Nordoff Place I HOA

C/O Citicore Property Management Inc., dba, Golden State Management Inc.
16909 Parthenia Street, Suite #105, North Hills, CA 91343 (818) 894-5805

Date: February 24, 2016

To: Homeowners
From: Board of Directors
Re: Necessity for Roofing Special Assessment

Urgent:

Nordoff Place 1 HOA DOES NOT have adequate funds to operate and
sufficiently maintain the common areas AND DOES NOT have reserves (savings) for long-term
maintenance, repair and replacement of capital improvements upon the common area!
When the new Board took over recently, they were faced with numerous issues along with a
sudden cancellation of the prior management company. The current Board quickly realized that
the HOA has been underfunded and monthly dues have been insufficient to meet the basic HOA
operating costs, which left very little room to contribute to reserves (savings), let alone account
for any unforeseen maintenance/repair issues. With due diligence, the Board acted on its
authority and fiduciary duty to raise the dues at a maximum for this year, reduced vendor service
expenditures and is actively taking all available steps to bring the HOA to a better financial state
as well as address overdue repair and maintenance issues.
The importance of an HOA roof cannot be overstated. Although it is not necessarily the most
visually prominent aspect of a building, a roof can account for up to 50% of a buildings total
surface area and represent up to 25% of the total building value. Hence, it has a direct effect on
your property value. According to the Reserve Study, there is NO more remaining life
expectancy remaining on the roofs. With the unseasonable effects of El Nino combined with the
deteriorated roof, several units have been affected by severe roof leaks that have caused
extensive damage to the unit interiors as well. The roofing experts that have evaluated the
condition of the roof and have advised that without roof replacement soon, many more units will
be affected. It has been determined that the roof can no longer be patch repaired, IT MUST BE
REPLACED. The integrity of the building and safety of residents is of serious concern with the
deteriorated condition of the existing roof. The need for a roof replacement is an emergency.
Because of years of budget constraints, inadequate monthly income along with unit
delinquencies, the HOA has not been able to maintain a reserve. Aside from the roofs many other
aspects of the HOA have also fallen into disrepair or require improvements. Unfortunately, the
reality is that the HOA must resort to levying a special assessment in order to pay for the
emergency roof replacement. Though no one, including Board members want to be faced with a
special assessment, there is no other way to address this critical matter.

The Board has reviewed roofing contractor proposals for the roof replacement. The Board has
acknowledged that a new roof is absolutely necessary at this time. The Board will be considering
the pros and cons of contractor proposals and will be selecting from two options: Option #1.)
Complete tear off with roof replacement, Option #2.) Overlayment with partial roof and
underlayment (plywood) repairs. The cost of Option #1 will be approximately $50,000 - $60,000
and Option #2 will be approximately $40,000 - $50,000. Therefore, the special assessment, per
unit will be as follows: Option #1, $2,800 $3,334 and Option #2, $2,230 - $2,800. The exact
amount will be determined once the Board selects the roofing proposal. Each unit will be
required to pay their portion of the special assessment within the time frame that will be
established. Failure to pay the special assessment may result in legal action which can include,
but is not limited to foreclosure. Because the Board is actively considering levying a special
assessment for roof replacement, please be advised that such information must be legally
disclosed through escrow, refinance, etc.
The Board will be holding another meeting to select a re-roofing contract and make a resolution
for the special assessment. As a homeowner, you are urged to attend. Notices of the meeting will
be forthcoming.
As a member of the Association, we understand that the investment value and condition of your
home is important to you. With such, the new Board is working diligently in addressing
significant maintenance issues that preserve and enhance the property, which in turn increases
the overall investment value. We are hopeful that offering you this advance notice will allow you
additional time to prepare for the upcoming special assessment.
Thank you.