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JenniferA2 (California)
Posts: 27
Posted:
Hello everyone, I am the Board Treasurer of a small HOA with 16 condominiums.

We just had a termite inspection that shows a lot of termites and major damage to wood fascia and trim. We will need to fumigate, then figure out how to pay for all this wood repair.

The termite guy gave us a quote for the repair but I am thinking it might be better to get our own quotes from contractors rather than the termite guy. Am I wrong about this? Won't he use an outside contractor for this as well?

Another question. Our Board President told the termite guy to go ahead and mail a copy of the inspection report to each homeowner. This includes the quote for wood repair. I am thinking the owners may panic when they see the cost, from $3500 to $5000 per unit for the wood only. I am fairly sure that this is going to be paid for by the Assoc., probably a special assessment or maybe work being done in stages, I don't know. I guess I am just trying to see how others have handled it.

I am thinking the total cost would be divided up evenly by the number of units. Our CC&R's don't even mention pest control and the Davis-Sterling Act. isn't all that descriptive either. I am just a little concerned that the owners area going to be comparing their costs and some will feel like the are getting a great deal while others will feel ripped off if they all end up paying the same price.

It would be so much easier if we could just assess each owner for the price on their report. Is that possible?

Any advice would be appreciated.

Jenn
MelissaP1 (Alabama)
Posts: 13,836
Posted:
It depends on the setup of the structure. I would say if the condo's were separate entities, then they should be responsible for their own pest control. However, it sounds like the condo's share the same structure and the HOA took on the responsibility of pest control.

It is okay for the HOA to seek out other bids. We had a rule of 3 bids per contract. You may want a new pest control company as well to check into things. They should give you a free quote. I would ask if that pest control company is going to use a separate contractor or do the job themselves. You may want to ask what if your HOA paid for the labor ONLY and purchased the supplies separately? There's options.

As for paying for it... Yes a special assessment is the way to go. The TOTAL amount is to divided EVENLY amongst the owners. If you know a certain amount may not pay, you may want to add a "fudge factor" to cover the expenses. There's always extra expenses involved after the job is done. If an owner does refuse to pay, this is grounds for a LIEN. The HOA can lien for non-payment of the special assessment.

It's a hard pill to swallow and the members should be involved in the decision on how to proceed. Someone there may have options to offer up. Never know who may have connections to help with the costs.

Former HOA President
JenniferA2 (California)
Posts: 27
Posted:
This will help. Thank you.

Jenn
GlenL (Ohio)
Posts: 5,491
Posted:
Don't forget D/S rules on special assessments limit the SA to 5% of the gross budget unless the repair is deemed an emergency.

Davis-Stirling Act Civil Code ยง1364. Responsibility for Maintenance; Termites; Temporary Relocation.

(a) Unless otherwise provided in the declaration of a common interest development, the association is responsible for repairing, replacing, or maintaining the common areas, other than exclusive use common areas, and the owner of each separate interest is responsible for maintaining that separate interest and any exclusive use common area appurtenant to the separate interest.

(b)

(1) In a community apartment project, condominium project, or stock cooperative, as defined in Section 1351, unless otherwise provided in the declaration, the association is responsible for the repair and maintenance of the common area occasioned by the presence of wood-destroying pests or organisms.

(2) In a planned development as defined in Section 1351, unless a different maintenance scheme is provided in the declaration, each owner of a separate interest is responsible for the repair and maintenance of that separate interest as may be occasioned by the presence of wood-destroying pests or organisms. Upon approval of the majority of all members of the association, the responsibility for such repair and maintenance may be delegated to the association, which shall be entitled to recover the cost thereof as a special assessment.

(c) The costs of temporary relocation during the repair and maintenance of the areas within the responsibility of the association shall be borne by the owner of the separate interest affected.

(d)

(1) The association may cause the temporary, summary removal of any occupant of a common interest development for such periods and at such times as may be necessary for prompt, effective treatment of wood-destroying pests or organisms.

(2) The association shall give notice of the need to temporarily vacate a separate interest to the occupants and to the owners, not less than 15 days nor more than 30 days prior to the date of the temporary relocation. The notice shall state the reason for the temporary relocation, the date and time of the beginning of treatment, the anticipated date and time of termination of treatment, and that the occupants will be responsible for their own accommodations during the temporary relocation.

(3) Notice by the association shall be deemed complete upon either:

(A) Personal delivery of a copy of the notice to the occupants, and sending a copy of the notice to the owners, if different than the occupants, by first-class mail, postage prepaid at the most current address shown on the books of the association.

(B) By sending a copy of the notice to the occupants at the separate interest address and a copy of the notice to the owners, if different than the occupants, by first-class mail, postage prepaid, at the most current address shown on the books of the association.

(e) For purposes of this section, "occupant" means an owner, resident, guest, invitee, tenant, lessee, sublessee, or other person in possession on the separate interest.

(f) Notwithstanding the provisions of the declaration, the owner of a separate interest is entitled to reasonable access to the common areas for the purpose of maintaining the internal and external telephone wiring made part of the exclusive use common areas of a separate interest pursuant to paragraph (2) of subdivision (i) of Section 1351. The access shall be subject to the consent of the association, whose approval shall not be unreasonably withheld, and which may include the association's approval of telephone wiring upon the exterior of the common areas, and other conditions as the association determines reasonable.


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