COLORADO SPRINGS, Colo. (KOAA) — Homeowners in a Colorado Springs HOA say they are stuck in legal limbo after a hail insurance dispute resulted in mechanic's liens being filed on their properties.
The Soaring Eagles community is located just northeast of Milton E. Proby Parkway and Hancock Expressway. News5 first spoke to residents in September when they were protesting a special assessment. The issue stemmed from a hailstorm that happened on or around Aug. 1, 2024.
Attorney Robert Schifferdecker of Robinson & Henry said many homeowners believed they had adequate insurance coverage based on the homeowners association's governing documents, which limited the association's insurance deductible to the lesser of 1% of the insured value or $10,000.
Instead, he said, the HOA obtained a $3.2 million deductible after a major hailstorm damaged nearly every roof in the community, leaving homeowners responsible for roughly $21,000 each through a special assessment. Some residents had adequate insurance; others did not.
"They were doing everything right," Schifferdecker said. "They were following what the governing documents of the community said they needed to do, and unfortunately, the board decided that it wasn't going to follow the governing documents."
The attorney alleges the HOA's property management company, RowCal Property Management, advised the board to award a $3.6 million roofing contract to an affiliated construction company, RowCal Construction & Maintenance, despite receiving bids that were significantly lower.
"I think RowCal Property Management is who is responsible for putting Soaring Eagles, the community, into this situation," Schifferdecker said.
Now, he said, RowCal Construction has filed mechanic's liens against buildings in the community while the underlying lawsuit remains unresolved. According to online records, more than 50 notices were issued at the start of June by RowCal Construction & Maintenance CO LLC in Colorado Springs.
According to Schifferdecker, the validity of those liens is being challenged because he believes they were filed after Colorado's statutory deadline.
"If the contractor tells the person who's hired them that the work is done, that means it's done," he said, referring to correspondence he says showed the roofing work was completed in November.
The lawsuit over the insurance deductible and HOA decisions remains pending in court, with several motions awaiting rulings from a judge. Mediation was unsuccessful.
Schifferdecker said the homeowners are seeking a ruling that would relieve them of liability for the disputed assessments and hold RowCal accountable for its role in the project.
"My clients are fighting the fight on behalf of all of their neighbors, not just themselves," he added.
News5 tried to contact RowCal multiple times for several weeks with no response. On Monday, News5 contacted the law firm representing RowCal Construction & Maintenance, and we received a statement after asking what their response to the lawyer's claims was.
"Because this matter is now before the court, it would not be appropriate to comment further on the specific allegations or legal claims outside of that process," a statement from a lawyer representing RowCal reads. "Both RowCal Management Co. and RowCal Construction & Maintenance look forward to presenting the facts through the judicial process and remain committed to a fair resolution."
Kaylin Stepien, who served one term on the board and was president for several months, said the liens affect all homeowners, even those who paid their assessments.
"I want the community to know that this is a very big deal and it affects everybody," Stepien explained. "We could be foreclosed on. Everybody could be foreclosed on. It could go through the process of being foreclosed, and we could lose our homes, and the board has not communicated anything to us."
Stepien criticized what she described as a lack of transparency from the current board, saying, "The board needs to talk to us. We need a town hall. We need to know what our rights are."
She also urged homeowners to review their insurance coverage to avoid similar situations.
"Please, I'm asking everybody ... to look at that and make sure you have proper coverage," Stepien added. "If you have proper coverage, then you won't be sitting in the position that, unfortunately, a lot of our homeowners are sitting in."
Schifferdecker added that there is no clear timeline for resolution.
"RowCal really just decided that they were Goliath... we're the biggest person in this industry, and we're going to throw our weight around, and we're going to do whatever we want regardless of the situation," Schifferdecker said.
The claims remain allegations until resolved in court.
"RowCal Management Co. values the communities it serves and takes its responsibilities to residents and homeowners' associations seriously," another statement from RowCal's lawyer reads.
News5 tried to contact a number associated with the current HOA board president, and we did not receive a response.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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