WHEN AN HOA HITS OWNERS WITH A $26,000 BILL: LESSONS FROM SAN CLEMENTE’S VILLA MOURA

WHEN AN HOA HITS OWNERS WITH A $26,000 BILL: LESSONS FROM SAN CLEMENTE’S VILLA MOURA

If you own a condo or live in an HOA community, you may have seen the recent news out of San Clemente — and it’s worth paying attention to, wherever you live.

WHAT HAPPENED

Homeowners at the 198-unit Villa Moura condominium complex in San Clemente were each hit with a special assessment of more than $26,000 for roof replacement. The HOA board classified the project as an “emergency,” which allowed it to bypass the membership vote that’s normally required for an assessment of this size under California Civil Code Section 5610.

Residents are pushing back hard. They say the tile roofs aren’t leaking, and that only the underlayment needs to be replaced — not a full tear-off. Several owners also say the board has known for years that roof work would eventually be needed, which raises the question of why it wasn’t planned for and funded in advance through reserves rather than dropped on owners all at once.

One resident, 81-year-old Beverly Albright, told reporters she may have to move because she can’t absorb the cost. Others have started a GoFundMe to help neighbors who can’t pay. Homeowners are now attempting to recall board members and have filed a legal claim arguing the “emergency” designation doesn’t hold up and that owners should have had a say.

Here’s the part that surprises a lot of people: an HOA expert quoted in the coverage noted that even if an assessment is later found to be improperly imposed, owners generally still have to pay it first and dispute it afterward. California law doesn’t allow homeowners to withhold payment or offset it against other dues, and unpaid assessments can lead to liens on the property.

This isn’t an isolated case, either. A similar situation is unfolding in Modesto, where an HOA is pursuing a nearly $4 million special assessment for structural repairs — despite a budget disclosure filed just months earlier stating no assessment was anticipated and that reserves were sufficient.

WHY THIS MATTERS IF YOU LIVE IN AN HOA OR CONDO ASSOCIATION

Stories like this are becoming more common, and they’re a reminder that HOA governance and reserve funding aren’t just paperwork — they directly affect your wallet and your ability to sell your home down the road. Here’s how to get ahead of it.

GET INVOLVED IN YOUR HOA
Attend board meetings and read the minutes, even when nothing seems urgent. Boards that operate with little owner oversight are the ones most likely to make big, unilateral decisions. Showing up regularly also puts you in position to run for the board or influence who does.

REQUEST THE RESERVE STUDY
Every HOA should have a reserve study that estimates the remaining life of major components — roofs, siding, elevators, pools — and how much money should be set aside for each. Ask for the most recent one and check how old it is. A study that’s five or more years old, or one that keeps pushing out “estimated remaining life” without funding accordingly, is a red flag.

CHECK THE PERCENT FUNDED
Reserve studies typically report a “percent funded” figure — how much is saved versus how much should be saved for future repairs. Anything well below 70% suggests the association is underfunded and more likely to need a special assessment. In the Modesto case, reserves sat around 26% funded for years while dues kept climbing.

READ THE BUDGET DISCLOSURES
California HOAs are required to send annual budget disclosures to owners, including whether a special assessment is anticipated. Compare a few years of these side by side. If reserves have been flat or declining while known repairs loom, that’s worth raising at a meeting before it becomes an emergency.

ASK ABOUT DEFERRED MAINTENANCE
If you’re buying into an HOA, ask directly whether any major components — roof, plumbing, structural elements — are near the end of their useful life. Request past engineering or inspection reports, not just the reserve study summary. Sellers and listing agents are required to disclose known HOA issues, but a direct question rarely hurts.

UNDERSTAND THE “EMERGENCY” LOOPHOLE
Under Civil Code Section 5610, a board can only skip a membership vote on a large assessment under narrow emergency conditions. If your board ever invokes this, ask what specific criteria were met and request documentation. A problem the board has known about for years is a hard case to classify as a sudden emergency.

KNOW YOU MAY HAVE TO PAY FIRST, DISPUTE LATER
Under California law, owners generally can’t withhold payment on an assessment while disputing it, even if it’s later found improper. Understanding this in advance — rather than in the middle of a $26,000 surprise — helps you plan and avoid liens.

Thinking about buying into an HOA community, or want a second look at your own association’s financial health? Reach out to Jenni Pickard, ERA Donahoe Realty, for guidance.

Jenni Pickard 619-277-1349 | jennipickardrealestate.com | leejenni22@hotmail.com
ERA Donahoe Realty | DRE #02029884