I moved into my three-bedroom, two-bath condominium in March 2018. It wasn’t much of a move for me, since I was born and raised in Phoenix. Now that I had reached my retirement years, it seemed a good investment for my future as a single mother and grandmother. Despite unpleasant neighbors, it has been a good move for me. Until now.
A unit in our complex caught fire, which caused damage to the four connected units as well. As a result, the blanket insurance coverage, for the entire property of 48 units, was canceled by the insurance company. The insurance company cited the age of the buildings and the aluminum wiring inside the buildings as the main reasons for the cancellation. To date, we have been unable to find replacement insurance to cover the exteriors of the property, most notably the roofs, the common areas and the volunteer members of the HOA board. I serve on the board.
We have obtained the coverage for the common areas and the board members. As of June 1, 2024, we have no blanket coverage for the exteriors of the units. We pay a $253 HOA fee monthly, collected by our property management company. The company used two brokers in efforts to find the blanket coverage, which was unsuccessful. Alternatively, our management company enlisted the services of an attorney to rewrite our CC&Rs to require that individual units be insured by the individual homeowners.
To change the CC&Rs, it must be approved by the homeowners, who complete, sign and return a ballot. We emailed ballots to homeowners, then hand-delivered printed ballots with self-addressed envelopes to homeowners as well. The CC&Rs changes were provided in handouts as well as other information. We held several meetings to discuss the need for the changes with the other homeowners. Attendance was low.
The bottom line, only 33 homeowners replied out of the total of 48 homeowners. To pass, all 33, who responded, needed to approve the changes to the CC&Rs. The majority approved of the change, but those that dissented prevented it from passing. For my own protection, I, like many other homeowners, procured the full coverage for my unit.
Is this a trend among the condominium associations in the Sun City area? Are other associations experiencing similar challenges? If we must rewire our homes to bring them into compliance with current regulations, are there grants available to subsidize the extensive costs? What impact will this have for homeowners in a condominium who want to sell their home? Will it be required before a sale can happen or will it be deducted from the listing price? Will our Sun City leadership take on this critical issue? There are numerous condominium associations in Sun City. Looking for guidance here.
