Structural Inspections of Condo Buildings Following Champlain Tower Collapse

In the early morning hours of June 24, 2021, the condominium building known as Champlain Towers South suffered a partial collapse, resulting in nearly 100 deaths and multiple injuries. The 12-story building was situated on the beach in the outer suburbs of Miami and was built in the early 1980’s. While the exact cause of the collapse is still under investigation, it is thought that water intrusion combined with corrosion of the rebar in the concrete led to weakened concrete structural members, which ultimately buckled under the weight they were originally designed to support.

When buildings begin to age, issues can become structural in nature. We have seen water intrusion leading to sheathing and stucco replacement, façade replacement on historic Philadelphia buildings, or even lintel replacements from lack of flashing. All of these projects equal big money.

As the costs for repair can steadily increase, it may get to the point where the HOA board no longer feels the community can afford the repairs and will delay the proposed fix. This “putting off” of necessary structural work is considered deferred maintenance. The work will eventually need to be completed but the question is when and how long can the HOA board wait until safety becomes an issue? While we believe in proactive maintenance on a building, Fannie Mae and Freddie Mac have created temporary requirements that appear to be aimed at boards who are delaying the inevitable building repairs.

Following this structural failure, Fannie Mae and Freddie Mac have implemented more restrictive lending requirements for condominium or cooperative buildings containing five or more attached units. First of all it should be noted that as of now, these requirements are only temporary and do not apply to standard maintenance which the HOA regularly undertakes on a building.

If a condo or co-op building has significant deferred maintenance or has received a citation from a regulatory authority about unsafe conditions, the unit will not be eligible for purchase with a Fannie Mae or Freddie Mac backed loan. Further, Fannie & Freddie will be asking lenders about the buildings reserve fund, cash flow into the reserve fund, special assessments (both present and past,) and possibly even HOA meeting minutes. Yikes!

Events like extreme weather, recurring water intrusion and soil erosion or subsidence can affect your property, both inside and out. Structural Inspection Services by BUSTAMANTE ENGINEERS, INC allows the owner to take advantage of our expertise by permitting us to inspect and evaluate the structural conditions that are of concern to you. Our easy-to-read reports provide sufficient detail to identify a concern and provide the knowledge to remedy it. As long-time members of the National Academy of Building Inspection Engineers (NABIE), you can be confident that our engineers will provide the highest standards in the building inspection industry.

The Condominium Project Questionnaire Addendum also inquiries about the state of the community’s reserve fund and timing of the previous Capital Reserve Fund Study . While the questionnaire asks if a study has been performed in the past 3 years, we suggest having your Reserve Fund Study updated within 4-5 years depending on the size of the community, age, and amount of infrastructure. Again, BUSTAMANTE ENGINEERS, INC. can assist your community with a reserve fund study by our CAI certified Reserve Specialists .