Champlain Towers South Collapse: Frequency, Governance and Liability Issues

Robert Simons, Yan Xiao, Aaron Evenchik and Amanda Barreto

Journal of Sustainable Real Estate, 2022, vol. 14, issue 1, 57-74

Abstract: The tragedy of the sudden collapse of the 2021 Champlain Towers condominium building in Surfside, Florida raises issues of civil liability and throws into doubt the sustainability of the current model of condominium association governance. This case study evaluates the potential causes of the collapse, and reactions of various parties including the consulting engineering company, city regulators, condominium association board, outside property manager, original builder, and unit owners themselves. By conducting a comprehensive literature review, this paper is aimed to find out the reasons, frequency and liability of building collapse, as well as the roles condominium governance, financial modeling, poverty, or statutory language play in the tragedy. Some advice for further improvements to improve board sustainability is given to original developers, contractors, engineers, and insurance carriers. The current model of condominium management has blind spots and appears to be unsustainable. One suggestion to fix the problem is to require that insurance be obtained to insure the liability of condominium associations, including for this type of tragedy. That would create a financial risk/incentive for the insurance company to ensure adequate management and upkeep. The insurance company should also set board member expertise qualifications, insurance premiums, need for outside expertise, required inspections/maintenance, and replacement reserves that are required to maintain that coverage.

Date: 2022
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DOI: 10.1080/19498276.2022.2104346

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