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Homeowner Assessment To Cover Deadbeats

Started by RonaldC3 • 13 replies • 1043 views

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RonaldC3 (Pennsylvania)
Posts: 14
Posted:
I live in a 78 unit townhouse community. We had a hail storm that caused hit or miss damage to some units. The BOD advised owners to contact their insurance company. The BOD also hired a local roofer to inspect the roofs. The result was that all units had damage according to the local roofer. Insurance company only certified damage to 30 owners. These owners received an insurance check.

After three inspections,it was determined that I had no damage. Last night we had an HOA meeting. The board told us that they will use the insurance checks and funds from the sinking fund to replace all roofs. None of the roofs are more then 15 years old.It was also revealed that 10 owners never contacted their insurance company.

Here is the kicker,BOD said that in order to increase the funds available for roof replacement, each owner would be assessed $1000 to help fund the roof replacement of the 10 owners who did not take the time to contact their insurance company. Comment!
JohnC46 (South Carolina)
Posts: 14,265
Posted:
My first blush is to assess the 10 that did not file an insurance claim the full amount for roof replacement versus share the cost among all owners.

Fire a warning shot over their bows (from the HOA attorney) before doing so.
TimM11
Posts: 354
Posted:
I take it the roofs are not commmon elements in your HOA?

The reason I ask is that some townhome complexes are technically condominiums (mine is one), so the roofs are common elements covered by the master policy. It sounds like that is not the case in yours, though.
RichardP13 (California)
Posts: 3,868
Posted:
First, you have a conflict between the insurance company and the roofer. One has to pay and the other is trying to get business. Follow so far? Hope you didn't reveal to the roofer how much each other got reimbursed from their insurance.

Second, if the roofs are common elements, and the association is responsible for maintenance, repair and replacement, then the checks should have been made out to the association.

Let's say the you have to replace all the roofs and the price is $100K. The 30 owners received $5000.00 each

Couple of scenarios:

1) Each owner share would be $1282.00, $100K/78. Assess each owner that amount, the ones with the $5000.00 pay their share and pocket the balance.

2) Collect the $5000.00, project is funded and place the balance into the reserves.

3) Still confused, why would owners be going to insurance company for claims when the association is responsible.
RonaldC3 (Pennsylvania)
Posts: 14
Posted:
They are controlled elements. Fee simple.
RonaldC3 (Pennsylvania)
Posts: 14
Posted:
Association said they are not responsible for hail damage.
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By RonaldC3 on 08/09/2017 2:54 PM
Association said they are not responsible for hail damage.

The Association is not responsible for hail damage or the Association's insurance company says it's not responsible.

If it is the Association is not responsible, then let the owners figure it out.
RonaldC3 (Pennsylvania)
Posts: 14
Posted:
Well the HOA does not carry insurance.
TimM11
Posts: 354
Posted:
If the homeowners are responsible for the roofs, why is the HOA getting involved with collecting checks and paying for replacements?
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By RonaldC3 on 08/09/2017 3:30 PM
Well the HOA does not carry insurance.

Doesn't carry insurance, are we SERIOUS?
DouglasM6 (Arizona)
Posts: 724
Posted:
Quote:
Posted By TimM11 on 08/09/2017 4:11 PM
If the homeowners are responsible for the roofs, why is the HOA getting involved with collecting checks and paying for replacements?

This is what I'm waiting to hear back on. I don't understand how/why the checks were written to members if the HOA is responsible, and if the HOA is not responsible then why are they involved with the roof replacement at all?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By RonaldC3 on 08/09/2017 3:30 PM
Well the HOA does not carry insurance.

Then you have far bigger issues within your Association then who is paying for roofs.
RonaldC3 (Pennsylvania)
Posts: 14
Posted:
The hope as stated by the BOD was that all units had damage and needed a new roof. The insurance would pay for the roofs and eliminate having the sinking fund pay for them.They are involved because they want every roof to be uniform. This whole thing sucks.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By TimB4 on 08/09/2017 5:42 PM
Posted By RonaldC3 on 08/09/2017 3:30 PM
Well the HOA does not carry insurance.


Then you have far bigger issues within your Association then who is paying for roofs.

LOL ... Yep.

My question is what does the CCR's state regarding roof responsibility?

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