Rogers Townhome Owners: Two New Roofs, Thousands in Costs

Residents of the Dutch Knolls townhome community in Rogers, Minnesota, are grappling with a $16,400 assessment for new roofs—a mere two years after a previous, complete roof replacement. The unexpected bill, delivered in mid-November with a December 15th deadline, caught many homeowners off guard. Most were unaware that their homeowners’ association (HOA) had filed an insurance claim, and several residents claim their roofs show no signs of damage. While some homeowners will have their insurance cover the cost, others lack the appropriate coverage or sufficient funds to meet the obligation.

The ensuing tension culminated in a contentious meeting between homeowners, HOA board members, and the property management company, Sharper Management. Residents expressed outrage over the lack of communication regarding the insurance claim and questioned the necessity of replacing relatively new roofs. Following the heated meeting, the payment deadline was extended to January 31st.

Sharper Management’s CEO, Dan Cunningham, defended the HOA’s actions, stating that they were obligated by fiduciary duty to proceed with the insurance claim after an inspection revealed damage. He attributed the lack of resident awareness to low HOA meeting attendance. Cunningham also questioned the likelihood of an insurance company willingly paying out a claim without evidence of damage. This situation underscores the potential financial burden HOAs can place on residents, often leaving them unaware of their HOA’s power until it’s too late to challenge decisions. Non-payment can result in liens and even foreclosure.

The issue has drawn the attention of Minnesota state legislators. A legislative working group, formed this year to examine the impact of HOAs and common interest communities, is exploring potential reforms. There’s bipartisan interest in addressing the power of HOAs, as evidenced by statements from both Republican and DFL representatives expressing the need for greater HOA accountability and transparency. A December 5th listening session in Maple Grove heard testimony from numerous homeowners affected by HOA disputes, including some from Dutch Knolls.

The HOA’s insurance claim stems from a July 13th wind and hail storm. While the HOA letter stated all roofs sustained damage, many residents conducted independent inspections, finding no evidence of hail damage. This discrepancy highlights the potential for conflict between homeowner assessments and insurance company evaluations. Insurance broker Eric Skarnes clarified that HO-6 insurance, while often mandated by mortgage companies, frequently offers insufficient coverage or has high deductibles. He emphasized the importance of homeowners proactively reviewing and adjusting their HO-6 policies to ensure adequate protection against HOA assessments.

The Dutch Knolls experience is not unique. In 2022, residents faced a similar situation, requiring a separate $3,592 assessment for roof replacements. This incident, along with the current controversy, underscores the vulnerabilities of homeowners within the existing system. The lack of transparency, coupled with a contentious community meeting, exemplifies the challenges residents face when contesting HOA decisions. The impending spring roof replacement date leaves Dutch Knolls residents with limited options, highlighting the urgent need for reform within the HOA system.