Homes.com Seeks Legal Insight on HOA Lawsuit
When a 2024 hailstorm caused more than $3.5 million in damage to a Colorado Springs townhouse community, the fallout exposed a growing crisis many Colorado homeowners now face. Homeowners are dealing with skyrocketing insurance deductibles and costly HOA assessments.
The Soaring Eagles Townhomes HOA in Colorado Springs is suing a dozen residents who refused to pay roughly $20,700 each for roof repairs. Homes.com turned to Robinson & Henry Real Estate Senior Associate Robert Schifferdecker for his legal perspective on the case that’s drawing statewide attention.
Homes.com interviewed Schifferdecker in the article Colorado lawsuit underscores rising HOA, insurance cost pressures. Shifferdecker is representing 12 of the homeowners who are refusing to pay.
“The homeowners specifically that I represent are saying that they should not have to pay the special assessment because the HOA breached its own governing documents by having an insurance deductible of greater than the limitations within the declaration,” Schifferdecker said.
The HOA’s policy carries a $3.1 million deductible, which is around $20,700 per unit. Schifferdecker and his clients argue that the HOA’s own declaration caps the deductible at $10,000 per unit, meaning the special assessment violates the HOA’s governing rules. The HOA contends that a $10,000 deductible isn’t available in the current insurance market.
“The association is claiming that they’ve known about this issue where they couldn’t get insurance for a while now, and they’ve failed to do anything about it,” Schifferdecker said.
Schifferdecker explained that the board could have legally amended the declaration through a 67% homeowner vote, but it never made the attempt. Instead, the HOA cited the Colorado Common Interest Ownership Act’s “Doctrine of Impossibility,” arguing that lower deductibles are unavailable in the market.
Schifferdecker disputes that interpretation, saying cost alone doesn’t make something impossible. His clients believe the HOA failed to act in good faith in aligning its policies with its own governing documents, an issue that the courts will now decide.
The Soaring Eagles lawsuit isn’t just about one community. It’s part of a much broader trend. Across Colorado, residents are facing double insurance costs, as they are hit with higher premiums on both their individual homeowner policies and their HOA master policies.
Schifferdecker believes this case can be a wake-up call for HOA members across the state. He emphasized the importance of transparency, preparedness, and participation.
“Make sure you talk to the board. Make sure you know how much the insurance deductible is for your HOA, and make sure you tell that to your personal insurance,” he said.
He added that homeowners should be proactive rather than reactive when it comes to HOA decisions. “If you do see something that you think is a violation of the [Declaration], say something and be proactive about it, and don’t wait until it gets to a point where you’re staring down a barrel of a $20,000 assessment,” Schifferdecker advised.
Both sides expect the case to move through El Paso County Court in the coming months, with motions to resolve it by year’s end. Schifferdecker has also been interviewed by The Denver Post about the case.
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