D.O.A. HOA

This is truly the worst case scenario, no exaggeration.

The facts:

- 9 unit townhome community in IL. Built in 2005/6. All units connected, “condos” in HoA documents.
- One resident manages HoA. No volunteers, even after making consequences known.
- No management co. will take us on because of community’s small size.
- Brarebones minimums are met (probably?). Bank account, insurance, grounds maintenance. There is transparency.
- Meager reserves. Dues aren’t increased bc “we’re a democracy and not everyone supports the idea”.

The problem:

Discovered in October - Wood rot on the garage exterior, affecting 7 of 9 attached garages. **See picture**. HOA acknowledges repair responsibility.

[IMG]http://i66.tinypic.com/2py9wdc.jpg[/IMG]

An independently-hired, unlicensed (legally used) contractor worked on repairing our rotting exterior panels and discovered extensive damage - the wood frame located above the molded panel (see picture - red line) crumbled in his hands, at least one finger deep. Worst case: the rot is within the frame of the building, compromising structural Integrity.

It may be only be a superficial problem, but we won’t know until it’s investigated by removing a portion of the load-bearing wood beam framing the garage. Whatever the issue, it’ll need to be addressed immediately upon altering that beam because of it’s integral role.

Even if we could sell tomorrow, this wood rot issue may prohibit any sale until remedied. Heck, the whole building could be deemed unsafe for habitation. Who knows!

We have NO idea where to go from here. Help!

* The issues likely stem from proven negligent workmanship and inappropriate materials used. The statue of limitations has passed. At least one building permit was forged, so no recourse can be had. The contractor sued the village during construction and settled - all permit fees were waived. It’s likely there was minimal village oversight on the project.

Thank you for your reply. I will get back to you tomorrow about the CC&Rs. I’m aware of the cost being spread to everyone and know this is gonna hurt the wallet.

I was under the impression the HoA paid for property damages caused by “walls out” elements. More than a few issues have arisen thanks to improper roof pitch, improper/non-existent flashing, mis-sized window framing by the original installers, etc.

Re: management - all of the local management companies turned us away bc of cost effectiveness. We’d self-govern if we had people to do it. We don’t.

Like I said, one guy is begrudgingly acting as the entire board and he wants to move. We only have 9 units and have begged for others to volunteer, repeatedly. Owners occupy 7 of 9 units.

The consequences for a weak/non-existent board has been made clear. “Apathy” is an understatement.

Being mad is useless.

Know your docs, call for special election and get involved.

How about we go back to the issue of structural integrity impacting nearly all units, and how to get the HOA to address the problem. It’s going on 6 months of inaction.
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But for those focusing on the HOA...

- They all have said that rules are formalities. “We’re a small community and can wing it.”

- Also said; “We’re a democracy and not every person wants to do [insert unpleasant business here]. Our hands are tied.” An actual quote re: no increase in dues for 10 years. They’re $150/mo.

- most serious violator: recent domestic violence history with assault convictions. No one wants to call him out.
- the other is a human brick wall, blocking anything from moving forward.
- End tally: 3 of 9 unit owners are able and willing to follow rules, none of them want to volunteer for reasons detailed above.

So pardon me if i’m upset.

I am surprised that you're not under receivership already. Question Number 1!!! Does you HOA have D&O Insurance?

Here is what needs to happen..You hire a licensed, insured and boned contractor to inspect the problem areas

Get 3 bids to fix the problem.

Sounds like you are gong to need to have a special assessment.

Warn others that don't want to be board members what receivership entails.

Receivership is expensive

but

the court appointed receiver WILL/SHOULD/PROBABLY get the repairs made.

The extra expense involves the payment of the receiver, who will answer DIRECTLY to the court.

however

At this point y'all NEED a republic as your democracy has failed.

BEST OF LUCK

and next time: CAVEAT EMPTOR

BTw, Erin, this is a “positive” site for HOA questions ... most on here are pretty darn savvy about HOA matters and have seen and heard a lot - both from here, but especially from their volunteering on HOAs as board members and officers.

The advice to get involved and serve is consistent - it is necessary - otherwise, everyone simply complains and nothing gets done.

I can’t let Melissa’s comment re HOA not affecting home values pass - in this she is a staunch believer, but wrong.

Let us know how your research goes - once you fully understand your governing documents and state statutes, perhaps we can provide more.

I was very active, doing paper work and leg work. Taking minutes, outrach. You name it. I’m called crazy and overdramatic when I warn them of consequences and management necessities. Even if I took it over, which was the case at one point, there was minimal compliance with things like special assessmen collection.

So I’m the “bad guy” and “power hungry”. I ccan only do so much. I’m probably going to have to be the bad guy again and have the court take this over. There seems to be any other way.

TL;DR: I was very active but couldn’t get anything done. Maybe the courts can.

If you are talking about the original construction, the time may or may not be limited by your documents or law, but yes, the lawyer can advise.

This is a common misconception. The association is usually not responsible for damage that results from the common elements.

The way it usually works is that each unit owner repairs and pays for damage to their unit, and the association repairs the common elements, unless your documents say otherwise.

One exception is when the association is negligent, in which case the association should pay for all damages. If the association knows that there is a leak from the common elements, and fails to fix the problem, then the association would be liable for those damages that resulted after the discovery of the damage, but not for the initial damage (in most cases).

Another exception is the association's insurance coverage for the units, which is required by the IL Condominium Act (although insurance does not usually cover slow leak damage, but may cover sudden and accidental damage to units).

I think many boards don't know these things and blindly pay for all damages that come from the common elements.

You (or someone in your association) really need to know the boundaries of the units, the garage units, the common elements and the limited common elements, as well as the maintenance responsibilities for each of those areas. Having a good grasp on these basics, which will be in your governing documents, is a starting point for these problems.

Good point for some situations (but not all situations). Insurance will cover some types of damage due to negligence, but will have exclusions for some other types of negligence.

Insurance is not going to pay for subsequent damage after the discovery of leaks.

In this case, it looks like insurance may not cover any damage, since it was not "sudden and unpredictable" as you note.

So without insurance, we are back to what a court would decide, with negligence being a prime consideration. So I'm sticking with my statement "If the association knows that there is a leak from the common elements, and fails to fix the problem, then the association would be liable for those damages that resulted after the discovery of the damage, but not for the initial damage (in most cases)."

I second the idea of letting people know exactly what they are in for. Receivers can make more per hour than an attorney, according to information from my association's attorneys, and assessments often rise dramatically. In addition, receivers report to the courts and run things as they see fit - they are not answerable to homeowners. The good news is that homeowners tend to see the error of their ways in fairly short order.