Bank required to pay overdue HOA assessments

Q: Our homeowners association’s budget shows a bad debt line item of $10,000. I’m told that units owned by banks don’t have to pay monthly dues and the HOA can’t foreclose on a unit that is encumbered because a bank lien is ahead of the HOA.

I’m new to Nevada but in my former state, the HOA could foreclose on a condo after giving notice and an underlying lien holder (like a bank) had to pay the delinquent dues or lose the loan. Just like real property taxes.

A: You have been given incorrect information. If the bank foreclosed upon a homeowner who owed the association assessments, and if the association had filed a lien on the delinquent homeowner’s account, the bank would owe the association as much as nine months worth of delinquent assessments (which is known as the superior lien). In addition, banks that own units have the same financial obligations as any homeowner — assessments and abiding by the governing documents.

You have a bad debt line because you will probably have to write off any delinquent assessments that were owed longer than nine months, as they are not part of the superior lien.

Q: I have written you before and you have been most helpful. I have started to keep your articles in a file to refer to — especially about all the new laws concerning HOAs.

The present problem is this: We finally had our election, which was more than a month overdue. No reason was given by the board for this delay. I was running for re-election with two other women for a director’s spots on the board. The treasurer and another director also were running for re-election. There were five people running for three positions. The two women and I ran a professional, clean campaign. I and the two women made a little poster that reflected team spirit. I posted it on the bulletin board. Within a day it was slashed. Although I cannot prove it, I suspect the board president and treasurer, who were there posting a meeting notices on mailboxes, had something to do with it.

I posted another one. I also posted two inside the enclosed bulletin board, which I have organized for eight years. We figured if they tore down the one outside at least we would have this one protected.

One of the candidates got the mailing list from the management company and mailed, on her own dime, the poster, along with her email address if folks did not receive ballots. There had already been two on property that did not receive ballots, one was a candidate.

So, a few days later, the president decides to write a very snarky letter and have it mailed, on the HOAs dime. She was not running for re-election; never mentioned a candidate; just tried to discredit our campaign nomination letters. I called the state. The person who answered the phone said, “This is not good.”

When I went for the election meeting I was amazed to see the enclosed bulletin board had been taken down. The whole thing! When we got to the clubhouse no board members were there, just the manager and two men who are friends of the treasurer. I asked what happened to the bulletin board and was told: “People were putting things up in there and didn’t get the boards approval.” I responded that I was on the board and never in eight years had I heard of such a thing.

In the end, I did get re-elected, and so did the treasurer. This board has not been about five people — only three: the president and her two cohorts.

So how do I get a recall petition? Also, can they take down the bulletin board out of vengeance? We have to do something here, these women are totaling our community. We are paying $200 in monthly HOA assessments, and they want more — this ain’t Summerlin. There are repairs that have not been done. The health department shut down our pool for about 15 infractions, and I could go on.

A: The recall petition requires 10 percent, or any lower percentage stated in the HOA bylaws, of the members to sign the petition. It would be given to the management company or the executive board. To remove a director, you will need at least 35 percent of the total membership to cast a ballot, and at least a majority of all votes cast in that removal election to remove a director.

As to the bulletin board, there is no state law requiring an association to have bulletin boards. The board could vote to remove them.

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.