Communities out of balance

Editor’s note: Barbara Holland addresses some readers who wrote to respond to the recent series on new HOA laws.

So much of the legislation that has been passed and is part of Nevada Revised Statutes 116 is what I call knee-jerk reaction. Many of the legislators will do nothing to find out the other side of the story. Their mistrust for association management by boards and by management companies is so deep and so extreme that they just assume that any suggested changes to the law presented by association representatives are unjust.

For example, a number of years ago, the legislature passed a law that prevents associations from establishing rental caps. They forgot these communities are homeowner communities and not apartment complexes. My readers are saying investors, who have purchased homes within a community, are now on boards and are attempting to remove rental caps. Many of these “investor boards” are circumventing the governing documents and passing new rules that allow boards to grant variances to those who want to lease their homes under the guise of financial hardship (this is allowed by NRS 116 laws).

The Legislature had an opportunity to stop the bleeding of lawsuits arising from the various interpretations of what constitutes the nine-month superior lien. The hypocritical position of lenders and investors that they should not be forced to pay late fees, interests and collection costs on delinquent assessments is simply outrageous. What the legislators apparently don’t understand is a very simple fact: If a bank or an investor only pays the nine months of assessments, even if the association were to waive the late fees and interests, the associations cannot waive the collection costs. (Because of the legal nature of foreclosure, associations need to use the service of attorneys and or collection companies). The collection costs were incurred in order for the association to protect its interests on behalf of its membership.

Nothing will change until resident homeowners begin a massive protest to their legislators that the balance between banks, investors and homeowners is so out of sync that adjustments must be made. I personally invite any legislators to meet with me to discuss in more specific details of how this can be resolved.

Barbara Holland, certified property manager, broker and supervisory certified association manager, is president and owner of H&L Realty and Management Co. Questions may be sent to the Association Q&A, P.O. Box 7440, Las Vegas, Nev., 89125. Fax is 702-385-3759, email is