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Is Your Association Ready For Mold?
How To Develop A Mold Evaluation And Remediation Policy

By Bart Mendel and Jacklyn Wolf

Is your Association at the age where various building systems are degenerating? Have maintenance calls and costs risen sharply in the last few years? Are there reported leaks from multiple water sources that require callbacks and seem progressively more difficult to repair? Are residents concerned about mold? If so, your Association will benefit by developing a Mold Evaluation and Remediation Policy. This proactive step will outline the guidelines for how your Association will respond to water infiltration issues and health concerns of residents, as well as investigate, test, and remediate mold problems if they do arise. The establishment of pre-emptive policies will help to demonstrate proper diligence in the eyes of your homeowners and help protect your Association from perceptions of negligence and potential future liability. Following are issues that need to be considered to formulate such policy.

Mold Prevention. Every Association should have in place policies and procedures that quickly address and repair all leaks and water infiltration problems to prevent mold growth. The most important course of action to take is to regularly maintain building systems such as roofing, siding, decking, and painting. Not enough can be said for preventive maintenance. The time to replace a roof is before it leaks. Remember also that unchecked water infiltration is what causes mold; conversely, if water damage is dried out within 72 hours, mold rarely develops.

Investigation. There are three key elements in diagnosing mold conditions: the repair history, a visual inspection, and if required, various tests for high moisture and mold growth. Considered together, these three elements will inform a proper remediation plan. If you have multiple homes with water infiltration problems, a survey of homeowners followed by a visual examination of each problem unit is in order. It is essential to determine the scope of the mold problems at the beginning of the project in order to identify all sources of water infiltration later. Once a visual evaluation by a trained professional determines significant water infiltration and the probability of mold, testing is in order. A thorough investigation will prevent recurrence of mold and future claims of negligence.

Retain and Rely on Experts. It is critical that your Association retain professionals experienced in mold diagnosis and remediation to evaluate conditions and advise whether or not remediation or further investigation is warranted. Clearly written, documented policies will curtail potentially expensive and time-consuming challenges that can slow down your project, erode the overall budget, and exhaust the Association and its members in upsetting contentiousness. The Business Judgment Rule generally protects from personal liability Board members who retain an expert and follow their advice.

Remediation Procedures. Once remediation is indicated, consider how your Association will handle the myriad communication and project management aspects of a mold project. Make it part of your policy that residents must vacate the unit during remediation until clearance is achieved. Unless your governing documents say otherwise, California Civil Code does not require the Association to pay for homeowners’ temporary housing and relocation expenses during construction. Most Associations defer the responsibilities and costs for packing, moving, and cleaning of personal contents to the homeowners and their personal insurance carriers. Be careful with the remediation of that first unit: concessions granted to the first homeowner may set an expensive precedent for future ones.

Access Policy. Your Board should be aware of the need for a clear Access Policy because of the cost ramifications of delays in the project schedule — continued mold growth and ultimately more cost. Your Access Policy should clearly define conditions in which access is required and the consequences to the homeowner if access is denied. Your Association may already have an access policy in place within the CC&Rs. If not, consider amendment of your CC&Rs or the instigation of a new rule to expand the Association’s right of access for mold issues. Consult your attorney on any changes to your governing documents.

Mold contamination in homes can evoke strong emotional responses. In trying to address and respond responsibly to these issues in your Association, managers and Boards can become emotionally embroiled and be drawn far afield in both their investigative and repair efforts. Reliance on clear and established policies will provide security in the form of defined boundaries. These policies can demonstrate that your Board established an appropriate standard of care to protect the Association and its homeowners from unnecessary cost expenditures, health concerns, and undue liability. 

ABOUT THE AUTHORS

Bart Mendel and Jacklyn Wolf are with Stonemark Construction Management in Camarillo, CA. Stonemark Construction Management, headquartered in Santa Barbara with offices in Camarillo and Los Angeles, is a full-service construction management company offering planning pre-construction, construction, forensic investigation, and financial management for commercial projects as well as homeowner associations. Reach Stonemark at 805-964-9810 or www.stonemarkcm.com. This article originally appeared in the May/June, 2004 issue of Focus, published by the Los Angeles Chapter of the Community Associations Institute. Reprinted with permission.

riskVue | The webzine for risk management professionals
August 2004