HOA's obligations to maintain and repair property

Started by KyleP • 8 replies • 2476 views

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KyleP (Florida)
Posts: 26

Posted:

My situation:
According to our governing docs certain parts of every unit (tri-story) are managed, maintained and repaired by HOA. One of these is the basement slab & foundation. My basement slab has been diagnosed by professionals as having heaving and cracking issues (due to expansive soil and drainage issues) which are in turn causing minor (so far) issues
to dry walls (cracks), tile floor (cracks) and windows & doors that do not open and close properly. There is also large separation gap between footing and slab allowing lots of cold air and insects in (under carpet). Radon tests are still pending but are higher than previous tests. Slab rises 1 and 5/8 inch and slant in noticeable by naked eye.
My neighbors building directly next to mine had similar issues a few years ago and the HOA elected to have the building mudjacked. I believe that is what will be necessary for mine as well. So far the only suggestion by HOA is to seal/caulk gap and cracks that are reachable (not under carpet or bath stall.
My concern is that, by law I now need to declare these defects of my property to potential buyers and I will be financially at a disadvanatage in my prospects to sell if the basement/foundation issues are not adressed correctly/properly.
I believe the HOA feels we do not have adequate funds at this time for mudjack repair and will want to delay or say it's not needed.
Can I ask HOA for insurance policy (my home owners insurance feels HOA needs to make repairs)?
Should I get an attorney? Don't want to go this way.
Has anyone had similar issues and give me options/recommendations.
I feel that the basic function of an HOA community is for our pooled dues for funding of maintenance needs to be adequate for that task. We have used much $ over the years addressing other unit basement/foundation/drainage issues and it appears we have more to deal with. Can an HOA simply say sorry your SOL because
we used up funds on other buildings? Should they consider special assessment to get funds back up to better levels or dues increase? Thanks for you consideration

PatrickS7 (Florida)
Posts: 7

Posted:

Kyle,

I don’t have much advice to offer but have another avenue to try depending on the age of your home. Have you tried going back to the original developer to see if they will address the issue? In Florida we have up to 10 years to seek funds to repair faulty workmanship by the original developer. Your HOA should handle the claim against the original developer.

KyleP (Florida)
Posts: 26

Posted:

Patrick,
Our buildings are nearing 30 years and developer/builder long gone.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I am not sure if you have to disclose this condition to a potential buyer or not. A potential buyer should have their own inspector come and inspect the home. It would be on the inspection report shared amongst both parties then. That list is then negotiated between the two parties if a sale of the house can be made.

A HOA is only funded by it's members for it's members. If your HOA has to pay for this repair, then they may need to hold a special assessment. A special assessment is typically voted on by a majority of the membership. Which means the HOA may need to hire their own expert to evaluate the situation and then present it to the membership to decide to address the issue or not. The HOA can decide if this is an issue they want to address or not.

In the meantime, I would make sure to fix what you can. No one's house is perfect. Minor settling issues on an older property should be expected. I wouldn't toss the baby out with the bath water just yet...

Former HOA President

JeffR7 (California)
Posts: 251

Posted:

Kyle, you might have a difficult time collecting from insurance. There doesn't seem to be an 'insured event'. This could be a building defect or similar but that's usually not covered by insurance.

KyleP (Florida)
Posts: 26

Posted:

I was advised by an attorney that I would need to disclose the basement and foundation issues, which then means I would need to disclose that basement slab is maintained and repaired by HOA. I am not allowed by docs to repair - this is not my property. I have not asked for HOA to make repairs to dry wall or floors, doors or windows either (although, just as a leaky roof damages dry wall and interior which the HOA is obligated to repair all - and have done so in other buildings). DOcs support this is HOA property and precedent has been set by repairs of others slabs in the past few years. One is a sitting board member, and I was also a board member.
Will not all property values decline if I cannot sale my unit at the
price others go for simply because I have a defective basement?

BradP (Kansas)
Posts: 2,640

Posted:

Quote:

Posted By MelissaP1 on 01/06/2012 8:39 AM
I am not sure if you have to disclose this condition to a potential buyer or not. A potential buyer should have their own inspector come and inspect the home. It would be on the inspection report shared amongst both parties then. That list is then negotiated between the two parties if a sale of the house can be made.

If you have knowledge of a home defect you have to disclose it, not doing so opens you up to severe issues. I don't know about all states but the two I have bought and sold homes in had an exhaustive questionnaire dealing with yes or no answers as to whether you were aware of issues on almost anything.

My advice, ask the board through written communication how they plan to and when they plan to address these issues. Any documentation you may have from insurance company or contractors should be used as supporting documentation. Reference your CC&R's and reference the repair to the other building.

At this point I would try to stay as civil as possible, but also firm. I would not involve a lawyer at least that they are aware of just yet. Attend meetings and bring this up in the public forum section. See what response, if any, that you get from them.

Document all and if it seems like they are workign with you and making progress go with it. If they shut down is when I would get a lawyer involved. At the end of the day this will take time, repairs of this magnitude don't happen overnight.

I would just be careful how you approach the board, if you are seen as a threat they will clam up real quick and any progress will be hard. At the end of the day you may have to involve an attorney, but usually no one leaves happy when that happens.

KyleP (Florida)
Posts: 26

Posted:

BradP,
Thanks for your level headed approach. Truly I prefer not to have attorneys involved & only asked one about the issue surrounding disclosure upon property sale issue.
I have gone through our governing docs and they do say foundation and subflooring (any unfinished surface) are common elements to be maintained/repaired ONLY by the HOA.
I do not expect this to be reolved quickly and know these things take time and may need to settle for a temp fix just to keep radon levels down, and hope they can figure out how to budget for more "concrete" repair down the road.
Can I ask if anyone knows if, since the basement slab is property of the HOA as a common element as stated in docs, does the HOA then need to disclose defects to potential buyers just as I do?

BradP (Kansas)
Posts: 2,640

Posted:

Kyle

i don't know on the disclosure since I am not real familiar with this type. I do like your approach and I will say protecting your home which is anyone's largest investment in my opinion warrants pulling out all the stops. If the HOA is responsive and wants to play ball then great, if not I see no issue involving an attorney.

Good luck!

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