The Daybreak Townhome 1 Special Assessment, Explained
What is the Daybreak Townhome 1 special assessment? It's an added monthly HOA charge, roughly $240 a month for about 20 years, or a one-time lump sum of about $31,000, covering repairs for construction defects found across roughly 400 units in the Daybreak Townhome 1 Owners' Association. It does not apply to every townhome or condo in Daybreak, only units within that specific sub-association.
We'd rather you hear this from us before you fall in love with a listing than find out at the title company. It's the highest-stakes cost question we get about Daybreak townhomes, and it deserves a straight, sourced answer instead of a reassuring paragraph that skips the hard part.
This page is general information, not legal or financial advice, and it isn't a substitute for reviewing the actual HOA resale certificate and disclosures for a specific unit. Talk with your agent, a real estate attorney, and your lender about how this applies to any home you're considering.
What Happened
Starting around 2015, the Daybreak Townhome 1 Owners' Association identified construction defects across the townhomes built within its boundaries, including leaking windows, water intrusion, wood rot, and roofing problems. The association brought claims against the original builders, including Holmes Homes and Hamlet Homes, seeking to recover repair costs estimated at the time to run into the tens of millions of dollars.
Settlements were reached with some of the named defendants over the following years, but the association's remaining claims were ultimately dismissed by the court in 2022, with each side responsible for its own legal fees. That outcome left the Townhome 1 association short of what it needed to fully fund repairs through litigation recovery alone, which is what led to the special assessment.
What It Actually Costs
Owners in the Daybreak Townhome 1 Owners' Association pay roughly an additional $240 a month on top of their regular HOA dues, a cost structured to run for approximately 20 years. Owners who'd rather not carry it as a long-term monthly line item have the option to pay it off up front as a lump sum of approximately $31,000 instead.
To be clear about scope: this affects roughly 400 units specifically within the Townhome 1 association. It is not a Daybreak-wide charge, and it is separate from the base Daybreak Community Association fee and any other sub-association or Benefited Service Area dues discussed in our Daybreak HOA guide.
How to Verify Whether a Specific Unit Carries It
Because this assessment is tied to one specific sub-association rather than the whole community, the only reliable way to know if it applies to a home you're considering is to check directly, not to guess by neighborhood or home type. Before writing an offer on any Daybreak townhome or condo, we pull:
- The current HOA resale certificate, which discloses any active or pending special assessments
- The sub-association's most recent financial statements and budget
- Confirmation of which sub-association, if any, the specific unit belongs to
If you're working with us, this is a standard part of how we review any Daybreak Townhome 1 listing before you get emotionally attached to it.
What It Does to Financing and Appraisal
A known special assessment can affect a purchase in a few practical ways. Lenders reviewing a condo or attached-home loan typically want to see the HOA's financial health, and an active special assessment is something underwriters ask about directly. Depending on how a specific lender treats it, an assumed or remaining special assessment balance can factor into debt-to-income calculations, similar to any other recurring obligation. Appraisers may also consider a known assessment when evaluating comparable sales and marketability. None of this means financing isn't available, buyers regularly close on homes carrying this assessment, but it does mean it should be disclosed and accounted for early, not discovered during underwriting.
How Sellers Should Disclose and Price It
If you own a home in the Daybreak Townhome 1 Owners' Association, Utah's disclosure requirements mean this assessment needs to be disclosed to buyers as part of the transaction, whether you're paying it monthly or already paid the lump sum. Trying to skip past it rarely goes well; buyers who feel blindsided after the fact tend to either walk or renegotiate hard, and it can create real liability for a seller who didn't disclose properly.
The better approach is pricing with it in mind from the start. If you've already paid the lump sum, that's a genuine selling point worth highlighting clearly. If the monthly charge is still active, we help sellers understand how buyers and their lenders are likely to weigh it, and price accordingly rather than being surprised by a lower offer later.
Frequently Asked Questions
What is the Daybreak Townhome 1 special assessment?
It's an added monthly HOA charge on top of standard Daybreak Townhome 1 and master association dues, put in place to fund repairs for construction defects, including window, water, wood, and roof issues, discovered across roughly 400 units built in that association.
How much is the Daybreak Townhome 1 special assessment?
Affected owners pay roughly an additional $240 a month, on top of their base HOA dues, for a term of about 20 years. Owners also have the option to pay it off as a one-time lump sum of approximately $31,000 instead of paying monthly.
Does every Daybreak townhome have this special assessment?
No. It applies specifically to units within the Daybreak Townhome 1 Owners' Association, not every townhome or condo in Daybreak. Buyers should always confirm which sub-association, if any, a specific unit belongs to before assuming this assessment applies.
What happened with the Daybreak Townhome 1 lawsuit?
The Townhome 1 Owners' Association sued several original builders, including Holmes Homes and Hamlet Homes, over alleged construction defects. Settlements were reached with some defendants, but the association's remaining claims were dismissed by the court in 2022, leaving owners responsible for funding the repairs themselves through the special assessment.
How do I find out if a Daybreak home I'm considering has this assessment?
Ask for the HOA resale certificate and current financial disclosures for that specific sub-association before writing an offer. We pull these documents directly for any Daybreak Townhome 1 listing we discuss with a buyer.
Considering a Daybreak townhome, or trying to figure out if one you already own carries this assessment? Call the Zander Real Estate Team at 801-446-2662, we'll pull the real documents before you make any decisions.