Negligence by HOA caused property damage Lake Liner Retaining Wall

If the lake is part of the community's common area (check your documents), that means the association should be responsible for maintenance and repairs. That's why you're correct that some sort of lake fund (reserves) should be established and funded so when the liner and other repairs are necessary, the money will be there instead of relying on a special assessment (in this case, the $700 you were asked about). Special assessments should be rare and usually happen because of poor planning.

In this case, I suspect the residents who aren't on the lake voted no because they don't use it or live on it, so why should they pay? That's crappy and short-sighted thinking as well, because their assessments already help maintain the walking trail, tennis court and other amenities, whether they use it or not. Unfortunately this is typical thinking in many HOAs - I don't use it, or I'm moving so why should I pay for repairs for something I never use, won't use or won't be able to use after I'm gone? They'd rather keep assessments "low", not realizing if they don't use sound financial planning when managing HOA property, their home value may be affected anyway (and not in a good way) because people don't want to buy something and get hit with a special assessment 6 months or a year later because the previous owners were too bloody cheap.

You could sue if the damage is affecting your property, but will you be able to collect? I get the feeling the work hasn't been done because the association doesn't have the money. A lawsuit could make things worse - not necessarily your fault because the board should have been more prudent with the association's assets. As for insurance, that will likely go up anyway, either because too many claims related to the lake or retaining wall will drive up premiums or the community will get dropped and have to find another company who will likely charge more. Who ultimately pays for that? You and your neighbors because that's what your assessments are for. It's a question of whether you want to pay now or pay a lot more later.

I don't know whether your insurance will go after the HOA - you might want to discuss that with your agent and then decide what you want to do.

However this ends, your Board needs to be speak plainly to the homeowners about what's at stake. You didn't say if that letter discussed the background of the problem so people would better understand why this special assessment was necessary. If so, but people voted it down anyway, they may have to increase the assessments as high as they can to pay for the repairs. That will get people's attention - if they squawk, let them come up with a better alternative.

The majority of residents voted down the new infrastructure, but the board built it anyway?? Looks like your neighbors are the heart of the problem - they should have voted that bunch out the first time. I wish you luck on rallying the ones who give a damn - you folks are the ones that will have to turn this around, but it'll have to start with getting rid of the current board. Afterward, you will have to keep each other and the board accountable - rouge boards can't get away with whatever if the HOMEOWNERS don't make it clear they're being watched.

As for that bond, having one doesn't stop a lawsuit. First of all, you'd have to consider what the bond is supposed to cover - if it doesn't cover whatever the lawsuit is about, the association may still be held responsible. Even if it does, if a claim is made against the bond, your association will need another one and that will cost more - if you can find a company who will sell one to you.

No. You have no actual proof of the individual being crooked and it won't solve anything.


Can't hurt. Of course, you can also have an informal gathering with those residents and discuss the topic.
Perhaps a BBQ or wine & cheese.


Until legal action is resolved, it may have an impact on sales.

Keep in mind that since you know of this issue, you will likely have to disclose it. Even if you are not required to disclose, then you chance the buyer finding it out on their own or the Association might have to disclose. Regardless, you will have to disclose that the retaining wall issue and why it isn't fixed.

Special assessments to fix the issue might not help sales either.


You need one versed in contract law as the terms of the contract (CC&Rs) are in dispute.


Legal action occurs mostly when there is money or principal at the heart of the issue and the two sides are not able to agree on a resolution to the issue at hand.

I agree that you will likely need a lawyer involved but may not need to go to court.


Keep in mind that we are not attorneys. Although there may be a few attorneys on this site, they really can't provide a legal opinion because they don't have all the info. Only a local attorney with access to all of your communications with the Association, your governing documents and local records can provide you with a good legal opinion and options.

We can provide advice based on personal experiences, what you provide and any research we may or may not do. Sometimes it helps. Sometimes, it's off base due to a failure on our part to understand everything. However, most provide the advice freely in an attempt to help. You have to make your own decision what to use or not.

My advice in this situation is that any contact with the Association (or their agents, MC/attorney/insurance) should be done in writing. This provides a paper trail if the issue does have to go to court.

I'm sorry you are going through this.
I hope this helps and wish you luck.

Tim

JA,

In rereading your postings, I notice that what you claim the board has done by themselves (i.e. without member input or vote) is the Board's job. The Board is elected to make the decisions of the Association. They can, but typically are not required to, seek membership input. However, the decision is still the Boards.

The members only vote on certain items. These will be spelled out in your governing documents.
Typically, the items are:

1) Election of Directors at annual meeting
2) Recall of Directors
3) Amendments to the governing documents (Covenants, Bylaws and Articles of Incorporation).

Some Associations have governing documents that specify members also:

a) Vote for increases in annual assessment beyond a specified amount or percentage
b) Vote for special assessments
c) approve or disapprove an annual budget

If a member doesn't like the decisions a board is making the way to fix it is:

Legal action

or

gather support and vote those individuals out and replace them with individuals that are willing to serve and will make decisions more to your liking.