The dreaded roof underlayment replacement

Started by SusanO3 • 10 replies • 119 views

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SusanO3 (California)
Posts: 172

Posted:

95 townhomes, northern CA. Reserve study says underlay need to be changed in 2033, houses built in 1989 so we are stretching it out to the absolute maximum! We budget $30,000 per year for leak repairs. Anyone had experience of convincing owners to pull the date forward, with a Special Assessment and some financing options. If we wait until 2033 and increase the reserve contributions by 10% annually until 2033, then we will have little to a small assessment.

The majority of the Board want to communicate/educate/hold an owner vote in 2027 to decide once and for all.

Any thoughts or feedback?

BryonW (Massachusetts)
Posts: 79

Posted:

Here is a "devils advocate" argument: in a previous post you mentioned a cost of $3,000,000 for the roof underlayment project. I am assuming it has never been replaced since 1989, so, the useful life is 41 years. $3,000,000 / 41 = $73,170 per year of annual depreciation.

That is a lot more than the annual repair cost of $30,000 / year for leaks.

So if your only goal is to keep the roof going at minimum cost, you are still in the zone where repair is less expensive than replacement.

(this obviously ignores some practical issues like the the disruption of constantly playing whack-a-mole with leaks, versus the peace of mind that would come from a full replacement...)

SusanO3 (California)
Posts: 172

Posted:

Thank you so much for replying. I can see that homeowners wanting to delay the inevitable will put forth that argument. I will now have time to think about a reply. Sue

BryonW (Massachusetts)
Posts: 79

Posted:

You're welcome! Other possibilities to consider: 1) the $3 million cost to replace the underlayment might be too high, and/or 2) the $30,000/year "leak repair" budget is too low.

To your original question: I generally favor saving up enough to cover the whole project, rather than charging a large special assessment.

ElizabethH5 (Idaho)
Posts: 1

Posted:

Quote:

Posted By SusanO3 on 10/06/2026, 11:41 PM

95 townhomes, northern CA. Reserve study says underlay need to be changed in 2033, houses built in 1989 so we are stretching it out to the absolute maximum! We budget $30,000 per year for leak repairs. Anyone had experience of convincing owners to pull the date forward, with a Special Assessment and some financing options. If we wait until 2033 and increase the reserve contributions by 10% annually until 2033, then we will have little to a small assessment.
The majority of the Board want to communicate/educate/hold an owner vote in 2027 to decide once and for all.
Any thoughts or feedback?

I think holding an owner vote in 2027 makes sense. It might help to show homeowners a comparison of the costs of replacing the underlayment early versus continuing with repairs until 2033. Having a few financing options available could also make the decision easier.

SusanO3 (California)
Posts: 172

Posted:

Thanks Elizabeth, I agree, the vote places the decision with the owners, either earlier replacement with a Assessment or 2033 with increased contributions to Reserves. Neither is palatable but ultimately owners have to decide. We are close enough to decision point to make the debate real and not hypothetical, which helps too.

MichaelS56 (Minnesota)
Posts: 889

Posted:

When the board begins the process to seek bids for doing all of the roof work, they need to take a lot of time to make sure that the specs for the project are agreed upon. The board also needs to make sure that any unforeseen repairs that are needed are communicated effectively and approved as to who pays.

SusanO3 (California)
Posts: 172

Posted:

You're right, we have a Project Management fee in the project cost and we will need to make sure we agree on the SOW, and who pays for the unusual items like the roof frame, if its damaged. By the CCRs that's on the owners but they might argue that point. So I agree with you completely!

EliK1 (Texas)
Posts: 12

Posted:

Sue, I'd frame the 2027 vote as an all-in cost comparison rather than a choice between two unpleasant bills. For each path, show owners the total out of pocket per unit over the same window, say 2026 through 2034: the leak budget you keep spending, the 10 percent a year reserve increases, the interest on any loan, plus the things that don't fit a spreadsheet, like interior damage claims and a roof no contractor wants to warranty. Put Bryon's $73,000-a-year number on the same page so nobody thinks you hid it.

Two California points for the plan. Civil Code 5605 lets the board raise regular assessments up to 20 percent a year and levy special assessments up to 5 percent of budgeted gross expenses without a member vote; anything bigger needs a majority of a quorum. And 5550 requires the reserve study to be reviewed every year and re-inspected at least every three, so ask your reserve analyst to run both scenarios in the next update. That gives owners an independent document instead of a board opinion.

Your own CC&Rs can add steps on top of the statute, so have the association's attorney look at the financing plan before it goes to owners.

— Eli

SusanO3 (California)
Posts: 172

Posted:

Thank you all for your help. Board Meeting next Tuesday is the first time the board will begin to discuss the options and I will let you know how it goes.

RobertH53 (Connecticut)
Posts: 2

Posted:

Quote:

Posted By SusanO3 on 10/06/2026, 4:41 PM

95 townhomes, northern CA. Reserve study says underlay need to be changed in 2033, houses built in 1989 so we are stretching it out to the absolute maximum! We budget $30,000 per year for leak repairs. Anyone had experience of convincing owners to pull the date forward, with a Special Assessment and some financing options. If we wait until 2033 and increase the reserve contributions by 10% annually until 2033, then we will have little to a small assessment.
The majority of the Board want to communicate/educate/hold an owner vote in 2027 to decide once and for all.
Any thoughts or feedback?

This is an interesting discussion, particularly the comparison between the $30,000 annual leak repairs and the estimated $3 million replacement cost.

One consideration is that the $30,000 represents current repair costs, which may increase as the roof system ages. There may also be costs associated with interior damage and disruption to homeowners.

Before deciding whether to replace the underlayment early or continue repairs until 2033, I would suggest having an independent roofing professional assess its remaining useful life and evaluate several scenarios.

A comparison of replacing now, replacing in three or four years, and continuing until 2033—with estimated costs and risks for each—could be valuable when presenting the options to homeowners.

For a project of this magnitude, giving owners a clear comparison of alternatives may be just as important as the ultimate recommendation.

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