Spalling Balcony
A 60-unit mid-rise condominium's engineer reports that a fourth-floor balcony slab has spalling concrete and exposed rebar. A fist-sized piece fell into a planter last week; no one was injured. The engineer recommends temporary shoring and repair within 45 days, estimated at $85,000. The reserve line for concrete repairs holds $40,000. The board's next regular meeting is in six weeks, and the treasurer wants to wait for the annual budget to avoid a special assessment. The property manager has authority under the management agreement to authorize emergency repairs up to $15,000 without board approval. Two owners want to use their balconies; the board president asks the manager to "just put up caution tape."
1. Assess the risk and explain what the manager may do immediately under the management agreement.
Read the worked answer
Falling concrete is an imminent safety hazard, not a cosmetic issue. The association has a duty to warn and protect residents and guests, and a known hazard that is inadequately addressed can create liability far exceeding the repair cost. Caution tape alone is not a reasonable safeguard for a fourth-floor balcony with active spalling.
The manager's emergency authority is capped at $15,000, so it cannot cover the full $85,000 repair without board action. Within that authority, the manager can:
- Restrict access to the affected balcony and the area below.
- Install barricades and signage warning of falling debris.
- Engage the engineer or a qualified contractor to install temporary shoring or protective netting, if it fits within $15,000.
- Notify the association's insurer promptly and preserve photographs, the engineer's report, and incident records.
- Call an emergency board meeting and document why immediate action was necessary.
The manager should not wait six weeks for the regular meeting or tell owners the balconies are safe when the engineer says otherwise.
2. How should the board fund and communicate the repair?
Read the worked answer
The board should treat the repair as an urgent reserve and risk-management item. With $40,000 available in the concrete reserve line, the remaining $45,000 must come from another source-an emergency special assessment, a loan, or a temporary transfer from another reserve line if the governing documents permit and counsel approves. Across 60 units, $45,000 is about $750 per unit if assessed equally, but the board must follow the declaration's assessment and notice procedures.
The board should meet promptly, review the engineer's report and bids, approve a contract with proper insurance and licensing, and document the safety measures already taken. Communication should explain the hazard, the access restrictions, the expected timeline, the funding source, and the next update date. The board should avoid promising that insurance will cover the cost before the carrier confirms coverage. It should also correct the treasurer's framing: deferring the repair to avoid a special assessment does not avoid the cost-it increases injury risk and may raise the eventual repair price.