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Our HOA botched assessment for replacement project. Do over?

  
  
  
  
  

hoa assessmentI am the president of my HOA in California. We recently passed a special assessment to replace the siding on all our buildings. The assessment was passed by majority vote (as required by our by-laws). The assessment amount was based on a ballpark estimate from one of our contractors. Once the assessment was passed, we quickly learned that the assessment amount was too low to cover the costs for a complete siding replacement. All the bids came in much higher.

Rather than scrapping the assessment and doing another vote for a higher assessment amount (which we don't think will pass due to the tough economic conditions), the HOA Board would like to use the approved assessment amount to replace the siding on the back of the buildings only (which is in worse condition than the front). We would like to know if this is legally permissible. The original intent of the assessment was to replace all the siding, not just partial.

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Comments

Possibly you and the board members should resign because who puts out an assessment without getting the estimates from the contractors first but I would think a letter written to all the home owners asking them how they would like to handle this because the assessment was not enough to cover the project and a copy of all the estimates would be a good thing to send with the letter. Show them you are honest and upfront about everything. If you treat everyone as equals and ask their advise and not just believe you can make every decision yourself then you will get the respect you deserve and you will be my hero.  
 
THIS IS WHAT CORRUPT HOA'S DO:  
 
Our HOA made up a new resolution to our bylaws. The resolution says that they have the right to take the homeowners present skylights out (skylights are paid for by the homeowner) and if the homeowners do not pay for new skylights in advance before installed, The HOA has the right to inform the roofer to put roofing material over the holes without skylights in them. Our HOA thinks they have the right to remove our skylights even when we don't want them removed and I know this because they removed my skylights worth about $1200 today and replaced them with $225 Velux economy skylights. They hired an uninsured roofer to change the roof which still had 19 years under guarantee and no leaks at all and to replace the skylights. One skylight in the living room leaked on my furniture and my furniture is ruined and they will not put in a claim in to the insurance company and the roofer is uninsured. If that isn't bad enough, all of my 7 skylights are defective as they all get condensation between the two glass panels/Velux themself said the seal was broken and they are defective. Why would any HOA want to hurt fellow neighbors this way replacing items with cheaper ones and going against the bylaws unless the return for doing so is so lucrative that they just can't resist doing it. They even paid about $3000 to have a policeman there Monday through Friday making sure no one stopped the skylights from being removed and replaced so how lucrative can this be if they were willing to pay $3,000 to policemen. The HOA president who okayed the project now is keeping the skylights he has which are the same ones he removed from my condo. Since the roof was replaced, I have big black ants coming through my skylights as my desk is under 2 skylights and they land on my desk and on me.  
 
Our HOA is so corrupt that they fine the dead before their condo is sold for not changing their light bulbs, they fine people $500 because someone fell asleep at their Mom's condo and forgot to move his van, they give fake fines to those they know do not agree with them so they cannot vote, and they replace items that do not need replacement so they can pad the bills. No one can understand the bookkeeping because the owner of the Management Company is married to our Manager which they try to say is not true but it is. The only reason they are saying they are not married is because the owner doesn't want anyone to think he can fix the books which he does.  
 
Just treat the fellow condo owners like they are your family and do the best you can for them and not only will they like and respect you but you will be rewarded in every aspect of your life. 
 
Our manager can't get away with everything she wants to do with every HOA as there are some honest HOA's that won't allow her to do what she wants to. Our HOA is just as corrupt as she is.  
 
A board member should always have the home owners best interest come first. Do what I mentioned and you should come through this wonderfully.
Posted @ Wednesday, September 01, 2010 10:24 AM by chillwatch
Stupid is as Stupid does. I agree that they should all be fired for thinking they can do things on their own. When an HOA or condo Association tells their members they are "The eyes and ears of the Association (MY Association), I guess I should have done something back then. 
 
Our Association is in such a mess I don't have the time to sit here and type everything out. 
 
When members just raise their hands to vote along with everyone else and not do some hard core work and ask questions or get them on their own, I feel they deserve to be kicked in the behind....Believe me if I could kick myself I would. 
 
Nobody does an assessment before getting an estimate first. And furthermore an estimate is just that. Everyone thinks an estimate is the true figures. No it is not. Who knows what can come into play after the job starts? And for Pete's sake get a real contractor and stop cutting corners, this is other peoples money you are playing with. Call another meeting and get everyone attention in this matter, The board has no right to make large decisions on their own no matter what state you live in. It looks like you will need a good lawyer, for if they are anything like my board they will try (and I say Try to fight you), for they don't know everything. They are intimadators and big mouths. Fight fire with fire and you will get results with a good laywer. Don't let them crap on you, for you have rights just like anyone else that is a home owner! And make sure it is all written down and delivered to them certified mail. You dock everything! 
 
Good Luck and have a nice day.
Posted @ Wednesday, September 01, 2010 11:57 AM by s
Wow, the two people that have posted are arrogant and mean. The first one doesn't even understand what corrupt means. That is an unreasonable board, not a corrupt one. They are just as unreasonable as you are, and I hope you read this. 
 
To the original question. Unfortunately, you had a vote and if you are correct, the intention of your documents is that assessments must be approved. That is rare - usually it is only for additions, not for replacements. Here are some things to think about and learn from the mistake that as a board, you have made: 
 
Did you have an attorney guide you through the vote and advise you if it was necessary or not? Often, a couple of hundred dollars to legal counsel is well worth the headaches and hassles. In fact, I would ask the attorney here an opinion on this matter. 
 
Second, did you have an architect or engineer involved? If so, you not only could get a clear understanding of what needs to be done, a plan to do it, but anticipated costs and someone to help you inform the community. Yes, it is an expense. I often tell boards that the expense is in the long run worth it. First, you have an experienced professional assisting you. Second, you will get a better understanding of such a massive undertaking and the knowns and unknowns. Third, you limit your liability and exposure in your decision making. Forth, you get specifications and bidding that is comparative rather than the five different opinions on how to do it. 
 
As a manager, I recommend that you start over. Get an opinion on what you should do with the funds (you may be able to bank them) get an architect involved and have a meeting to explain the error to the membership and what you've done to correct it. Some, like the first poster who went on a tangent on their own stuff, will yell, scream and try to make you feel stupid and not offer any real solutions. They can just make themselves feel better by belittling you and the other volunteers. Others will not be happy, but they will be reasonable and be glad you are being responsible with the money.
Posted @ Wednesday, September 01, 2010 2:32 PM by Joe Schuirmann
I just read the first paragraph. The last line is meant for the first poster, not the original president asking the question. 
 
 
 
I have also reread that post. They do have my sympathy, but corrupt is a strong word and in my opinion, still incorrect. Unreasonable? Probably. Incorrect? Probably. Corruption would be if they are getting money for doing the project. That would be corrupt.
Posted @ Wednesday, September 01, 2010 2:36 PM by Joe Schuirmann
I think this just shows how frustrating it is live in a HOA. My recommendation to the Board is to tell the homeowners what is going on and let them make the decision. Think if you hired a contractor and the contractor made the decision to change the scope without letting you know. 
 
 
 
Hiring an attorney to find out if you don't legally need to get all homeowners involved in the decision maybe legal but I don't think that it is ethical or a way to build a sense of community.
Posted @ Friday, September 03, 2010 7:46 AM by Cheryl Gowin
I too am the president of our HOA. When I purchased my unit, the HOA had a special assessment for balconies. It was in my contract that the seller would pay for the assessment, he put 7,000 into escrow. Our board also underestimated the cost to repair. Even though they hired a consultant and paid him 7,000, the job went badly. They should have fired the consultant when the bids came in at 20, 40 and 60,000 over his high end estimate. The lowest bid was 128,000 (20 units). The contractor tore down the ten front balconies and asked for another 20,000 plus 2,000 for a permit. That's the point when I got involved. I was the treasurer but refused to be held up by this contractor. We ended up in litigation. We never paid the contractor anything but the cost of the steel railings was owed to the subcontracted steel company. They wanted 66,000 for ten C-channels and 20 railings, I offered 32,000. Long story short, I found a great attorney who defended us for 17,000. I paid another contractor 80,000 to finish the balconies using the steel that was already on the property. The steel company decided to settle for 30,000. Our great attorney got 20,000 from the HOA and 10,000 from the original contractor. Total cost 117,000. 
 
The contractors are smooth and lots of them are corrupt. We are a small association, self managed but all residents are not equal. Not all residents are up to the task of management. Taking the drivers seat to get us free from these crooks has been two years of hard labor. The rest of the board members have either resigned or moved. We have 25% elderly, 50% foreign and 25% lazy. I have decided to do what I have to, to protect my investment. Respect? that road travels both directions. Some residents thank me daily while others just carry on doing as they please without regard for their neighbor. They have no pride of ownership. I take the stand that if they don't care enough to serve then I don't want their opinion. This building is forty years old and no previous boards collected reserves nor special assessments for major maintenance. The balconies are a good example of the neglect. I have been making repairs and charging each unit. If you ask for a vote, they will tell you to let it fall down (direct quote). Money is tight, but some things cannot wait. What should be done if there are no volunteers to serve on the board? I didn't buy a unit, I am the unpaid custodian of a twenty flat. The point is it's not always the HOA, sometimes it's the residents.
Posted @ Monday, September 27, 2010 9:09 PM by P. Jacob
My HOA has Special Assessed us 7 times since 2004. One of those years was for 3 sepperate Special Assessments in the amount of $520.00 for snow removal and repairs to roofs. 
 
We pay for repairs in our Association Dues so why did they special Assess us? 
 
 
 
We the Condo owners have NEVER been called to vote on these Assessments as stated in BY-Laws. 
 
We have never been informed or had a Annual Members meeting. 
 
We the Condo owners in my development do not know who the Boars/Trustee/Directors/Treasurer are. When we call the office we are told to call back. 
 
 
 
What direction should I go in with this?
Posted @ Wednesday, October 13, 2010 12:37 PM by Trudy Acrey
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