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SOLERA DIAMOND VALLEY | AUGUST 2021 3 SDV Lodge Construction Defect Litigation Several years ago, the Solera Diamond Valley Board of Directors entered into litigation against the developer, Pulte, who built the Lodge and all the homes in our development. The litigation was started because of excessive water leaks around the Lodge front windows, as well as other areas within the Lodge. Our Defect attorneys, Dicks & Coglianese LLP, filed suit against Pulte and a number of its sub-contractors for defects arising from their workmanship. Our attorney hired professionals to run tests and document the deficiencies that were the result of the builder and sub-contractors' workmanship. As homeowners, we contributed monetarily to the litigation by paying the Attorney and testing fees from our HOA Reserve fund. The decision to borrow from the Reserves was made by the Board in 2018. This decision to borrow from the Reserves is supported by CA Civil Code, §5520, which deems the borrowing as a "temporary transfer." All money borrowed will be repaid to our Reserves first, before any repair work starts. As reported at the June 24th Board meeting, after several years of litigation, Solera Diamond Valley received a settlement amount very close to one million dollars. After our Financial Advisory Committee gets financial accounts originated and our Reserve fund fully paid back, our Board of Directors will commence with repairs to the Lodge. Our staff will meet and have discussions with several contractors, looking for a project manager with expertise in construction defect repairs. With this in mind, we will get specific work done such as remove, inspect and reinstall the two windows on either side of the Lodge front doors, then inspect other windows for broken seals or signs of leakage. In addition, the Board will address any repairs needed to the roof area and clean off all water pathways. This would also be a good time to invest in a complete gutter system for the Lodge roof, so as to protect the windows from future rainwater runoff. The Board will also look at painting the complete exterior of the Lodge and other items that are on a high priority list, as established by the Project Manager and the Board of Directors. Above all, an important part of the defect repair project will be to keep all residents informed of the progress and how the repair funds are being spent. This will be done by the Board with additional support from the Finance Advisory Committee's defect repair documentation and financial oversight. Message from the Board By Jim Harris, SDV Board Member

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