Anew survey by the Foundation for Community Association Research identifies aging infrastructure as a critical concern for community managers, boards members, and residents.
Water intrusion, deteriorating balconies and fences, failing pipes and roofs, as well as plumbing and electrical issues often show a building’s age. As buildings’ internal systems and physical components age, how can community associations best prepare to meet the unexpected — but necessary — financial demands?
More than 700 community managers, business partners, homeowner leaders, and company executives responded to the Foundation’s survey examining how community associations are managing maintenance, funding, and long-term planning. Nearly 50% of respondents reported that some of their buildings are more than 40 years old.
More than half (54%) said aging infrastructure is one of the biggest challenges community associations face today. Another 33% cited funding repairs or maintenance as their biggest concern.
Formal building inspections have become a major focus at the local and state levels since the Surfside building collapse in 2021. More than 26% of respondents report conducting inspections every year while 26% only get an inspection when a problem arises. Almost 20% said they inspect every five years, 12% don’t conduct a formal inspection, and only 3% get them done every 10 years.
The economy often impacts the cost of maintenance and repairs as well as communities’ ability to budget. The current insurance crisis has become another factor making budgeting and planning difficult. An overwhelming 74% of respondents experienced an increase in premiums; only 9% reported no impact. Additionally, 6% had difficulty obtaining required coverage, and 4% saw policy cancellations.
More than half of community managers and board members have encountered significant issues with roofing and plumbing over the past five years. Roughly one-third reported issues with HVAC systems, windows, elevators, and electrical systems.
Safety followed by regulatory requirements, budget constraints, and long-term planning are the biggest factors influencing the prioritization of infrastructure repairs.
Modernizing infrastructure is a step many association are taking to combat aging buildings. Upgrading energy systems, including solar and energy-efficient HVAC, are top of the list.
Seventy percent say having sufficient reserve funding is big concern. Looking ahead, only one-third of respondents are very confident in their ability to address infrastructure needs over the next five years; 37% are somewhat confident, and 21% are concerned.
For more information on aging infrastructure, download Breaking Point: Examining Aging Infrastructure in Community Associations.