In August of this year, the La Habra Storm Channel Sinkhole Repair Project (click here to read story) at the Coyote Village Condominiums officially began, securing $8.5 million in funds from the State to repair this sinkhole from the 2019 rainstorms. Upon publishing this story, the Observer received questions about why the State had to step in to fix the problem of a private HOA. The Observer investigated this issue, and this is the follow-up report:

In 2019, heavy rainstorms caused a 100-foot-long sinkhole to form between two rows of homes in a complex, disrupting residents’ lives and posing a safety risk. Subsequent storms expanded the sinkhole, increasing the threat to nearby homes and adding to the inconvenience and expense for homeowners.

“At the time of the collapse, we were not aware of the flood channel,” said Don Hasch, President of the HOA, in a phone interview. “Prior to the collapse, we definitely weren’t aware that it was the property of the HOA, it was shocking to us when the tunnel opened up.”

The HOA later found out that neither the City nor the County were willing to provide funding for permanent repairs (the County did emergency repairs at the time). The pre-COVID estimate for repairs was $3.5-$4 million. After COVID, due to inflation and increased costs of raw materials, the price for repairs increased to $8.5 million.

Don Hasch and City Public Works officials got State Senator Josh Newman involved.

The only other way the HOA could’ve covered that cost would be for the homeowners to have assessed themselves; it would have been $70K each. Many homeowners would have to sell their homes to fix this issue.

“It’s not about the HOA. It’s about what’s underneath it to make the storm system once again sound,” said Senator Newman in a phone interview. “I wasn’t doing a favor for anybody. To me, this was a problematic question: What would happen if a natural disaster occurred and the HOA would have gone bankrupt trying to do the repairs?”

The funding that Senator Newman helped secure ensures that the quality of life for the Coyote Village Condominiums’ residents will return. The hole in the property was attracting coyotes, mice, and insects. Homeowners lost their amenities (pool access, tennis center) and could not access one side of their properties.

“It’s one of those rare situations where everyone is winning,” said Hasch, expressing his gratitude towards Senator Newman and the La Habra City officials who got involved. “The water comes from Fullerton, and no one wants to see a huge hole in La Habra. We’re just excited about the resolution of almost six years of unknowns.”

The HOA has litigation against the City and the County. While certainly a story with a good resolution now, it makes one think about who should step in when climate change causes destruction on our public and private lands.