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How does association handle a huge roof replacement project?

Posted on Wed, Jul 17, 2013 @ 10:22 AM
  
  
  
  

Our Association, through its Board, recently applied for a $1M line of credit to finance needed work on our STP, and the replacement of 18 of our buildings' roofs. Seven of our buildings were re-roofed as a result of hailstorms during 2010, and a subsequent insurance claim for the damage. The insurance claim paid the costs in their entirety. There was no cost to the association; no cost passed onto the unit owners. These 7 buildings are not included in the replacement plan. As work on the new roofs progresses, it is clear that the roofing company is doing a more complete job -- replacing all clapboarding on the sides of dormers, clapboarding up to window lines, chimney clapboarding, vast amounts of flashing, and wood trim. These roofs are taking days to complete; a roof replaced as part of the insurance claim took a single day. At bottom, the 18 buildings are getting a better, higher quality product than the 7 buildings re-roofed through the insurance settlement.

Two questions: (1) Are the 28 residents of the 7 buildings entitled to roofs of equal quality, given that they will be included in the assessment that includes roof replacement? I'm specifically asking about all of the non-shingle work that I have listed. (2) If the 7 buildings are not part of the replacement plan in any capacity, can they be exempt from that portion of the $1M assessment that includes the cost of the roof replacement?

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COMMENTS

First read you governing docs and second discuss this with your association attorney. I think your attorney will inform you that you are all in the same association and as such you all shear equally. the first roof replacement benifited some and now the second roof replacement befitis the rest. in the end, all are equally benifited. GR

posted @ Wednesday, July 17, 2013 10:41 AM by GR


I give up, what's a "STP"? 
 
Anyway... 
 
"(1) Are the 28 residents of the 7 buildings entitled to roofs of equal quality, given that they will be included in the assessment that includes roof replacement? I'm specifically asking about all of the non-shingle work that I have listed." 
 
Insurance loss replacements will be like for like. The HOA could have demanded a higher quality roof and paid the additional cost. The HOA could have also asked the roofer of the 7 buildings for a separate contract to do the "non-shingle" work. They choose poorly. 
 
"(2) If the 7 buildings are not part of the replacement plan in any capacity, can they be exempt from that portion of the $1M assessment that includes the cost of the roof replacement?" 
 
No exemption, everyone in the HOA contributes to the special assessment. You have to realize that where it not for the insurance loss, the line of credit needed for all 25 buildings would have been $1.5 million, increasing the special assessment to each owner. 
 
Now there is a three year difference in roofs, so the makeup of the Board of Directors for your HOA probably changed. This may be good news because the previous Board made some decisions that three years later has created bad feelings amongst the owners. 
 
Sounds like your HOA did not have a Reserve Fund. Shame on them.

posted @ Wednesday, July 17, 2013 11:06 AM by Ron - NC


"Sounds like your HOA did not have a Reserve Fund. Shame on them" 
 
Exactly my seelings on the subject quoted above. How do you not have a reserve for roof replacement. Its going to happen, there is no avoiding it. Borrowing money for roof replacement is nuts. The assessment for roof replacement should have been part of your HOA dues for the last 25 years, creating a self insured roof replacement fund

posted @ Wednesday, July 17, 2013 12:42 PM by Dan


When our HOA had the roof done, we paid for it through a special assessment to each owner. When another similar large project came along, our reserves were much improved and we paid through a combination of using some reserves and a small assessment to each owner.

posted @ Wednesday, July 17, 2013 1:01 PM by nas


not sure what legal framework your association is closer too: a Condominium Association? A set of condominium Associations with separate sub-associations, or a home owners association. 
See the previous post. 
One problem that seems to occur any of those types is a lack of reserve funding and reserve fund assessment and planning, on the long term. Often more of a problem with self managed and small to medium associations.

posted @ Wednesday, July 17, 2013 1:48 PM by john mastro@hotmail.com


I can't answer your specific questions, but let me tell you what! You must, must do serious background checks on your roofer. Check for liens and references. Ask around. Look at company reviews on the internet. Have a knowledgeable homeowner or friend check the work as they go along and make sure that they do everything that they said is being done. Keep multiple copies of the contract, too. Finally, review all the work done before the last paycheck. We know because we just finished a 5 year lawsuit and lost to a lousy roofer. It was terribly ridiculous.

posted @ Wednesday, July 17, 2013 2:35 PM by the Coordinator


This past fall one of our properties (7 buildings/14 units) was hit with a hail storm. The insurance company only totaled five (5) of the buildings. Thus, the association was stuck. Fortunately, we had negotiated a $2500.00 per occurrence deductible. At this stage, the Association was on the hook for 1) depreciation, 2) its deductibles, and 3) the remaining two (2) buildings. We were able to save costs and avoid a Special Assessment by doing the following: 1) We replaced the existing roof with a Higher Quality 3 dimensional Atlas Storm Guard roof than the standard architectural grade. 2) We negotiated a lower price on the product directly from the manufacturer (i.e. the Association paid for the materials). As attorney in fact, the Association and our staff negotiated directly with the insurance company on behalf of our clients. The end result was that the Insurance Underwriter waived our depreciation because we upgraded the original product. We saved by purchasing the product at wholesale from the roofing manufacturer. This worked well as the roofing company did not have to front the purchase of product and the Association was only on the hook for the labor.  
 
The Association was able, thru cost savings, to avoid using its Reserves and avoid a Special Assessment or Annual Assessment increase. In the past, our organization has worked with contractors to establish funding for Special Projects while minimizing the costs to the association residents. Our costs? We receive 10% of the total funds we save a client on major projects. However, we never skimp on quality of materials, or installation. A "Best Value" philosophy.

posted @ Wednesday, July 17, 2013 5:16 PM by Team Strategy Inc.


Team Strategy: Your decision to buy the materials separately reduces the risks associated with the upfront down payment to a middleman (roofer) but how do you save money by buying better quality materials? (usually better quality is associated with higher cost) 
It seems that, by buying the standard grade, your cost would have been lower! Can you explain?

posted @ Thursday, July 18, 2013 2:59 AM by RS-FL


@ Coordinator, Thanks for explaining the process your association had to go through in order to get your roofing done. If your looking for roofing in Richmond Hill here is a great one. 
-EmJay

posted @ Tuesday, August 20, 2013 1:12 PM by EmJay


I think that they would probably call for a roofing company who could do it for an affordable price.

posted @ Wednesday, August 21, 2013 3:10 PM by Charles Neslon


Roofing should be completely covered by the HOA. What else are they good for>

posted @ Wednesday, September 25, 2013 2:58 PM by Jesus Ramirez


I was able to get a roofer in Portland, OR to come to my house and give me a bid. There weren't any problems with that.

posted @ Thursday, October 03, 2013 2:45 PM by John


This is really interesting to consider. I wonder how this will affect the Vancouver roofer industry as it develops. href="http://www.chisholmroofing.ca/

posted @ Monday, October 07, 2013 3:32 PM by Sean Valjean


Thank you for better explaining to me how a roofing insurance would handle this situation. It's one of those things that you hope never will happen, but is always a possibility.

posted @ Tuesday, November 05, 2013 7:04 PM by Bob Strong


This really is such a benefit when they cover roof repair in Calgary with insurance. I know of some people that had to pay for the majority of it with out any insurance help and that must have been awful.

posted @ Tuesday, November 19, 2013 2:37 PM by Sean Valjean


My condo should be the one handling the roof repair services in Aurora CO, right?

posted @ Wednesday, November 27, 2013 10:45 AM by Shelly Slader


It depends on the roofing contract that is made with the HOA or your condo. Some roofing companies coordinate with the owners, others work with the HOA.

posted @ Tuesday, December 03, 2013 4:25 PM by Elisa Jed


I think it more depends on what the HOA contract is. Concerning big things like roof replacement, the contract should address it. Usually there is a monthly fee for big projects that is saved for events like this.

posted @ Thursday, December 05, 2013 10:49 AM by Garrack Kert


How do we get roofing repairs on our condo? 
Shelly Slader | http://hanleyroofing.com/service-locations/silverdale

posted @ Thursday, January 16, 2014 1:43 PM by Shelly Slader


How do we get roofing repairs on our condo? 
Shelly Slader | http://hanleyroofing.com/service-locations/silverdale

posted @ Thursday, January 16, 2014 1:44 PM by Shelly Slader


Do Condo Associations have regular roofing contractors they go to for big projects? Or do they have to go out and find a new contractor every time they need maintenance done? I feel like having regular contractors would be a lot more efficient. 
Shelly Slader | http://www.lansfordroofing.com

posted @ Thursday, March 27, 2014 12:29 PM by Shelly Slader


It all really seems to start with making the phone call and scheduling the project. Next, they will need to dip into the funds that they have allocated from the HOA fees. Finally, you will be having a nicer roof to enjoy. 
 

posted @ Wednesday, April 02, 2014 2:00 PM by Darcy Webb


So much of this comes down to the signed contract. I would recommend studying that paper to the letter and if necessary asking a lawyer. Roofing costs can be rather costly and it is worth finding whether you are responsible. http://www.rairoofing.com/services.html

posted @ Thursday, April 03, 2014 8:00 PM by Bob Strong


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