Article Courtesy of The Sun
Sentinel
By FALLAN PATTERSON
Published October 9, 2009
In February,
the bank finally took control of a unit at Pines at Springtree in Sunrise
after 18 months of foreclosure proceedings. When officials opened the
apartment, black mold greeted them from the walls and collapsed ceiling.
The previous owner had broken the valve on the toilets, allowing water to
overflow and sit in the unit with no air conditioning for more than a
year. All this after the owner realized he could no longer afford the
unit.
Shawn McKenna, president of Pines at Springtree, said a plumber determined
the unit had been vandalized.
Afraid the mold would spread to adjacent units, the association turned to
the bank to repair the unit. The bank hired a general contractor for
$5,000 but would only replace the sheet rock.
"If it weren't for the fact we had a board member with a building
industry background, it would've been worse," McKenna said.
Situations like that in condo buildings such as Springtree aren't
uncommon. Attorney Lisa Magill of the Becker & Poliakoff law firm,
said mold in foreclosed units is a widespread problem due to Florida's
high humidity and associations' lack of money and maintenance staff.
"Associations don't have the staff time available or money to hire
outside inspectors to survey or examine building components regularly for
signs of moisture or to monitor conditions inside units in
foreclosure," Magill said. "We often find that electrical
service and thus air conditioning for units in foreclosure have been
suspended due to nonpayment, which exaggerates mold growth."
In these instances, Magill recommends associations restore the electrical
service to keep mold from growing – a measure that state statutes and
governing documents typically allow. Magill said she also encourages
associations to implement maintenance standards to prevent mold-related
issues in foreclosed units.
In Springtree, McKenna said the bank tried to shirk its responsibility and
cover up the evidence for a quick sale. Determined to get the unit fixed,
the association spent six months and $8,000 in attorney's fees forcing the
bank to fix the mold problem. Repairing mold damage can cost as much as
$15,000, including testing of the mold and complete removal of all the
damaged areas.
The bank completed the necessary testing and repairs six months after the
mold was discovered, and the unit was sold about two months ago. The new
owner is rebuilding the inside, as the unit was stripped down to the
studs.
"Basically [the bank] was going to hide the damage," McKenna
said. "It was the worst experience I've ever had on the board. We
took a nasty hit."
In addition to the out-of-pocket attorney's fees, the association only
received $3,000 to cover $20,000 in delinquent maintenance fees from the
bank due to state law.
"Homeowners with severe financial constraints tend to ignore small
problems without realizing the impact on other portions of the
property," Magill said. "While I don't personally view it as a
life safety issue, the repairs or remediation work can be expensive, and
associations don't necessarily budget for those types of uninsured losses
or damages."
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