HOAleader.com - Tip of the Week - November 5, 2021
Published: Fri, 11/05/21
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HOAleader.com - Tip of the Week - November 5, 2021
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In this week's tip, we explain why a California law requiring property inspections has application way beyond the state's borders.
The topic arises because an HOAleader.com reader got in touch to explain how his association is getting hammered by the cost of these inspections. "SB326 in California now requires all condominium units to have inspections with or by an architect or engineer every nine years. Decks, I believe above six feet in height and not over a raised portion of the building below.
"This, for many, is a deal breaker in rising costs. For 36 units, we have bids of $22,000-$29,000 just for the inspections and must have a contractor on site to open up the deck and then close it up. Note this is before any repairs."
Yikes.
But other communities, even those outside California, are having similar challenges with inspections, as a result of the condo collapse in Surfside, Fla. Is there anything you can do?
Our reader is referring to a California law that took effect in 2020, which we wrote about here. The law requires—among a slew of other things—that condo buildings of three or more units inspect "exterior elevated elements" for which they're responsible for repair or maintenance. Those include balconies, stairways, and even more aspects of properties.
There was a reason for the law. In California and elsewhere, the effects of deferred maintenance have been emerging, and in rare but tragic incidents, leading to balcony collapses that are causing injury and even deaths.
But our reader is certainly right that the law is leading to expensive inspections. "Yes, it's a huge issue here," reports Andrea L. O'Toole, a community association lawyer for 16 years and the founding partner at O'Toole Rogers in Lafayette, Calif. "It's a very, very expensive project for many associations to undertake the type of investigation that needs to be done by a structural engineer or architect.
"Communities might have dozens or hundreds of balconies they're dealing with, and they might even have dozens of buildings with lots of balconies," she explains. "It's a huge, unfunded exposure now. These associations should have been reserving for the inevitable, which is that you'll have to perform maintenance or repairs on these elements. But what they weren't preparing for is that the law requires that the inspections be done by qualified professionals, who don't come cheap.
Our experts in several other states are reporting similar stomach-punch inspection fees. Read more, including why one of our experts says you should probably be reserving even more than you are now, in our new article: https://www.hoaleader.com/members/4413.cfm
Best regards,
Matt Humphrey
President
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HOA Checklists: Your Road Map for an Entire Year of Homeowner Association Operations
This report is intended to be your road map for an entire year of operations that you begin using today and turn to for years to come. It provides you with checklists compiled by our editorial team with substantial input from experts on HOA operations and management from across the country to ensure you're steering your association in the right direction and not letting crucial issues slip through the cracks.
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Recent articles posted at HOAleader.com:
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Is This HOA Bylaw Request for Owners' Information Reasonable?
An HOAleader.com reader asks, "Our bylaws require that a co-owner fill out a sheet that lists the owner of the condo, who's living there, contact information, vehicle information, insurance information, and emergency contacts. The HOA was loosely run for a while, and these documents weren't always secured at time of purchase..."
Click here for more:
https://www.hoaleader.com/members/This-HOA-Bylaw-Request-for-Owners-Information-Reasonable.cfm
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Is it OK to Increase a Special Assessment to Fund Reserves (without Disclosing It)?
An HOAleader.com reader asks a question: Is it OK for a board to increase a special assessment amount to fund reserves (without fully disclosing the reserves part)? Here's exactly what our reader wants to know: "Last year the board stated that a $24,000 roofing assessment was needed to replace all of our roofs per unit. The board president stated if you can't afford to live here, you must move. The vote went out to membership, and the roofing assessment passed because of many lies the board president said..."
Click here for more:
https://www.hoaleader.com/members/it-OK-Increase-Special-Assessment-Fund-Reserves-without-Disclosing-It.cfm
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Can This HOA Board Declare This Issue Done and Stop Arguing?
An HOAleader.com reader asks: "I moved to a 14-unit HOA in November 2020 and was voted in as a board member in June 2021. Members met to approve continuation of paying two homeowners a total of $150 annually since their homes were covering the costs of water and electricity of common HOA swales and gate. One homeowner continues to fight this saying $150 annually is too much..."
Click here for more:
https://www.hoaleader.com/members/Can-This-HOA-Board-Declare-This-Issue-Done-Stop-Arguing.cfm
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What's New in Condo/HOA Lending
In the wake of the Champlain Towers collapse, there could be as many as hundreds of communities nationwide that have decided it's time to do structural work they've been delaying. Here, we interview an HOA-specializing lender to find out how HOA loans have changed over time and ask him, along with other experts, dos and don'ts for boards when you're considering a loan for HOA work.
Click here for more:
https://www.hoaleader.com/members/Whats-New-in-Condo-HOA-Lending.cfm
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Tips for Going from Banning to Permitting Pets in Your Condo/HOA
The owners in your building have declared that the current rules or governing documents must change, and pets are now approved. We set out to provide you tips for handling this transition. Here, we do a smidge of that, but more importantly, we report on the opposite. Our experts say the trend is going the other direction...
Click here for more:
https://www.hoaleader.com/members/Tips-for-Going-from-Banning-Permitting-Pets-in-Your-Condo-HOA.cfm
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