Earthquake Bracing

Our board is considering adding earthquake bracing to all units through a special assessment ($300,000 between 22 units). Is this a repair (no owner vote needed) or a capital improvement (owner vote required). Does anyone have any experience determining this? We are probably going to ask our legal counsel for their opinion, but I was curious if any other board members faced this decision.

I think it hits a grey area.

It's not really a capital improvement.
It's more then a repair.

My suggestion, have a special meeting for this and hear feedback from the membership prior to making any decisions.

I'm assuming that these are condos, otherwise the HOA/COA wouldn't even be considering this except for maybe a clubhouse. I agree that you should get professional opinions: structural engineer, insurer, and lawyer.

My concern is that there is no right answer here.

If you've discussed it, owners aren't in favor, and then you get hit by an earthquake, those same owners will file lawsuits as soon as they dig out of the rubble. If the pros are in favor and you get your special assessment (which as Tim said may be considered a capital improvement and require owner approval) and then there's no earthquake, those same owners will b!tch that the board has wasted money. Basically damned if you do and damned if you don't.

At the very least you should look into beefed up insurance, assuming you can get it. Homeowners should also look at additional coverage to supplement their HO6 policies, assuming they can get it.

(Interesting facts: the strongest earthquakes on this continent actually occurred along the New Madrid fault located just west of Tennessee. New forecasts estimate a 7 to 10 percent chance, in the next 50 years, of a repeat of a major earthquake like those that occurred in 1811–1812. FEMA predicts "widespread and catastrophic damage across Alabama, Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri, and particularly Tennessee" should that occur. See https://en.wikipedia.org/wiki/1811%E2%80%931812_New_Madrid_earthquakes.)

I think it is a stretch to call it a repair if you are not actually repairing damage. At best, it is not clear, in which case I would err on the side of letting the owners decide. With it being a gray area and the cost being so high per owner, you are begging for a lawsuit.

The reason governing documents do not usually require owner approval for repairs is that they are necessary to maintain the status quo. That is not the case here.

The bracing is for structural integrity, not for earthquake movement; we live on a manmade island comprised of sand.

Condos were built in 1974. We have a structural engineers report that says bracing is needed to attach the piers to the main support beam. The condominium was created in the 80's, as they were apartments prior to condo conversion. Our Bylaws say any capital improvement over $10,000 needs a vote of the owners.

For the purposes of discussion, I am going to call the bracing as follows:

Bracing A = bracing all owners agree is needed

Bracing B = additional bracing, for earthquake protection, costing $300,000

Bracing A Questions:

-- You say that owners could add Bracing A themselves. Could the failure of an Owner to add Bracing A affect other units?

-- Does the Declaration say that each owner is responsible for Bracing A, because the bracing has nothing to do with common area?

-- Does the Declaration, in so many words, say the HOA can require each unit to install Bracing A?

-- Or does the Declaration, in so many words, say the HOA has the legal right to pay for all units' bracing A, because of the effect on common areas if a failure occurs (due to not installing bracing)?

Bracing B Questions:
-- Have any structural engineers recommended this? Has the HOA obtained two additional opinions and bids for this bracing?

What wording in the Declaration supports the HOA paying for Bracing A for the units which need it?

I am asking this because, if the HOA undertakes a repair/improvement that per the Declaration is the responsibility of an individual owner, then the HOA has just taken responsibility for any harm done if the repair/improvement is inadequate and is furthermore, responsible for ongoing maintenance of this repair/improvement. Under the latter circumstances, the HOA should have an owners' vote to amend the Declaration so that the HOA has the maintenance responsibility for Bracing A.

Agree, this sounds like a huge liability risk unless the Declaration supports the association doing this. As noted, a new reserve study plus additional insurance would also be needed because of the additional maintenance obligations.