Who’s ultimately responsible for $16K health & safety repairs

Started by LauraG8 • 22 replies • 246 views

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LauraG8 (California)
Posts: 56

Posted:

I’m board pres of a 24-unit condo complex in California. Need some input/help with this situation—

Started with water leaking through cement slab in parking garage one day. Same day, HOA called plumber who isolated the leak as coming from condo’s a/c unit above. Same day, HOA contacted an HVAC contractor who reported that the a/c unit had never been maintained since purchasing the a/c unit 4 yrs ago, and found excessive amounts black mold all around the a/c unit and adjacent walls. Same day, HOA contacted a mold remediation company who said entryway walls and laminate flooring near a/c unit, dining room walls, adjacent kitchen walls and countertop need to be removed.

HVAC contractor made a report as to the cause: 100% negligence on behalf of condo owner.

HOA has a duty to act immediately on health and safety issues, and began the necessary steps to remediate the black mold concern before owner and kids could return. HOA was told condo owner should make immediate living arrangements elsewhere until remediation complete, walls put back together w insulation, drywall and primer.

The HOA is now out of pocket $16K in order to make the condo unit habitable.
The HOA needs to charge back these funds to owner due to cause proven to be owner negligence.

—Under these circumstances, how likely is it that the HOA will be fully reimbursed, or even partially reimbursed, from homeowner’s insurance provider??

-Laura

SheliaH (Indiana)
Posts: 6,964

Posted:

You won't know until this is reviewed by your master insurance. Your attorney and probably a few experts in mold remediation. And after all that, the matter may still wind up in front of a judge to decide, especially if the insurance company says nyet (yours and the homeowner [both of them]).

You say the air conditioner was purchased 4 years ago - do you know if the owner noticed problems and went to a contractor or even the manufacturer and/or whoever installed the unit? What did the owners manual say about about maintenance and can the owner prove he/she followed directions? Is it still under warranty and has a claim been filed?

What do your documents say about liability when an owner's actions (or lack thereof) leads to misuse, abuse or failure to maintain elements that could ultimately affect the common area or another unit? And what has the owner of the unit (the affected one and the one with the malfunctioning air conditioner) have to say about all this? Have they tried to resolve this before the board got involved?

This is too much for an internet question and with $16k on the line, you need to get precise answers. Get to your association attorney now and good luck to you.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

DeanJ
Posts: 1,786

Posted:

Not having a new HVAC unit inspected/ serviced in a 4 year period after purchase is not negligence. The HVAC unit should have performed flawlessly during that time period if it was installed properly.

And, if all this mold is visible around the HVAC unit, why wasn’t this discovered during the HOA’s periodic condition inspections?

BryonW (Massachusetts)
Posts: 55

Posted:

Hi Laura, that's a tough situation, I'm sorry it happened!

The direct answer to your question: I agree you are entitled to a full reimbursement of costs. Collection is a different matter. If this were me, I would not have begun repairs on the HOA's dime. I would have waited for the OK from homeowner, or, at least, documented several attempts to contact them, before starting work.

There isn't much maintenance that an AC units needs. So if you advance the argument that "the unit owner failed to maintain", then you invite an argument over "what maintenance was the owner supposed to do?". Below I suggest one possible bit of annual maintenance, but, most people never do any maintenance on their AC, and also never have an issue like this. I think a more fail-safe argument for your board to make is simply: the leak came from that unit's AC, so that unit owner is responsible. Regardless of whether the leak was normal wear and tear, or negligence, or random act of nature, etc. In all cases, the unit owner is still responsible.

It is really the owner's decision about whether to pay out of pocket, or, place a claim against their homeowners insurance.

If your insurance agent is good (not one of those "collect the commission then provide no help" types), then they can help you parse whether the homeowner's policy is likely to pay. One issue is that the property damage coverage may have exclusions for floods, sewer backups, etc. Also, the property that was damaged was the homeowners own property, not the property of a third party, so, the liability coverage probably will not apply.

Possible arguments the owner might make to try and weasel out, along with responses you could consider:

- "We didn't authorize you to spend $16,000 and we could have gotten it done for less." Response: we tried to reach you "X" times, and it was an emergency, and section XYZ of the bylaws gives us the authority to act in an emergency.

- "It wasn't an emergency, you could have waited" Response: see EPA document below. They repeatedly say that cleanup within the first 48 hours is important to control a mold outbreak.

P.S. One possible cause of this is a blocked condensate drain. This often happens due to bacteria, that forms a slimy build up in the pipe. One thing that can be done to prevent this is to throw a pan treat tablet in the condensate pan once a year:
https://www.supplyhouse.com/Nu-Calgon-4296-60-Condensate-Pan-Treatment-Tablets

P.P.S. for good info on the technical side how to clean up mold, the EPA has a great document "Mold Remediation in Schools and Commercial Buildings." (Although focused on schools and commercial buildings, this document is applicable to other building types.) Link:
https://www.epa.gov/sites/default/files/2014-08/documents/moldremediation.pdf

Good luck!

DeanJ
Posts: 1,786

Posted:

Or another defense is the drain for the HVAC was clogged and the drain is the HOA’s responsibility.

ElleN (Idaho)
Posts: 1,334

Posted:

Quote:

Posted By LauraG8 on 10/09/2025 1:38 PM
The HOA needs to charge back these funds to owner due to cause proven to be owner negligence.

The contractor's report is not proof of anything. The report is some evidence that an insurer and/or court of law might use to make a legal determination.

Was the HOA's insurer contacted as soon as the leakage was identified? How about the HOA attorney?

Or did the HOA just take the word of various contractors and decide massive amounts of money need to be spent immediately?

You say the HOA "has a duty to act immediately on health and safety issues... " But to what extent an issue involves "health and safety" and exactly what needs to be done is subjective. The owner might be able to argue overreach.

So far to me it sounds like the bulk of the evidence for what caused this damage is now either not available or is tainted.

I see other problems with the HOA demanding reimbursement.

I think at most the HOA attorney could send a letter of demand to the owner; ask the owner to pay; and then see what happens. Both sides (HOA and owner) need to keep in mind the cost of litigating this is going to exceed $16,000. In my opinion at this point the HOA should probably seek to cuts its losses.

DeanJ
Posts: 1,786

Posted:

I agree with Ellen. The HOA was more concerned with an emergency repair than determining the precise cause and documenting evidence. The hurdle for the HOA is a 4 year old HVAC unit, which other than changing filters should have required zero maintenance. This could have occurred even if the owner had an HVAC service contract and service was provided 52 weeks ago and a tech scheduled the next day.. The fact that an event happened doesn’t make the owner negligent or responsible for the damage.

In every home/condo I have owned, there was a drain provided that would evacuate water even when there was an issue with the HVAC or the water heater. It’s plumbing code about every where. Why was this drain not present or malfunctioning?

DavidJ21 (Arizona)
Posts: 22

Posted:

Quote:

Posted By DeanJ on 10/13/2025 10:56 AM
I agree with Ellen. The HOA was more concerned with an emergency repair than determining the precise cause and documenting evidence. The hurdle for the HOA is a 4 year old HVAC unit, which other than changing filters should have required zero maintenance. This could have occurred even if the owner had an HVAC service contract and service was provided 52 weeks ago and a tech scheduled the next day.. The fact that an event happened doesn’t make the owner negligent or responsible for the damage.

In every home/condo I have owned, there was a drain provided that would evacuate water even when there was an issue with the HVAC or the water heater. It’s plumbing code about every where. Why was this drain not present or malfunctioning?

It is extremely common that a condensate drain will clog causing backup. In many nicer condos, they will have an automatic switch that DOES NOT allow the AC to run if a leak / water build-up is detected. Most air conditioners come with this feature, but many people don't set it up. In Florida, where I live, you are going to need to suck out the condensation drain pipe at least once a year, maybe twice, to prevent backups.

LauraG8 (California)
Posts: 56

Posted:

The owner said they purchased the ac unit 4 years ago. It was NOT installed properly! Whoever installed the unit pulled out the secondary drain line which prevents water from flooding the condo. Mold remediation company said based on the extent of black mold, the unit had been leaking for “years.” Our HOA management has never performed a periodic condition inspection of ac units. The unit is their responsibility. Both our cc&r’s and bylaws state if owner negligence is the cause of damages, that is the owner’s responsibility.

LauraG8 (California)
Posts: 56

Posted:

Quote:

Posted By BryonW on 10/12/2025 10:56 AM
Hi Laura, that's a tough situation, I'm sorry it happened!

The direct answer to your question: I agree you are entitled to a full reimbursement of costs. Collection is a different matter. If this were me, I would not have begun repairs on the HOA's dime. I would have waited for the OK from homeowner, or, at least, documented several attempts to contact them, before starting work.

There isn't much maintenance that an AC units needs. So if you advance the argument that "the unit owner failed to maintain", then you invite an argument over "what maintenance was the owner supposed to do?". Below I suggest one possible bit of annual maintenance, but, most people never do any maintenance on their AC, and also never have an issue like this. I think a more fail-safe argument for your board to make is simply: the leak came from that unit's AC, so that unit owner is responsible. Regardless of whether the leak was normal wear and tear, or negligence, or random act of nature, etc. In all cases, the unit owner is still responsible.

It is really the owner's decision about whether to pay out of pocket, or, place a claim against their homeowners insurance.

If your insurance agent is good (not one of those "collect the commission then provide no help" types), then they can help you parse whether the homeowner's policy is likely to pay. One issue is that the property damage coverage may have exclusions for floods, sewer backups, etc. Also, the property that was damaged was the homeowners own property, not the property of a third party, so, the liability coverage probably will not apply.

Possible arguments the owner might make to try and weasel out, along with responses you could consider:

- "We didn't authorize you to spend $16,000 and we could have gotten it done for less." Response: we tried to reach you "X" times, and it was an emergency, and section XYZ of the bylaws gives us the authority to act in an emergency.

- "It wasn't an emergency, you could have waited" Response: see EPA document below. They repeatedly say that cleanup within the first 48 hours is important to control a mold outbreak.

P.S. One possible cause of this is a blocked condensate drain. This often happens due to bacteria, that forms a slimy build up in the pipe. One thing that can be done to prevent this is to throw a pan treat tablet in the condensate pan once a year:
https://www.supplyhouse.com/Nu-Calgon-4296-60-Condensate-Pan-Treatment-Tablets

P.P.S. for good info on the technical side how to clean up mold, the EPA has a great document "Mold Remediation in Schools and Commercial Buildings." (Although focused on schools and commercial buildings, this document is applicable to other building types.) Link:
https://www.epa.gov/sites/default/files/2014-08/documents/moldremediation.pdf

Good luck!

It was indeed an Emergency! The owners were there and made aware of the problem on Day 1 when the plumber and HVAC contractors responded to the situation. On Day 1, the mold remediation company stated to the owners that the mold was in nearly every room of their condo and that they needed to make living arrangements elsewhere due to the severity of long-term water damage found in their condo. On Day 2, the owners - and young children - made arrangements to stay at a local hotel (which their insurance paid for).

According to the HVAC contractor on Day 1, this ac unit had “never” been maintained by the owners, and whoever installed the ac unit pulled out the secondary drain line which prevents the condo from flooding should there be a blockage in the main condensate line. Both plumbing and HVAC contractors on Day 2 were unable to clear a blockage located 3/4” right below this ac unit’s FAU. HVAC contractor had to drill through the 12” cement slab in parking garage in order to clear that blockage.

Maintenance of ac’s is fairly simple… (1) regularly change the air filter, and (2) regularly have the ac unit checked by an HVAC professional.
HVAC contractor wrote up a report outlining each issue, with photos attached.

DeanJ
Posts: 1,786

Posted:

HVAC contractors in California must be licensed by the Contractors State License Board (CSLB) to perform work that exceeds $500. So how was the owner negligent using a licensed contractor?

Your assertion that the owner was negligent by not having a 4 year old HVAC unit serviced is bogus. I have a 18 year old HVAC unit that has required 1 service call over that period.

BryonW (Massachusetts)
Posts: 55

Posted:

Hi LauraG, ok, thanks for that extra info!

Now I am even more confused. If there owners were present, then why did the HOA pay for anything? When you determined that the issue was inside a unit (not in a common area) I would have handed it off to the unit owner. Tell them they can either use the contractor who is already here investigating, or, they can call a different contractor of their choice, but either way, it is their responsibility to fix ASAP.

If you have not yet issued payment to any of the contractors involved, I would hold off. Instead, forward the invoices to the homeowner for payment.

If it is the HVAC contractors who are telling you "service is needed every year", I would say that is similar to how car dealers tell you "all maintenance must be done at the dealer, you can't take the car to an independent mechanic". Its pretty self-serving. Most people in the world do not get their AC serviced every year.

It is unfortunate that the installer didn't hook up the secondary drain. That could have saved everyone a lot of headache! Perhaps that is a good item to remind all homeowners of in an upcoming newsletter... And as DavidJ21 mentioned earlier, it is a great idea to also add a float switch to a secondary drain pan. It will turn off the AC if there is water leaking. A competent handyman can install this switch, the wiring is all low voltage, you don't have to bring out a licensed HVAC or electrician:
https://www.supplyhouse.com/DiversiTech-CS-3-CS-3-Condensate-Switch-Clip

DeanJ
Posts: 1,786

Posted:

If the HOA contracted plumbers and HVAC techs to do work inside the owners unit, that opens another can of worms.

As far a periodic service, HVAC manufacturers require zero periodic maintenance to maintain a 10 year warranty - although HVAC retailers love to sell service contracts because they are added profit.

LauraG8 (California)
Posts: 56

Posted:

Dean,

What’s the “other can of worms”? Our HOA management deemed this issue a health and safety concern, so we had a duty to act.

The first report that there was a serious leak coming through the cement slab in parking garage, the HOA contacted a plumber as is protocol. The plumber tried to dislodge the clog found 3/4” under this ac unit. (It’s actually a “heat pump,” with the condenser on the roof and the air handler inside the unit). I have no idea who the owner purchased the ac unit from. (It looked much older than a 4-year unit, despite what they told me.)

A few years ago I brought to the attention of the owners the fact that their unit is the ONLY one in our 24-unit complex without a secondary drain line and that that could result in flooding of the unit. Each owner in this complex hires an HVAC contractor to service their unit once a year.

LauraG8 (California)
Posts: 56

Posted:

Dean,

The owner was negligent by not maintaining the ac in his unit, which would certainly have avoided this issue in the first place had he done so. As I said in another response, despite the fact that the owner said the unit was only 4 years old, it looked much older than that.

What did you mean when you said “So how was the owner negligent using a licensed contractor”? I have no proof he ever hired a licensed contractor. Quite the contrary, considering whoever he hired to install the unit decided to yank the secondary drain line (which prevents interior flooding) out of the wall.

It’s great that you’ve only had to service your HVAC once in 18 years! That’s quite rare in California. All owners here have their ac checked once a year and change the air filter regularly.

DeanJ
Posts: 1,786

Posted:

Quote:

Posted By LauraG8 on 10/14/2025 8:03 PM
Dean,

What’s the “other can of worms”? Our HOA management deemed this issue a health and safety concern, so we had a duty to act.

The first report that there was a serious leak coming through the cement slab in parking garage, the HOA contacted a plumber as is protocol. The plumber tried to dislodge the clog found 3/4” under this ac unit. (It’s actually a “heat pump,” with the condenser on the roof and the air handler inside the unit). I have no idea who the owner purchased the ac unit from. (It looked much older than a 4-year unit, despite what they told me.)

A few years ago I brought to the attention of the owners the fact that their unit is the ONLY one in our 24-unit complex without a secondary drain line and that that could result in flooding of the unit. Each owner in this complex hires an HVAC contractor to service their unit once a year.

The can of worms occurs IF the HOA authorized contractors to correct the shoddy work of the HVAC contractor. What you did to correct damage to common element certainly proper.

I suggest you have a discussion with your HOA’s attorney about this issue. From my point of view, the contractor is who damaged the HOA’s common element, not the owner. The HVAC contractor is required to have insurance and you should have had them involved in this process.

If you had hired a licensed plumber to replace a plumbing fixture that failed due to poor workmanship, are you liable? Under your logic you are if you didn’t get the fixture periodically serviced.

LauraG8 (California)
Posts: 56

Posted:

Dean,

NO licensed contractor was hired to “correct the shoddy work.” HOA hired Plumber & HVAC licensed contractors to find out what was going on and hopefully stop water from continually entering their condo and leaking through the cement slab right below their condo.

The owner found some guy (no doubt unlicensed) to install the ac unit and pulled out the secondary drain line in the process. Any licensed HVAC contractor would’ve certainly known full well not to do that!

No one was hired by the HOA to replace ANYTHING that failed. Once again, it was their ‘handyman’ who installed the ac unit incorrectly and it was the owner’s responsibility to maintain that ac according to our cc&r’s and bylaws.

DeanJ
Posts: 1,786

Posted:

Quote:

Posted By LauraG8 on 10/15/2025 9:06 AM
Dean,

NO licensed contractor was hired to “correct the shoddy work.” HOA hired Plumber & HVAC licensed contractors to find out what was going on and hopefully stop water from continually entering their condo and leaking through the cement slab right below their condo.

The owner found some guy (no doubt unlicensed) to install the ac unit and pulled out the secondary drain line in the process. Any licensed HVAC contractor would’ve certainly known full well not to do that!

No one was hired by the HOA to replace ANYTHING that failed. Once again, it was their ‘handyman’ who installed the ac unit incorrectly and it was the owner’s responsibility to maintain that ac according to our cc&r’s and bylaws.

If you can prove the unit was installed by “some guy” and the owner had knowledge he was not licensed, you may have a case if you can prove he was an employee, but most HVAC manufacturers / distributors will not sell equipment to “some guy”. I believe your attorney is going to advise uder vicarious liability the owner is not responsible any more than your HOA is responsible for damages caused by HOA contractors, which is usually not at all.

BryonW (Massachusetts)
Posts: 55

Posted:

LauraG - what has the owner said so far? Are they refusing to pay for the repairs?

You seem very focused on proving that the homeowner was negligent. I infer that the homeowner has already denied they are negligent, and this is your current sticking point.

To make your life easier: I don't think you don't have to prove negligence. You just have to prove that the $16,000 of work was spent on repairs that were inside the unit, and therefore, are the unit owner's responsibility to pay for. You mentioned dining room walls, kitchen walls, and countertop all had to be removed. Consider: if there was no mold, and the homeowner decided to replace their countertop for aesthetic reasons, the homeowner would be responsible for that cost. Right?

LauraG8 (California)
Posts: 56

Posted:

ByronW,

Thank you for your helpful post, ByronW!

HOA management sent owner all paid invoices (16k) and owner said his insurance won’t pay if due to negligence.
We just got an email from their State Farm claims rep asking for the amount that the HOA is seeking be reimbursed. So, we’ll see where this goes from here.

-Laura

DeanJ
Posts: 1,786

Posted:

I suppose the HOA can assess the owners account for the damages, apply late fees, attorney fees and foreclose on the unit if not paid, but the location is California where an HOA’s authority has been gutted by the state. You need to speak with an attorney before doing anything.

LauraG8 (California)
Posts: 56

Posted:

DeanJ,

Thank you for your response.
Thankfully, as a matter of fact, HOAs authority has not been gutted in our State.

-Laura

LauraG8 (California)
Posts: 56

Posted:

SheliaH,

Thank you for your response!

Fortunately, no need to go through any of that. All our bases are covered and, if need be, we shall then seek attorney guidance.
Fyi, spent 25yrs as a court reporter and know how to cover our bases.

-Laura

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