Megan Blanda, a San Clemente condominium owner, recently faced an unexpected $26,000 emergency assessment from her homeowners association (HOA) for roof replacement. Blanda, who assumed monthly fees of over $500 were keeping up with maintenance, expressed anger, stating the roof had been neglected over the years. Her 198-unit complex, built in the 1990s, with units recently listed for about $1 million, is now demanding this significant one-time payment.
This situation is becoming increasingly common across California, according to experts, as many condominiums age. Contributing factors include a worsening state insurance crisis and new safety standards for balconies, which are leading to unanticipated costs for many condo owners. Some argue these rising fees are also affecting California’s expensive housing market, potentially discouraging first-time buyers who once saw condos as a more affordable option, particularly as new condo construction lags.
Michael Kushner, an attorney specializing in HOA law, who typically represents homeowners, noted that many condo complexes built during the early 2000s are now aging. He has observed an increase in emergency assessments surpassing $20,000 per unit, often due to long overdue upgrades. Updated balcony inspections, mandated by state law after a 2015 balcony collapse, have also led to expensive repair jobs, he said. Kushner recalled advising condo owners in another Orange County community in 2017 regarding an $18,000 assessment, which at the time was considered unusual. Now, he describes such “massive” fees as increasingly common.
Kushner often counsels residents on how to challenge fees and ensure they are assessed fairly and legally, expressing concerns that the emergency exemption for HOAs is overused. He suggests HOAs should plan for maintenance by increasing monthly fees and contributing to reserve funds, rather than imposing large emergency assessments. He also noted instances where boards have grouped various costs under a single emergency issue, when he argues assessments should address only specific emergencies.
However, Jacquie Berry, owner and founder of a company that reviews HOA documents and finances, said homeowners associations often struggle to secure funds for major repairs, especially if monthly fees have not kept pace with inflation or allowed for adequate savings. Berry indicated that most HOA board members are homeowners themselves and frequently avoid raising monthly fees, which can be unpopular with their neighbors, even as repair reserves dwindle.
In San Clemente, Blanda and a growing group of neighbors at the Vilamoura at Rancho San Clemente have united to oppose the unexpected fee. They have initiated a recall election to try and unseat the current HOA board. However, James R. McCormick, an attorney representing the homeowners association, stated that roof replacement is crucial, as leaks could cause major damage, particularly with a strong El Niño expected this winter.
McCormick acknowledged in a statement that maintenance on the condo complex’s roofs “should have been planned for and performed in prior years.” He explained that a recent report, which he said was written by an independent expert, prompted the HOA board to act swiftly in the residents' best interests. This report found that “without replacement, the roofs will continue to have leaks” and identified “sloppy” original tile installation and a “deteriorated” waterproofing membrane. Blanda and several neighbors contend that the roof replacement constitutes routine maintenance, not an emergency, and therefore should not be funded by an emergency assessment. They were informed the roofs would reach the end of their useful life last year, but argue the HOA board failed to proactively prepare.
Blanda and others running for seats in the HOA board recall election have obtained an estimate for a weatherproofing plan that they say would cost residents about $400 each, ensuring roof safety for the anticipated stormy winter, with future planning for full replacement. While the group considered suing the HOA, they worried litigation could extend for years. Residents have already begun paying the one-time special assessment, with many opting for a plan that amounts to about $2,000 per month, in addition to their regular HOA fees. The HOA board has also sent lien letters to residents, warning that missed payments could escalate to foreclosure.
Beverly Albright, an 81-year-old resident on a fixed income, said she cannot afford the $26,000, noting her children have had to provide financial assistance, and she is exploring borrowing money. McCormick stated the HOA board worked diligently to find the most cost-effective bid for the roof project, totaling $5.2 million, and that delays could increase the price. He also noted that the board recall process will incur additional costs for the HOA and will not alter the necessity of immediate roof replacement. Berry, the HOA compliance specialist, recommends that condo owners examine their HOA's financial reserves and actively participate in decision-making, such as attending budget meetings and asking questions.