Seattle Condominium Flood Demonstrates Importance of Insurance

An overflowing bathtub caused by a sleepy owner recently plunged the Seattle condominium known as Mosler Lofts into a nightmare. Property damage was extensive, and many of the units had to be vacated for repairs. An unfortunate incident like this should remind condominium associations and their owners that purchasing adequate insurance coverage is advisable even when it is not legally required. It should also cause condominium boards to evaluate their governing documents to determine who pays their association’s insurance deductible in these types of situations. Ben Kakimoto’s discussion of condominium insurance on the Seattle Condo Blog earlier this month is well worth reading. For an overview of Washington condominium associations’ legal duty to purchase insurance, please review my previous post on that subject.

New EPA Rule Regarding Lead Paint Will Affect Repair Work on Older Buildings

Lead-based paint, which has been shown to be the cause of serious health problems, was unfortunately common in buildings constructed before 1978. Under the Environmental Protection Agency’s Renovation, Repair, and Painting ("RRP") Rule, contractors and painters are currently required to follow specified lead safety work practices and to provide lead safety information to owners and tenants before they start renovation, repair, or painting work on pre-1978 residential housing and child-occupied facilities. On October 1, 2010, the Environmental Protection Agency ("EPA") will also begin enforcing a new portion of the RRP Rule that requires contractors and painters to obtain lead paint safety certification before working on pre-1978 buildings covered by the rule. To become certified, contractors and painters must attend a training course provided or approved by the EPA that provides instruction on how to work safely with lead-based paint.

Owners of rental housing and maintenance workers in multi-family housing (including condominiums) must follow the requirements of the RRP Rule. However, this rule does not apply to owners working on their own property (without tenants), and it also does not apply to “minor” maintenance or repair activities.

Associations and individual owners with pre-1978 homes or condominiums must be careful when hiring contractors and painters. They should ask what specific lead safety work practices will be used, and (after October 1st) ask to see the contractor’s or painter’s EPA certificate. For more information about lead paint safety, read the EPA’s information pamphlet (Renovate Right: Important Lead Hazard Information for Families, Child Care Providers, and Schools). For further information about the requirements of the RRP Rule, visit the EPA’s Renovation, Repair and Painting website or contact your association’s attorney.

Maintenance and Repair of Condominium Buildings - Who Pays?

Condominiums are divided into units, limited common elements, and common elements. The Washington Condominium Act, which governs condominiums created since July 1, 1990, establishes default rules regarding boundaries and upkeep. These rules have been incorporated into many past and present condominium declarations.

The Washington Condominium Act states that (subject to the declaration) the walls, floors, and ceilings are the boundaries of a unit. Items such as wallboard, plaster, tiles, paint, and other materials constituting part of the finished surfaces are part of the unit. Items such as flues, ducts, conduits, and other fixtures that lie partially within a unit are considered limited common elements to the extent that they serve only that unit. Items such as porches, balconies, exterior windows, and exterior doors that are designed to serve a single unit are limited common elements as well. The rest of the condominium is composed of common elements, which often include siding, roofs, and recreational areas.

The Act later describes who is normally responsible for each portion of a condominium. It states that (subject to the declaration and two other exceptions) the association must pay for maintenance, repair, and replacement of the common elements and the limited common elements and the owners must pay for the maintenance, repair, and replacement of their units. The Act allows associations to shift expenses related to limited common elements to the owners if the declarations permit this. The Act also allows associations under its jurisdiction to shift common expenses caused by an owner’s misconduct to that owner.

The default rules discussed above can be altered by condominium declarations, so those documents must be carefully reviewed in each instance to determine liability for repair costs. If the board is uncertain about the proper outcome, it should ask the association’s attorney to issue a legal opinion on the matter.