Winstead PC attorney Bob Burton wrote an article published by Law360 about condominium and community governance documents and how they can be drafted to educate the board and owners, and remove impediments to whatever action is necessary to preserve community assets. An excerpt is below:
For condominium and community developers, and their lawyers who draft and administer condominium and community governance documents, the tragedy of the Champlain Towers collapse in Surfside, Florida, should give pause.
Though condominium or community governance documents cannot prevent a structural failure, there are a few things you should consider when designing and drafting these documents.
No doubt that as we learn more about the collapse and the operation and administration of the community leading up to this terrible event, there will be lessons or, in some cases, laws that will become best practices, but there are a few things we can learn with the little information we have so far.
The suggestions below are orientated toward the education of future community leaders, the removal of political headwinds to action that can be taken to protect the community, or mechanisms to support reserve funding.
We all must keep in mind that the condominium association and major structural assets will eventually be managed by a board of owners elected by the community. Governance documents can be drafted to educate the board and all owners, and remove impediments to whatever action is necessary to preserve community assets.
Obviously, laws differ from state to state, so some of these suggestions may not be possible, or may be adequately addressed by state law, or the project structure may require an alternate approach.
Read the full article. (Subscription required)
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