Residents of the Vilamoura at Rancho San Clemente condominium complex in San Clemente recently received notices for a one-time emergency assessment totaling $26,000 per unit to fund roof replacements. This decision, levied by the complex's homeowners association (HOA), has prompted a group of residents to initiate a recall election for the current HOA board.
Megan Blanda, a long-term resident of the 198-unit complex, expressed shock and anger at the assessment. She stated that residents “can’t throw a $26,000 bill at us because the roof has been neglected all these years,” despite previously paying monthly fees exceeding $500, which she assumed covered maintenance. The Vilamoura complex, built in the 1990s, faces significant repair needs, according to the HOA.
Experts in homeowners association law and finance confirm that such substantial emergency assessments are increasingly common across California. Michael Kushner, an attorney specializing in HOA law, notes a growing number of emergency assessments surpassing $20,000 per unit, often for long overdue upgrades. This trend is attributed to the aging of condominium complexes built during the early 2000s building boom, a worsening statewide insurance crisis, and compliance with new safety standards for balconies, which are now required by state law after a 2015 collapse in Berkeley.
The challenges HOAs face in funding major repairs are significant, particularly when monthly fees have not kept pace with inflation or allowed for sufficient savings in reserve funds. Jacquie Berry, owner of a company that reviews HOA documents and finances, highlights that most HOA board members are homeowners themselves, often reluctant to raise monthly fees due to potential unpopularity among neighbors, even as reserves dwindle.
James R. McCormick, an attorney representing the Vilamoura at Rancho San Clemente homeowners association, stated that the roof replacements are critical to prevent major damage from potential leaks. He acknowledged that maintenance on the complex’s roofs “should have been planned for and performed in prior years.” McCormick cited a recent report from an independent expert, which indicated that without replacement, the roofs would continue to leak, potentially causing “catastrophic interior damage.” The report identified original “sloppy” tile installation and a “deteriorated” waterproofing membrane as contributing factors.
Blanda and other residents contend that the roof replacement constitutes routine maintenance rather than an emergency, arguing it should not be funded through an emergency assessment. They point out that they were previously informed the roofs would reach the end of their useful life last year, suggesting the issue was foreseeable and should have been proactively addressed by the HOA board. The group running in the recall election has secured an estimate for a weatherproofing plan, which they claim would cost approximately $400 per resident to ensure safety through the winter, allowing for future planned roof replacement.
The financial strain on residents is considerable. Many have already begun paying the one-time special assessment, with some payment plans amounting to about $2,000 per month in addition to their regular HOA fees. Beverly Albright, an 81-year-old resident on a fixed income, reported she does not have the $26,000 and is exploring borrowing options, with her children providing financial assistance. The HOA board has also issued lien letters to residents, warning that missed payments could escalate to foreclosure.
McCormick affirmed that the HOA board diligently sought the most cost-effective bid for the total $5.2 million roof project, cautioning that delays could further increase the price. He added that the ongoing recall process itself will incur additional costs for the HOA. McCormick maintained that “this recall process will not change the status of the roofs or otherwise obviate the need for immediate roof replacement.” As residents navigate these financial challenges and the recall election, experts like Berry advise condo owners to actively scrutinize HOA budgets and attend meetings to stay informed and involved in decision-making processes.
