Is A Condo Assocation Responceable To Exterior Repairs

Condominium associations typically are obligated to maintain and repair common areas, but the brunt may exist shifted to owners when forced by overwhelming conditions. For instance, consider the situation faced past this 18-unit, four edifice condominium complex in Los Angeles.

Shortly after construction of the circuitous in 1982, occupants began to observe water intrusion through the foundation walls. Under the terms of the covenants, the clan was encumbered with the duty to "maintain the portion of the projection not occupied by the units in good, make clean, attractive and germ-free society and repair." I side of the foundation was essentially the barrier against surface water draining from an adjoining upwardly gradient.

After funds from the lawsuits were applied to interior foundation waterproofing and afterwards to extensive exterior repairs, within six or seven years, water again found its mode into the lower levels of 1 of the buildings. The board sent a memo to all owners stating that it "cannot prevent all leaks" but that it would investigate and make some repairs. In a subsequent letter of the alphabet, the board outlined the water intrusion history in detail, the cost and disruption that would exist incurred to undertake the recommended additional work, that such work wouldn't guarantee against further water intrusion and that it needed to issue a substantial special assessment.

The board advised all owners that the clan wouldn't be liable for future foundation water intrusion, that information technology wouldn't pay to repair or abate impairment to construction materials unless there was prove that water intrusion would threaten the structural integrity of the building and that owners would be responsible for mitigating further water damage. The association president noted that the special assessment would exist a hardship for many owners on fixed incomes and that the h2o intrusion occurred in a non-habitable area of the affected units. The president also explained that the board had consulted with legal counsel and that contractors wouldn't offer a guarantee of success.

Balancing decisions

When a disgruntled possessor sued the association for its stance, the court considered that the lath had counterbalanced the discomfort, health concerns and financial consequences to the owners confronting the high cost, inconvenience to all homeowners facing half-dozen months of torn up common areas, the absenteeism of known structural damage, the lack of documentation of hazardous mold and reliance on legal counsel advice. The court institute that the board had acted in good faith, reasonably and had rational bases for its decisions.

When boards make decisions grounded in skillful religion, honesty, reasonableness and rationality, they're usually protected. Colorado, Delaware, Kansas, Nebraska, New Jersey and others adhere to the business judgment rule under which good faith decisions in the exercise of honest business judgment are deemed valid.

The actions taken by the Los Angeles condominium lath offer first-class guidance to others facing seemingly irreparable weather condition in their communities and potential legal challenges to decisions.

Follow these tips:

Investigate the source of the damage, possible corrective measures and toll
Residuum the need for repairs, the costs, disruption of common areas, discomfort, health concerns and financial consequences to homeowners
Evaluate whether the covenants or applicable state statutes permit the clan to appraise the cost of repairs to all owners despite the repairs only benefitting some
Consider whether there are structural and safety concerns and whether there's a likelihood uninhabitable conditions could develop
Establish reasonable priorities given available reserve funds and upkeep restraints and whether a special assessment would adversely affect the fiscal well-beingness of the clan
Disclose with owners the weather condition, concerns, possible remedies and decisions
Avert settling early with one or a few homeowners without an exhaustive analysis of how widespread the conditions are
Rely on legal counsel's advice on the plan

Shifting responsibility

Older communities with growing maintenance burdens, heavily tapped reserves, possibly a history of special assessments that reflects poorly on the financial status of the association and an aging population of owners on fixed incomes may accept to shift some maintenance burdens to individual owners.

Associations that fail sure common elements and don't follow a prescribed maintenance program tin exacerbate their problems. Raising assessments is usually the advisable lath response in these circumstances but may not exist enough to fund needed maintenance and repairs. Borrowing funds can piece of work too, just that generally requires a supermajority of owners, which is hard to obtain, and a lender willing to accept on the risk.

Shifting the burden of maintenance and repairs from the association to owners is tempting—and tin can exist supported in limited circumstances—merely should only exist considered as a last resort.

HOAresources.com explores questions and comments from community association members living in condominiums, homeowners associations, and housing cooperatives. We and then assemble trusted experts to provide practical solutions to your most commonly asked, timely questions. We never use real names, just we e'er tackle real issues. Have a question or comment about your community clan? Submit here for consideration:

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