Since the catastrophic structural failure
and collapse of Champlain Towers South in June 2021,
multiple engineering reports, notification timelines, code
compliance reviews, Board meeting minutes, damage pattern
studies, and legal opinions have all been gathered and are
now part of the ongoing search for probable causes and
potential answers.
There are many more condominium buildings in Florida that
could be in jeopardy of similar failure due to longer-term
unaddressed physical deterioration.
Keep in mind that ALL major deterioration and resulting
structural damage in condo buildings began with small
maintenance issues that were not identified and addressed in
time, allowing them to become significant enough to endanger
resident safety.
This article will attempt to outline what could be some of
the more intangible and behavioral contributions over time
to why a Florida condominium building might unexpectedly
crumble into its own footprint years after being built,
likely due to insufficient physical condition monitoring and
neglected necessary maintenance. Today's purpose is to raise
awareness of non-structural factors that might lead to a
similar event if allowed to continue unchecked. Please
consider all the observations mentioned below as starting
points for your own Association's discussion.
Apathy is generally defined as a lack of interest,
enthusiasm, or concern. It includes indifference and
inattention to topics or issues that can affect an entire
group or situation. Apathy in organizations can often be
observed when leaders and members ignore warning signs and
defer action for indefinite periods of time.
Florida condo
Apathy is different from outright negligence, criminal
behavior, or incompetence. It is a subtle, subliminal
attitude that progresses quietly over time and always
produces bad results.
This is not just about beachfront high-rises. Condominium
buildings of any design, size, location, and age can become
victims of administrative apathy and runaway deterioration.
The same apathy that leads to longer-term physical building
decay is simultaneously eating away at an Association's
financial well-being, individual property values, and
overall quality of life in the condominium community.
Let's look at a few examples of how individuals and entities
contribute to the collective apathy that will ultimately
destroy the physical structure, organization, and finances
of any Florida condo Association.
An Association's Board of Directors
Disregarding the fiduciary duty to all Association members
they accepted when becoming elected Directors. Thinking they
didn't really need the 2-hour new Board member training
class offered by many Florida attorneys' offices.
Underfunding financial reserves with the
intent to keep budgeted assessments artificially lower, so
the Board can remain socially popular in the building and
community. Not accepting the fact that physical and
financial deterioration are directly linked and get
significantly worse the longer they are allowed to continue.
Suggesting that owners vote to waive an annual audit of Association financial statements.
Letting a manager or management company assume more
authority than proper or allowed, in an attempt to reduce
Director workload and/or responsibility.
Accepting and continuing the status quo of questionable
administration by previous Boards.
Thinking the Board doesn't need to communicate regularly and
openly with owners; that the Board can function and make all
decisions on its own.
Individual Unit Owners
Thinking they didn't need to have the Governing Documents
explained to them by a Florida-licensed attorney when they
first bought into the building and Association.
Not at least reading the Governance Form, an informational
brochure published by the Division of Florida Condominiums,
Timeshares, and Mobile Homes that outlines how Florida condo
Associations function.
Allowing the Board to make decisions and run the Association
however they want, without even basic accountability to the
owners.
Voting year after year to waive or reduce reserve
contributions in order to keep scheduled assessments (dues,
fees) lower.
Thinking that because some are "only" seasonal residents,
they don't have much reason to participate in Association
matters.
Never attending an occasional Board meeting (and/or the
annual owners meeting) to stay informed and involved with
Association business. (Yes, Association operation and
administration is a business.)
Signing over their proxy vote to a Board member because the
owner didn't feel like learning enough about the topic
coming up for a vote.
Not questioning items they don't understand in meeting
minutes, election results, financial statements, and other
Association communication.
It has been suggested that many Florida condominium Boards
and the owners seem to maintain a co-dependent relationship
with each other. In this situation, owners may not want to
be bothered with Association governance and maintenance
details, while the Board wants to interpret their duties,
responsibilities, and authority as they alone see fit. Both
parties enable the other's desired behavior.
Managers and Management Companies
Ignoring the many warning signs of an Association and its
Board heading "off the rails".
Not properly following Florida Statutes Chapter 718, the
Association's own Governing Documents, and Board
instructions - in that order.
Not speaking up when Boards compromise or ignore their
fiduciary duty and maintenance responsibilities, for fear of
losing the management contract (being fired).
Trying to convince the Board that a Deferred Maintenance
Schedule prepared by the property manager can take the place
of a real Reserve Study prepared by a third-party
professional.
Allowing maintenance and administrative concerns to go
unaddressed and unresolved for too long.
The State of Florida
Writing the section of the Condominium Act (Florida Statutes
Chapter 718) that allows Associations to waive or reduce
reserve contributions from their annual budgets. Very few
Associations adequately understand deferred maintenance and
reserve funding, so allowing them to vote and waive reserve
contributions every year is extremely dangerous.
Allowing newly-elected or appointed Board members to merely
sign a statement saying they read the Association's
Governing Documents on their own, instead of attending a
class presented by real estate attorneys who interpret and
explain those documents.
Allowing Associations to vote and waive professional audits
of their end-of-year financial statements.
Just because something is allowed, that doesn't mean it is
automatically in the best interest of the Association.
Fortunately for all condo owners, there are now bills in the
Florida State House and Senate attempting to close the above
loopholes. If passed, the laws they become will prohibit the
full waiving of reserves from the annual budget, and require
mandatory training class attendance by new Board members.
The only way to fix Association dysfunction in Florida is
through owner education and participation. Dedicated Board
members and involved owners are the keys.