Reprinted with permission from HOAresources, the site powered by CAI with information and tools for condominium and homeowners association leaders. hoaresources.caionline.org

Contributed by Kevin Davis, CIRMS; Susan McClintic, Esq.; and J. David Rauch  

The collapse of Champlain Towers South in Florida in 2021 wasn’t just a tragic event, it was a wake-up call for community associations and maintenance plans and programs. Since then, insurers have gotten stricter, lenders more cautious, and lawmakers busier than ever. With a little discipline and a plan, you can secure a safe future for your community. 

In today’s environment, maintenance isn’t optional. It’s the foundation that supports your property values, protects the safety of homeowners, and keeps your community insurable and solvent. Insurance premiums are up 20% nationwide over the past year. In high-risk fire zones like parts of California, they’ve jumped over 500%. 

Ignoring maintenance may make it harder to get financing. Fannie Mae and Freddie Mac have created a blacklist of communities they identify as having deferred maintenance issues. If your community is on it, buyers can’t get conventional mortgages, and property values spiral down.  

States also are tightening regulations. Fewer insurers are writing policies. The market’s shrinking, and what’s left costs more and covers less. 

Preventive maintenance is about catching small problems before they become an expensive crisis. It’s not just about saving money. It’s about building a stable, thriving community. Here’s how to start: 

• Understand your real job. Boards often think their role is to keep assessments low, but the real mission is bigger: Maintain, protect, enhance the community, and increase home values.  
• Build a maintenance plan. Your community needs a basic plan listing major components such as roofs, plumbing, siding, and decks. The plan also should include how often these components should be inspected and serviced. Develop a full maintenance manual that documents tasks, schedules, and best practices for all components.  
• Budget for inspections and routine maintenance in your operating budget. 
• Fund reserves and adhere to your reserve study. 
• Work with quality service providers.   
• Choose an insurance broker. Your insurance broker is a strategic partner in reducing risk. Bring your community insurance and risk specialist into the conversation early. Share your maintenance plan and inspection records. Schedule loss control inspections to catch issues before they catch you. Focus on reducing water damage, preventing roof failures, and mitigating electrical and HVAC fire risks.  

Big special assessments cause panic, distrust, board recall, and turnover. Instead, focus on steady, sustainable growth through small, regular annual assessment increases. Cutting maintenance in tough times might seem like a quick win, but it makes the situation worse. 

Updating your documents can clarify maintenance responsibilities, strengthen reserve funding requirements, improve transparency for homeowners, and make your community more attractive to lenders and insurers. 

Maintenance is essential to prolonging building component lives, money, and even human life. Communities that take these steps will break free of legal, lending, and insurance constraints.  

Kevin Davis is with Kevin Davis Insurance Services in Los Angeles. Susan McClintic, a fellow in CAI’s College of Community Association Lawyers, is with Epsten in San Diego. David Rauch is with ProTec Building Services in San Diego.