Are Special Assessment Fees in the Future for NYC Condo Owners?
The 2021 collapse of the Champlain South Tower happened far away in Surfside, Florida. But it may foretell troubles that await unfortunate New Yorkers who are buying non-union-built real estate.
Can the bankruptcy-threatening fees being forced upon Florida condominium owners be in the future for New York City residents who live in non-union-built buildings?
In 2021 the Champlain Towers condominium on the ocean coast in Surfside, Florida collapsed and killed 98 people who had been inside. In the years before the collapse, the managers of the building kicked the can down the road on important structural upgrades that were evidently needed. But a lack of building inspectors and a less-than-vigorous housing authority allowed the building’s flaws to remain unaddressed.
Under a new Florida law, condo buildings over 30 years old must pass a structural integrity inspection by the end of this year. Units near bodies of saltwater, like Champlain Towers, will have to do so if they’re more than 25 years old. By law, condominium associations are required to keep funds in their reserves for the maintenance and repairs needed to bring buildings up to code. Therefore many condo associations are now pressing new monthly dues on their residents. They’re calling these dues “special assessment fees.”
One Florida condo owner is facing a $140,000 special assessment for building improvements. A retiree faces a $100,000 bill from her condo association. Many others are looking at fees that are higher than their condo is worth. Faced with these costs, residents fear they won’t be able to pay these bills, nor will they be able to sell their condos. They fear bankruptcy.
What Happened to Champlain?
In a report issued in May of this year by the agency that investigated the collapse, the National Institute of Standards and Technology (NIST), several causes were cited, including construction that did not meet building codes.
In a story by the New York Times shortly after the collapse, evidence in the photography of the rubble implied that builder of the condo, non-union Nattel Construction, skimped on the amount of metal reinforcement used to connect the flooring to the support columns that was mandated by the condo plan engineers.
R. Shankar Nair, a member of the National Academy of Engineering, reviewed the rubble photos and the building specs for the condo and confirmed the material-skimping theory. He said, “There does not appear to be enough steel connecting the slab to the columns. What we see out there seems inconsistent with what the drawings show.” It appears that perhaps non-union Nattel sought to make money by using less rebar than spec’d.
"The thing that they say caused the Surfside collapse, it’s happening here in New York non-union construction today. This should be no surprise to anyone who knows about non-union.”
Punching Shear Failures
The NIST report, which won’t be entirely complete for another year, focused on the flaws in the pool deck, which had leaks that sent water through the building’s structure. The report says that “punching shear failures in the pool deck” were a key to the collapse. To demonstrate what happens when a punching shear occurs an engineer held a piece of paper over an upright pen and pushed down on the paper until the pen burst through it. In the case of Champlain, the paper was the pool deck and the pen was the faulty support column.
The impact of the ruptures and the inferior nature of the building’s construction then caused a ripple effect of failures that brought one entire side of the building down.
A Ripple Effect
Residents worry that they’re living in unsafe buildings. “No one knows how many buildings in this area are in danger,” said Aracely Colon, a local. He added, “nobody here should really be surprised. While the landlords charge a lot of money here, these places were not well built and are not maintained.”
And now they’re being burdened with huge special assessment fees that many fear will cause their own personal bankruptcy.
Here’s Why This Is Scary For NYC
A construction company estimator spoke to Union-Built Matters about this situation provided he remain anonymous because he must work with both union and non-union contractors.
He told us, “I’ve spoken with guys who have been asked to use less rebar in a building than the architectural plans called for. The thing that they say caused the Surfside collapse, it’s happening here in New York non-union construction today. This should be no surprise to anyone who knows about non-union.”
He explained, “Priority number one for non-union contractors is making as much money as possible. The result of that is a whole truckload of bad, bad things. They usually hire the least-qualified people so they can pay them less. They avoid hiring trained and licensed experts and then expect their untrained crews to do complex tasks. And they skimp on materials where they can.” He concluded, “Is there a building collapse coming in New York’s future? I wish I could say no way. Are special assessment fees in the future for condo owners who bought into a non-union building? I wish I could say no way.”
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