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KL2 (California)
Posts: 3
Posted:
Hi everybody, I'm new here and like to get some advices, it's a long story so bear with me please. We own a condo in California and we had a flood problem just two weeks after we rent it out. Water came in from common area. All the flooring is damaged and when we took out the flooring we saw mold on the wall. Contractor said the whole building has drain and water proof problem but no body done any repair work. Since the building is only 4 years old I found a lawyer to file a lawsuit against developer. The lawyer then convince the HOA to suit the developer for the whole building defects as a group so we did. Lawyer at fist said he will have someone fix my unit so I can rent it out but it's been 5 months now still nothing done. So i give up on his promises and talked to HOA and the new management company, the management said they're waiting for board of directors to make a decision but no one step up to get the repair done. I'm losing rent (tenant left in January) and paying mortgage and getting the kick around treatment by HOA and Management. I cannot start any of the inside repair until outside is done so no water will come in. I just had enough and told HOA if they don't get it done I will take them to court for all the rent loss and repairs. Is this the right way to approach it? The HOA V.S. Developer case is still undergoing but I can't just let my unit sit there and wait for the case to settle. Any suggestions? Thank you very much.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Hi KL,

Welcome to the forum. Sorry to hear about your problems.

It's possible that there are legal disputes that need to be settled prior to having the work done on the building. I had a neighbor who had a fire in their fuse box after an electrician did some work in the home and it was a month before any repair work could be done due to investigations and legal issues.

"I cannot start any of the inside repair until outside is done so no water will come in. I just had enough and told HOA if they don't get it done I will take them to court for all the rent loss and repairs. Is this the right way to approach it?"

The phrase "it's easier to catch flies with honey then with vinegar" comes to mind. I understand the frustration you are having. Please remember that an Association is usually ran by volunteers who typically have day jobs and personal lives so they can only devote x amount of time to volunteer activities.

I would have asked the board if there was something I could do to help. Perhaps research the companies who proposed bids, check resources, etc.. Anything to help them make a decision. By threatening legal action, the avenues of communications can be closed as the Board can now insist that you talk through their attorney. I don't know if they will do that or not, but it is a possible consequence of the threat.

"The HOA V.S. Developer case is still undergoing but I can't just let my unit sit there and wait for the case to settle. Any suggestions?"

You may want to contact your insurance company and your attorney to see what options are available. Like I said, there could be legal issue that need to be settled prior to the work beginning.

I know this isn't great advise. However, since the legal process started, I'm not sure how much additional advice members of this forum can offer.

I hope it helps,

Tim
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Welcome...You may try ARBRITRATION instead of court. It usually goes faster and can offer a compromise to all parties. In some cases, it still doesn't prevent the parties to again go to court. Just make sure what the agreement is if it's ONLY arbritration process only. (Many car dealers do this to avoid court).

You can't sue for loss of rental. There's many reasons behind this reasoning why a court most likely won't award you this loss/cost. Mainly because no one can guarantee your able to rent this unit out. If anything, you would have to show proof that you had people to refuse to rent the property. Which could be difficult since you have to reveal the mold problem. Who's going to sanely sign a piece of paper stating "I was going to rent the place but the owner told me about the mold and lawsuit issues". A renter is most likely going to head out the door and NOT care about YOUR problems...

Not all mold is "Toxic". Most molds can be cleaned up safely with a bleach or TSP mixture. This is even how many mold companies DO clean up the mold. The whole mold issue is similar to having someone sell you a water-softening/water filtration system. You have to be careful about what bill of goods someone is selling you.

Your best bet is to keep waiting and finding out the process of where the case is in court. Your lucky the board and owner's recognized to file this as a "CLASS Action" suit. That is the BEST scenerio for your HOA to have done. Suing your HOA is suing yourself and your neighbors. However, if you do it as a group, it reduces the damage.

Court takes time...be patient...If your going to win the case, your still got more waiting to do after that. Just figure out what the contractor's are going to have to do once it's clear to get the repairs done. It's best to understand your repair options while you wait. Not every repair is the right one nor is it the right contractor. Do your homework!

Former HOA President
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi KL:

Along with Tim I would like to welcome you to HOAtalk.

The only other item I can think of to suggest which has not already been suggested by Tim and Melissa is possibly for the association to also check with their insurance. The insurance possibly might pay for the exterior repairs and enjoin in the lawsuit for reimbursement from the developer, if they determine the case is valid with expected reimbursement. While they may not it is at least worth asking and see what happens.

I agree with Tim and all his excellent advice especially to contact your personal insurance and attorney and discuss options we have presented. If insurances do not come forth then Melissa has a very good point in that court takes time and patience. As Melissa stated utilize the time to determine best contractor for the job.

I know it is frustrating, but you also need to understand your HOA board at this time has their hands tied waiting for the lawsuit. Because they potentially did the right thing in filing the lawsuit regarding the issue, they now must wait for the outcome and can only do so much due to the litigation. Because of the lawsuit they cannot just potentially do the repairs unless possibly their insurance agrees and helps out in the situation and if their attorney agrees with any proposed action.

Good luck and best wishes!!!

KL2 (California)
Posts: 3
Posted:
Thank you for all the advices. Yes I understand the current lawsuit with developer is a long process but the lawyer told me that the HOA can do a temporary repair so at least water won't come in during the process. The HOA can then start the permanent fix after the lawsuit is settled with the money awarded. The legal process takes 1.5 yrs normally and I am not sure if I can make mortgage for that long without any rental income from the unit so I really need to get a temporary fix so I can rent it out. I can't even sell it at its current condition. As far as rental loss I had a tenant move in just two weeks before the flooding and we had a one year lease contract. He had to move out and cancel the contrat because of the flood. I've been paying mortgage and management fee for the last five months wihout any addidional income, I just don't know how long I can keep doing that if they don't fix the outside. Nobody in the HOA or Management seems to care at this point. I just don't know what to do now.....
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I think you have gotten to the point where you can't see the tree for the forrest. Take a step back a bit and re-assess. Your actually made some progress just in getting that lawsuit off the ground. Believe me, that is HARD to do. I will give you some advice there as well. Some of your expenses such as the lawyer costs, repairs, and HOA dues are TAX DEDUCTIBLE if it's investment/rental property. This means some of your expenses and losses can be taken off your taxes. May not help now but KEEP receipts/bills!!!

Your basic issue may be waiting for someone else to do the work and pay for it. The HOA's budget is ONLY funded by it's owner's FOR it's owners. So technically, your still paying for your repair work through your dues. Plus, if the repairs are too expensive, the HOA may be forced to do a "Special assessment" to raise funds. Which takes a significant vote of the membership to agree on. Another long drawn out process. Plus you will STILL have to pay that special assessment if one is done.

I'd suggest if you really want out of this then you may need to work a deal with your HOA. It may involve paying for the repairs yourself. It may involve going 50/50...Don't make a deal with "skipping HOA dues". That won't work and bad idea. However, make sure whatever expenses are spent they may make it into that lawsuit. This could only help BOTH of you in the lawsuit.

Good luck. Just take a step back and pretend like you would be giving advice to someone else in your situation.

Former HOA President
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Call your insurance company. You pay them to deal with this stuff. This is going to get very complicated, let the professionals take care of it.
KL2 (California)
Posts: 3
Posted:
Thank you for all the inputs. I really appreciate it. I'll keep in touch with HOA and hope we can at least do a little something like patch or cover up so no water will come in and I can rent it out while wait for the lawsuit to settle.

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