J & N REALTY, INC.

Whose Responsibility Is It?  

Maintenance, Repair and Replacement of Facility Components 

Maintenance, Repair & Responsibility Obligations Come From: 

•Governing Documents 

•Davis-Stirling Act 

•Historical Precedent 

•Legal Risk of Inaction 

•Insurance Requirements 

Maintenance, Repair and Replacement Responsibility Dispute Scenarios 

•Ordinary maintenance & repair 

·         Exterior common area projects 

·         Plumbing, electrical, etc. 

·         What’s Involved: common area? Exclusive use common area? Part of the unit? 

·         Why is this important?  

•Casualty losses (water intrusion, mold, etc.) 

•Reserve planning 

•Architectural alterations 

Maintenance, Repair and Replacement Responsibility Analysis 

STEP ONE: Ask the Four W’s 

·         Who? 

·         What? 

·         Why? 

·         Where? 

STEP TWO: Check the Governing Documents 

·         CC&Rs 

·         Architectural Rules 

·         Maintenance repair and replacement matrix. 

·         Ask: What is it?  Is it a separate interest (part of the unit or lot) exclusive use common area, or common area? 

·         Ask: Who takes care of it?  Is the allocation of responsibility clear? 

STEP THREE: Check the Davis-Stirling Act  

·         1351:  Definitions of common area, exclusive use common area, and separate interest 

·         1364:  Allocation of responsibility, wood destroying pests, and relocation costs 

STEP FOUR: Check other Sources 

·         Hold harmless agreements 

·         Insurance issues 

·         Following form master policies 

·         Bare walls vs. all inclusive master policies 

·         HO-6 policies 

·         Precedent 

Application of Analysis 

•A condominium owner calls your office and reports that the waterproofing on their balcony has cracks and splits and the neighbor below is reporting a leak.  

·         Step One:    Who, What, Why, Where 

·         Step Two:    Governing Documents 

·         Step Three: Davis-Stirling Act 

·         Step Four:   Other Sources 

•A homeowner reports water leaks and stains around her windows in her condominium, and that her $25,000 custom drapes are ruined.  She also claims a mold condition and immediately moves out.  

·         Step One:    Who, What, Why, Where 

·         Step Two:    Governing Documents 

·         Step Three: Davis Stirling Act 

·         Step Four:   Other Sources 

The Neutral Manager 

•It is not your fight. 

•If the community does not support it, they can change it. 

Ten Question Test To Determine Preferred Lines of Responsibility 

·         Economies of scale? 

·         Easy access? 

·         Traditionally HOA responsibility? 

·         Equally used? 

·         Covered by master policy? 

·         Precedent? 

·         Visible? 

·         Same for all owners? 

·         Neglect impacts all? 

·         Owners willing to fund?