HOA may need CPA to find the money

Q: Is there anyone we can contact about a possible homeowners association board’s misuse of funds? We are unsure of who would help us on this other than hiring an attorney.

A: Stating there is a possible HOA board misuse of funds and proving it are two different things. Before filing any formal complaint, you will need to provide documentation of the misuse of funds. You can hire a certified public accountant to review financial records of the association.

The CPA would probably also want to review the actual minutes of the meetings in relationship to the expenditures. An attorney would review the findings from the CPA in order to determine if there were any violations of state law.

Assuming the preliminary information appears to substantiate a misuse of funds, the reader could submit this information to the Nevada Real Estate Division for investigation.

Q: One of our troubling executive board members is approaching 90 days delinquent in payment of his dues and assessments. May we terminate his service? How do we do that?

Do we need our attorney to write a letter? What are the grounds for dismissal? I assume he has become ineligible. Because his term ends in January, is he prevented from running again for a length of time after his dismissal?

A: You will not like the answers.

No, the board cannot terminate his service as a director. Only the membership can vote to recall the director. Even if the director was recalled, he or she could submit his or her name as a candidate in the upcoming election.

The current law allows a delinquent member to be a board candidate. Unfortunately, once that delinquent homeowner is a member of the board, he or she cannot participate or vote at a hearing

I tried to change the eligibility requirements this year at the Legislature but to no avail.

Q: I have a question that I hope you can help me out with. I rent a condo in Boulder City. My sporting equipment such as jet skis, two quads and dive gear are stored safely in my garage.

I am employed as a traveling construction superintendent so I am out of town for months at a time, returning to Boulder City to enjoy the life there only on holiday weekends. As you can imagine, the security of my property is an important issue to me while I am hundreds of miles from home.

I have been issued a “garage storage” violation for storing recreation vehicles in my garage. This is about a parking restriction that restricts parking spaces for working automobiles only. The HOA has taken the last sentence of the rule out of context and tried to convolute it into a restriction for storing recreational vehicles.

I have asked for clarification and an extension twice until I am back in Nevada. Is there anything else I should do to protect myself? How do you think I should proceed?

A: You should confirm in writing to the board that they received your letters in which you have asked for a hearing date when you return back to the community. This is important. You may have to send a third letter, stating that you would not expect the association to levy any fines against your account until you have this opportunity to meet with the board.

Second, if you were to store your vehicle in the garage, can it be stored simultaneously with your sporting equipment? If your vehicle can be stored in the garage at the same time with your recreational vehicles, then take a photograph showing that your vehicle can be stored inside the garage. You would be able to show the board the storage of your equipment is in no way affecting your ability to park your vehicle in the garage.

If you cannot park your vehicle in the garage at the same time with your sporting equipment, then you will have an issue with the board. There are many communities with the same parking regulations.

Too many homeowners use their garages for storage and then park their vehicles in the common area parking spots. Unfortunately, many of these communities do not have adequate additional parking. The associations need the cooperation of the homeowners to park their vehicles in their garages, thereby freeing up the common area parking spots for guests and visitors.

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 support@hlrealty.com.


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