In a surprising turn of events, homeowners at the Villa Moura condominium complex in San Clemente, California, are grappling with a $26,000 emergency assessment for roof replacements. The sudden imposition of the fee has left many residents in financial turmoil and has sparked a legal battle over the legitimacy of the assessment.
The assessment, which was levied against each homeowner, has caused concern among the 198-unit complex's residents. Beverly Albright, an 81-year-old resident, expressed her distress over the situation, stating, "I will have to move. And this was my... I've worked very hard to make it so that I could be here."
The assessment has been met with skepticism by many residents, who believe the cost is excessive and question whether it was legally imposed. 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."
The homeowners are taking a stand against the assessment by seeking to recall members of the homeowner's association (HOA) board and by filing a claim alleging the board violated the law. Noah Martin, a homeowner at Villa Moura, argued that the project does not qualify as an emergency under state regulations and that residents should have been allowed to vote on how to address the roofing work.
Furthermore, residents have been warned that liens could be placed on their properties if they do not comply with the assessment. "They're threatening, also, to put a lien on our property if we don't comply and we don't pay," a resident said during a gathering of homeowners.
The residents assert that the HOA board has known for several years that repairs would be needed to the tile roofs. They contend that the roofs are not leaking and that only the underlayment needs replacement, not all of the tiles. "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," said homeowner Adam Dubin.
Michael Kushner, an attorney and HOA expert with MBK Chapman who is not involved in the dispute, 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 financial impact of the assessment has left some residents uncertain about how they will cover the cost. "Retired, single, what, lose my house? I wouldn't qualify for a loan to refinance. So where do you go?" Albright questioned.
The HOA board, which has remained silent on the matter, could not comment because of ongoing legal matters. Residents said they 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.
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