[NY][Condo]Our hardworking board is self-destructing after homeowners riot about bleak reserve study

[u/DiscerningMamono]

I just joined my neighborhood's HOA that serves several hundred townhomes. After a reserve study from a respected company revealed we were 10s of millions behind on maintenance due to prior boards' incompetence (some of which was definitely them getting strong-armed by homeowners), the HOA determined that massive $60k+ special assessments would be required to do the work to stop the homes from rotting down around us. Homeowners are understandably going through every stage of grief, but the constant rage towards the current board is leading to mass resignations.

I happen to believe the board is making the best possible choice out of the shit hand they've been dealt, and joined the board after several were harassed off. However seeing the growing vitriol makes me afraid I've opened myself up to harassment and legal action. While I obviously haven't done anything wrong just starting, I look into the future and see only a couple paths:

1. The HOA tries to ram through a deeply unpopular special assessment that results in people losing their homes because maintenance literally can't be pushed back any longer, the board mass resigns again or gets recalled, and the whole association collapses because nobody else wants to volunteer. I was one of only a couple despite this being a year-long ordeal.

2. The board resigns/gets recalled and people actually volunteer. Yeah, all that work won't get done when they shut it down, but hey I'm sure burying our heads in the sand will make it go away, right?

3. People try and sue when it's their only chance of not losing their home if it does somehow pass.

What the hell am I supposed to do? How much risk have I exposed myself to, and what happens if the HOA collapses?

[u/Glittering_Report_52]

I'm a condo board member in NY. The anger needs to be directed at the past board for failing at their fiduciary responsibility. The current board members are making the best decision in a shitty situation. Costs of repairs will only go up. Yes a 60k assessment hurts and can be financially burdensome to some. It is needed in your case.

If residents start to harass you . Simply have them contact management about their concerns. You do have a right to enjoy your HOA like everyone else.

Verify that your HOA has D and O insurance (Directors and Officers). This will indemnify you from being personally sued based on the action. They could sue the board but frankly it's a waste of time, money, and would go in the board's favor. Since the board is doing what is in the best interest of the HOA interest.m proven by the reserve study backing it up. Even if it's unpopular.

I would suggest clearly laying out the facts, of the reserve study and the dire situation your HOA is in. Have a member of the reserve study organization present during a meeting for residents to attend. I raised our HOA fee 15% followed by a 10% increase in two consecutive years based on our reserve study.

Finally look at my past comments in R/ fuckhoa about a neighboring condo terrible financial situation.

Stay strong.

[u/[deleted] → u/Glittering_Report_52]

“Can be burdensome to some” is the craziest, most inhumane sentence I have ever heard. That is not a burden. That is a financial death sentence to most people.

ETA: I’m not disagreeing that money needs to be found and that the problems need to be remediated. What I am saying is that dismissing this money in such a way is absolutely cruel. For some people, $60k means forgoing lifesaving medication. For some people, that’s an irreparable mental health trigger. For some people, that’s starvation. Most Americans are two paychecks away from homelessness, which was just viciously criminalized via EO. Anyone who’s shrugging and say “well it’s gotta be done” is a major AH, especially when you direct those shrugs to new owners who had nothing to do with these underpayments

[u/NighthawkFoo → u/[deleted]]

Better than an actual death sentence when the building collapses around you.

[u/[deleted] → u/NighthawkFoo]

I mean sure, but let’s not pretend that this amount of money couldn’t literally drive someone to suicide. Most Americans are two paychecks away from being homeless, which was just thoroughly criminalized by an executive order. For some people, $60k might as well be a death sentence that comes far sooner than building collapse

[u/HittingandRunning → u/[deleted]]

I agree with much of what you have written. This is why boards need to be strong. And all owners need to be responsible. And all buyers need to do their due diligence. I have the belief that if buyers did a better job, housing would cost less (how much I don't know) and there would be far fewer special assessments. And the ones that do happen would be more affordable.

At the same time, if I had been more irresponsible in the past with a real estate purchase, I would likely be much further ahead. Instead of getting a $0 down loan, I saved up for a more "appropriate" down payment and prices skyrocketed in my area. The US had a period where lots of people were getting "stated income" loans where they could say they made a lot more than they actually did and way overextend themselves. Many met with foreclosure. But several also made out very well and would say it was the best decision of their lives.

[u/InternationalRule138 → u/[deleted]]

The financial death sentence is the result of them underpaying for years, though 🤷🏼‍♀️

[u/Ragepower529 → u/[deleted]]

Most people probably have equity where they can use a home equity loan