Roof Replacement, amendments and law suit.

Not sure if anyone remembers my topics that were posted at the beginning of the year. We are a small hoa and very broke. We have in our bylaws (can't imagine why) but we will replace rooves when needed. Problem is we have quadruplexes as well as single family homes. I suggested we amend but we were slapped with a law suit for the replacement of a roof ($15,000). We contacted our DOA insurance who advised the board. We were told to look like we were doing everything possible to get the monies needed through "special assessments", "member meeting" the gamit. The members voted down every raise the board suggested. We then had to go to a Mediation Hearing. Thank goodness once the other side saw how broke the association was the person suing decided to drop the suit, but as part of the bargain the hoa had to pay $2,000 in her attorney fees. All-in-all $2,000 is better than $15,000, it was a nightmare and now my suggestion is to work on "amending" the bylaws. I do appreciate all of the support and unofficial legal advise; it made a difference. Great job!

jacq

If it is in the docs that the association is responsible for the roofs then you might want to consider proper fees and budgeting to do so versus try to get out of doing it.

Hope this helps.

Thank you for the responses. The situation we have is we are on 63 single family and 8 quads. The quads were built and developer filed bankruptcy and another developer came in a built the single family homes. The association incorporated the houses into the existing covenants and all was done through attorneys ect. We have had so many forclosures, walking away from homes and job loss that we are lucky if we get any dues at all. We have a long list of "no dues paid" so the budget is crippled for any longterm goals that may be needed. We cannot borrow fromt he bank, credit is bad. Most of the capital expenses we have were "enticements" by the developer, accepted by the then association board, to sell the single family homes, it worked. No thought was given to the future and what that impact would be. Special Assessments have all been voted down by the members, the board has the discretion of raising the monthly dues %5 every year. So that is what we are faced with. Most of the responses were for raising dues and maybe having 2 or 3 associations, problem is we need 2/3 votes from all members and of course it's always "no" votes we receive. Quite a mess and it doesn't seem to be getting any better.....Great website, again thank you......

We had a somewhat similar situation. We have 81 homes, mostly free standing and 9 duplexes.

The CC&R called for roof replacement by the HOA. When the transition was made from the developer we were left with no funds. We can only raise dues a specified percentage --same with special assessment.

The homeowners wanted to assume responsibility for their own roofs rather than have dues raised every year and have continued special assessments. We needed 67% of the homeowner sign to have the responsibily for roofs taken out of the CC&R. Once we had the needed signitures we had the lawyer change the CC&R.

Our situation if different in that we have wonderful homeowners -mostly retired, who pay their dues and have only had 2 foreclosures in 8 years. Also our homes are only 6 -10 years old so we will not need new roofs for some time.

Look VERY critically how regular dues payers are being informed and how their questions are being answered. To be sued and have the lawsuit dropped after the litigant reviews the HOA finances shows people are kept in the proverbial dark or don't know how to get information to make an informed decision.

It's amazing what openness and the willingness to let dues payers "vent", within reason, will do to helping them understand the situation. Who votes to have poor roofs? No one. I'll give your community members better credit than that. Collectively, there's a misunderstanding.

Jacq

The 5% increase also means 5% every year. I suggest no debating. Do it now and every year needed.

If the CC&R's call for the association to replace roofs then it would take 67% approving the change. I doubt that will fly. Many will say it was promised, now deliver on it.

Peronally I do not like the idea of giving money to homeowners as the HOA might then lose control on when a roof needs replacement. As long as the HOA is paying, they have some control when they are replaced.

From what you say, I doubt you are not going to get a consensus among owners on most anything except the HOA sould do it.

Also letting that owner get as far as court then backing out when they realized the HOA has no money does raise questions. The first one being why was the HOA BOD not smart enough to sit down and chat with her before and explain the situation. It might could have been prevented.

Tough love here but my initial impression is your BOD might not consist of sharpest knives in the draw.