HOA suing Developer

Hello..thanks for taking the time. I realize I cannot get a definative answer with only the limited amount of info i can give, but I would really appreciate any opinions or advice you might have.

Our complex is 8 years old...we are having a lot of issue with roof drainage, Siding and stuctural damage issues. Several of the contractors we have spoken to are making comments about certain things not be code. I cannot say for sure if they are saying this to drum up business or is actually true. That will be determined later.

What I was wondering is if there is evidence of shoddy work, or building code violations, is it worth trying to pursue in a legal situation? I have read the by laws and it says nothing about this. Latest figure has a 300K worth of fixes needed. The developer is also our MGMT company (not on HOA board), so it makes this even more complex. They use a lot of "their people" for bids/work, and they have been sub par in the past. We are moving towards a new MGMT to try and avoid this awkwardness in the future. I also discsussed this with a contractor seperate from the MGMT company who made a lot of the code comments, but his estimate was not that much.

So I am hoping for a little information on whether or not it would be worth our time/effort to try and find legal help without going through the MGMT company.

Thank you.

Mike,

If the developer is not on the Board it shouldn't be too much of an issue for hiring contractors. What I mean to say is that the Management Company works for the Board. The Board makes the decision. You may simply want to do more of the work yourself rather than rely on the opinion of the MC if you don't feel you can trust the MC.

As for pursuing legally, there are statutes of limitations. Therefore, once you found out about the issues, the clock started.

If this is a condominium complex, or the work in question is in common areas/amenities, then YES the Association should do what it can to make sure that the work is protected. That or the membership will likely have to foot the bill with special assessments in the future.

One of the best methods is to make a claim on any bond the developer may have put up with the County. Somehow when your holding money up that should be returned, people are more receptive to address the issue.

My advice - Get an attorney NOW!. Someone versed in construction defects.

Mike,

Statutes of limitation vary greatly from one state to another, as does the point when the clock starts ticking. In some states the clock starts when the work is done and in others it starts when you know there is a problem. Regardless of how they are interpretted in your state, you should never sit on your hands when the clock may be ticking. Discuss this matter with an attorney ASAP.

Having the developer also serving as MC (assuming turnover has occurred) is unusual but in this case may actually help you. If the developer's own employees have been patching up the mistakes they made previously one could argue that the construction is still on-going, which might pause the clock. This is one more thing to discuss with your attorney.

Others are correct: get a construction defect attorney now! Various statues in Ohio may, indeed, be running out of time based on various factors--as others have mentioned.

Complying with building codes is not AT ALL the only defect-related issue that matters. Workmanship does matter. Complying with the professional standards of various trades does matter.

We, too, had an HOA attorney who originally had been hired by the developer. She said nothing to previous boards about statutes of limitation. She kept telling them that all aspects of the buidling (twin towers) had passed muster with the Building Dept.

By the time that majority of us were on the Board so we could hire a defect attorney, it was too late on one $1/2 million defect. Luckily, our eventual settlement was enough to make that fix, which is wrapping up this week.

So, yes, you want a new HOA attorney and new management company. It's possible both have been dragging their feet to protect the developer from whom they want future business. Interview those professionals who do not have relationships at other HOAs with your developer.

Mike before you jump the gun and start searching for an attorney you might want to find out exactly what the issues are supposed to be.

Unless of coursae you want to pay to find out there is in fact NOT major construction flaws.

I am sorry the desripion you gave about Tyvek not being used does not warrant an expense of $300,000. How would the contractor propose to remedy that remove all the siding???

Just what type of siding do you have? Wood? Vinyl? Composite (manmade)?

I would suggest you find a contractor you or someone else can trust to give you an honest evaluation. Are there issues and if so do they need to be corrected in order to ensure the longevity of the structures? If not then why would you spend money on that work?

There are many buildings that were not wrapped when they were built and they have been standing for hundreds of years. And there are many buildings that would not meet code today and did not when they were built should we now expend the money to rebuild them?

Sounds to me from what you have posted you have limited construction knowledge. "Not kickerboard type thing". You need to find someone who can tell reality from BS. Like bringing your car in for inspection you should have new tires, you should do an alignment, you should pay to clean the fuel injectors, and oh by the way the headlights needed to be aligned as well. Well what really needs to be done to pass inspection? The rest is simply a money maker for a contractor. If you have the money they will find things to do until your money is gone.

And in this case once you open that can of worms I would bet a huge some of money that cost will increase in ways you never suspected or considered.

And IMO the last person you would want to bring on your property is the county building inspector. They do not work in your best interest and during their inspection they just might come across other issues that will do nothing more than add to the bill. They jusify their existence by finding violations of the codes.

Mikie are you in fact on the Board of this HOA?

Mike

As I read this, three initial thoughts pop into my mind.

The first is that you are trying your best but you and the BOD are not qualified to judge/evaluate if the "defects" are serious.

The 2nd is that someone is trying to sell you an expensive remedy to "possible" defects they have found. I would, as you are, be skeptical of them.

The 3rd is that you might need to get something in writing that initial building defects do exist to prevent any possible statute of limitations. Such can always be always be withdrawn at a later time. I would act on this post haste.

I think you (and the BOD) need to take a step back and find "someone" that can evaluate the issues. Someone who is not telling you so and so needs fixing and they can do it for so and so amount.

Hope this helps.