A few months ago, we wrote to inform you that the HOA was in a crisis due to the real possibility of not being able to obtain Directors & Officers Insurance. Premiums have been increasing every year due to the litigious climate in California, and many companies are declining to insure HOAs at all.

D & O insurance protects the Board of Directors (BOD) and Architectural Committee (AC) from liability for the decisions that they make in upholding the CC&Rs, the main responsibility being to preserve our valuable views. If we were unable to have D & O insurance, we could not have an AC or BOD and each home owner would be left to enforce the CC&Rs on their own.

At the last minute, we were able to obtain an insurance policy the HOA could afford at a cost of $5,000 for the year, but with a $25,000 deductible per case. Previous deductibles have been $5,000. We currently have $48,000 in our account. Two claims would deplete our savings completely.

Many of you were, and continue to be, incredibly supportive of the BOD and the AC and we appreciate it. Several of you indicated support for calling for an emergency fund if the need arises and making a donation. We think now is the time to start this process.

If everyone gives a minimum of $100, we believe this will keep us solvent for the near future. Since not everyone will or can give $100, please think about giving more if possible. Our goal is to raise at least $15,000. We will keep it in a special fund just for the purpose of the insurance deductible. Since preservation of our most valuable asset, our views, is important to all residents, we hope to get a large percentage of homeowners to donate to this emergency fund.

Thank you again for the support you have shown us, and we look forward to receiving your donation. You may send a check to the above address, or donate online at: donorbox.org/cmho-reserve.