b'lCan the contractor provide references to both board communities financial and maintenance needsmembers and community association managers? Homeowners in most of the surveys case studies rated thelAre the contractors familiar with working at outcome of their associations completed projects very highly.inhabited communities? In many cases, homeowners who resisted their associationslIs the contractors company financially sound? project andparticularly its costat the outset, ultimatelylAre there any improper or prohibited recognized the improvement and benefits to the communityconnections between the contractor and board members? once the project was completed. !Financing Major Infrastructure ImprovementsSurvey respondents used a variety of methods to pay for CASE STUDY:their major infrastructure repairs and improvements, includ- LISTEN TO RESIDENTSing:lAccessing available reserveslApproving special assessments COMMUNICATION, FINANCING, ANDlTaking out a bank loan secured by regular assessments PHASED CONSTRUCTIONInsurance was rarely a factor when paying for major infra- After years of residents complaints about ambient noise and poorstructure repairs, according to survey respondents. The few energy efficiency, in 2010, management at the University Towersexceptions to this include acts of nature and original construc- Condominiums in New Haven, Connecticut investigated the feasibil-tiondefectsorpriorrepairconstructiondefectsthatwere ity of replacing the 1,850 windows in the 238-unit building.revealedwithinaninsurancepolicyscoveragetimelimits. Originally installed in 1958, the sliding window frames were diffi-Sometimes, individual homeowners policies covered at least a cult to repair because of the buildings steel and concrete con-portionofthedamagetotheirunits,dependingon struction. Management issued a request for proposals and selecteddeductibles and other factors. a firm to proceed with the window replacement. Boards and their Attitudes After five years of EPA testing and investigation, whichArguably the biggest factors affecting how and when infra- revealed asbestos inside the walls and caulking around the win-structure damage is addressed are the association boards atti- dows, work began in 2015 on the $10 million, multi-phased project.tude and perspective, and this survey revealed a wide disparity With 80% approval from homeowners, the board was able to securein board philosophies. While some boards are proactive and a bank loan to pay for the first phase of the project, which washighly transparent with homeowners, the majority are reticent estimated at $4.5 million. The association realized a savings ofto increase assessments or often fail to plan long term for infra- more than $1 million on this first phase, but the original lender saidstructuremaintenance.Inpostponinginspections,reserve the association needed to find another lender for phase 2. studies,andultimatelycompleterepairsorrenovations, Again, 80% of the associations diverse membership voted toboards often end up facing an exponentially more comprehen- secure a second loan of $8 million. Both phases of the project weresive and expensive project in the long run. In one case study, completed $500,000 under budget and with a high homeownerapproval rating. Increasing monthly assessments enabled the asso-the construction delays aggravated the damage, compromising ciation to pay off both loans.residentssafety.Whenhomeownerswouldntapprovethe Communication with homeowners was essential during thisneeded funds, the project manager petitioned the court for a project, according to Kate Bowman, CMCA, the on-site manager.special assessment.Because they had been informed and understood the need for thePOSITIVE OUTCOMES projects high cost$10 millionhomeowners were willing toA large portion of survey respondents indicated that their approve the necessary funds for it. Residents also appreciatedassociationsmadepositivechangesbecauseoftheirexperi- advance notifications of disruptions. The project, which was moreence with an aging infrastructure issue, including: disruptive and costlier than originally anticipated, indicated tolDesignating more money to reserves owners that the associations reserves funds were inadequate andlConducting more frequent and thorough reserve regular assessments needed to be increased. Association membersstudies, including hiring an engineer, pest control, also realized they needed to fund reserves at a much higher level.or other construction specialist to review and The board established a finance committee, which convenesassess components quarterly. In anticipation of other potential large projects, Univer-lCreating more formal project plans before sity Towers reserves are now funded at nearly three times the levelcommencing work prior to the window replacement project.lPlanning necessary work in phases rather than Lessons learned: Make sure board members are educated ondelaying it altogether reserve studies and why funding reserves sufficiently is neces-lListening to and communicating with homeowners sary. Be vigilant with inspections and keep up with code issues.and residents more frequently and regularly Dont shirk preventive maintenance. Take the time to identify alEducating homeowners and residents on their qualified engineer and project manager.Spring 2023 Suncoast Review - 15'