mold, moisture and property transactionsmseca.org/media/2016-09-29_-_havics.pdf · increased...

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Mold, Moisture and Property Transactions

Midwestern States Environmental Consultants Association

Environmental Solutions

Related to Real Estate Seminar

Indianapolis, IN

September 29th, 2016

©2016 A. Havics, CIH, PE 1

Andrew A. “Tony” Havics, CIH, PEpH2, LLCAvon, IN

Outline

1. What is Mold?2. What aspects of Moisture Relate to a

Building & Mold Growth3. Aspects of Transactions Via Case Studies4. Questions

Time permitting:5. Economics6. Possible Scenarios


1. What is Mold?

• Is it a plant?

• Is it an animal?

• Is a transplanted alien?


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What is Mold?

• Doesn’t have chlorophyll

so not a plant

• Doesn’t have an organ for food intake

• Fungal cells encased in carbohydrates

so not an animal

It therefore has its own Kingdom ‐ Fungi


Mold Background

•Mold is the microscopic variety of filamentous fungi

• Fungi include a variety of reproducing organisms, about 6,000 genera and at least 70,000 species


Fungi


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How does it Live and Grow

• Food source

(substrate of carbon and specific nutrients)

• Good Temperature range

• Moisture

(minimum water activity)


The retort – What is Toxic Mold?

1988


Tony’s Current Definition of Toxic Mold


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Mold, Steps Toward ClarityJune, 2005• Why is mold a concern for lenders and servicers in commercial real estate? – and thus a consultants concern.

• Direct damage to building or contents

• Loss of use/loss of rental value

• Stigma damages

• Third party liability


Alleman, Breaking the Mold, Mortgage Banking., 66, 10, 92‐96, July 2006

Risk

• Direct damage to building or contents • Mold or dampness can damage building materials and contents requiring the owner or manager to expend funds for repairs and remediation. If these sums are substantial, a borrower’s ability to repay a loan and the collateral value of the structure may be negatively affected.

• Loss of use/loss of rental value• Areas affected by significant amounts of mold or dampness may become unusable, unfit for rental, or rentable only at a reduced rate. Unaffected sections of a building may have to be closed off to effect repairs. This loss of income can have a negative impact on cash flow in addition to costs associated with remediation.


Risk

• Stigma damages• Even after a successful remediation, the stigma associated with a prior mold outbreak (picture remediation contractors going in and out of a building in “moonsuits”) may reduce the market value of or ability to rent space in an affected property, with direct negative effects on collateral value or cash flow a possible result. In multifamily residential units, residents may break leases with increased frequency or demand other concessions.

• Third party liability• Occupants and users of an affected building may sue for indirect harm or injuries they believe were caused by mold. Workers compensation claims have also been filed by occupants for exposure to mold. While these suits may not ultimately result in large awards, an owner’s or manager’s costs to defend them are likely to be high enough to have a negative impact on income.


Fieg, Toxic Mold Is Nothing to Sneeze At, Lenders Find as Complaints Multiply, Community Banker, 15, 2, 64‐64, 2006

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2. What aspects of Moisture Relate to a Building & Mold Growth?

• Direct entry

• Indirect Entry

• Internal Sources

• HVAC‐Related


Moisture & Mold Marriage• Direct entry

• Wind Driven

• Flooding• Drainage Related

• soil against wall, gutters, drain blockage

• High water table• Snow melt

• Envelope Failures• roof, flashing, hail damage, gap)


• Indirect Entry• Windows open

• No vapor barrier• Concrete water vapor• Condensation planes

• insulation differences, thermal bridging, poor circulation


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Moisture & Mold Marriage

• Internal Sources• Plumbing Leaks

• Fountains, spas, pools, cooking, people• Bathrooms

• Fire Suppression• Spills & Overflows• Laundry (hospitals & hotels)• Potted plants & Grow‐ops• Cleaning


• HVAC‐Related• Oversized Units• Drip Pan/Condensate Drainage

• Coil Carry over• Humidification


ASTM E2418‐2006 Baseline Survey Process (BSP)*• Purpose: define good commercial and customary practice in the United States of America for conducting a baseline survey for readily observable mold and conditions conducive to mold in a commercial building related to a commercial real estate transaction.

*withdrawn 2015


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ASTM E2418: Applicability

• identify observable mold

• Identify physical deficiencies conducive to mold

• as a result of moisture and water infiltration through the commercial building’s envelope or substructure, or generated within the building as a result of processes or mechanical systems,


ASTM E2418: Applicability 2

• not designed to serve as comprehensive survey for • the presence of observable mold • or physical deficiencies conducive to mold in all or most areas in a commercial building.

• It is not intended to • reduce the risk of the presence of observable mold and physical deficiencies conducive to mold

• nor is it to eliminate the risk • that observable mold and physical deficiencies conducive to mold may pose to the building or its occupants

• Sampling for mold growth is a non‐scope consideration under this guide.


ASTM E2418: Basic Aspects

• Walk‐through survey

• Document reviews, and

• Interviews

• Report


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If more detail then:

• D7338‐14 Standard Guide for Assessment Of Fungal Growth in Buildings


Also, for a corollary ‐ PCA

• See:


ASTM E2018 - 15

Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process

3. Case Studies: Considerations

• Occupancy• Hazard Communication• Discreteness• Logistics

• Time = ($)3

• Economics• Accounting & Taxes• Level of Effort• Level of Verification

• Methods of Investigation• Appropriateness for Risk• Quality, Reliability, Usefulness• Time Constraints• Appearance


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Risk or Not To Risk?


Risk Management


Level o

f Investigation Req

uired

Risk of HarmRisk of Greater Cost to Refurb., Rem., DecommissionRisk of Greater Hazards

Case A. Defunct Hospital


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Mold & Moisture Concerns


Case A.


Findings Summarized: Mold & Moisture• Mostly exterior walls.

• Around many windows.

• Behind a lot of the vinyl wall paper & vinyl panels.

• At building inner wall‐to‐exterior wall interfaces.

• Toxigenic species are presently, and likely others not identified (due to limited sampling) also present

• Some interior locations reveal mold at:

• Possibly roof leaks

• Localized condensation

• Likely carpet problems beyond the obvious staining that would need removing & replacement

• There is likely mold inside the exterior wall cavity on the wings where there is a cavity separating the building skin from the interior wall.

• There is likely mold inside the exterior wall cavity in the admin areas behind paneling at spots.

• There is mold behind vinyl panels along the exterior wall cavity,


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Findings Summarized: environmental control problems• The exterior wall with efflorescence from exterior water penetration (effl. was on the inside).

• Moisture intrusion through the exterior wall below the drop ceiling where paint and wallpaper act as vapor barriers and trap water at inner wall source (causing efflorescence).

• Moisture intrusion through the exterior wall above the drop ceiling (where no interior surfacing is present) dumping moisture into the interior space

• Moisture condensation above the ceiling in very cold areas where some but not all the ceiling tile is covered with insulation.

• There may be significant moisture from slab vapor emission

• The HVAC system in not operating in a manner to present condensation problems. Two of these are: Heating in some areas with simultaneous cooling in others and insufficient building positive pressurization to minimize moisture intrusion in air gaps.

• Condensation at thermal bridging locations ‐ interior wall connections to exterior walls.

• Moisture from water leaks (cafeteria area from roof or piping; windows as noted on the top side with saltation deposits running down the sides).

• There is likely moisture trapped inside (at certain times of the year) the exterior wall cavity on the wings where there is a cavity separating the building skin from the interior wall.

• There is likely moisture trapped inside the exterior wall cavity (at certain times of the year) in the admin areas behind paneling at spots.

• There is mold behind vinyl panels along the exterior wall cavity (at certain times of the year).

• Rust at diffusers in locations indicate thermal control problems with regard to differentials.


Recommendations

1. Fix roof repairs.

2. Remediate mold and damaged building material in cafeteria area. Remediate any visible mold (ex. corners of exterior walls where the contact interior walls)

3. Remove all vinyl wallpaper as contaminated with mold. Remove vinyl panels as mold contaminated. When replacing, do not use low permeable layers (no vinyl wallpaper, vinyl panels or low permeable paint).

4. Scrub walls of mold & bacteria suing biocide, e.g., Beaucoup®. Dry walls to <10% MC, wood to <20% MC.

5. Remove carpet as contaminated. Clean floor with biocide. Dry floor.

6. Open and probe the far exterior walls on the wings where there appears to be an added wall cavity. Evaluate and remediate mold as necessary

7. Test and verify any remediation.


Recommendations

8. Test the concrete floor for water vapor emission per ASTM method (but not as many samples). Seal as necessary (e.g., Floorseal® vapor retarder) to prevent excessive moisture and to prevent new flooring (tile) damage.

9. Add appropriately conditioned outside air to assist in positively pressurizing the building to minimize air infiltration. The unit must be adequately sized and the air properly dehumidified to work as desired.

10. Remove and replace Unit ventilators. If possible replace with a non‐unit system. If not, devise an O&M and management plan to control possible local condensation problems.

11. Clean coils, drip pans, etc. for HVAC [remove any internal fiberglass linings]

12. Evaluate the possibility of adding a lower permeability coating to the exterior to reduce (but not act as a vapor barrier ‐ desired to have a quasi‐forgiving wall system).

13. Long term. Reevaluate and redo building envelope. Keep a watch on potential thermal bridging between exterior and interior walls


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Case B. High Rise Anticipating Sale in Near Future• >15 Story Building

• Approx. 100 year old

• Renovated < 25 years ago to modernize

• Building Size:.. Ca 450,000 SF

• Full Service Class A Environment


Case B.

• Owner looking to sell in next 3‐5 years

• Forward thinking owner

• Good IAQ

• No Mold History other than • limited rain events

• Plumbing leaks


Recommendation

• Baseline Bioaerosol Survey • N=20 Spore Trap Samples

• N= 8 Culturable air samples, year 1

• Walk Through

• Continuation for 2 years of Spore Traps & Particulate


YearInside Outside

Mean Median Geometric Mean

Mean Median Geometric Mean

1 190 164 138 2149 2149 19642 787 242 298 61366 61366 501963 181 58 77 7446 5524 5923

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Case C: Commercial Building being Sold with Remediation during Deal Negotiation


• <6 stories

• Office space

• Exterior envelopes failures

• Mold visible along exterior at limited locations

Investigation


• Hidden mold

• Still primarily along exterior

• No apparent impact on air quality yet

Remediation ‐ piecemeal


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Issues to contend with

• Scheduling• Re‐Construction• Occupied while remediating

• Q: What to say• Q: How to control• Q: Where to exhaust air• Q: How to determine readiness for re‐occupancy


Case D. Meat Processing Facility

• Looking to sell business

• Recent flood‐sewer backup loss (not covered)

• Found some mold, suspect more


Investigation

• Mold hidden behind walls• Stachybotrys sp.

• Not under insurance• How to prep for sale• FDA & health risk

• Q: Bacteria?• Q: Disclosure during sale?• Q: How to do accounting on remediation?


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Case E: Hi‐Rise Condo Being sold after Storm Damage• Multi‐Story Condo

• Water entered directly from Hurricane Charley in August 2004


Investigation

• Physical Inspection

• Bulk & Air Sampling• > 100,00 s/m3 mold

• Damaged bldg. materials

• Continuing issue with exterior wall & windows


End Game


• Remediation

• & Litigation

• 5 years latter settled

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Case F: Hotel, Construction in Progress• Approximately 13 stories up (not complete)

• Temporary roof

• 6 in of rain in 1 hr• Green board in all areas

• Drains away quickly• Construction open to hot humid climate


Investigation?


• Bottom 3 stories develop mold randomly, but progressively; outward from elevator shafts

• Q: How to assess?

• Q: Do you continue and only remove spots; or all of bottom 3 floors; or more floors?

• Q: If you are the contractor, what do you do to inform the prospective owner

• Q: If you are the prospective owner, do you accept the hotel? If so, under what conditions?

Case G: High‐end Condo with Mold development before Sale


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Case G. Investigation


Case G. Investigation

• HVAC & Thermodynamics


WUFI


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Remediation & Follow‐up

• Inspection

• Air Sampling

• Surface Sampling

• Clearance Cert


Questions

Andrew Anthony “Tony” Havics, CIH, PE

Environmental, Health & Safety, Microscopy, Materials Science & Forensic Engineering

pH2, LLC

5250 E US Highway 36, Suite 830

Avon, IN 46123

(317) 718‐7020 Office

(317) 718‐7038 Fax

(317) 409‐3238 Cell

[email protected]

www.ph2LLC.com

© 2016 A. Havics, PE 53

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