Billback: Water Intrusion Notice

The information contained in this communication is to provide additional clarity regarding Villa Balboa’s water intrusion policy and the process regarding billbacks to homeowners as they relate to water intrusion events.

The Association receives many calls and work orders related to water leaks, water intrusions, drain back-ups and other items that must be repaired quickly to prevent further damage. Often these water intrusions lead to damage to the common areas of the building and/or neighboring units. When the Association’s staff or its vendors intervene to prevent further damage, they determine who is responsible for the faulty component (valve, pipe, drain, etc.) that has created the source of the water. If that source is a homeowner-maintained fixture, the homeowner is responsible for both the water intrusion repairs and repairs to common area components.

Containing the water

Water intrusion is a serious issue that must be addressed immediately. If the Association receives a call, the Association’s staff and its vendors have the right to enter your unit in order to determine the source of the water and stop the water flow.

Water intrusion repairs

Once a water intrusion has occurred, the Association must open up the walls and/or ceilings that were damaged to dry out the area and determine the extent of the damage.  This remediation must be done as quickly as possible, generally within 48 hours of the intrusion. The Association calls vendors that have been vetted and are familiar with our building’s systems to address both the cause and the extent of mitigation required.

What remediation includes

Remediation only includes the dry-out of the space behind the drywall, whether in the walls or the ceiling. This requires the removal of drywall in order to complete the dry-out.  The Association will only replace walls and ceilings inside a unit back to the bare wall (drywall, texture, and primer coat), not any improvements that may have been made. If items need to be moved or packed into boxes by the Association’s staff or its vendors in order for the work to be done, those additional costs will be billed back to the homeowner regardless of who/what caused the leak.

If another unit damages my unit

If another unit causes damage to your unit, the Association’s staff or its vendors will enter your unit to stop the water flow and begin remediating the common area space between the units; however, any additional repairs such as replacement of flooring, tiles, or cabinets and doors, must be coordinated between the impacted homeowners. It is the homeowners’ mutual responsibility to coordinate completion of related repairs and compensation; it is not an Association responsibility. Homeowners are encouraged to contact their insurance agent as soon as the damage occurs to explore their options for reimbursement.

If my unit damages the common area

You are responsible for all damages and costs of repairs to any common area due to a leak in your unit. If the Association’s staff or its vendor completes the plumbing portion of the repair, you will be responsible for paying the plumber’s invoice (see CC&Rs, Art. VII, Sect. 3) and/or reimbursing the Association for the completed work. When the Association completes remediation of the common area space behind walls and/or ceilings, you will be responsible for reimbursement of those repairs as well (see CC&Rs, Art. VII, Sect. 2(e)).

If the Association is the source of the water intrusion

If the Association is responsible for a water intrusion, it will make the repairs at no cost to you. The Association’s staff or its vendors will restore the damaged common area as well as any damage to the unit that may occur during the water intrusion or while gaining access to the damage-causing component. However, the Association is not responsible for repairing any interior improvements beyond the drywall damaged by the intrusion. The homeowner who sustained the damages may wish to file an insurance claim with their carrier for the remainder of the work.

Repairs not associated with water intrusion

Homeowners are responsible for maintaining their units. Items such as fire sprinklers, balcony waterproofing, plumbing fixtures and connections (to name a few) are always the homeowner’s responsibility to maintain and repair. In addition, costs to repair damage done by homeowners (or their tenants) to exterior walls, common area hallways and lobbies, carpet, equipment, and furniture are the responsibility of the homeowner. If repairs are necessary and required, the Association’s staff or its vendors will perform the repairs, and the Association will bill back the responsible homeowner. 

Unpaid maintenance and repair costs

The Association currently has an extensive amount of unpaid billbacks for work performed by its vendors for homeowner-responsible repairs as outlined above. Many

homeowners are disputing or failing to pay, which has placed an extreme cost burden on the Association. The Association cannot carry such a substantial liability, so it may and will place liens on units in order to secure and collect on the repair and bill-back costs. This will result in additional costs to the homeowner beyond the initial bill-back amount (see CC&Rs, Art. III, Sect. 8; see also

CC&Rs, Art. IV). Additionally, HOA legal counsel will send letters to these homeowners reminding them of their responsibility to pay. While these measures are necessary to reduce the outstanding billbacks, they are costly to the Association and unfortunately contribute to dues increases.

Options for payment plans are available to homeowners. The Association strongly suggests that you first file a claim with your insurance company. Additionally, if you are leasing your property, you should include in the lease the obligation of the tenant to carry appropriate insurance, and that they could be held responsible for their part in causing any damage.  

It is imperative that the Association reduce outstanding costs for repairs that are the responsibility of homeowners. Prompt payment by homeowners of these billbacks benefits the financial health of the Association, and in turn, the entire Villa Balboa community.

Thank you for your anticipated understanding,

Villa Balboa Community Association