What Went Wrong at Harbour Cay—and What Community Associations Must Learn From It
On March 27, 1981, the five-story Harbour Cay Condominium in Cocoa Beach, Florida, collapsed during construction, killing 11 workers. While the tragedy occurred decades ago, it remains one of the most sobering reminders of what can go wrong when structural oversight, proper planning, and maintenance are lacking. For board members and property managers today, the Harbour Cay collapse is more than a historical footnote – it’s a case study in preventable failure.
As professionals who work closely with associations to plan for the long-term integrity of their properties, we look at Harbour Cay through the lens of what should have been in place and how reserve planning and structural diligence could have changed the outcome.
A Failure Rooted in Oversight
The Harbour Cay collapse was not caused by a single catastrophic event but by a chain of overlooked warning signs: inadequate engineering, poor construction oversight, and a failure to properly assess load capacity. Although the building had not yet been occupied, the structural deficiencies exposed a critical gap in accountability between developers, inspectors, and the future stakeholders of the property, namely, the community association.
Why This Still Matters to Associations Today
You may think that a structural failure during construction is a separate issue from the responsibilities of a board overseeing an established property. It’s not. Buildings age. Materials fatigue. Conditions change. And unless boards have a clear understanding of their physical assets and a realistic funding plan to maintain them, the risks don’t disappear—they accumulate.
This is where reserve studies come in—not as a checkbox item, but as a vital planning tool that provides visibility into your building’s condition and financial preparedness.
The Real Purpose of Reserve Studies
Too often, reserve studies are treated as budget documents. But their true value lies in what they help prevent. When conducted thoroughly and updated regularly, a reserve study gives a board the insight it needs to:
- Detect signs of material or structural fatigue before they become crises,
- Forecast the timing and cost of critical repairs,
- Justify funding decisions to owners,
- And most importantly, protect lives and property.
The Harbour Cay tragedy illustrates what happens when structural risks are underestimated or ignored. For an existing association, failing to fund and act on your reserve plan may not result in collapse, but it can lead to major financial shocks, legal exposure, and unsafe conditions for residents.
From Tragedy to Prevention
Today’s building codes and inspection requirements are more rigorous than in 1981, especially in states like Florida. However, even the best codes are only effective when boards and managers commit to implementation, and that includes maintaining a reliable reserve funding strategy.
In our work, we’ve seen the difference between associations that take their fiduciary and safety responsibilities seriously and those that kick the can down the road. The former avoid emergency assessments, build trust with their residents, and prevent the kind of deferred maintenance that leads to failures.
Final Thought: Safety Isn’t a Guessing Game
Harbour Cay reminds us that structural failures often follow patterns: missed warning signs, underfunded maintenance, and a lack of professional input. As reserve study analysts and CPAs, we don’t just run numbers—we interpret them to help communities avoid preventable outcomes.
If you’re a board member or property manager, the best time to act is before small issues become major ones. A well-prepared reserve study is more than a budget—it’s a risk management tool. Use it wisely, and you won’t just protect your property values—you’ll protect your community.
