Denver Post Interviews R&H on HOA Lawsuit

When a summer hailstorm hit the Soaring Eagles Townhomes in Colorado Springs, residents expected repairs, but not a $20,752 bill from their homeowners association. 

Some homeowners turned to Robinson & Henry Real Estate Senior Associate Robert Schifferdecker for help. The Denver Post interviewed Schifferdecker in the article After hail battered this Colorado neighborhood, the HOA sent homeowners $21,000 repair bills.

Schifferdecker represents 21 of the 150 homeowners. They are fighting back in what could become a pivotal case for HOA accountability across Colorado.

At the center of the dispute is whether the Soaring Eagles Townhomes Association had the authority to purchase an insurance policy that included a multimillion-dollar deductible. The residents say it violates the community’s governing documents.

“I think that my clients are just reeling from the fact that… without their authorization, without their knowledge, and without any power to change it, (they) have been subjected to this astronomical deductible that really just made the HOA itself self-insured,” Schifferdecker said.

The Soaring Eagles community’s declaration, signed in 2006, limited the HOA’s insurance deductible to no more than $10,000. However, in recent years, the deductible has increased to 10% of the community’s total value, or approximately $3.1 million.

When an August 2024 hailstorm caused extensive roof and exterior damage, the HOA filed a claim and then divided the deductible evenly among residents. For many homeowners, the resulting $20,752 special assessment came as a shock.

Some residents’ personal insurance covered the cost. Others who had relied on the limits set in the HOA’s own documents were not prepared. Attorneys for the HOA argue that their hands were tied by the realities of Colorado’s insurance market.

Schifferdecker and his clients are not convinced. They argue the HOA failed to do its due diligence when securing coverage.

“Just because the HOA didn’t get an insurance price that they liked, to have the deductible that matched, doesn’t mean that it’s impossible,” Schifferdecker said. “The HOA just didn’t exercise all of its available resources and… do all of its due diligence in looking for insurance that fits its covenants’ requirements.”

Frustrated homeowners sent a letter to the HOA board and its management company demanding that construction stop, contracts be voided, and collection efforts suspended. 

The HOA responded first by filing its own lawsuit four days later. The association is seeking a declaratory judgment, asking a judge to interpret the governing documents and clarify whether the board acted within its rights.

Schifferdecker said his clients are asking the court to rule that the HOA violated its own rules and cannot pass the cost of its insurance decision to homeowners.

“That’s the issue with the entire ordeal,” Schifferdecker said. “The HOA had other ways to handle this matter. You know, maybe they didn’t do the right thing at the front end, but they certainly also didn’t do the right thing on the back end by special-assessing and forcing this amount of money on everyone.”

The case is now pending in El Paso County District Court. It could set a powerful precedent for communities across Colorado as homeowners associations navigate rising insurance costs amid the state’s growing hail risk.