Turning Back the Clock

A guide to helping your property look years younger

Is it time for a little Botox or would it be better to have a facelift?  The answer to that question depends on whose face, and whose wallet you’re talking about.  If it is someone else’s face and your wallet Botox will be just fine.  But what if it’s your face and your wallet?  Now the decision gets harder!  (It is also where this analogy ends, as my face is what it is and no amount of Botox or a facelift is going to help).   

The discussion around the table at the HOA Board meeting probably goes something like this:…“Fifteen or twenty years ago, our HOA was the pride of the neighborhood.  We were a fairly new association, our buildings were up-to-date, the landscaping looked great, but now look at us!  This place is not looking so good anymore!  The paint is faded and chipping and the colors are dated.  The landscaping is overgrown and some of the bushes are dying.  Our association really needs to do something about how our buildings and grounds look before our property values start to decline.” The next question frequently is, “What can the association do to enhance and update our appearance without breaking the bank?”

We all look a little worse for the wear than we did 15 or 20 years ago.  So, what will it be – a little ‘building Botox’ or an entire facelift?  The decisions are not always easy when they are our homes and our wallets, but the following suggestions may help.  Some may seem overly simple, but they should not be discounted just because they are simple.  Other suggestions will seem obvious to some, but they may be difficult politically to accomplish. 

Work to make sure that the reserve funds are sufficient and are being properly funded to cover the cost of exterior maintenance so it can be completed when it should be.  If the Board needs to pass an assessment and/or get a loan when it comes time to do regular exterior maintenance work like painting, deck coating, roofing etc. then there could be a tendency to push the project off and delay it for another year or another Board to deal with.  Deferred maintenance always costs more in the long run.   If the reserves are there, the Board can fund the needed maintenance and repairs and the work will be accomplished on time.

Make sure maintenance items such as repainting the buildings, trim or wrought iron and recoating the decks, are performed in accordance with the regular maintenance schedule.  The cost to repaint buildings that have been properly painted and maintained in accordance with a maintenance schedule will be much less expensive.  There will be less damage to the underlying surfaces and it will therefore be easier to repaint than buildings where the surfaces are badly worn and may need a great deal of repair or even replacement before they can be painted.   Adhering to required manufacturers’ maintenance schedules will also protect warranties for certain products such as the deck coating.

Don’t ignore serious issues and think that a good coat of paint will solve all problems.  When it is time to paint, if the above suggestions have been followed, there should not be many serious issues.  However, if the buildings have been neglected and not painted on a regular schedule there may be other more serious issues that will need to be addressed prior to painting.  These issues may include water intrusion, dry rot and/or termite damaged materials.  A coat of paint won’t repair dry rot and contrary to popular belief caulking will not solve all water intrusion issues.   Caulking may resolve a condition temporarily but is seldom the correct solution for a permanent fix.

Should other building and grounds elements or upgrades be considered as part of the maintenance/repair project?  If the goal is to enhance the appearance of the property and maintain it in good condition, maybe it is time to take a serious look at all exterior conditions that impact the properties appearance.   Prior to painting or re-landscaping would be a good time to consider the following renovations: 

• Landscaping – Landscaping may need to be trimmed back off the buildings so that the painters can access the building to complete the painting process.  This may be a good time to consider replacing some plantings that have aged out, look woody or sparse and are no longer attractive.   It is also a time to change sprinkler heads from spray heads to drip heads so that the new paint won’t have irrigation overspray and will last longer.
• Garage doors – Are they the old, heavy wood tilt-up doors that consume an inordinate amount of time and money to maintain and are also a safety risk to the owners?  If they are going to be replaced in the near future with sectional doors maybe that should be coordinated prior to repainting the complex so that door colors, new door jambs and trim can be considered. 
• Light fixtures – New LED fixtures can enhance the beauty of the complex and lower the monthly electrical bill.  Changing out fixtures can easily be done in conjunction with a painting project.
• Asphalt – When was the last time the asphalt had any maintenance?   As with paint on the buildings, a good slurry coat on the asphalt will not only enhance the look of the property but will prolong the life of the existing asphalt and therefore save the association funds in the long run.
• Windows/doors – Depending on the age and architecture of the property it might be a good time to replace doors and/or windows.  If the existing windows are single-pane, new dual-pane windows will not only be more attractive but will be much more energy efficient. Depending on the HOA’s CC&Rs this item may take some political effort to accomplish if the windows are considered the individual homeowners’ responsibility.  However, having a uniform look to all windows at the property can make a big difference in the value of the homes.  
• Roofing – If the building architecture includes sloped roofs, what is the condition of the roofing?  Many times where wood replacement and painting is the original scope of work, damaged fascia board at the roofline means that there may be other roofing problems that needed to be addressed.  Replacing wood fascia can also damage the existing roof and or void warranties or cause roof leaks so proper care and coordination of these interfacing elements is very important.   If the roof has outlived its useful life than certainly it is time to consider replacing it.  There are many attractive roofing options today that will enhance the look of a building.   

Time takes its toll on everything.  Most of us look a little different than we did 15 or 20 years ago; however, if we maintain our bodies with regular checkups, proper diet and exercise, we may be able to avoid major health issues down the road.  Our buildings are quite similar in that with routine and proper maintenance they will last longer and serve us well.  There will come a time when they need a little ‘building Botox’ or a major facelift; however, with proper planning and good decision-making, coupled with quality workmanship, the “new look” will result in something that all homeowners can be proud of and property values will be enhanced.      

Dennis Brooks is a founder and President of Design Build Associates, a construction management firm serving the HOA industry with offices in Los Angeles and Orange County. 

He can be reached at DennisBrooks@dbuild.com

On almost every HOA reconstruction project we encounter the same types of challenges to one degree or another, and these challenges would be no different for a seismic upgrade project.  First is the “political” aspect of a project, which entails explaining to the homeowners the necessity for the project in such a way that they will understand and approve.   Under the best of circumstances, if not managed effectively and efficiently, a project can quickly “go south” making the task of the Board obtaining approval of the membership that much more difficult.  Even a small number of disgruntled or dissenting homeowners voicing opposition to a proposed project can sometimes begin to turn public opinion.  Whether this opposition is due to these folks not wanting to spend the money or not seeing the value or necessity of a project, or if they’re simply contrarians, their concerns need to be addressed in a timely manner before a majority of the membership is unduly influenced.  That’s where strong project management and leadership become critical to the ultimate success of a project.   A competent construction manager would implement a system for educating homeowners by holding town hall meetings, sending newsletters and emails and through updates on an accessible website to bring the membership “on board” with the project.   Helping the Board explain the project in such a way so as to allay any misgivings members may have will aid in obtaining the consent and approval of the members.

The second aspect of a project – the actual construction – although no less important is in some ways easier for the Board than the first since it is less emotional.  This task is also made easier if the Board has utilized qualified third party expertise in facilitating homeowners’ understanding of the project as outlined above.  A well-qualified construction manager will assist the Board with all phases of the construction process, from initially defining the scope of the work, to obtaining bids from pre-qualified contractors and preparing contracts, to overseeing the construction and the invoicing process, through project close out.

Because of the potential liability of a structural retrofit project HOA Boards would be well advised to rely on the expertise of an experienced and qualified construction manager.  The Board can then have peace of mind knowing that they have a knowledgeable advocate on their side for all construction related issues and experienced management to assure them that the work is being completed properly.   Earthquake retrofitting projects are no different than other reconstruction projects in that they need strong, knowledgeable and experienced leadership from a construction manager to see them through to successful completion.

Okay, maybe that is a little extreme, but people have a reasonable expectation when they walk up a set of stairs or out onto a balcony that there is no risk involved.   And of course that’s how we should feel, but after reading headlines like “2 Killed, 29 Hurt When Malibu Balcony Falls”, or “6 Dead, 7 Hurt in Berkeley Balcony Collapse” maybe we should think again.   According to the U.S. Consumer Product Safety Commission’s National Electronic Injury Surveillance System it is estimated that over a five year period 224,740 people were injured due to deck, porch or stairs accidents and of those 33,000 were “serious” injuries including head trauma, concussions, major fractures, and paralysis.  

The North American Deck and Railing Association estimated half of the 40 million residential decks and 10 million commercial decks in the United States are more than 25 years old.  Since most decks or balconies are continually exposed to the elements the actual expected life span is likely to be 10-15 years, depending on the materials and methods used and assuming that there is proper maintenance along the way.  As these statistics demonstrate, this should be a serious issue for property owners or anyone involved in property management, considering the potential liability.

As a construction management consultant we frequently encounter decks, balconies and stairs in homeowner associations that require substantial repairs and structural replacement, generally due to a lack of routine maintenance.  On several occasions the balconies were such a hazard that Building & Safety actually issued “red tag“ correction notices until a plan was put in place to make the repairs.  On one project which was less than 10 years old homeowners had actually stepped through the cantilevered decks, which were 20 to 30 feet out over a hillside.  This occurred  because the original improper installation allowed water to become trapped within the structure.   In this case, and likely the Berkeley collapse (see photos), the damage that is occurred to the structural members which are covered up may not be readily evident by a quick visual inspection.  That is where a trained and knowledgeable expert may be required to make a thorough inspection of the balcony and all of the waterproof connections.   Poor construction methods as well as lack of maintenance can lead to severe wood decay, which can occur in just a few years.

Another issue we see is dangerous stair conditions, either because they have started to rot and are not structurally sound or because they don’t meet the code requirements for the height or the width of the treads and risers and as a result are a tripping hazard.  Stair handrails and balcony railings which have become loose due to dry rot and/or lack of proper attachment are another common safety concern.

The good news is that structural failure of decks and balconies is 100 percent preventable.   However, there are steps that must be taken to assure this is true. (For the purpose of this article we will assume that the structure was properly designed and met all building codes at the time it was constructed.)  Knowing that all structures have a defined life expectancy but do require periodic maintenance, let’s look at what the proper course of action should be when managing a property that includes decks, balconies or exterior stairs.

Some simple questions will help decide whether further investigation should be performed:

• How old is the property? – This will provide some knowledge as to the life cycle of the structures and the building codes under which they were likely constructed. As a general rule of thumb, barring construction defect issues, the expectation would be that the newer the structure the better condition it should be in.  Age, gravity and exposure have an effect on structures much the same as they do with the human body.
• Does the association have a reserve fund for maintaining these structures and is it adequately funded? – This is an indication of whether the association has a proper understanding of the importance of maintenance of these structures.
• Do the association’s records indicate that these structures have been maintained on a timely basis? – This will show whether the proper maintenance has actually been performed as recommended.

Based on the answers to the above questions what are the next steps that should be taken?  Below is a quick and simple checklist of 10 items to consider when inspecting decks, balconies and stairs:

• Should a construction consultant or licensed contractor be included in the inspection, or is the property manager comfortable with this task? The answer to this question may depend on the construction knowledge of the property manager and their willingness to take on that liability, responsibility, and the age and general condition of the structures.
• Are the railings well attached and sturdy or are they weak and showing signs of deterioration at the deck connections?
• Are the railings adequately safe for small children, pets and adults alike? Do they meet the current code requirements for rail height and baluster spacing?
• Does the deck surface seem rigid and solid or is it soft and spongy in areas?
• If the decks or stairs have a waterproof coating is it in good condition or has it deteriorated – does it show signs of splitting, peeling, cracking or chipping? Are there cracks in the surface or is there any other deterioration that could be allowing water into the structure below? Is it keeping the water out of the structure below?
• If the deck is not a solid waterproofed structure and is open for water to pass through it, is the decking material in good condition, showing no signs of sagging, dry-rot, termites, etc.
• Are the waterproofing connections around the perimeter of the deck in good and watertight condition? This would include the deck–to-wall transition, the thresholds at any door openings, and any post–to-deck connections.
• How is the structure supported – is it an integral part of the building or is it self-supported? Is the structural support being kept dry or is it exposed to the elements? If self-supported, how does the structure under the deck look?  Are there any signs of deterioration or termite damage at either the support-to-deck attachments or at the foundation-to-support attachments?
• Are the structural supports buried in the soil? The vertical support rising up from the concrete foundation should not be in contact with the surrounding soil.
• Are the foundations solid or have they been undermined by erosion or pests?

In general it is recommended that decks, balconies and stairs be thoroughly inspected at least annually, property maintenance be performed as needed, and the inspection and maintenance expenses should be part of the association’s annual budget.  Needless to say, those costs are minimal compared to the expense and potential liability involved in structural failure of these components.

Properly maintained, your decks, balconies and stairs will be safe and sound for everyone to use and enjoy for years to come.

Dennis Brooks can be reached at DennisBrooks@dbuild.com

The Board of Directors debates – but “The Process” is even more important!

The Board knows they are facing a project that can’t be put off any longer.  The time has come to get it done! Past boards may have put it off because of a lack of funds, or because some were terrified by the thought of going to the homeowners, or they were just overwhelmed at the thought of dealing with the mess of a construction project . . .

Tough Choices Article

Over the last 30 plus years we have heard many HOA boards of directors and even some community managers state reasons why they decided not to involve a construction manager (CM) in their project. Although many of these reasons may seem appropriate on their face, oftentimes they indicate a lack of understanding of what exactly a construction manager does and the value they bring to a project.  Let’s look at some of these stated “justifications” as to why a board or community manager may think a CM is not necessary for their project.

“Our project is too small to require the services of a CM.” – Certainly not every small project requires the services of a CM.  How small is too small and should size of the project be the determining factor?   It’s true that it may not be appropriate to hire a CM for a small project that is not very technical in nature.  On the other hand, a small project which is very technical, such as changing out a boiler or upgrading an elevator,  may very well benefit from consultation with a CM.   The old adage “it’s what you don’t know that can hurt you” comes to mind here.  Sometimes a seemingly simple project can mushroom into a costly, major ordeal as the result of unforeseen factors such as building department requirements, new codes or regulations, selection of the wrong materials, etc.   It never hurts to take the time for a consultation with a construction manager to determine what issues might become a problem as the project progresses.

“Our Community Manager can handle the CM responsibilities.” – The community manager may be very good at what they do and have years of experience but there are numerous considerations if an association decides to have the community manager take on the role of CM.  Likewise, the community manager should think long and hard about their liability and exposure, as well as that of their management company, by acting as a CM.  A community manager cannot be expected to have the expertise required to oversee a large or complex construction project, not to mention that they likely don’t have the time necessary to make site inspections, review the endless communications between homeowners, contractors and other professionals on the project and deal with the minutiae of the day to day project activities.

A quality CM will have a background in general contracting, architecture or engineering, and hold the associated licenses and should always have professional liability (E&O) insurance. They would also have the knowledge and experience to put together a complete bid package to ensure that all the bids are complete and comparable.  We all know of cases where the community manager or board asks a contractor for a proposal and then uses that proposal as a “Scope of Work” document in order to obtain additional bids.  The reality is that if the board or community manager is not familiar enough with the proposed work and needs to ask a contractor for a scope of work document, they will not likely obtain consistent bids.  Are the materials specified in sufficient detail that all the bidders will be bidding exactly the same materials?  Are they the right materials for this project?  Is there any definition as to method of installation? Typically a contractor’s proposal, if not based on an independent scope of work, is very general in nature.  That scenario gives the bidding contractors flexibility to change materials or methods without violating their proposal, which is a huge advantage to the contractor, but probably won’t match the quality desired and expected by the association.  If that proposal is used as the scope to obtain other proposals they are likely not going to end up equal.  Although this gives the appearance of obtaining the necessary number of bids it is very likely that these bids are not really comparable one to another.  This also opens up the board and community manager to criticism and potential liability.  Hiring a CM to prepare a proper scope of work and establish a proper bid form and procedure to handle any contractor questions so that all bids are based on the same materials and installation methods will assure consistency in the bids and the basis for a quality contract with the selected contractor.

“Our General Contractor will handle the responsibilities of a CM.” – One of the most important functions of a CM is to provide the HOA with an unbiased professional opinion concerning the contractor’s work and responsibilities.   If the contractor is going to be providing these CM services there is a built-in conflict of interest.  Ideally the CM would be brought on board before the contract is prepared and issued to the general contractor, as there are many nuances to a construction contract that if mishandled can lead to cost overruns and schedule delays.  The CM will also review the contractor’s insurance, monthly invoicing and lien releases to verify that they are appropriate and correctly completed.  And the CM will verify the validity and cost of any change orders and the impact on the construction schedule.  Who would the HOA turn to if they are unsure about the information provided by the contractor?  It is best to avoid these conflicts of interest whenever possible.

A CM may also suggest value engineering alternatives – methods and materials that may save the association thousands of dollars. How far down the road might the project be when it is discovered that there may have been a better way?  A good CM would also notice an improper technique or material application on site and help correct it before it is repeated over and over again, possibly creating the next construction defect litigation case.

“Construction projects always cost more than expected.” – It is true that many times there is not adequate planning or understanding of a project before construction starts and most often this leads to unexpected costs.   If the person or persons responsible for pulling the project budget together do not have a great deal of experience and knowledge associated with the various aspects of the project, costs can and do quickly spiral out of control.  The budget is made up of more than just the contractor’s bid.  Typically it would include the cost of permits, possibly an architect or engineer, a hygienist and/or abatement contractor, financing costs and of course the all-important owner contingency.   The contingency amount is determined based on the experience of the person putting the budget together.  Is this is a wood siding, balcony railing, dry rot and replacement project, or is this a repiping project?  The contingence for different types of projects is very different for many reasons which we won’t go into in this article.  However, an experienced CM should know how to advise the association when it comes to completing a proper and well defined budget with an appropriate contingency.  No board or community manager ever wants to go back and face the “political cost” of a budget shortfall and additional assessment.  Projects do not have to cost more than expected if the proper expectations are established during the bidding, budgeting and contract writing process.

A CM offering good, sound advice, helping the HOA avoid costly mistakes, establishing a well thought out budget with an appropriate contingency, using a quality contract can easily save an association more than their fees for the project. Conversely, decisions concerning the use of improper or poor quality materials or installation can cost the association huge sums of money in the form of shortened life expectancy of a product, damage to building interiors from improperly installed waterproofing materials, the selection of the wrong materials altogether, or even the extreme costs and frustration of defect litigation which will involve many experts and attorneys and take months if not years to resolve.

There are many other areas where a quality CM can save the association money by helping to prioritizing repairs, accounting for life/safety, water intrusion and aesthetic issues, so that the repair budget is spent wisely. Assisting in obtaining the required membership votes for project approval by holding town hall meetings with PowerPoint presentations to help inform the members of the need for and cost benefit of the project.  Lastly, a qualified CM will have contacts in the finance world and would be able to assist the association in obtaining a loan to accomplish the work, if that need exists.

Hiring a professional and qualified CM is actually the most prudent and in many cases the least expensive alternative, all the while providing the HOA with the peace of mind that they have independent, professional representation to assist them with their project.~

Dennis Brooks is the president and founder of Design Build Associates, a construction management consulting firm specializing in HOA reconstruction projects with offices in Westlake Village and Irvine.  He can be reached at DennisBrooks@dbuild.com

Ponderosa Springs Homeowner Association is a lovely 210-unit complex in San Pedro with numerous mature trees, waterfalls and streams throughout. The 30-year-old buildings, however, were suffering the effects of deferred maintenance of their wood decks, stairs, etc.  Published in Focus Magazine May/June 2015

Overcoming Renovation Challenges Focus_May-June_2015_