By Laurie Laughlin – Sun City
I moved into my three-bedroom, two-bathroom condo in March 2018. It wasn’t a big move for me, as I was born and raised in Phoenix. Now that I was reaching retirement age, it seemed like a good investment for my future as a single mother and grandmother. Despite unpleasant neighbors, it was a good move for me. Until now.
A unit in our complex caught fire, which also damaged the four attached units. As a result, the blanket insurance coverage for the entire 48-unit property was canceled by the insurance company. The insurance company cited the age of the buildings and the aluminum wiring inside the buildings as the primary reasons for the cancellation. To date, we have been unable to find replacement insurance for the exterior areas of the property, specifically the roofs, common areas, and the volunteer members of the HOA board. I am a member of the board.
We obtained coverage for the common areas and board members. As of June 1, 2024, we will not have blanket coverage for the exterior areas of the units. We pay a monthly HOA fee of $253, which is collected by our property management company. The company hired two brokers to find blanket coverage, but were unsuccessful. Alternatively, our management company hired an attorney to rewrite our CC&Rs to require that individual units be insured by the individual homeowners.
To change the CC&Rs, it must be approved by the homeowners, who fill out, sign and return a ballot. We emailed ballots to the homeowners and then also hand-delivered printed ballots with addressed envelopes. The CC&R changes were provided in handbills and other information. We held several meetings to discuss the need for the changes with the other homeowners. Attendance was small.
The bottom line is that only 33 of the 48 homeowners responded. In order for the motion to pass, all 33 who responded had to agree to the changes to the CC&Rs. The majority agreed to the change, but those who opposed it prevented it from passing. For my own protection, like many other homeowners, I have purchased full coverage insurance on my unit.
Is this a trend among homeowner associations in the Sun City area? Are other communities facing similar challenges? If we need to rewire our homes to bring them up to current codes, are there grants available to subsidize the high cost? How will this impact homeowner association owners who want to sell their home? Will this be required before a sale can take place, or will it be deducted from the list price? Will our leadership in Sun City address this critical issue? There are numerous homeowner associations in Sun City, and this is where you’ll look for guidance.
Reader reactions, for or against, are welcome at [email protected].
