HOAleader.com - Tip of the Week - November 27, 2015
Published: Fri, 11/27/15
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HOA Owner Repairs Basement. Waits Years. Seeks Reimbursement. What to Do?
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A reader has written in and asked how to handle an owner’s $8,000 request for basement repairs made in 2008. Yes, basement. And yes, 2008.
Our experts say a lot of necessary information is missing.
That said, here’s a summary roadmap of how you might proceed in evaluating this type of scenario. “I think we need to know more facts because there are a lot of issues here,” says Christopher J. Shields, a partner at Pavese Law Firm in Ft. Myers, Fla., who’s represented associations for decades. “The association and the unit owners need to determine what’s association property and what’s unit owner property. That’s the first step.
“Then they should look at their governing documents, not state law, to determine if it’s the association’s or the unit owner’s responsibility to maintain those areas,” adds Shields. “If it’s not clear in the documents, the board should take steps so it’s made clear.”
Agreed, notes Patrick Clark, president of Excel Association Management in Plano, Texas, which manages more than 100 condos and HOAs. “This reader’s not saying anything about documents,” he says. “That’s the one thing I tell all my clients: What do your documents say?”
“The third issue,” continues Shields, “is to determine whether the component was damaged as a result of a casualty event or not. If it was, then you look at the governing documents and state law to determine if the association has to insure that component or it’s the owner’s responsibility to insure it. If it’s simply a maintenance issue or a repair issue from wear and tear, then look at the governing documents to see who’s responsible.”
That’s a general roadmap.
Now assume for a second that the governing documents make this the association’s responsibility to cover. The owner still has a timing problem. “The statute of limitations appears to have way passed, so I don’t know that the owner would have a legal right to claim reimbursement for those expenses, anyway,” notes James R. McCormick Jr., a partner at Peters & Freedman LLP in Encinitas, Calif., who represents associations. “My initial response is, ‘Sorry, you waited too long to seek reimbursement.’”
That’s not the only problem the owner faces. Get details in our new article: http://www.hoaleader.com/members/1288.cfm
Best regards,
Matt Humphrey
President
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HOA Owner Repairs Basement. Waits Years. Seeks Reimbursement. What to Do?
A reader has written in and asked how to handle an owner's $8,000 request for basement repairs made in 2008. Yes, basement. And yes, 2008. Our experts say a lot of necessary information is missing. That said, here's a summary roadmap of how you might proceed in evaluating this type of scenario
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