Life expectancy of a condo
Nothing man-made lasts forever.
I have been reading a lot of Reserve Fund Studies lately and a few things were of interest.
The life expectancy of major components
Residential towers are very complicate structures. They are full of systems, pipes, electrical wiring, motors, boilers, machines, valves and pumps. They all have limited life spans so once a condo becomes ten years old or so, there is always one expensive thing or another that has to be replaced. The repairs and replacements are a never ending cost.
A Board can count on repairing or replacing the following items far sooner than they may realize:
• garage waterproofing
• fire panel
• boilers
• chiller
• pumps and valves
• sprinkler heads
• asphalt paving
• major repairs to balconies
• domestic water risers
• caulking & fasteners
• doors and windows
• elevator machinery
• garbage compactor
• air makeup unit
• fire prevention systems
A lot depends on the quality of the original equipment, the caulking, pipes and parts and whether the building, and all of its systems, have been properly maintained.
Oh yes, that is a big one. Has the building and all of its systems been properly maintained?
Using new materials
In the reports, the engineers state that they do not have enough information on certain materials and equipment to know how long they will last. Kitec plumbing is one example of a new material that failed far sooner than anyone expected.
Then there are components like aluminium wiring that was used in the 1970’s because it was cheaper than copper. In some condos, that wiring is still in place.
Up until 1992, calcium chloride was often mixed in with the concrete as a set accelerator when concrete was poured during the winter months. Adding salt to steel reinforced concrete was not a good idea and is no longer permitted.
Underground parking garages
The engineers are not sure how long the underground reinforced concrete parking garages will last as they are a relatively new structure. They can tell the Board when the garages are starting to deteriorate so immediate action can be taken.
Water leakage and concrete spalling should be repaired as soon as it is noticed but if it is not repaired, when will a badly neglected garage result in a catastrophic failure? Ten years? Twenty years? Maybe never. Hard to say.
Some engineers are not sure how long reinforced concrete slabs will last in underground garages and there are questions about the use of window walls (all glass) in the new buildings for the exterior walls.
No records
I was disappointed to read that some condos keep very poor records. The manager, Board or the superintendent may know, or think, that work has been done but they cannot remember when it was done or how much the work cost. The engineers search the audited Financial Statements to see if it is listed there.
Lipstick on a pig
I was not surprised to see that many condo boards placed more emphases on improving the building’s curb appeal and prettying up the amenities than in repairing concrete, replacing boilers, repairing the roof or replacing water pipes.
Warnings ignored
Engineers may report that 60 amp fuse boxes should be replaced as they may be a fire hazard or that the hot water risers have gone far past their expected life expectancy. I don’t think that many Directors bother to read the full Reserve Fund Studies so they may not read these warnings.
The garage is in good condition
In one report that I read, the engineers start off saying that the underground garage is in good condition. Then they list 25 defects that need to be repaired at an estimated cost of $1 million. That doesn’t sound so good to me.
How long will they last?
The engineers use 99 years as the life expectancy of a well maintained residential condominium tower. Since the first condo towers in Ontario are now 50 years old, they are at a point where termination and demolition may be just a few decades away.
What will termination look like?
The big question is: Has anyone any idea what is going to happen to these concrete structures when they are terminated?
North American cities have experience in demolishing old rental buildings and large public housing projects but terminating condo towers is a cat of a different colour.
How much equity will the owners receive? After all, it is not like a dilapidated detached house where the 50 x 100 foot lot is more valuable than the house sitting on it and the single owner doesn’t have to share the proceeds with 199 other owners.
When 200 owners split the value of the land, how much money will each collect?
Someday these will become important questions.