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KaydenH (Alaska)
Posts: 7
Posted:
I have a question about who is responsible for the cost of replacing windows--owners or the condominium association. The declaration states:

“The owner of the respective apartment space does not own the undecorated and unfinished surfaces of the perimeter walls, floors, and ceilings surrounding the space, the exterior walls or exterior surface of the perimeter walls, doors, and roof surrounding each respective apartment space nor does said owner own pipes, wires, conduits……… The owner, however, does own the nonbearing walls and partitions which are completely contained within the apartment space.”

Ten or so years ago, owners had to replace their windows on one side of the building at their own expense. The association hired the contractor, but each owner had to pay the contractor separately. This was based upon the advice of the manager at that time. About half the owners opted to replace all their windows and their sliding glass doors at the same time. The association had sufficient funds in reserves to replace the windows on that one side of the building, but the manager told the board owners were responsible for the cost. Up until recently, any owner who wanted to replace their sliding glass door or any window on the other side of the building also had to do it at their own expense.

Now windows and sliding glass doors that weren’t replaced ten years ago are being replaced for some of the remaining units. A different manager is in place, and that manager and board have deemed it is the association’s responsibility to replace these windows. Needless to say, owners who had to pay for all their windows are upset. The association is not in as good a financial condition as it was ten years ago. If any major project comes up, it will be a special assessment.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Kayden,

Based on what you posted, it sounds like the Association is responsible for the window replacement.

However, there may be something in the governing documents that may say otherwise so all the documents should be reviewed.

Tim
DavidA7 (California)
Posts: 179
Posted:
I'm not a pro on this or have knowledge of the law but wouldn't precedence have been set in this scenario.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By DavidA7 on 05/06/2011 9:19 AM
I'm not a pro on this or have knowledge of the law but wouldn't precedence have been set in this scenario.

David,

I'm not schooled in the law either. I agree that Past Precedence does come into play. However, I also think that if someone wanted to challenge paying the cost then, based on the wording in Kaydens posting, they have a good chance at winning.

Kayden,

Lets go through the possible scenarios:

HOA makes owners pay

Best case: Everyone pays, no issues.

Worst case: Someone reads the documents and challenges it in court and wins. The rest of the membership hears about the case and demands to be refunded for what they paid to replace the windows.

Of course the Association could argue past precedence. Problems with court systems is it's typically a 50/50 chance that you will win or lose the case.

HOA pays to have the windows replaced

Best Case: No issues.

Worst Case: Owners of previous window replacement finds out the Association paid for other windows but not for them. They contact the Association for refund. Association pays or refuses and is taken to court by the owner and wins. Either way, the other owners find out and demand to be refunded as well.

HOA owns up to it's mistake and pays to replace windows and reimburses owners of previous window replacement

Best Case: Everyone is happy with a little grumbling

Worst Case: Hard feelings and possible recall of Board.

KaydenH (Alaska)
Posts: 7
Posted:
Thank you Tim and David for your responses. I have looked over the legal documents again, and there is nothing that says otherwise. We are a small association. Only two owners remain who replaced all their windows at their expense; all other units have changed hands. Since the beginning of the year, two owners have had their sliding glass doors replaced out of association funds (one a current board member and the other a recent board member). Several units remain that have their original sliding glass doors.

The thought has crossed my mind to ask for reimbursement based on precedence, but due to the association’s financial condition it would not be approved. The association’s financial condition is my main concern with the association footing the bill for the two recent replacements. The owner of the most recent replacement told residents that his sliding glass door was replaced at association expense because it wasn’t replaced when all the others were done. I talked to a board member early this year after the first sliding glass door was replaced about the history of window replacements and relayed it was only fair that all owners pay for their initial replacements and then the association take over after that.

To get off topic, the association is not in good financial condition. Expenses have far exceeded income just in the first three months of this year. The board will be holding a meeting with owners in the near future regarding finances. The blame is being put on the high cost of heating fuel, but that is not the main cause. The main causes are the failure to budget for certain items, including legal fees; failure to build in a contingency this year; failure to fund insurance reserves; and failure to put money budgeted for capital reserves into that account. The majority of funds designated for capital reserves the past several years have been used as a surplus on unplanned projects, unbudgeted expenses, and to tide the association over with expenses exceeding income. The 2010 capital reserves allocation has been used to pay off 2011 expenses. The association recently lost a foreclosure lawsuit in which close to $15,000 in legal fees were incurred. The association was awarded $3,000 in legal fees and that has gone into a lien. The manager told owners in various meetings over the past year or so that all legal fees incurred in the lawsuit would be recouped with the foreclosure. The manager also stated that legal fees incurred in other collection matters would be collected from the respective owners, and that has not happened. Paid lawn maintenance has been cancelled for the year, and this year’s insurance is being paid in monthly installments. The board is considering dipping into capital reserves which is severely under funded (the equivalent of three months normal operating expenses). Owners already have a special assessment this year. A number of issues have lead to this situation, all of which are intertwined and would require separate posts.

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