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A U G U S T , 2 0 1 6
and structural members resulting in rot
and mold growth.
After “connecting the dots”, the
association’s experts should carefully
determine how much it will cost the
association to fix the various physical
and financial defects. This “cost to
cure” report provides the board with
a basis for prioritizing the deficiencies
and evaluating how much the asso-
ciation should spend on attempting
to compel the sponsor and others to
remedy particular deficiencies.
Without reputable experts solidly
connecting the dots and determining
the cost to cure, the association has
little prospect of transition success.
Assuming the experts connect the
dots and accurately estimate the cost
to cure, the board, its experts and
counsel must finally evaluate the prob-
ability of recovery. Is there an indi-
vidual or entity that has the resources
to cure the deficiencies or pay the
association so that it may cure the
deficiencies. Is it the sponsor? Is it
the sub-contractors? Is it one or more
insurance companies? Typically tran-
sition is resolved with contributions by
all of these but, if there is little or no
prospect of recovery, the association
should carefully consider other options
such as self-funding repairs, obtain-
ing a bank loan to fund repairs or
phasing repairs over time while using
“Band-Aid” fixes in the meantime.
Communicate.
Many boards
are reluctant to communicate expert
findings to the membership. This is
a mistake. Everyone hopes that the
transition process will be smooth and
TRANSITION...
from page 15.
CONT I NU E S ON PAGE 18