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DawnL (California)
Posts: 37
Posted:
Hi all. In California. Small HOA with 12 condos.

Owner just began escrow (also a board member) tells us tonight that they were so busy that they forgot to tell us about the leaking roof which can cause puddles on the floor of both adjoining units. They've known about it for several months. It just began to rain for the first time this season. .so they tarped it. Buyers' Inspectors are coming through their unit this week, and they want it repaired on an emergency basis - without our normal process of acquiring multiple bids.

It's already midnight Sat night here. . .

1. Are we required to get multiple bids or is this considered an emergency? (There is no water coming down inside the wall at the current time.)

2. If no multiple bids are required (and we can treat it as an emergency) is the HOA liable for paying for an emergency repair tomorrow (Sunday)? It's the owners' fault that we're in this situation. . .and our finances are NOT good due to foreclosures and owners who haven't paid their dues on a very long time.

On the other hand we do NOT want to be liable for replacing warped baseboards or hardwood floor.

Thanks for any insights you might have.

Dawn in CA

SusanW1 (Michigan)
Posts: 5,202
Posted:
Seems like there are several questions that need to be decided by the Board at an Emergency Meeting. In the meantime, the leak has been averted (by the tarp)

Once a plan is decided, yes, the Board would follow regular bidding processes.

MaryA1 (Arizona)
Posts: 7,043
Posted:
If there is a leak already and it's raining now, then I would say this is an emergency situation. In an emergency, I would think the last of your worries would be to follow the bidding process! Use common sense and take immediate action to prevent damage that could be caused by the leak!!! Since the board is now aware of the potential problem, the onus is on them.
DwightT (Idaho)
Posts: 664
Posted:
Dawn - While you had an emergency situation caused by the leaking roof and the rain, that emergency has been abated by the tarp. While that is by no means a permanent solution, it should buy you some time so that you can proceed with your normal process, possibly at an "urgent" level rather than "emergency".

The Buyer's inspectors coming through does not create an emergency situation for the HOA. At most it might be an emergency for the seller, but it sounds like it is an emergency that he basically created himself. The Board might consider allowing him to get emergency repairs done at his own expense, then reimburse him the amount that the HOA would have paid under normal circumstances. However, I would be concerned about the quality of any work done in haste.

KirkW1 (Texas)
Posts: 1,665
Posted:
A am with Dwight on this. If a resident calls with a leaking roof there is an emergency. That is when you do what is needed to stop further damage from occurring. Considering that the current season I don't see a reason why you shouldn't be able to obtain two or three bids in the next couple of days. Then you should hold an "emergency" meeting to discuss the bids and start the project of fixing this.

Be sure that you record that they knew about this for several months. You are not responsible for any interior damage that occurred prior to notification. Further, you should get the inside roof structure inspected. The lack of notification could have caused additional damage and the owners would be responsible.

I will relate something told to me by an insurance adjuster once. He said he had seen many cases where a person had their window broken on their car. And this was a covered event. Then it would rain before they could get the window replaced and they would come to file a claim for damage to the interior after it rained. Guess what?? Because they failed to mitigate damages the insurance company denied the second claim. Further the owner would have to have the repair inspected to ever have the interior covered again. Now if they had taped plastic to the window but the plastic didn't hold up the interior damage would be covered.

Basically you have a responsibility to mitigate a situation as possible. This would include a resident being responsible to notify the HOA of a leak as soon as it is noticed.
DawnL (California)
Posts: 37
Posted:
Thanks so much for all the help.

Super informative group here. (It's bright and sunny today - which helps). . .we'll get the repair scheduled ASAP and be aware of the issues surrounding any interior damages.

The awareness of how insurance adjusters see things is helpful, as is the reality that the seller's emergency might not dictate an HOA emergency.

Thanks a million.
MaryA1 (Arizona)
Posts: 7,043
Posted:
The fact that the h/o did not inform the board of the leak immediately does not let the assn off the hook for the repair. I don't agree with Dwight's suggestion that the h/o pay for the repair and the board should only reimburse him what they feel they would have paid under "normal" circumstances. If they are going to allow him to make the repair then they should reimburse him the actual cost.

DwightT (Idaho)
Posts: 664
Posted:
Mary - I didn't say anything about letting the HOA off the hook for the repair. If they are responsible for maintaining the roof, then they will need to get the roof repaired. But, that doesn't mean that they need to pay a premium price just because the homeowner didn't bother to notify them of the problem until just before the inspectors show up. To paraphrase a saying: Lack of planning on the homeowners part does not constitute an emergency on the HOA's part.

As for the HOA only reimbursing what they feel like, that's not what I said. If the homeowner wants to short-circuit the bidding process and get the work done faster, then the homeowner should pay the difference between what the normal price would have been (as determined by the normal bidding process) and the premium price that will probably be charged to get the work done on short notice.

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