Homeowner worried about HOA board member

Q: There was an election in 2024. One of the people sent out really awful letters saying things about people on the board. The election was stopped and then another election was done. (This person) was up for election and didn’t get on the board. He’s been really nasty about it. He talks about how he was robbed, and the board and managers did all kinds of illegal things. He filed a complaint with the (Nevada) Real Estate Division. He said they did something illegal there; and he did a small claims thing and didn’t get his money.

We just had a 2025 election and now he’s on the board. He sent out a letter to everyone before the voting and it wasn’t like the letter last year but it was still really mean. He’s been telling everyone how he’s going to do things and says awful things about the other people on the board.

I don’t know the board, but things have been getting done so they must be doing something right. I’m scared he’s going to make it so bad they all quit. I don’t like how he talks about the board and the manager. None of the neighbors will tell him to stop because he might get mad at us.

What happens if all the board members except him quit? Could he really be the only one on the board and do what he wants for the next two years?

A: You would need to check the covenants, conditions and restrictions and or bylaws. Technically, the remaining board member could appoint directors to fill the vacant positions. The terms for the appointed board members would expire upon the next scheduled election. If the remaining board does not appoint any directors, most governing documents would allow the homeowners to call for any election.

Q: When I went through the community managers course years ago to educate myself on being a homeowners association board member, I was told in class that associations are not to be over 100 percent funded. My association has, year after year, been overfunded.

A: The reserve study funding changes every year depending upon interest rates on the reserve accounts, the rate of inflation, deferred projects and projects implemented prior to the scheduling set in the reserves. It is not stagnant. You need to look beyond one year as to the projected reserve balances. There are associations that manage their accounts very conservatively based on the assumption that there could be another major recession that would cause the association not to be able to fund their reserves based upon the study. The question becomes how much is your association overfunded?

Your association should discuss the overfunding with the reserve specialist and with legal counsel.

Nevada Revised Statutes 116.3114, regarding surplus funds, state that unless otherwise provided in the CC&Rs, any surplus funds of the association remaining after payment of or provisions for common expenses and any prepayment of reserves must be paid to the units’ owners in proportion to their liabilities for common expenses or credited to them to reduce their future assessments for common expenses.

Barbara Holland, CPM, CMCA, AMS, is an author, educator and expert witness on real estate issues pertaining to management and brokerage. Questions may be sent to holland744o@gmail.com.