'I was shocked,' cries homeowner who was charged $13,000 by HOA for work he didn't need

OWNERS left furious after receiving a bill for more than $13,000 from their HOA.

According to the HOA, the bill is for new roofs after old ones were allegedly damaged in a hailstorm.

Castle Rock, Colorado resident Renee Griffith says the HOA charged them more than $13,000.

According to the HOA, all roofs need to be replaced due to hail damageCredit: CBS NEWS COLORADO

Many residents in the community refused to pay the bill, saying they suffered no damage, CBS News reports.

“It said we owed $13,240 and it was due in July,” Castle Rock, Colorado, resident Renee Griffith told the news outlet.

“I was shocked. It was a very high number. They didn’t even look at our roofs.”

According to Griffith, she and her fellow citizens felt blindsided by the letter sent to them.

“I feel like I don’t need a new roof. We don’t have any leaks, we don’t have any problems,” Griffith said.

The woman’s sentiments were echoed by her co-owners.

“We don’t know what all this money is going to be used for,” said owner Deanna G.

According to the perplexed resident, this would be her third roof in a decade.

The HOA Board told CBS that its insurance requires that if a certain percentage of roofs are damaged, they all must be replaced.

Deanna told CBS that the letter stated that homeowners submitting a claim should do so through their personal HO-6 insurance, but many encountered denials.

‘People are going to lose their homes,’ homeowners cry after unexpected HOA letter demanding $60,000 for 20-year-old mistake

Since each of the homes in the Castlewood Ranch Paired Owners Association shares a wall, all 218 residents must have an HO-6 insurance policy.

The individual policy usually covers the walls, while the HOA has its own external plan.

“A lot of insurance companies deny it because they want ventilation per house or some deny it because they won’t pay another area’s deductible,” Deanna said.

Many homeowners in the community said they received very little help from the HOA. However, the board told CBS that they have held regular meetings on the issue.

What is an HOA?

One in five Americans lives in an area with a homeowners association – or HOA. But what exactly do they do?

An HOA is a homeowners association – an organization that aims to maintain a clean, consistent living space for its residents.
Entire neighborhoods, subdivisions, condominiums, single family homes, or townhouses within a “planned development” will often constitute an HOA.
They also act as the governing body for the tenants, who manage and fund the HOA through monthly fees.
Their primary goals are to maintain the function and visual appeal of the community and to maintain property values.
They focus primarily on a neighborhood’s common areas, such as roads, parks and swimming pools, but can also stipulate what residents can do with their properties, such as yards and driveways.
Often, these restrictions impose uniformity on properties, such as ensuring that most houses look the same and that all driveways are free of weeds.
An HOA rule book containing covenants, conditions, and restrictions (CC&Rs) is distributed to all residents, and an elected volunteer board of directors enforces these regulations.
Failure to follow these rules can result in penalties such as fines and even litigation, as most HOAs are incorporated and subject to state law.
HOAs are often the subject of controversy, with some members believing that the rules are too punitive and restrictive, or that the leaders have too much power.
But others, like this one, give communities the power to self-govern and can ensure a certain degree of harmony among residents.

“We just want communication. We want a special meeting so they can explain things better to the owners,” Griffith said.

Since then, Griffith and his neighbors have started a petition asking the board for more details and to be more transparent.

“It’s not that we’re not going to pay, but we want a breakdown because $13,000 is a lot of money to come up with,” Deanna said.

The president of the HOA management company later issued a statement saying they would suspend payments until they learned more from the insurance company.

“The Commission understands that homeowners need additional time to submit a claim to their personal insurance representatives,” the release reads.

“The Commission is suspending late fees and late payment interest on the amount of the deductible contribution and will not pursue any collection activities at this time regarding the deductible contribution.”

“The Association has communicated this information to association members and will continue to send correspondence regarding hail losses and claims.”

“We will send communications again near the end of July to inform members of the status and suspension of late charges for the month of August.”

Homeowners had to submit a claim through their personal HO-6 insurance, but many encountered denialsCredit: CBS NEWS COLORADO

Since each of the Castlewood Ranch Paired Owners Association homes shares a wall, all 218 residents must have an HO-6 insurance policy.Credit: CBS NEWS COLORADO