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Building Inspection & Structural Integrity

​​​​​​​Reserve Study & Funding Policy 


CAI SUPPORTS STATE LAW THAT:

Require reserve studies to be prepared in compliance with National Reserve Study Standards.

  1. ​Mandate reserve studies (Level IV Preliminary, Community Not Yet Constructed) pre/during construction and (Level I Full) at the time of transition/turnover from developer control to homeowner control. Reserve study with disclosures to be included with Purchase and Sale agreements.

  2. Mandate periodic reserve studies (Level I Full; Level II Update with Site Visit Review) that support community associations; including condominiums, housing cooperatives, and planned communities with major shared components for the member’s unit or dwelling or significant infrastructure/site improvements (i.e., roads, street lighting, accessory buildings, etc.) 
    • ​​​Significant infrastructure or major shared components are to be defined as associations whose aggregate replacement costs exceed $10,000.​​
  3. ​​Include practical legislative process for community associations to comply with funding requirement. Note: funding is based on the reserve study funding plan. Communities should be allowed an opportunity to slowly catch up to reserve funding upon passage of legislation. 

  4. Include practical legislative process for community associations to comply with funding requirement. Note: funding is based on the reserve study funding plan. Communities should be allowed an opportunity to slowly catch up to reserve funding upon passage of legislation. 

  5. Mandate disclosure; including summary of reserve fund financial condition, and funding plan, during annual budgeting (standardized disclosure).

  6. Mandate disclosure to new buyers of reserve study, including reserve study funding plan (standardized disclosure).

  7. Require reserve studies to be conducted by a reserve specialist, reserve professional, or other qualified professional, i.e., an engineer, an architect.

  8. Address funding for emergent life safety issue repairs by authorizing the association governing board to special assess or borrow funds without a vote of the membership.​

CAI OPPOSES STATE LAW THAT:

  • Allows owners to waive/opt-out of reserve funding requirements.

  • Prohibits including structural and/or engineering inspections by appropriate professionals and the financial impact of said inspections in the reserve study and funding plan.

  • Restrict the borrowing from reserves for other purposes.​

CAI resources that may be helpful for understanding reserves and reserve studies, include the following:

​​Building Maintenance & Structural Integrity Policy

CAI SUPPORTS STATE LAW THAT:

​Provide for ongoing review of the major structural elements, owned, or maintained by the community association, of a multi-family residential building(s) of concrete, load bearing masonry, steel, or hybrid structural systems such as heavy timber including podium decks.  

Developer Requirements at Turnover or Before ​​

  1. Provide a complete set of the final approved architectural and engineering design drawings used for construction and to obtain building permits as well as certificates of occupancy. In the event of changes in the structural components of the building, provide as-built drawings prepared by the initial design engineer, or where the initial design engineer is no longer available to provide the as-built drawings, then the drawings will be provided by a different design engineer, confirming structural adequacy. The drawings must reflect any subsequent changes to the structural components of the building.

    Perform ongoing inspections during construction to confirm general conformance to the plans and specifications.  Inspections shall be conducted by a building official with sufficient expertise or a licensed third-party architect or engineer. A certificate of occupancy shall not be issued until the building inspector or third-party inspector confirms that the building was constructed in general conformance with the structural 

  2. Provide a preventative maintenance manual to the association to be undertaken by the association over the life of the common area components including structural components.  The developer shall deliver the maintenance manual to the association. The maintenance manual shall provide the maintenance schedule and timing for such maintenance, including periodic inspections of the structural components of the building. The developer shall include in the association budget or reserve study, as appropriate, the funds necessary to perform the scheduled maintenance. 
     ​
  3. Provide to pros​pective purchasers a summary of the future Building Inspection Requirements outlined below, together with the projected cost of same over time.

Building Inspection Requirements for New Construction & Existing Buildings

Mandatory building inspections of the major structural elements owned or maintained by the community association for all multi-family buildings of concrete, load bearing masonry, steel, or hybrid structural systems such as heavy timber including podium decks.​

  1. For new construction, the first inspection shall be conducted no later than five years after occupancy of the building.

  2. For existing buildings more than 10 years old, the first inspection shall take place within 2 years of passage of new statutory requirements. ​

    The purpose of the first inspection is to act as a baseline for future inspections as well as to identify issues of immediate concern. Each periodic inspector’s report shall recommend when the next inspection shall be conducted, which, shall not exceed every 10 years during the first 20 years after construction and every 5 years thereafter. 

  3. Periodic inspections after the first inspection shall take place every 10-years for the first 20 years since construction and 5 years thereafter unless the prior inspection recommends sooner.

    The purpose of the reinspection(s) will be to monitor progressive deterioration based on a comparison to the prior inspections and to identify issues of immediate concern as well as to establish a recommendation for the next inspection which, in any case shall not exceed 10 years for the first 20 years after construction and 5 years thereafter. 

  4. ​At any time, there is concern about the safety or stability of the building structure, an inspection should be conducted immediately.

  5. Scope: The protocol for inspection can be found in the ASCE Standard SEI/ASCE 11-99 (latest edition) Guideline for Structural Condition Assessment of Existing Buildings or other industry standards. The initial Baseline inspection is identified as the Preliminary Assessment within this guide. If necessary, a Detailed Assessment as defined within this guide may be required. 
    The requirement for these inspections is:
    • ​Primary (required)
      • Structure
      • Inspection report protocols to follow. 
    • Secondary (optional based on individual requirements)
      • ​Affiliated structures and mechanical systems​​
  6. The inspections must be conducted by the following assuming they meet the minimum requirement of being a licensed engineer with appropriate qualifications.
    • ​Local municipal building inspector if a licensed professional engineer, in good standing;
      or a
    • Licensed engineer hired by the building inspector, the community association, or the building owner
  7. Communication Requirements to Governmental Authorities 
    If a safety concern is identified in the inspection reports the inspector must notify the local governmental authorities in writing and record the date and receipt of notice.

  8. Funding of emergent life safety issue repairs
    • ​The governing board of a community association must have the power to impose a special assessment or borrow funds necessary to make immediate repairs without a vote of the membership. Notwithstanding the provisions of the community association governing documents, empower the association governing board to impose a special assessment or borrow funds without a vote of the membership to fund emergent life safety repairs.​​​
​The full report may be found at www.caionline.org/condosafety


​Policy History

Adopted by the Board of Trustees, October 28, 2021