, as a necessary and required part of maintenance and reserve planning, the cost of the inspections themselves should be included as a reserve line item, allowing the association to accumulate funds for future inspections and repairs. Additionally, for associations under 10 years old, the cost of inspections and repairs can, and should, be passed to the builder under the Right to Repair Act process.
Best Practices
Because of the necessity to expose internal structural components, the inspector will require the assistance of a contractor to provide access, and then to patch back exterior surfaces after testing. Contractors may also be able to install inspection hatches, removable vents, and other features to make future inspections more efficient.
The Report
The architect or engineer prepares a report of the inspections, which identifies the load-bearing components and associated waterproofing, their current physical condition, and whether the current condition presents an “immediate threat to the health and safety of the residents.” This type of testing and report will be very similar to the investigations done and reports prepared in construction defect claims.
The report must also specify the expected useful performance and remaining useful life, recommendations for necessary repair and replacement, and must be stamped or signed by the architect or engineer. The findings of the report are then incorporated into the Reserve Study, and is an association record which members may access, and which must be provided to prospective purchasers of units. The report remains in association records for 2 inspection cycles (18 years).
If an imminent life safety threat is identified, then the inspector must provide the report to the association immediately and must provide the report to the local code enforcement agency within 15 days. The association must then take preventative measures immediately, including blocking resident access. Resident access cannot resume until the local enforcement agency inspects and approves repairs.
Inspection Costs
The costs for these inspections will vary widely depending on the configuration of the balconies, stair landings, breeze ways,
22 March | April 2022
The first inspection is due by January 1, 2025, but don’t wait. As that deadline approaches, the competent inspectors and contractors will be busy conducting inspections (and resulting repairs) for other associations. There is a relatively small pool of experienced forensic architects and engineers, and contractors experienced in this kind of testing and repair. If the inspection is done early, these business partners will be more available, and the same will be true every 9 years as the new
deadline approaches.
Whether the association is new or old (the building in the Berkeley tragedy was 7 years old), it is impossible to know what the first report will say. That report will be available to all members, and will affect property values for years. Therefore, the best practice is to have a preliminary pre-inspection done, before the “official” report. This pre-inspection can look at just a few locations. If problems are found, then the association can have repairs done first, and then the report. That later post-repair report can then be the official Civil Code 5551 report, minimizing impact on property values. Addressing repairs early will also reduce the cost of repairs (water-related damage always gets worse and more expensive to repair, never better and cheaper). And, most importantly for newer associations, any delay risks losing the ability to charge the cost of inspections and repair to the builder by letting the 10-year deadline to submit a claim run.
This new inspection requirement can have a significant impact on association finances, but with proper and early planning, those costs and the impact to the association can be controlled.
“The first inspection is due by January 1, 2025, but don’t wait. As that deadline approaches, the competent inspectors and contractors will be busy conducting inspections (and resulting repairs) for other associations.”
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