It's not just the repair bills 

 

by CASH Society Past-President, Carmen Maretic 

 

Content:
  • The Process
  • Living conditions
  • Health Issues
  • Additional financial costs         
  • Litigation
  • The apathy

 

November 2002 - Standing in front of a leaky co-op with a camera crew from Television New Zealand (TVNZ), we observed some scaffolding at the rear of the building while looking for the best view of repair work in progress. A co-op owner walked by and stopped to tell us that the work was not even fixing the leaks - this was to repair an area of the building that had been ravaged by a recent fire.

 

I have been driving by this leaky co-op for almost six years, watching the horrible conditions the occupants have been enduring. In the meantime, mould and rot festers and the safety of the occupants is put at risk. Monies have had to be spent to brace balconies that could literally fall off at any moment. The fire repairs will be completed shortly, but the co-op owners are still waiting for permission and the funding to repair their leaky building. (Note: As of May 24, 2005, this leaky co-op still has not been repaired)

Balcony bracing above the lower right hand roof line

 

The New Zealand reporter and television crew were documenting our housing crisis to see what light it could shed on their own $1 billion leaking building problem. They were incredulous that the fire damage was being dealt with so swiftly while the leaky building continued to rot and mould for years. "It is not just the repair bills that cause stress and hardship to the owners of leaky homes," I stated. In fact, other financial and emotional problems exponentially aggravate the situation and cause years of high stress for the owners.

            

Recently I received a call from a Realtor friend who stated that she warns buyers that they should set aside funds in case the building leaks and again I stated: "But it is not just the repair bills." I think it's time the whole story was told to prepare and fully disclose what you could be up against when you live in a rotting, mouldy building. Even if you get a 'good deal' on the purchase price, you may not have fully assessed the total costs.

 

 The Process: 

 

Across BC, many homeowners that are victims of building envelope failure are fighting each other on what is the best way to fix their leaking homes and at what cost. Even if the owners are in agreement on how to fix the problem, it can easily take three years from the time the leaks are detected to the time the building is fixed. The process is a complex series of decisions that begins with a majority of owners agreeing that there is a problem, choosing a consultant to assess the damage and the fix, accepting the results and raising the money to pay for the repair. It is not uncommon that they expend more money to get a second (and sometimes third and fourth) opinion on the assessment of the problem and the recommended solution.

 

Some strata, co-op and other homeowners cannot get beyond this point. I know of many buildings that are still debating (bickering) over the repair process, one building since 1992. I can assure you that the owners in these buildings live in adversarial conditions, unpleasant and fractious on a daily basis. Some examples: Tables and chairs go air borne in strata corporation meetings; verbal and physical threats are made, cars keyed, and legal actions undertaken against strata councils/other owners. No matter how much of a discount you get on the purchase price, this is not the living environment most people would like to live in.

 

Before the repair process begins there is the matter of the repair contractors, warranty process, legal and contract reviews and of course the money. In some buildings with owners that have little or no equity, repairs are delayed until the unpaid units have been foreclosed upon and the funding is received. This process can take months, sometimes years. Strata owners are forced to make decisions to foreclose knowing that they may put their neighbours out on the street.

 

 Living conditions: 

 

OK, so now you have your money, things should go smoothly from here, right? Well let's not forget what it is like to live in a building being repaired. Tarpaulin draped buildings make for very depressing living conditions. Every morning from 7 am to 4 pm Monday to Friday (sometimes Saturday too) you can look forward to the sounds of jack hammering, hammers pounding, skill saws bellowing, exterior debris crashing on the ground. Workman can unexpectedly appear at your bedroom window (or the hole in the wall where your window used to be) while you are dressing for the day. In the summer, with windows closed due to dust, noise and mould concerns, heat can reach unbearable temperatures. In the winter, heating bills can escalate as walls and windows are dismantled and replaced. Balconies are off limits and children have their play areas turned into debris holding sites. Pets are traumatized by the noise and disruption. Most owners are too embarrassed to entertain guests. Some have to vacate their homes while rotten wood in ceilings and floors are replaced. Often furniture is moved away from the outside wall and covered to protect them from dust and debris. Some rooms become unusable until the repairs are completed from constant rewetting of carpets and water pouring in through light fixtures during rainy periods.

 

It is not uncommon for owners to be forced to raise additional funds a second, third, fourth and fifth time to deal with more damage/defects uncovered during the repair process (i.e. anchor bolts missing, major support beams omitted during the construction stage) and ongoing litigation costs. In some cases, repairs will not resume until the monies are raised. More possible bankruptcies . . . .

 

Some buildings have watched owners replaced by tenants that are attracted to low rents. Renters may not share the same pride in maintaining their homes and common areas. Some buildings have had prostitution rings and drug trafficking become a problem. Many buildings experience increases in car theft and vandalism. Repairs can go on for years, while residents only see the light of day through tarpaulin shrouds. Until the building is fixed home values plummet. Ongoing litigation can also cause property values to be depressed years after the repair is completed. Some people have their relationships/marriage breakdown. The hope to have children, retirement, a holiday and even the simple exercise of going out for dinner - gone!

 

 Health Issues: 

 

Then there is the issue of health . . .. Owners report headaches, swollen eyes, fatigue, stress and depression. Many owners are on anti-depression medication and sleeping pills. Some (particularly children and seniors) have been hospitalized for breathing disorders such as asthma and pneumonia and other medical matters like heart attacks. The medical community does not have a test to determine whether people are sick from exposure to mould. It is a process of elimination, which can also take years. Homeowners that have fellow owners not willing to spend the additional costs to remove mould in a safe manner (it can double repair costs) are forced to choose between their financial concerns and their families' health. Many of these owners go bankrupt or get foreclosed upon not because of the repair costs but because the health cost of staying.

 

 Additional financial costs: 

 

The repair process is complete, now you can celebrate? Don't forget the landscaping that has been destroyed from the repairs. Common areas may have to be repainted and re-carpeted from the dirt and additional use of hallways. Keys given to workers/tenants may have jeopardized the security of the building and as a result buildings may need new locks and keys. Many owners face additional costs of correcting nail pops and cracks caused by the repair process - a cost not borne by the strata corporation.

 

Now you can celebrate and hope that you are not one of the buildings that will look forward to a second, third or even fourth repair.

 

 Litigation: 

 

But wait - it may not be over yet. Ongoing is the expense and stress of litigation for those with the mental and financial fortitude to pursue the parties responsible for the construction defects. According to a former strata council member from Riverwest (the first leaky condo legal action that went to trial), the ownership first dealt with leaks shortly after completion of their four-phased complex in 1991. The developer/contractors did do balcony repairs in some cases up to three times. When it became evident that these repairs were not working and the developer/contractors were unwilling to return, owners engaged an engineer and oversaw a repair process that the original contractors could and/or would not fix. Although the owners of Riverwest completed their repairs in October 1999, (8 years after the first signs of trouble), it wasn't until they were successful in staving off the appeal Delta municipality registered against their successful court action - that the owners finally received the court award - 11 years later. 

 

 The Apathy: 

 

Although I do not live in a leaky home, I have witnessed so much tragedy. I hope I have adequately, albeit briefly relayed the suffering of owners of leaky homes.

 

It is truly not just about the repair costs. . . .It is the agonizing and torturous process that takes years to repair and litigate while dreams and the quality of lives and health are eroded. Add to that the lack of support of family, friends and a community who are too quick to blame the owners for this systemic government/industry failure.

 

A house fire brings support from the community for the victims; furniture, clothing and money. A leaky home on the other hand can invite comments of owners stupidity, caveat emptor, I fixed MY leaky roof. . . they have been denied the right to grieve and feel further violated. The public generally has shown very little support for owners searching for justice for themselves and accountability for others in the future.

 

What happened to our compassionate and fair society? It is not just the repair bills . . .

 

 

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