Uncovered documents reveal decades-long structural issues as Modesto HOA pushes $4 million assessment

CBS News

29-05-2025

MODESTO — Homeowners at Walnut Orchards Condominiums in Modesto are facing a sudden $25,000 special assessment to repair structural issues with decks, stairs, and landings. But decades-old records show these problems may not be new.
The Walnut Orchards Homeowners Association (HOA) claims the repairs are necessary due to age and deterioration, stating: "The property was built in 1981. There's no way we can confirm the maintenance performed since then."
However, a 1996 engineering report obtained by CBS13 reveals that many of the same issues were already documented nearly 30 years ago, including rotted balconies, unsafe stair landings, and water damage. That report estimated repair costs between $2 and $6 million at the time.
In 2019, the current HOA board approved a reserve study estimating most balconies had a remaining life of 25 to 30 years. That same board is now claiming that 77 out of 80 balconies need immediate replacement.
Despite this shift, a 2025 budget disclosure filed in September 2024 stated no special assessment was anticipated and that reserves were sufficient to fund major repairs. Just months later, the HOA began pursuing a $3.96 million special assessment, with designs already completed and contractors reportedly selected.
Monthly HOA dues have risen nearly 80 percent since 2020, from $325 to $582 per unit. But reserve fund health remains virtually unchanged, increasing from 26% in 2019 to just 26.5% in 2025.
While the HOA claims 41.7% of monthly dues go to reserves, no documentation has been provided to reconcile that with stagnant reserve growth.
Management company Common Interest, which oversees the property, maintains that the community has been regularly maintained. But a video filmed in April shows workers saying the roofs and gutters had never been cleaned prior to that day. One is heard saying, "By the looks of it, I don't think so."
Some residents fear they could lose their homes if the assessment proceeds. Ballots determining whether the community will take out a loan to pay the assessment are scheduled to be opened on May 28.
CBS13 has reached out to Common Interest and HOA board representatives multiple times since March but has received no comment.