August 8, 2008

More than 40,000 leaky British Columbia condo units still need repairs, report finds

JEAN SORENSEN

correspondent

A recently released report indicates that the leaky condo crisis in British Columbia is far from over.

It states that the construction industry can expect to continue bearing the cost with a $750 reconstruction levy on each new multi-family housing unit built in the coastal zone for the next decade and that more than 40,000 units still need repairs.

In addition, a retired B.C. engineer and outspoken critic of the condo boondoggle maintained that current rainscreen and drain cavity technology is only creating another generation of buildings with future problems.

“We haven’t dealt with the fundamental issue,” said Ken Dextras.

He has authored a book on the condo crisis, lectured and lobbied, and developed an in-wall humidity control system to prevent dry rot from occurring.

The report, carried out by the consulting firm of McClanaghan and Associates, was released by the Homeowner Protection Office (HPO).

It looks at what progress has been made over the past nine years and what work still remains to be done.

Buildings built between 1982 and 1999 were identified as being problematic.

The HPO reconstruction program is funded by the $750 unit levy and the office pays the interest on Canada Housing and Mortgage Corporation (CHMC) loans to repair buildings.

The majority of the problem buildings have wooden frame, but the report states there are some concrete structures that are also showing signs of envelope failure and more could develop later.

The report states the number of strata apartments, which have undergone repair to date stands at 30,664.

It derived the figure from using a combination of HPO loan data and BC Assessment data.

It estimates that there are a total of 72,193 strata units with major envelope problems.

An estimated 41,529 units presently require major repairs.

The report also estimates how the number of units translates into demand from the HPO Reconstruction Program.

The report concludes that from the period of 2008-2012, the range will be from 6,631 to 10,329 loans, worth between $445 million and $696 million.

Dextras said the report just provides statistical information and does nothing to point the industry towards better construction practices.

He said the crisis stemmed from escalating oil prices in the 1970s and the move by the federal government to change the national building code to provide tighter envelopes mitigating heat loss.

However, escaping heat was a factor in ensuring that the envelopes stayed dry as well.

Instead, said Dextras, these new tighter envelopes drew in moisture from exterior leaks and condensation and it remained trapped within the envelope, leading to dry rot in wood-frame buildings.

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