Re: Mold advocates and HOAs.

August 27, 2006

An excellent advocacy website that can further assist you is ahrc.com. They

provide a wealth of information for those living in homeowner associations

concerned about the problems and issues homeowners are facing.

BUYER BEWARE, especially when it comes to any property within a homeowner

association-as with condos or otherwise. Everyone living in a homeowner

association should be aware of the following;

I do not know how familiar you are with homeowner associations, especially

with litigation so I will assume that this is new to you. If not, others who

are new to this here can learn. Tenants have more rights than those that

own deed-restricted properties within a common interest development, such as a

condo.

In a larger association with a property manager, management company,

association attorneys and board of directors, they can and do become an army

against

any individual or small group of homeowners that attempt to deal with

problems that a board of directors is ignoring and or concealing. Associations

can

and do become especially vicious when it comes to mold cases.

A board of directors in a homeowner association has a fiduciary duty to the

homeowner to maintain and repair common areas. They have a fiduciary duty

to disclose any circumstances that might adversely affect the health and

safety of a homeowner such as asbestos and or toxic mold. However, some

association attorneys in HOAs have claimed that an association is not

responsible for

disclosing a toxic mold problem to the owner unless they know that the owner

has been ill due to this from the time of discovery of this mold. Creating

of course, a catch 22 situation. However, the owner may be responsible for

disclosing a mold problem to a new buyer. There are a loopholes to the

disclosure laws for condos. Unfortunately, many homeowners in condos know they

have

a mold problem in their common walls, never remediate and sell their units

without disclosure. A new owner may remediate, but if the mold problem is in

an adjoining wall and in their neighbors unit that is not remediated, the

problem mold will return.

The fact is far to many boards ignore their fiduciary duties. Recalcitrant

boards need to be held responsible. When it comes to mold, most boards not

only not know how to deal with this, but most refuse to acknowledge a problem

taking place. Something you seem to be experiencing. My association concealed

a serious toxic mold problem taking place within my condo complex. Though

landlords can and do conceal and or avoid a mold problem as well, the

difference is that in a condo-you own and are responsible. Many times having to

fight

over problems with mold due to common areas.

When it comes to construction defects, depending on the age of your complex

and whether the builder can still be sued, your association attorney and or

other attorneys may be chomping at the bit to pursue this. Be wary of these

construction defect lawsuits. In some situations such as with the Folsom

condos they are necessary and the only option, but in other situations they may

become the cash cow for attorneys with homeowners being the losers. The

attorneys come out with most of the money and the money that ends up with an

association has been known to not go to fixing the problems or otherwise.

Contingency attorneys can and do take anywhere from an average of 40-50% for

taking on

these types of cases.

Anyone living in a HOA and thinking of suing needs to understand a number of

important factors especially for an individually pursuing litigation against

an HOA. First the laws are such in many states that if you loose your case

you can end up being held responsible for reimbursing the association the cost

of their attorneys fees. Some owners have been held individually

responsible for as much as $400,000 for these fees! Because of the costs of

experts

involved along with all the other costs taking an average individual mold case

to trial in California can cost an average of $250,000. I would assume the

costs in your state are similar.

If you have lost your case, still own your condo and end up owing the

association their attorneys fees, then the association is free to place a lien

on

your home and foreclose if you do not reimburse them these fees.

It sounds as if you might be pursuing a class action lawsuit. Most

associations as well as individuals are no longer insured for mold coverage or

slow le

aks, so money for litigation comes from the reserves. When you sue an HOA,

you are suing yourselves. Board members are indemnified. They are

individually insured along with provided legal representation at the cost of

homeowners.

Ideally, in litigation with a HOA the board of directors should be sued

individually and held accountable. Because of the costs involved, contingency

attorneys do not like to do this. Further creating challenges and obstacles to

holding a board accountable is the Business Judgment Rule for a board of

directors, which allows a board much wiggle room when it comes to their

negligent

actions in a HOA.

Further, you need to check to see what if any affiliations your association

and or its attorneys may hold with organizations. This can and will affect

you.

AHRC.com is your best resource for understanding homeowner associations and

litigation. I have some articles that I have written for this web site, one

called, _HOMEOWNER ASSOCIATIONS HOLDING THEIR FINGER IN THE DIKE _

(http://www.ahrc.com/new/index.php/src/news/sub/article/action/ShowMedia/id/2598\

) which

may give those not familiar with associations a better idea of what they can

be like. (Sorry I am unable to pull up the link for this right now, will

send in the next message) There are many articles to be found on this site

especially regarding construction defects. You would need to register and then

run a search. Once registered, you can write in questions and submit them to

the site.

There are multiple complexities when you are living in a homeowner

association. Every condo owner or any owner living in any type of common

interest

development should learn about the fact that homeowners within these

deed-restricted types of properties have few if any individual rights. The

right to sue

is something that proposed legislation here in California is attempting to

affect. You need to be familiar with the laws in your state as well as with

your CC & Rs.

Homeowner advocates are working hard in fighting for the rights of

homeowners, many of whom have had their lives and homes stolen from them by

ruthless

and corrupt homeowner associations and their attorneys. & This coupled with

those fighting for the health and safety of people affected directly or

indirectly through toxic mold exposure and all that comes with this, has

presented a

sometimes overwhelming challenge. A challenge worth fighting for.

Stay in touch and let us know what transpires.

In a message dated 8/27/2006 8:29:36 AM Central Standard Time,

sun2112jinx@... writes:

I am desperatly looking for an attorney dealing with mold issues that

do not require the whole damn inept home owners association to be

involved. The issue revolves around the HOA not wanting to

acknowledge that there is an issue with construction defects that have

caused this issue. A neighbor has already completely vacated the

premises ( townhomes ) but they have the funds to ignore the issue

whereas this is not an option with others in the community.

Unfortunetly, we live in the DC area ( home of all the lawyers that

chase ambulances, lobby congress and negotiate divorce settlements but

not a single home owners advocate!)Can any one help at least get a

name of an advocacy group or a lawyer we can speak to before we lose

our entire life savings because of an incompetant builder? Any help is

greatly appreciated.

August 28, 2006

it was my experience with condo associations you never could get them to agree

on simple matters much less a biggie.

bobbinsbiomed@... wrote: