Denver Post Interviews R & H on HOA Special Assessment Dispute

Homeowners associations across Colorado are facing growing financial pressures as rising insurance premiums, severe hailstorms, and construction costs lead to unexpected special assessments. For some homeowners, those fees amount to thousands of dollars. In one Colorado Springs community, a dispute over a $20,700 assessment has escalated into multiple lawsuits, leaving homeowners unable to sell or refinance their properties.

The Denver Post turned to Robinson & Henry Real Estate Senior Associate Robert Schifferdecker for legal insight into the complicated situation in the article, HOA special assessments batter Colorado homeowners with thousands of dollars in fees: ‘This has been a nightmare’. 

Schifferdecker represents 25 homeowners at the Soaring Eagles Townhomes Association, where disagreements over insurance coverage, the association's governing documents, and property management decisions have created a significant legal battle.

As the dispute shows, decisions made by HOA boards can have substantial financial consequences for homeowners. The Denver Post also covered this story in October of 2025. You can read more here: Denver Post Interviews R&H on HOA Lawsuit.

Soaring Eagles experienced a damaging hailstorm in August 2024 that affected the roofs and siding of every building in the community. Approximately one year later, the association issued each homeowner a $20,700 special assessment to help cover the cost of a $3.6 million construction project.

The assessment quickly became controversial. Homeowners questioned whether the association had followed its governing documents when purchasing its insurance policy.

According to Schifferdecker, the community's covenants required the HOA board to purchase an insurance policy with a $10,000 deductible. However, the board obtained a policy with a $3.2 million hail deductible.

That decision had significant implications for homeowners who had purchased individual HO-6 insurance policies based on the coverage requirements outlined in the association's governing documents.

“When you go get an HO-6, most insurance brokers look at governing documents and tell you how much you need,” Schifferdecker explained. “When the $20,000 special assessment came, most of the community was underinsured.”

Many homeowners had coverage for only $10,000 in catastrophic losses, including hail damage. Consequently, when the association levied the special assessment, residents found themselves responsible for considerably more than their individual insurance policies covered.

The dispute extended beyond the insurance deductible. The association's former property management company, RowCal, also became a focus of litigation.

According to Schifferdecker, RowCal received bids for the roof replacement project but accepted an offer from its affiliated construction company, even though it was not the lowest bid. RowCal Construction ultimately charged the association $3.6 million for the work.

Schifferdecker explained the financial breakdown to The Denver Post:

“So essentially insurance paid $400,000, and the homeowners paid $3.2 million,” Schifferdecker said. “That left all the homeowners holding that $3.2 million deductible in their hands. That was the special assessment that was roughly $20,700 per home.”

The assessment prompted homeowners to challenge the board's decisions. Some argued that the insurance policy violated the association's covenants, while others questioned the management company's involvement in the construction contract.

The disagreements led to additional lawsuits and counterclaims between homeowners, the HOA board, and the property management company.

The situation demonstrates how quickly an HOA disagreement can become a complicated legal matter.

“It’s messy and complicated,” Schifferdecker said.

The legal dispute has had consequences well beyond the original assessment.

Multiple homeowners refused to pay the $20,700 fee, arguing that the board's decision was improper. Others established payment plans. As a result, the association was unable to immediately collect the full amount needed to cover the construction costs.

The former management company subsequently filed liens against all 150 homes in the community, including properties belonging to homeowners who had already paid their assessments.

Those liens have created another layer of uncertainty. Homeowners cannot sell or refinance their properties while the legal dispute remains unresolved.

The association has also faced mounting financial challenges and filed for bankruptcy in July. Although the bankruptcy was later dismissed, the proceedings allowed the HOA to end its contract with RowCal.

Colorado homeowners living in HOA communities should understand that HOA governing documents can play an important role in determining how associations operate, purchase insurance, and collect special assessments.

Disagreements involving board decisions, insurance requirements, construction contracts, and management companies can raise complicated legal questions. Homeowners should review their association's covenants and bylaws, pay attention to board communications, and consider participating in HOA meetings.

Schifferdecker states that the best way to make change in your HOA is to be involved. He recommends that homeowners attend HOA board meetings or consider running for a board position to have a direct voice in decisions affecting their community.

When disputes arise, understanding the governing documents and the legal obligations of an HOA board can be critical.

The Soaring Eagles situation shows how a single insurance decision can lead to substantial financial obligations, prolonged litigation, and restrictions on homeowners' ability to sell or refinance their properties.

For homeowners facing similar disputes, seeking legal guidance can help clarify their rights and potential options before disagreements escalate. Call 866-530-2677 or book your consultation online to begin.