CAI-NJ June 2021

TRANSITION... from page 40.

struction departed from the stan- dards referenced in the preceding paragraph. 3. Is the deviation between how the buildings and site components were supposed to be built and how they were actually built causing damage? Answering this question will typically include comprehensive investigation, such as extensive on-site analysis and surveying of unit owners to determine the existence of leaks, mold, or any other manifestation of damages in units and common areas. If evidence of damage is observed, engineers may often employ more invasive means of investigation such as mois- ture probes and test cuts through the buildings’ exterior cladding systems, use of infrared cameras, and even drones to determine the extent and severity of water intrusion and other possible damages. 4. What needs to be done to cor- rect the defects? Answering this question will typically require an architect and/or engineer to pre- pare a scope of repair detailing what work will need to be done to correct the construction deficiencies and repair the damage. In addition to a Transition Engineering Study, associations going through transi- tion often engage a forensic accounting firm to perform an analysis of the asso- ciation’s current and historic financial records. The accountant will analyze the association’s governing documents, such as the Public Offering Statement and Master Deed, to determine how

Talk to us about your community association needs. We can help.

Popular Association Banking exclusively serves the community association industry. We offer: 1 • Financing for building repairs and capital improvements. • Competitive fixed rates with terms up to 15 years. • Excess FDIC insurance coverage limits, available with ICS® and CDARS®. 2

Contact our Mid-Atlantic Relationship Officer today! David Shahrabani, V.P. 917.656.1156 Toll-free: 800.233.7164 DShahrabani@popular.com

www.popularassociationbanking.com

1. Subject to credit approval. 2. ICS ® and CDARS ® are registered service marks of IntraFi Network, LLC. Copyright © 2021 Popular Bank. Member FDIC.

42

J U N E , 2 0 2 1

Made with FlippingBook - Online catalogs