‘I was shocked,’ cries homeowner charged $13k by HOA for work they didn’t need – they were given just a month to pay

HOMEOWNERS were left fuming after receiving a bill for over $13,000 from their HOA.

According to the HOA, the bill is for new roofs after the old ones allegedly sustained damage during a hail storm.

CBS NEWS COLORADO

Many of the HOA’s residents have refused to pay the bill saying that they did not sustain any damage, reported CBS News .

“It said that we owed $13,240 and it was due in July,” Castle Rock, Colorado resident Renee Griffith told the news outlet.

“I was shocked. It was a very high number. They didn’t even look at our roofs.”

According to Griffith, she and her fellow residents felt blindsided by the letter that was sent to them.

“I feel like I don’t need a new roof. We’re not having any leaks; we’re not having any issues,” Griffith said.

The woman’s sentiments were echoed by her fellow homeowners.

“We don’t know what all this money is going to cover,” said homeowner Deanna G.

According to the bemused resident, this would be her third roof in a decade.

The HOA Board told CBS that their insurance requires that if a certain percentage of roofs are damaged, all of them must be replaced.

Deanna told CBS that the letter stated that homeowners submitting a claim must do so through their personal HO-6 insurance, but many have encountered pushback.

Since each of the homes within the Castlewood Ranch Paired Owners Association shares a wall, all 218 residents are required to have HO-6 insurance policies .

The individual policy typically covers walls, while the HOA has its own external plan.

“A lot of the insurances are denying it because they want a breakdown per house or some are denying it because they won’t pay for another area’s deductible,” said Deanna.

Many of the homeowners within the community have claimed that they have received very little help from the HOA, however, the board told CBS that they have held regular meetings about the issue.

What is an HOA?

One in five Americans live in an area with a Homeowners' Association - or HOA. But what exactly is it that they do?

• An HOA is a homeowner’s association – an organization that aims to maintain a clean and cohesive place to live for its residents.
• Entire neighborhoods, subdivisions, condominiums, family homes, or townhouses within “a planned development” will often make up an HOA.
• They also act as a governing body for tenants, who run and fund the HOA through monthly fees.
• Their principal aims are to keep the community functioning and visually appealing and to maintain property values.
• They primarily focus on common areas of a neighborhood, such as roads, parks, and pools – but may also stipulate what residents can do with their properties, such as yards and driveways.
• Often these restrictions enforce uniformity on properties, for example, ensuring most houses look the same and all driveways are clear of weeds.
• An HOA rulebook of covenants, conditions, and restrictions (CC&R) is distributed to all residents, and an elected volunteer board of directors enforces these regulations.
• Breaking these rules can result in penalties such as fines and even litigation – as most HOAs are incorporated and subject to state law.
• HOAs are often the subject of controversy, with some members feeling that the rules are too punitive and restricting, or that the leadership has too much power.
• But others like that HOAs give communities the power of self-governance, and can ensure a degree of harmony between residents.

“We just want communication. We want a special meeting so that they can explain things better to the homeowners,” Griffith said.

Since then Griffith and her fellow neighbors have started a petition asking the board for more details and to be more transparent.

“It’s not that we’re not going to pay, but we want a breakdown because $13,000 is a lot of money for someone to come up with,” Deanna said.

The president of the HOA’s management company later issued a statement saying he would be pausing payments until they know more about the insurance carrier.

“The Board understands that homeowners need more time to deal with submitting a claim to their personal insurance representatives,” reads the statement.

“The Board is suspending late fees and late interest on the deductible assessment amount and will also not pursue any collection activity at this time concerning the deductible assessment.”

“The Association has communicated this information to the association members and will continue to send correspondence regarding the hail loss and claim.”

“We will be sending communications again toward the end of July informing the membership about the status and the suspension of late charges for August.”

CBS NEWS COLORADO

CBS NEWS COLORADO