compensation??

Our HOA is being forced by the local power company to replace and repair electrical breaker boxes, wiring and meters (due to the HOA's negligence thru the past years). There are 5 units in this building. The power will be off between 10 and 14 days. We have one full time resident which will need to vacate during that time and deserves Per Diem and MIE. My question, is the HOA obligated to compensate the other unit owners for loss of use even though they are not there? BTW this community is in the desert, and temperatures during the time of power being cut will be in the 100's. The HOA has offered to empty the refrigerators. so to compensate or not to compensate? Reduced HOA fees? flat fee compensation or just be happy the electrical hazard is being fixed?

You can't reduce the fees.
This would be because the covenants specify how the shared maintenance cost is to be paid.

If the Association will compensate, then they must write checks to the residents.

You can rent generators and portable air conditioners at many HomeDepot and other rental companies. I would check the prices compared to a hotel.

very good question about insurance I can check

back in 2009 the HOA at the time was updating all the boxes and associated wiring When they got to our building it was going to be more money - apparently they asked the unit owners at that time if they would pay and they refused. So the HOA did nothing to update our building. The power line failed, so now they are forced to fix

the local power company said they would not fix the line until everything was updated

good to know thank you

we are a well funded HOA, and have an amazing amount of money in the reserve fund. This Board and past Boards simply don't want to spend any money unless forced to. good point on homeowners insurance. Most are seasonal residents, and yes out of sight out of mind.

I think if you pay one you have to pay all. We did a project where people could not access their units for 9 months. We had 3 full time residents and 21 that mostly used their places in the summer. The 21 did not want to pay the 3 to rent places when they could not use their places. I think it was unfortunate but fair that no one got compensated and everyone was in the same boat concerning usage regardless of their residence status. One of the full time residents threatened to sue us but never did.

How topical. Just watched the news and similar situation was on. Apparently last week a truck ran into a low power line at an apartment complex. Due to it laying so low, the Utilities department disconnected the power to the Apartments. Their policy is that they keep the power disconnected until repairs made and inspected. The Apartment management hasn't acted in a "timely" fashion and just got the whole place condemned. City was putting eviction notices on all the doors. Here in Alabama it gets VERY hot/humid. So the tenants are out of power for over 2 weeks till repairs are completed.

So be aware of this possible complication of a health/city shut down. It is a serious health concern when it involves an utilities outage. So take some additional steps like making sure water is turned off. I'd also suggest turning off lights, air condition units, water heaters, and other appliances. It's because when the power comes back it can surge or additional drain on electrical system. Imagine the A/C in multiple units trying to cool down 20 + degrees. The work load could blow fuses.

Personal note: I went through this. A tree limb fell on my electrical line. The utility company came and disconnected the power and rolled the wire up across the street! They told me it could not be reconnected until repairs were made. Had to get electrical system replaced. It took a week to hire someone. Spent 5 days with 4 dogs in 100+ degree heat. I had to make an ice bath for my dogs to cool down.

Insurance did kick in to cover some expenses. So I would consult insurance company to find out if this is covered under HOA or individual's coverage. My food was covered. Had to eat out everyday. The electrical repairs were covered. I had to pay the 1K deductible which covered the tree limb removal. I'd highly recommend staying in a hotel. So the HOA should put up the full time tenant. The fees should not be changed. Your still paying the same expenses during this time period. The HOA is to pay it's expenses. It's not like they are going away during that time. It's just going to be different. Believe me, the money not going to "normal use" will be going towards the "abnormal" use you all will see during this period.

Define compensation. It doesn't have to be "money". It could be a hotel stay while work being done. I would not be against compensated a hotel room if it puts someone out of their home. Some people are not as fortunate as others to have a 2nd home to go to.

Don't think it's a welfare situation but one where you take care of your neighbors. The HOA has decided to do this work. It's going to have different impacts to different people. It just happens to be housing for this person. Others it is loss of use or other factors.

Yes compensation in the form of per diem and MIE for the full time resident who by no fault of their own will need to vacate for 7-14 days. The HOA has no choice, the power company will not replace the failed line until the outdated electrical is fixed. The HOA made a decision not to update this particular building back in 2009 because it was going to cost more to update.

compensation in the form of Per Diem and MIE. she has to vacate for 10-14 days because power will be off.

thank you everyone for your input. The HOA has agreed to compensate by way of Per diem and MIE to the full time resident.

How old is this building? Little of that makes sence. If the service was shot, that is an easy repair, even if the meter heads were also goners.

I don't understand how the wiring downstream of the meters could be so bad that the PUD would not heat the lines.

Where does the CC&Rs state that compensation is required when a unit is not habitable? Why do the other units not get money? Why is a flashlight not sufficient?

This decision is being based on feelings.

Mark makes a great point. In addition, if you compensate this homeowner, you'll be setting a precedent that the Association may not be able to afford - and you already said you have an issue with Board members who don't want to spend money. Board members are also homeowners and I suspect there are other homeowners who may also feel this is unfair.

Don't get me wrong - it IS unfortunate she won't be in her home for nearly two weeks, but homeowner's insurance usually has coverage for this type of thing, as it can happen if there's a fire, tornado, etc. That's why people buy it - would you expect the HOA to cover living expenses in case of a flood it couldn't control?

To keep the costs under control, I suggest you set a cap on how much you'll comp for a room and per diem. Base it on the cost of living in your area so this lady won't be tempted to stay at the Ritz Carlton as opposed to a decent Holiday Inn. Or dine at Ruth Chris every night.
Better yet, the Board needs to establish a policy that will dictate when the association will compensate and budget for it accordingly. That will mean your assessments need to be adjusted.

Let me say this. Each HOA's culture is different. For me to say it's unfair to pay for one's hotel room who lives there full time a nd most inconvenienced is not for us to say. It's what that HOA/neighbors have to say. It is one of the reasons for the HOA and it's rules. It's to take care of our neighbors and neighborhood.

If the culture of this HOA is to agree to put up someone, then so be it. It's also up to this HOA to agree to any compensation needs they may want/need as a group. I personally think this is an individual insurance claim. However, it doesn't seem like this HOA wants to handle it that way. They want to take on the responsibility.

So your board and members need to decide how to handle this inconvenience the best way it wants. Compensate or not. The work still has to be done.

Screw the culture. What do the documents say?

this community is a seasonal one - the majority of people are gone to the primary homes. There are 5 units in this particular building and only one full time resident. None of us are asking for any compensation, but feel that the full time resident should be compensated in the form of per diem and MIE. By no fault of her own she has to vacate because the power will be off. Our community is in the desert and temperatures during the electrical repair get into the 100's if not more. Part of our CCr's say no one can stay in a unit without the shareholder being present. So if she stayed in someone else's unit she would be in violation. She also has two cats and feels more comfortable in a hotel for that duration. The HOA agreed to pay per diem and MIE with receipts of course. Other shareholders have no problem with this. As far as homeowners insurance most are $500 - $1000 deductible, and I personally don't feel she should have to file a claim and get dinged because of a HOA electrical problem.

100 total units. about 20 full time residents - other residents 4-5 months out of the year, including me who happens to be in the building where the electrical problem is.

That may be true of your policy, but when I was in an apartment, part of the policy covered living expenses if something happened that wasn't my fault. I have the same coverage on my homeowner's policy, along with coverage for special assessments that exceed the deductible. You might want to talk to your agent.

That's the same situation here. Since Joan 's board has already decided to cover the homeowner, that part of the discussion is over, but I still say they need a policy to address similar situations in the future.

In fact, joan, why don't you run all this past the association's insurance? Maybe you already have some sort of coverage or can add it to your policy. The insurance and perhaps your association's attorney can help draft a policy in the meantime, the rest of you should talk to your own agents about coverage on individual policies.

Sorry, you’re wrong. Additional living expenses are only covered if one must vacate because of a covered event. Normal maintenance, however extreme is not an event covered by home owners insurance.

https://www.thebalance.com/claiming-additional-living-expenses-ale-coverage-4154070

please jump off using whatever newspaper you choose.

Sometimes paying a one off is the best overall solution as long as noted that it is a one off.