Colorado Townhome Owners Were Hit With $20,700 Hail Roof Assessments On A $3.6 Million Repair, And Now Liens On All 150 Homes Mean Nobody Can Sell Or Refinance

The notice landed in Beth Hayden’s inbox in May, and it changed her whole year. Her homeowners association told her she owed a $7,000 special assessment because every building in the Peachwood community in Aurora, Colorado, needed a new roof and the association did not have enough cash to cover its insurance deductible. The story comes from The Denver Post.

A row of colorful modern townhomes under a cloudy sky.

“I don’t have that money nor will I ever have that amount,” Hayden recalled thinking. “Who the heck has $7,000?”

“I’m Hoping The Lord Will Do His Part”

Hayden, 62, has lived in her Peachwood townhome since 2001. She retired early because of ongoing health problems and manages her finances on a strict budget.

She pays her mortgage, her $330 monthly HOA dues and her utility bills on time, but she does not have much left at the end of the month. The assessment will likely force her to sell and move to Indiana to live with her brother.

“If I get foreclosed and evicted, I don’t want to see the things I’ve worked so hard for out on the sidewalk and people going through it,” Hayden said. “I’m doing what I can, and I’m hoping the Lord will do his part.”

A May 2024 Hailstorm Set It All In Motion

The special assessment traces back to a destructive May 2024 hailstorm that pounded roofs across the neighborhood. A special assessment is a way for HOAs, condo associations and similar groups to collect money for unexpected expenses.

They are not unusual or new. But according to homeowners, lawyers, insurance industry experts and housing advocates interviewed by the Post, the amounts are rising as insurance costs soar in Colorado.

Community leaders report that insurance for common areas and buildings is getting more expensive and can strain or exceed reserves, if it can be bought at all. Rates are rising because of severe hailstorms and the threat of wildfires, and some insurers are pulling out of Colorado entirely.

Construction costs add to the pain. The National Association of Home Builders reported that material prices nationally were up 5% in July over the previous year, the highest year-over-year increase since December 2022.

“Every State Is Seeing This Issue”

Bryan Farley, president of Association Reserves of Colorado, a consulting firm, said, “It’s a problem we’re seeing throughout the country. Every state is seeing this issue where there are homeowners associations and they don’t have money. So what do we do?”

Colorado community associations have little oversight. There is no government body to settle disputes between HOA boards and their members other than district court judges.

Fights often turn neighbor against neighbor, as homeowners dispute fees or accuse board members of mismanagement. Often one or two neighbors become legal sleuths, poring over covenants and bylaws and emailing records requests to see the budget ledgers.

In Hayden’s community, some residents tried to overthrow the Peachwood Homeowners Association in a special recall election in October. Hayden stood at the community entrance with a sign urging neighbors to vote.

“It’s Messy And Complicated”: Liens On All 150 Homes

Recall elections are not the worst outcome. At the Soaring Eagles Townhomes Association in Colorado Springs, a series of lawsuits among the board of directors, residents and the property management company has led to liens on all 150 homes, whether or not the owner paid the special assessment.

No one can sell a house or refinance a mortgage until the legal case is resolved. “It’s messy and complicated,” said Robert Schifferdecker, a lawyer representing 25 of the Soaring Eagles homeowners.

A hailstorm in August 2024 damaged the roofs and siding of every building there. A year later, the association issued each homeowner a $20,700 special assessment to cover the deductible on a $3.6 million construction bill.

Heather McBroom bought her home after the hailstorm but before the assessment. Even though she had an HO-6 policy, the type designed for condominiums and townhomes, the deductible fell outside that coverage, so she was on the hook for the full $20,700.

“As homeowners, we have suffered,” she said. “This has been a nightmare.”

How To Brace For An HOA Special Assessment

You cannot stop a hailstorm, but you can soften the blow. Here are general steps for anyone in a condo or townhome community.

Check your own insurance. An HO-6 policy is designed for condos and townhomes, but McBroom’s left her deductible uncovered. Ask your agent specifically whether “loss assessment” coverage is included and how much it pays.
Ask for the association’s reserve study and its master insurance deductible before you buy, and again every year.
Attend meetings and read the budget. Boards that build reserves slowly make fewer emergency demands later.
Keep a small cash cushion, even a modest monthly amount, with special assessments in mind.
Ask whether the association allows payment plans, and ask in writing.
If a dispute starts, keep all notices and emails, and talk to a lawyer who handles community association law before liens enter the picture.

Hayden’s story and the Soaring Eagles fight share one lesson: the monthly dues are not the full cost of owning in an association. Knowing what is in the reserve account before the storm comes is the best protection a neighbor can have.

Willow and Hearth