Assessments & Financials
Is assessing based on unit size or specific unit work an option, and do all units pay the same overall cost regardless of whether my building is in Priority 1, 2, or 3?
The current baseline proposal splits the special assessment equally across all 63 units. Because these repairs involve shared structural components (Common Elements) that impact the integrity of the entire building, our governing documents require special assessments to be divided equally (a 1/63 share per unit). This applies regardless of your unit's size or your building's priority stage. While the Board is gathering preliminary information—such as asking the contractor for numerical comparisons and consulting legal counsel—this is purely exploratory. The Board has not made any decision to move away from equal division, and an equal split across all 63 units remains the primary option under consideration.
I recently paid out of pocket for roof or parapet repairs on my unit. Can my assessment be reduced?
No. Because the structural roof decking, parapets, and building envelope are Common Elements, assessments are required by our governing documents to be divided equally as a 1/63 share across all units. If you feel past work included repairs to underlying components that were strictly the Association's responsibility (such as structural framing), you may submit your receipts to the Board for potential reimbursement consideration.
What happens if the contingency funds are not fully spent?
In the event there are surplus funds remaining at the conclusion of this project, the Board may allocate those unspent funds to address additional defect repairs elsewhere on the property. Alternatively, since the reserves are currently not 100 percent funded, the Board could deposit them into the Association’s reserve account to strengthen reserve health and help ease future monthly assessment requirements.
What are my personal funding options?
The Board is proposing structured assessment options to give owners time to prepare financially. We encourage checking your HO-6 policy for Loss Assessment Coverage. Coverage varies by insurer and policy, and only your insurance provider can confirm what your specific policy covers. Owners may also consult their own financial advisors, lenders, and banks regarding HELOCs or personal loans.
Can the HOA secure a commercial loan to stretch the assessment payments over 5 to 10 years?
The Board thoroughly explored securing a commercial Association capital loan but determined it is not in the community's best interest. At current commercial interest rates, a loan would add thousands of dollars in interest to the total project cost per unit. Furthermore, carrying massive commercial debt on the Association's balance sheet risks making the entire community "non-warrantable" under Fannie Mae and Freddie Mac guidelines, which prevents future buyers from securing traditional mortgages (meaning they would have to pay in all cash) and directly harms everyone's property values.
Can the special assessment be paid through regular monthly dues or the existing reserve funds?
No. The existing reserve fund is our community savings account dedicated to major capital restorations (e.g., paving, pool resurfacing, fencing). Reserve funds are specifically designated for normal, predictable lifecycle replacements, and contributions are dictated by our independent Reserve Study, which plans for predictable wear-and-tear and end-of-life replacement of these assets.
While we are currently funding our reserves above the recommended levels of the 2025 Reserve Study and above Fannie Mae and Freddie Mac requirements to provide funding for those lifecycle replacements, construction defects cannot be planned for in that manner. Diverting these funds to cover original construction defects undermines the community's financial plan, instantly depletes our safety net for routine replacements, and risks our Fannie Mae and Freddie Mac mortgage eligibility. Finally, the Association's current regular monthly dues are not capable of covering a project of this magnitude within the required timeline.
What happens if I cannot pay?
We deeply understand that an assessment of this magnitude presents a significant and stressful financial strain for many families. Unfortunately, as a condominium association, we are bound by our governing documents to maintain our shared structural elements to keep our homes safe. To protect the community, the Board is bound by our governing documents to follow standard collection processes. If funding falls short, construction stops—which would lead to worsening damage and negatively impact everyone's property values. We strongly encourage utilizing the adopted payment schedule or exploring the personal funding options listed above.
We just had a special assessment a few years ago, why again? Will there be more?
To protect homeowners from a single massive financial burden, the Board purposefully phased the original 2019 defect repairs over several years. Phase 1 repairs were paid out of the lawsuit settlement funds. The previous special assessment explicitly funded Phase 2. This current assessment specifically funds the mandatory Phase 3 parapet reconstruction. There are a few remaining defect items identified in the original lawsuit, and the Board is currently evaluating whether to include them in this phase or defer them to the next phase.
Timeline, Official Notices, and Effective Date
Note: The dates and timelines outlined below are provided for planning purposes only. Final dates will be officially determined by the Board depending on which option is selected.
When will the Board make a final decision, and what is the overall timeline?
Once the validation and assessment paths are vetted, the Board will schedule a special meeting to vote on the budget, including assessments, which will depend on scoping and start dates. The community will be made aware of the meeting and given an opportunity in the meeting to provide comments and input prior to the vote.
Why did the board pick this specific timing to fund and start the project?
These structural issues were initially identified in 2019, and recent testing confirms active damage is occurring. The Board has provided the options under consideration to assist owners in planning. While our initial goal was to kick off construction in January to get Priority 1 buildings sealed before spring hits, we are now considering a 4th option that would utilize a July start instead. Regardless of the option chosen, we will provide owners with at least the 30 days of advance notice required by our governing documents before the assessment becomes effective.
How and when will I receive official notice of the assessment?
If the assessment is approved, the Association will send an official written notice to the most recent mailing address you have provided on record. If you have not provided a mailing address, it will be sent directly to your unit. By law and per our governing documents, the HOA must provide you with this notice at least thirty (30) days prior to the assessment's "Effective Date". If the notice is sent by mail, it is legally considered delivered on the third day (excluding Sundays and legal holidays) after it is deposited in the mail.
What exactly is the "Effective Date," and if I sell my unit, who is responsible for paying the assessment?
The Board will officially set the Effective Date when they vote on the assessment. The Effective Date is simply the date the assessment is officially applied to the unit's account. For the Association's billing purposes, the owner of record on the Effective Date is responsible for the balance. If you sell your unit, the Association requires that any remaining balance be paid in full at the time of closing:
• Payment at Closing: During the sale process, the Association will report any outstanding balances to the closing/title company. The full remaining amount must be settled before or during the closing transaction.
• Payment Plans Cannot Transfer: The extended payment schedules (e.g., 6-month, 13-month, or 19-month options) are provided as a courtesy for current owners and cannot be transferred to or assumed by a new buyer.
• Buyer/Seller Negotiations: While the Association requires the balance to be cleared at closing, how that cost is handled—whether paid by the seller, the buyer, or split between them—is entirely up to the parties to negotiate in their purchase agreement. (Note: The Association cannot provide real estate or legal advice, so please consult your real estate agent or attorney).
If the Effective Date is proposed for October 31, do I have to pay the assessment on that day?
No. The Effective Date and the Payment Due Date are two different things. Please note that dates like October 31 and December 1 are examples only; the actual dates will be dependent on which option the Board ultimately selects. While the assessment formally attaches to the unit on the Effective Date, the Board plans to set the first payment due date later. This schedule intentionally gives homeowners advance notice to prepare before any actual payments are required.
Legal, Real Estate & Insurance
Why isn't the community voting to select the final payment plan, and what can I do if I don't agree with the assessment?
Under our governing documents, the elected Board has the fiduciary duty to enact repairs to the Common Elements and establish the necessary funding, which is why the assessment itself is not put to a direct community vote. However, the Board presented the options to gather community input, which will directly guide the final selection. Owners are strongly encouraged to email their preference to the dedicated email address phase3@thevinehoa.org for the Board to consider. If you disagree with the final decision, the community does retain the right to veto an approved assessment if at least 67% of the voting interests formally disapprove it either by a petition or at an official meeting of the Association.
Are there any additional lawsuits pending regarding these construction defects?
No. There are no pending or active lawsuits. Based on counsel’s guidance during the original litigation and settlement, the Association does not have any remaining legal avenues to pursue additional claims.
Will the Association's Master Insurance Policy cover this project, or is it covered by personal insurance?
From the HOA's perspective, this is not covered by the master policy because it is considered a construction defect. Following a thorough review with our insurance broker, it is highly unlikely the Master Policy will cover the remediation because there is no single specific incident (like a sudden storm or fire) that caused the defect. Furthermore, opening a claim with a low chance of success would negatively impact the Association's insurability and significantly raise rates for the next 5 years. Homeowners are strongly urged to check with their personal insurance providers to verify their individual HO-6 Loss Assessment Coverage.
Will this project keep the community in compliance with federal regulations?
Yes, the board believes addressing these deferred maintenance items will keep the HOA in compliance with tightened federal regulations regarding condominiums.
Project Scope & General Contractor Selection
Who originally identified the construction defects onsite?
Two third-party consultants, The Diehl Group Architects (DGA) and Forensix Consulting & Engineering, were hired during the litigation efforts to identify the construction defect issues. These engineering firms conducted intrusive testing and produced expert reports detailing their findings.
Why was Reconstruction Experts selected as the General Contractor, and did the HOA get competitive bids for the GC role?
Because repairing construction defects while residents are living in their homes is highly specialized, the Board used a qualifications-based selection process to select RE as the General Contractor under the Construction Manager at Risk (CMAR) model. The proposal from RE includes the scope of work based strictly on the stamped engineer drawings, and independent engineer oversight will be utilized throughout construction to ensure those repairs are executed exactly as designed.
RE was selected based on the following elite qualifications and history:
• Deep Historical Knowledge: RE has been intimately involved with The Vine since 2019. They assisted our third-party engineers with the initial intrusive testing, analyzed the expert litigation reports, managed pre-construction planning, and successfully executed our prior repair phases (including the 2021 garage lintel repairs and the 2024 window and Juliet balcony repairs).
• HOA Defect Specialists: RE specializes exclusively in luxury HOA repair projects. They have 10 offices across 4 states, over 24 years in business, have generated $1 Billion in revenue to date, are insured up to $9 million, and have proven, documented protocols to minimize disruption to residents.
What is CMAR, and why didn’t the Board competitively bid the General Contractor role?
No, the Board did not seek competitive bids for the General Contractor role. During the town hall, competitive bidding for the GC role was brought up. The Board considered this feedback but ultimately determined it is in the community’s best interest to continue to manage this project using a Construction Manager at Risk (CMAR) project delivery model rather than a traditional "lowest bidder" approach.
What is CMAR? Under CMAR, the contractor is brought in early to work alongside forensic engineers as a consultant on design, sequencing, safety, and budgeting before physical construction even begins. Once the design is finalized, they transition directly into the General Contractor role.
Why is it an accepted and preferred model? CMAR is a legally recognized, widely accepted construction delivery method. It is heavily utilized by major public institutions—including school districts, universities, hospitals, cities, and multifamily communities—operating under strict procurement laws. It is frequently chosen instead of traditional competitive bidding when complex buildings must remain safely occupied during construction.
The Board selected the CMAR model for this project because it:
• Provides early input on constructability and budgeting.
• Creates a single point of responsibility, eliminating disputes between the engineering design team and the contractor.
• Reduces owner risk by shifting financial risk to the CMAR during construction, shielding the HOA from cost overruns.
How do we ensure we are getting competitive pricing for the work if the GC role wasn't bid out?
While RE was selected as the GC without a separate bidding process, all actual physical construction work is competitively bid. RE does not self-perform the physical construction trades. To ensure the HOA receives the best market pricing for labor and materials, RE conducts a rigorous trade bidding process:
• Bids Based on Engineered Drawings: For each trade (masonry, waterproofing, scaffolding, carpentry, etc.), RE obtains competitive subcontractor bids based strictly on the engineer-stamped drawings. The Board does not review the individual bidding comparisons; instead, relying on the engineer-stamped drawings ensures every bidder is pricing the exact same scope of work.
• Transparent Pricing & Strong Warranties: As General Contractor, RE adds a 20% markup on those subcontractor bids to cover their project management, site supervision, and safety oversight. This is the same markup quoted by another contractor the Board has reached out to. Additionally, the Board has engaged our forensic engineer (CTETS) to provide an independent Opinion of Probable Construction Costs to further validate the pricing. Furthermore, the Board has negotiated a robust 3-year warranty from RE for the work, and RE will coordinate directly with the siding manufacturer to ensure the community receives the full manufacturer warranty.
What about getting bids from other contractors or ones recommended by homeowners to help reduce costs?
The reality is there are only a handful of contractors that have experience in this type of owner-occupied remediation of this scale. In addition, the Board has reached out to 3 other contractors for price validation and is engaging with the firm that responded. Owners are still welcome to suggest additional trade partners to phase3@thevinehoa.org provided the following guidelines are met:
Because Reconstruction Experts (RE) is managing the project, any recommended company would be working as a subcontractor directly under RE, not contracting directly with the HOA. Prior to submitting, the owner should verify with any contractor that they wish to be considered by RE for this purpose. RE will then perform their own internal vetting based on their strict subcontractor criteria to determine if the recommended company is qualified for occupied-space HOA defect-remediation work.
Why fix all units instead of just addressing the ones with noted issues?
The project engineer confirmed this is a widespread construction issue across the property. It is best to address the buildings as a whole because it is only a matter of time before the remaining units experience water intrusion like their neighbors.
How many units were opened up for the intrusive testing, and did you test any that didn't report active leaks?
About 9 or 10 units were opened during the most recent phase of testing, sampled from different buildings and phases of construction. While this recent testing focused on units with reported water intrusion, previous random testing done in 2018/2019 (which was not based on active leaks) found the exact same consistent construction deficiencies.
Was mold testing included in the unit inspections?
No, mold testing was not included in the scope of the inspections.
Are the roof drains (scuppers) causing the leaks?
The engineer found no issues with the roofs themselves; the active moisture intrusion is occurring at the parapet walls. While there may be slope or pooling issues near some drains, it is not the cause of the current water intrusion. Under the Second Amendment to our Declaration, the term "roof" means only the physical part of the roof located above the structural roof decking (i.e., insulation, roof membrane, roof flashing). This roof membrane constitutes a Limited Common Element allocated exclusively to the Unit, meaning its maintenance falls on the owner-responsible elements.
Can you talk about the missing waterproofing pieces that will be installed correctly this time?
Several different waterproofing deficiencies were identified throughout the community. These included improperly lapped weather barriers and flashings, missing or damaged weather-resistant barrier (WRB / building wrap), open or untaped seams, improperly flashed door openings, missing flashing tape at door jambs, exposed framing and sheathing behind the siding, parapet caps that were flat rather than sloped, unsealed coping joints, and incomplete waterproofing transitions at changes in materials and between vertical and horizontal surfaces. We also found standard building wrap being used on horizontal surfaces, where a self-adhered waterproofing membrane should have been installed. The proposed repairs will remove the existing exterior assemblies and rebuild them in accordance with the Charles Taylor (CTETS) details, creating a continuous waterproofing system from the bottom of the siding, up and over the parapet walls, and across all required transitions to provide a complete, properly integrated weather barrier.
Why is all the exterior Hardie board being replaced?
The Board determined that all exterior Hardie board across the property must be replaced because previous installations did not comply with manufacturer guidelines. Full replacement ensures master warranty coverage, properly integrates with new door flashings to meet engineer specifications, and maintains a uniform aesthetic and maintenance baseline.
Are the metal dividers/fences and iron roof railings included in the scope?
Yes, if the metal separation fences or iron roof railings were original "as-built" fixtures, their removal and reinstallation are included in the base scope. If an owner added them later, they are not included. Original fences will simply be reinstalled as they are, not replaced with brand new materials.
If a door has to be replaced during this process, is that included in the project scope?
No, replacing the actual doors or the door framing around the door is not included in the scope of this project.
Can additional exterior work (like vertical control joints, downspouts, or vent caps) be done while the lifts are already on site?
Yes, the Board is actively looking to maximize the use of the on-site equipment to save costs. For example, the Association is coordinating the caulking and replacement of exterior vertical control joints (a Common Element) to utilize the lifts while they are mobilized for Phase 3. Regarding owner-responsible items, such as the suggested replacement of aging roof downspouts and wall vent caps: Under the Declaration and its Second Amendment, these specific fixtures serve individual units and are not classified as utility lines, meaning they remain the maintenance responsibility of the individual owner. Because of this, the Association cannot fund their replacement through the shared Phase 3 budget. However, the Board is exploring whether RE can offer standardized opt-in pricing so owners can replace these items at their own expense while crews have access to the building elevations.
Are there remaining defects, and how many more phases are we looking at? Are any other repairs being added to this project?
There are a few remaining issues to address on the property, including second-floor balconies, grading issues, and the reflashing of the remaining 33 garages. We are looking at at least one more phase to address these remaining items, unless the board determines to add this scope to the current phase, which would result in an increased special assessment amount. The Board is obtaining estimates purely to understand the costs and will review them carefully before deciding whether to roll them into this project or defer them to the next phase.
Why was the project broken up into phases rather than addressing everything at once?
The original lawsuit (Cause No. DC-18-09536) only included the Phase 3 development (27 units) for damages estimated around $5 million. However, Phases 1 and 2 had the exact same issues that initiated the lawsuit. If you take that estimate across all 63 units, it exceeds $10 million—or over $160,000 per unit. The board has addressed these defects in phases and worked with our partners to prioritize and scope the repairs to ensure structural integrity and alleviate that huge financial burden on owners.
What is NOT included in this project and assessment?
The base construction scope strictly covers the exterior structural rebuilding and waterproofing. It does not include door replacements. Hidden sheathing and framing repairs due to rot are also outside the base scope. The RE proposal does include an $88,000 allowance to assist with these costs for rot. The Association will build additional contingency for this purpose. Additionally, interior unit repairs (such as drywall or paint) caused by leaks, and the removal or reinstallation of owner-added exterior improvements, remain the sole responsibility of the homeowner.
Construction Logistics & Owner Impact
How long will the construction take for my specific unit?
The total active construction time for each individual unit is approximately 3 days.
Will contractors need to come inside my unit?
No. All the work will be conducted on the roof. Contractors will use exterior lifts to access the workspaces, meaning they will not need to enter your home at any point.
Will parking or garage access be affected?
Garage access may be temporarily impacted when a lift is actively positioned in front of your building. However, the crews can easily move the lift if you need to enter or exit your garage.
If parts of the intended construction area are identified to be in compliance with necessary waterproofing, will they skip that section to reduce costs?
No, sections cannot be skipped. The forensic engineers (CTETS) have designed a continuous waterproofing system. Leaving unverified sections intact breaks the continuity of the weather barrier and voids both the contractor's 3-year workmanship warranty and the manufacturer's material warranties. Furthermore, verifying existing compliance requires destructive testing, which adds upfront costs. However, if demolition reveals that the underlying framing in your area is healthy and does not require structural rebuilding, it creates project savings. Those savings are retained by the Association to benefit all 63 units.
Do homeowners have to remove owner-installed structures (like pergolas) from their balconies, and how will we know what to move?
Generally, homeowners are solely responsible for removing their own installed structures and furniture prior to construction. Every rooftop deck is a little different, so the amount of work required to provide access will vary from unit to unit. During pre-construction, Reconstruction Experts (RE) will meet with each homeowner to review their specific rooftop conditions and identify what will need to be moved or removed before work begins. In many cases, this may simply involve relocating items within the deck, while others may require partial or full disassembly of owner-installed structures. RE will help guide each homeowner through this process and can recommend qualified trade partners. The Association will also allow owners to use community communication channels to organize shared removal costs with neighbors.
Will owner-installed pergolas need an approval process to be reinstalled?
Items that will be attached to the areas that were repaired or directly to the roof membrane will require a new ARC request to ensure they do not compromise the new waterproofing repairs or the roofing structure. It will likely require an engineer to determine proper installation. As part of the ARC process, owners agree to follow any permitting required by the city.
Community Communications
When were the leak surveys originally sent out?
The leak surveys were sent to the community last September.
How do I ask questions, and where can I find the presentation deck and other materials?
The board has set up a website at https://www.thevinehoa.org/projects/defect. The FAQ, official Board answers to resident questions, the recent town hall presentation deck, and other related information have all been added to this webpage for the community to easily access. Residents can continue to submit questions through this site so the answers can be published for everyone to view.