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November 30, 2007
MOLD, MOLD AND MORE MOLD - Why Do You Let It Grow!
I got 5 calls this week on mold related issues. Most were from homeowners. They all related to water leak issues. The owners who needed help ranged from one who was facing a nearly $50,000 special assessment for clean up after a water leak in his pipes to one that was waiting for a stalled process of repair initiated by the HOA. Many HOAs have been working for the past few years to take steps to minimize the Association's risks overall (by engendering homeowner accountability and responsibility) when a leak occurs in an owners unit and that leak causes damage to the units of the neighbors below. Isn't it sad that the innocents who live below the incident suffer the most!
Even HOAs that have done the footwork necessary to spread some of the risk by making owners who allow leaks to occur over long periods of time for various reasons carry more accountability, and that have pushed owners into realizing they should also purchase insurance to protect themselves from liability from leaks and to restore their portions of the Units need to remain vigilant!!
Understand that if the Board of an HOA responds to any leak situation with the quip: "It's not our problem," those words may come back to bite - hard!
My approach with HOA Boards is to encourage owners to call when a leak is discovered in any condo or townhouse situation (yes - I said any condo or townhouse situation), to immediately investigate and start the work of creating documentation of the issue, whether it be to send someone out to assess what needs to be done, or to do it. Not all attorneys agree with my suggested strategy. Some tell boards to stay out entirely if a leak occurs in a townhouse where the owner owns the "lot".
In any event, the Board should use and suggest contractors, and consult knowledgeable and experienced vendors and lawyers who know what needs to be done in these situations.
It is important to note that even if the governing documents say an owner is responsible for the damage from leaks, if there is any possibility the leak involves the neighbors, the common area, or the association insurance coverage, all of which might involve duties or responsibilities of the Board ... the Board needs to know exactly what happened and needs to demand, or commandere, action to stop the "hemorrhaging" that occurs in the form of mold when a leak is left unattended.
Any given incident can escalate from a $2500 repair to a $50,000 repair, and beyond, and, when something is left to fester out of control, all parties involved, the HOA, the owner, the HOA insurance carriers, the owner's insurance carrier, and the adjuster all start to point fingers. It is then that a now $50,000 repair can escalate into a hundreds of thousands of dollars legal battle.
The moral of the story - act quickly and with the right kind of help! Document everything that you can. And do not bury your head in the sand as it leaves your *** exposed.
Posted by Beth Grimm at November 30, 2007 11:14 AM