Real Estate & Property Law

"PATCH AND DEFER" IS NOT A GOOD OPTION

I recently received the following email from Robert Miller, Forensic Construction Expert, whose website is http://www.forensicconstructionexpert.com/. I think this is a very relevant and growing problem.

?Hello Beth,

I thought I would write to you to see if you have some insight into a growing number of "Patch and Defer" HOA's.

Each year I am asked to investigate a number of serious, ongoing water leaks at HOA properties that have been patched and or deferred.

So far the properties have been less than 10 units. Last year the numbers grew to 40 plus properties. The management companies for the properties are usually a one or two person office.

The directors on the boards seem to be vaguely interested in dealing with fixing the problems permanently.

Have you any suggestions as to what part of the HOA's responsibility clauses could be used to get more positive results??

My answer would be that most association documents require boards to take proper action to at least ?preserve and protect? and sometimes even ?enhance or improve? the association properties and this includes requiring owners to keep up their individual lots if the association does not have the obligation for the repairs. Additionally, ?fiduciary duty? requires boards to protect the assets of those whose dollars the board holds in trust and is charged to spend wisely. These responsibilities are legal responsibilities.

Unfortunately, that does not mean that all boards will readily understand the duties and responsibilities. Some board members run on the platform that they will keep the assessments low, and that does little to promote important saving for the necessary repairs and replacements of the major components. A very large percentage of homeowners associations in California are underfunded in reserves. Thus, when a question arises about whether investigative, forensics, or rehabilitative work should be done, unfortunately it?s easier to sweep it ?under the rug.?

Full post as published by California Condo & HOA Law on March 30, 2010 (boomark / email).