Thursday, June 19, 2014

Condo owners in showdown with HOA over plans for $15K charge for repairs |

Condo owners in showdown with HOA over plans for $15K charge for repairs |

The condo death spiral strikes again.  I expect stories like this to become more common every year, as condo buildings (and HOA common elements) wear out and residents discover that (a) they don't have the money in reserves to repair/replace; (b) there is no insurance coverage for wear and tear; (c) they can't get a loan, or it would be prohibitively expensive; and (d) local government or a judge forces them to pay for the repair.

"NORTHGLENN, Colo. — An emergency community meeting in Northglenn Tuesday night pits condo owners against their homeowner’s association (HOA) in Westminster.

Owners of homes at Prospector’s Point are upset with their HOA, which they say has mismanaged their dues—and now they’re forced to pay the price.

CAP Management says homeowners will have to come up with between $5 to $7 million to pay for serious repairs that could affect residents’ and visitors’ health and safety.

There’s the peeling paint, the crumbling sidewalk and disintegrating drywall.

“The property has been neglected for the past 10 years. Partly because of the recession, partly because of poor construction, initially. But now the community is at a state where the city is requiring we do $5 million dollars of work,” says Chris Crigler, of CAP Management, which took over managing the HOA about a year-and-a-half ago.

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