HOA Loan and Insurance Quotes

I understand that there is a 1% origination fee, payable at loan closing. Submitting this form puts me under no obligation. *

Subscribe to Blog

Your email:

Follow Us

Looking for answers?

condo association blogCan't find the answer you're looking for?  Ask your question here and we'll post it in our blog.

Browse by Topic

Condo Association Management Blog

Current Articles | RSS Feed RSS Feed

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?



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"? 
"(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. 

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

I think that most of them will start with assessing the damage, and then they will call some residential roofing company to come out and at least give them an estimate. There is a good chance that the ones who cover the estimate will cover the job. That is the long-term pattern I have observed anyways.

posted @ Wednesday, April 23, 2014 12:12 PM by Simon Adair

I would think that all residents should split the cost of roof replacement. If some of the roofs were replaced through insurance, then all should chip in to pay for the other roofs. Those that already had their roof replaced might not like the idea, but this is the best way to handle the situation.  
Elisa Jed | http://goodneighborroofingutah.com/services.html 

posted @ Wednesday, May 07, 2014 7:21 PM by Elisa Jed

I don't know that our association has a policy that a project that size will fall under. I might have to suggest something like that. I actually know a roofing contractor that has worked with different HOAs that might help. Thiago | http://www.unitedroofingcalgary.com/en

posted @ Friday, May 09, 2014 4:16 PM by Thiago

It all depends on you HOA as to how roofing should be repaired. You can prevent roofing complications if you work through them first. Read the documentation. Don't just rely on verbal approval. 

posted @ Friday, May 16, 2014 9:31 PM by Elias Rufus

I am in the same situation at Thiago. I know that the Association will repair roof damages, but I'm not sure about an entire roof. That would probably be out of budget. http://www.roofingcontractorpittsburgh.com/roofing

posted @ Tuesday, May 20, 2014 11:43 AM by Jameel Johnson

I had a big problem with my roof. It had to be replaced. I'm really glad that the HOA helped out. 

posted @ Thursday, May 22, 2014 7:10 PM by Anita Mas

A big windstorm blew a bunch of shingles off. It had to have extensive repairs. I'm glad the HOA helped out. http://www.aaa-roofs.com/aaa-roofs_016.htm

posted @ Friday, May 23, 2014 10:30 PM by Anita Mas

I really need to get my roof fixed. I think I am going to be in big trouble once it rains. I just have to hope I can get it done in time.  

posted @ Friday, May 23, 2014 11:30 PM by Brittany Matthews

Wow! What a beautiful pictures for interior designing. I love to do the interior decoration like this. You have given very impressive tips for interior designing. I really want to follow these in my home. Thanks for sharing these. Detail Here

posted @ Monday, May 26, 2014 4:19 AM by Linkon

I really hope our HOA covers our roofing repair costs. I am new to dealing with the HOA. And it needs fixed ASAP. Any advice for me? 

posted @ Friday, May 30, 2014 9:18 PM by John Johnson

The roof on our condo has several leaky spots that need to be fixed. We've talked with our manager and nothing has been done yet. I don't want to keep living with buckets everywhere to catch drips when it rains. How can I speed up the process so it will get fixed faster? 
Shelly Slader | http://www.columbiaex.com/roofing

posted @ Tuesday, June 03, 2014 12:29 PM by Shelly Slader

I should get someone to look at repairing my roof. It has been a little while since it rained last, but it wouldn't hurt to have it checked. It is better to get ahead of these kinds of things, rather than wait for it to be a problem. 
Andre Franklin | http://www.roofingcontractorpittsburgh.com

posted @ Friday, June 06, 2014 2:37 PM by Andre Franklin

I recently had to get my roof fixed. It was nearly a whole roofing installation project. Fortunately it was a lot more affordable than I was expecting. 

posted @ Monday, June 09, 2014 6:34 PM by Brittany Matthews

It is the association's responsibility to hiring a roofing contractor, correct? I've been trying to figure this out for a while. I have to get the roof replaced on a condo that I own but couldn't figure out who was in charge of it. I'll have to check my paperwork about it. 
-Seamus | http://www.millerroofingco.com/services/

posted @ Tuesday, June 10, 2014 11:37 AM by Seamus Lowe

If those extra features don't need to be fixed on the 7 buildings in order for the building to be serviceable, then you shouldn't include them. However, if you don't do any replacements on their building the tenants shouldn't be required to pay any for any of the replacements of the other buildings. I don't think it would be fair to charge them for something that doesn't benefit the building they live in. 
Claudia Rosenburg | http://www.goroof1.com/pages/blog/entry/17/

posted @ Wednesday, June 11, 2014 10:58 AM by Claudia Rosenburg

Wow, I never realized that it was that expensive to replace a roof now. We had ours done about 20 years ago, and it wasn't nearly that much. I guess the world is a different place now.  
Talmage Dangerfield | http://www.campbell-roofing.com/roof-installation

posted @ Thursday, June 12, 2014 12:18 PM by Talmage Dangerfield

Wow, I never realized that it was that expensive to replace a roof now. We had ours done about 20 years ago, and it wasn't nearly that much. I guess the world is a different place now.  
Talmage Dangerfield | http://www.campbell-roofing.com/roof-installation

posted @ Thursday, June 12, 2014 12:19 PM by Talmage Dangerfield

I can imagine it would be a really steep cost to replace a whole roof. A tree fell on our roof last night in a storm so we have to deal with that now too. Hopefully it's a little more within our budget than I'm expecting it to be. http://www.reliablerestorations.com.au/reliable-restorations-process.html

posted @ Thursday, June 12, 2014 1:07 PM by Abed Nadier

We had a huge roofing replacement a few years back. The HOA covered all of the costs. It's so nice not having a leaky roof anymore.  
Edmond Vandergraff | http://www.pascoroofing.com/roofing-services.html

posted @ Tuesday, June 17, 2014 12:14 PM by Edmond Vandergraff

If everyone's going to be covered eventually, it only seems fair to pay equally. The delay is no doubt due to a lack of money on the HOA's part, but the repair will still happen. You can argue against this, but it seems pretty pointless when it will come back to benefit you in a few years regardless. 
Jenn | http://www.pascoroofing.com/roofing-services.html

posted @ Tuesday, June 17, 2014 12:18 PM by http://www.pascoroofing.com/roofing-services.html

We had a similar roof repair situation. We had some repairs made to a roof that a tree had fallen on during a storm via insurance money and the next year replaced the roofs of the other building under our stewardship. Our bylaws actually dictate how often the roofs are to be replaced, but not that we have to do them all at once or to what degree of quality. We decided to meet with the building that had the inferior work done and ask if they wanted to be included in the better repairs. We explained that for their roof it would not be necessary at this time, but would probably come up sooner rather than later. We also asked the estimator/contractor to come and explain what the differences and potential advantages would be with choosing to re-roof now. http://www.pascoroofing.com/roofing-services.html

posted @ Tuesday, June 17, 2014 12:27 PM by Rodhe Stevens

Wow, 1 million dollars. That sounds like it would be super expensive. I don't know how I would ever be able to afford that. I'm just glad that I live in a smaller house, so replacing the roof on our house won't cost nearly that much.  
Emily Merrell | http://www.penroof.com/

posted @ Thursday, June 19, 2014 10:30 AM by Emily Merrell

If the roofs that have the non-shingle work are not functioning properly or are at risk of not functioning properly in the near future the residence are at least entitled to vote on it and decide for themselves. If there is already evidence of leaks then you definitely need to replace those roofs. Double check your HOA agreements and bylaws to ensure you are acting properly and if you raise the money from all the residents then they are all entitled to the same treatment, that is to say new roofing. http://www.chisholmroofing.ca/vancouver_service_area.html

posted @ Tuesday, June 24, 2014 9:33 AM by Julia Emmers

We had a huge storm come through our town last month that really did a number on our roof. I spent 4 Saturdays in a row on top of the house trying to fix all of the damage that had been done. It was a really big pain because the HOA wouldn't hire a company to fix it. http://www.bestfutureroof.com

posted @ Tuesday, June 24, 2014 3:23 PM by Deuce Masterson

Our association says they will pay for a roof repair, but refuse to pay for the chimney to be replaced. They say that it isn't a necessity to have a chimney, but without it the condo looks really bad. I really think that the HOA should cover this cost since they're willing to pay for other repairs to the roof. http://www.carletonchimney.ca/en/

posted @ Monday, June 30, 2014 10:54 AM by Emily Merrell

It seems like an issue, but either way the roofing benefits all of the condominium. The nicer roofing will raise property values all around, which benefits everyone. While you can exclude those 7 buildings from the assessment, it might create an exception precedent that could cause problems in the future. Keeping the condos together as a unified whole usually has a better outcome. 
Jenn | http://customcupola.com/wp/?page_id=121

posted @ Tuesday, July 01, 2014 12:43 PM by Jennifer Davies

I would assume that they have roofing companies that they know. Usually they rely on one or two companies to get the job done. However, I am not an expert so I could be wrong.  
Jayden Eden | http://www.goroof1.com/http://www.goroof1.com/

posted @ Thursday, July 10, 2014 6:46 PM by Jayden Eden

I wonder if that would also include fixing a chimney. We had a big storm a couple of years ago that completely cracked the brick on our chimney, and it looks like it's going to fall down any day now. I really hope that we find some way to fix this soon. http://www.excelchimney.com/chimney-repair/

posted @ Monday, July 14, 2014 5:15 PM by Tony De Azevedo

Really good post man! Your post seems to me very encourage able and i always appreciate this sort of post which is encouraged others also. So keep it up man! Thanks. Liquid Roof Coatings

posted @ Tuesday, July 15, 2014 2:38 AM by SIBYLLA

Would it be really expensive to replace shingles with a metal roof? Our association has never said anything about it, and I'm not really sure what the benefits are to having shingles over metal. We have to do a big roof repair this year, so we're trying to weigh all of our options. http://uhlconstructionroofing.com/services.html

posted @ Wednesday, July 16, 2014 10:41 AM by Deuce Masterson

My mother needed to get a rebricking done. It was actually a smooth process. I don't think she minded the problems. 

posted @ Thursday, July 17, 2014 12:21 AM by Elias Rufus

I agree with the general consensus. While you could exclude the 7 condos with already finished roofing, there's not much point. Having a new roof will benefit all of the condo, and those unit owners have been enjoying a newer roof for longer. That's part of living in a condo, pitching in to help with repairs. 
Marc | http://www.copperslateroofingbaltimore

posted @ Thursday, July 17, 2014 5:17 PM by Marcus Fillion

I am wondering about a roofing replacement that is going on right now. My complex has been working on it for a week now. I would like to find out more about what they are doing.  
Jayden Eden | http://www.allamericanroofing.com/Residential.html

posted @ Thursday, July 17, 2014 5:31 PM by Jayden Eden

I wish I could give you a straighter answer. Honestly though, every association has done it differently. In this case I would recommend keeping the units together as a whole, but that's just my opinion. Whether or not the buildings are getting new roofs, the overall replacement will benefit everyone.  
Marc | http://roofdoctor1.com/roofing-services-elk-grove-ca/

posted @ Tuesday, July 22, 2014 6:02 PM by Marcus Fillion

That is so great that they proactively got their roofs fixed. I think it was a very smart move on their part. I guess if they didn't get a roofing contractor out there to fix them, then they would run into a lot of other problems. http://roofdoctor1.com/roofing-services-elk-grove-ca/

posted @ Tuesday, July 22, 2014 6:37 PM by Brittany Matthews

I am glad to see that they fixed the roofs. It's better to see it done than to wait and decide. Maintaining a strong roof is detrimental to keeping your homes in good order. http://www.earhartroofing.com/about

posted @ Monday, July 28, 2014 5:38 PM by Bob Strong

I disagree with Marcus. It's not fair to assess the buildings that won't benefit from the roof replacement. It makes sense to only charge the unit owners in the other buildings. I'm sure that makes sense to them too-- no one getting a new roof will complain about the cost. 
Jenn | http://www.atmroofing.net/about

posted @ Tuesday, July 29, 2014 10:12 AM by Jennifer Davies

Post Comment
Website (optional)

Allowed tags: <a> link, <b> bold, <i> italics