Homeowners at the Villa Moura condominium complex in San Clemente, California, are grappling with a sudden $26,000 assessment imposed by their homeowner's association (HOA) for emergency roof repairs, a move that has sparked widespread concern and resistance among residents.
The assessment, which affects all 198 units in the complex, has come as a shock to many residents, particularly as they question the legality and necessity of the assessment. Beverly Albright, an 81-year-old resident, expressed her distress over the unexpected financial burden, saying, "I will have to move. And this was my... I've worked very hard to make it so that I could be here."
The HOA board's decision to impose the assessment without a resident vote has also been met with criticism. Megan Blanda, a homeowner, commented, "They're not going to be able to afford this, and the board's response is to take out a loan, or take out equity of your house, or dip into your retirement, and I feel like that's just unacceptable."
Noah Martin, another homeowner, argued that the project does not qualify as an emergency under state regulations. "Clearly, it was not an emergency; it's a deferred maintenance. And so, then we as members should have a vote on how we want to take care of the roofs," Martin said.
Residents have also been warned that liens could be placed on their properties if they fail to comply with the assessment. During a meeting of homeowners, one resident expressed the group's concerns, "They're threatening, also, to put a lien on our property if we don't comply and we don't pay."
Despite the board's knowledge of the need for repairs to the tile roofs for several years, residents contend that the roofs are not leaking and that only the underlayment needs replacement, not all of the tiles. Adam Dubin, a homeowner, said, "What we would like to do is have multiple bids competitively submitted and actually negotiate those bids in the best interest of the homeowners. As the board should be doing with their fiduciary responsibilities to us."
Michael Kushner, an attorney and HOA expert, noted that large special assessments have become more common and that homeowners generally must pay assessments even while challenging them. "Homeowners have to pay those, even if they're completely illegal. They have to pay them and then dispute them. California law doesn't recognize the right of offsets, and you can't withhold payment," Kushner said.
The assessment has left some residents uncertain about how they will cover the cost. Beverly Albright, for one, questioned, "Retired, single, what, lose my house? I wouldn't qualify for a loan to refinance. So where do you go?"
The HOA board has remained silent on the matter, citing ongoing legal issues. Residents are considering filing a lawsuit against the board. Experts also advise homeowners living in HOA communities to consider loss assessment coverage as part of their insurance policies, which can help cover emergency HOA assessments.
As the situation unfolds, the Villa Moura residents find themselves at the center of a debate over the responsibilities and limitations of HOA boards, the financial impact of such assessments, and the rights of homeowners in such communities.
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