As residential buildings in Hawai’i age, it is natural that they’re going to need more and more care. Buildings are a lot like people in that way. As people age, they have greater health care needs and require additional attention. Buildings are no different.

On the Mainland, many cities have enacted ordinances that require homeowners’ associations and building owners to do regular inspection of certain components and perform upkeep projects as a matter of public safety.  Although we currently do not have those rules in Hawai’i, they may be around the corner.  In fact, one is already here.

By now, almost every condo association board and property manager in Honolulu is aware of Ordinance 19-4.  Enacted by Mayor Caldwell on May 2, 2019, the law compels that all existing high-rise residential buildings over 75 feet tall, without a sprinkler system, be evaluated by a licensed professional and pass a rigorous Life Safety Evaluation (LSE) or be retrofitted with fire sprinklers throughout the building. Roughly 400 high-rise condominiums in Honolulu are affected by this law.

Like many laws and regulations, Ordinance 19-4 was prompted by tragedy, a fire that claimed several lives and caused widespread damage.  However, fire safety is just one of the many issues an older building faces as the years unfold. Aging sanitary pipes, unsecured roofing, loose façade materials, concrete spalling, failing window systems and unsafe lanai railings are just some of the other building components that may come under increased regulatory scrutiny in the future to help protect resident and public safety.

Looking into the laws of older or larger mainland cities can provide an indicator – if not a signal flare – of what future legislation may be coming our way in Hawaii.  Perhaps one of the best examples is New York City Local Law 11.  Local Law 11, and its predecessor Local Law 10, were enacted in 1980 following a tragic accident where a college student was killed by a loose piece of terra cotta falling from a building.  Under that law, the façades of most buildings have to be inspected every five years by a licensed professional and certified as safe. Any serious deficiencies have to be corrected and the building reinspected to assure compliance.

In a quite recent example, just this year California law SB 326 took effect.  Nicknamed the balcony bill, SB 326 requires homeowners’ associations state-wide to have a licensed professional regularly inspect lanais, balconies, walkways and other above-ground elements on a regular schedule and correct any deficiencies.  Like Ordinance 19-4 and Local Law 11, California SB 326 was also born of tragedy, after a balcony/lanai collapsed in 2015 killing six people.

We often find there is a broad misconception that building components will last forever or will last considerably longer than their generally expected service life.  As a result, many condo associations and building owners have not adequately budgeted for expensive, time-consuming repairs, resulting in critical capital improvements being deferred, delayed or even cancelled.  Sadly, this is when tragedy often strikes.  These avoidable tragedies are what prompt legislators to enact laws compelling homeowners’ associations and building owners to take action.

Making economic matters worse, many condo associations and reserve studies look at infrastructure improvements as individual standalone projects, but many can be consolidated to save money.  For example, combining a fire alarm or fire sprinkler project with a re-piping project can save condominium associations big bucks, because contractors only have to open the walls once, instead of many times over.  Combining projects also means significantly less disruption to owners and tenants.

By doing a proper modernization project and tackling multiple projects at once, condominium associations could literally save themselves millions and millions of dollars. Unfortunately, people are reticent to do it because associations and building owners have rarely saved enough money, and association boards often resist taking out a loan.  Ironically, combining multiple improvements into one large project, funded by a loan, is frequently the best thing they could do because it results in a lower monthly payment than taking a piecemeal approach.

Additionally, there’s never been a better time to complete these projects.  The pandemic has temporarily stabilized construction prices and the cost of borrowing is at historic lows.  The paradox is that due to COVID-19, many condo associations and building owners are pulling back on their capital improvement projects when in actuality there’s never been a better time to push forward. Many buildings are partially empty, the cost of borrowing is extraordinarily low, and contractors are looking for work. Now is an opportune time to keep these projects moving forward, and it could save owners a lot of money.  Moreover, only the future knows what legislation will compel building owners to take action, and when more legislation happens, it will cause a rush.

Most of us know by now that re-plumbing a building is one of the biggest expenses a condo will incur, and it was rarely included in reserve studies 10 to 15 years ago because condo associations thought pipes would last longer. Today, most buildings include re-piping in their reserve studies or have taken out a loan to fix leaky sanitary pipes.

Many condominium buildings also need updated fire alarms.  While most reserve studies include a line item for fire alarm systems, historically only a modest amount was budgeted to maintain – not modernize – the existing fire alarm panel.  Worse, some of the alarm systems in older buildings are so antiquated that building maintenance workers have a difficult time keeping them in service or finding parts.

Be forewarned, as a result of Ordinance 19-4 many condominium associations may find themselves in a situation where upgrading their fire alarm system to meet current code is the only way to achieve a passing score, and the cost of that modernization is markedly higher than trying to refurbish a 40- or 50-year-old alarm system.  Combining this project with other projects would create economic efficiency and result in an overall lower cost of improvements.  Of course, the alternative is to install a sprinkler system and avoid the multitude of other improvements that may be required to achieve compliance with ordinance 19-4.  For some buildings, installing sprinklers will probably be cheaper.

Concrete spalling and failing guardrail systems is another key issue associated with inspection laws in many other states.  After a metal railing gave way at a local shopping mall a few years ago tragically killing one man and injuring another, there was an effort to pass legislation requiring regular inspection and maintenance of lanais and railings in Hawaii.  While that legislative effort failed, it will likely be back.  Given the large number of lanais across our state and the high exposure to risk associated with failure of these systems, it’s likely a law like New York Local Law 11 or California Law SB326 will eventually materialize in Hawaii.

The older our buildings get and the longer we defer maintenance, the greater the risk to people and property.  Investing in infrastructure improvements will allow you to maintain or improve property values, provide a safe environment for residents and the public, and avoid being subject to the uncertainty of future building inspection and repair legislation.

It is only a matter of time before additional inspection and repair laws are passed in Hawaii requiring residential buildings to be properly maintained for the good of its residents and the safety of the public. The phrase “better safe than sorry” couldn’t be more apt in this situation.

President and CEO of Bergeman Group, Dana Bergeman brings over 25 years of experience in the architecture, engineering, and construction industry (AEC). His vision for the company is reflected in its core values: advocate on your behalf, help protect your investment, defend your interests by helping mitigate risks, and educate clients, enabling you to make informed decisions.