Bill called protection for responsible homeowners

Proposed legislation such as Senate Bill 174 is designed to protect responsible homeowners who pay their HOA dues and abide by the rules, representatives of the Community Association Institute in Las Vegas said Thursday.

Homeowners associations came into vogue in the late 1950s and early 1960s in high-growth states such as California, Arizona and Florida as a way to transfer municipality costs to homeowners, said Paul Terry, attorney and president-elect of the Community Association Institute.

“Here’s the fundamental problem. The government pays for a good portion of its services by property taxes and it has priority on taxes,” Terry said. “It will always get paid 100 percent of those taxes plus interest. The problem is this municipal function is now transferred to an HOA. How does the HOA get the funding to satisfy that function? Either from the homeowner or from the property itself that benefits from those functions.”

Just as the county holds a property owner responsible in the form of tax liens, the HOA holds the owner responsible with assessment liens, he said. The association is limited to collection of nine months in assessments, whereas government liens are unlimited, the attorney noted.

“So the big rub with this legislation (SB 174) is if an HOA incurs collection costs to collect the lien, are those part of the nine months of superpriority liens, which are in front of bank liens?” Terry said.

The greed factor surfaces when investors don’t want to pay their fair share, he said.

Lawsuits against more than 500 homeowners associations in Las Vegas Valley are driven by investors looking to “flip” homes for a quick profit, Terry said. Many of the community association’s 1,000 members are the target of those lawsuits.

Judges in three separate District Court cases all concluded that collection costs and “reasonable” attorney fees for unpaid HOA assessments are included in superpriority liens, Terry said.

However, critics of SB 174 say the costs are much higher than the amount of delinquent assessments. Some assessments have gone from a couple hundred dollars to $5,000 and more with collection fees.

“There were some abuses, no doubt,” Terry said. “The (Commission for Common Interest Communities) conducted an investigation for the Legislature and produced regulations that specify what are reasonable costs and they put a cap on it at $1,950.”

If the liens aren’t paid, the HOA can file a notice of default and commence foreclosure proceedings, though less than 1 percent of homes go to foreclosure, said David Stone, president of Nevada Association Services, a collection firm for HOAs.

Terry said you have to look at how homeowners got to the point of foreclosure with assessment liens. They ignored multiple notices. No association sends assessments to collection until they’re 60 days delinquent, he said.

Pat Taylor, principal of Taylor Association Management and CAI president, said it’s the homeowner’s responsibility to provide a correct mailing address, respond to correspondence and talk to management.

“Step up to the plate with responsibility. Don’t blame people trying to enforce the rules,” she said.

Rutt Premsrirut, a real estate agent who represents investor clients, said Nevada should follow the lead of North Carolina. Lawmakers there unanimously approved a bill Wednesday that would limit the ability of homeowners associations to foreclose on property owners because of unpaid dues or assessments.

The measure would require dues or assessments to remain unpaid for 90 days before an association could begin foreclosure against a property owner. Among other provisions, the bill would also require the association’s executive board to vote to begin any foreclosure proceedings against an owner.

Lawmakers who spoke about the bill said they’ve received complaints from members of homeowners associations about foreclosure actions taken by the associations. They said they believed associations have become too powerful and that more protections need to be in place for members.

Contact reporter Hubble Smith at or 702-383-0491.

Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
UNLV Tech Park innovation building breaks ground
Construction on the first innovation building at the UNLV Tech Park is underway. (Bailey Schulz/Las Vegas Review-Journal)
Caesars Forum Meeting Center
Caesars broke ground Monday on its $375 million Caesars Forum Meeting Center (convention center) just east of the High Roller observation wheel. (Caesars Entertainment)
Technology reshapes the pawn shop industry
Devin Battersby attaches a black-colored device to the back of her iPhone and snaps several of the inside and outside of a Louis Vuitton wallet. The device, installed with artificial intelligence capabilities, analyzes the images using a patented microscopic technology. Within a few minutes, Battersby receives an answer on her app. The designer item is authentic.
Recreational marijuana has been legal in Nevada for one year
Exhale Nevada CEO Pete Findley talks about the one year anniversary of the legalization of recreational marijuana in Nevada. (K.M. Cannon/Las Vegas Review-Journal)
Young adults aren't saving for retirement
Financial advisors talk about saving trends among young adults. (Bailey Schulz/Las Vegas Review-Journal)
President Trump’s tariffs could raise costs for real estate developers, analysts say
President Donald Trump made his fortune in real estate, but by slapping tariffs on imports from close allies, developers in Las Vegas and other cities could get hit hard.
Las Vegas business and tariffs
Barry Yost, co-owner of Precision Tube Laser, LLC, places a metal pipe into the TruLaser Tube 5000 laser cutting machine on Wednesday, June 20, 2018, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Nevada Film Office Connects Businesses To Producers
The director of the Nevada Film Office discusses its revamped locations database and how it will affect local businesses. (Bailey Schulz/Las Vegas Review-Journal)
Opendoor isn't the typical house flipping company
Unlike most house flippers, the company aims to make money from transaction costs rather than from selling homes for more than their purchase price.
The Venetian gondoliers sing Italian songs
Gondolier Marciano sings a the classic Italian song "Volare" as he leads guests through the canals of The Venetian in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal)
Building In Logandale
Texas homebuilder D.R. Horton bought 43 lots in rural Logandale. (Eli Segall/Las Vegas Review-Journal)
Indoor farming in Southern Nevada
Experts discuss Nevada's indoor farming industry. (Bailey Schulz/Las Vegas Review-Journal)
Former Fontainebleau could have become a Waldorf Astoria
Months after developer Steve Witkoff bought the Fontainebleau last summer, he unveiled plans to turn the mothballed hotel into a Marriott-managed resort called The Drew. But if Richard “Boz” Bosworth’s plans didn’t fall through, the north Las Vegas Strip tower could have become a Waldorf Astoria with several floors of timeshare units. (Eli Segall/Las Vegas Review-Journal)
LVCVA CEO Rossi Ralenkotter announces plans to retire
Rossi Ralenkotter, CEO of the LVCVA, on Tuesday confirmed a Las Vegas Review-Journal report that he is preparing to retire. Richard N. Velotta/ Las Vegas Review-Journal
Cousins Maine Lobster to open inside 2 Las Vegas Smith’s stores
Cousins Maine Lobster food truck company will open inside Las Vegas’ two newest Smith’s at Skye Canyon Park Drive and U.S. Highway 95, and at Warm Springs Road and Durango Drive. Cousins currently sells outside some Las Vegas Smith’s stores and at Fremont Street and Las Vegas Boulevard. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas home prices to continue to rise, expert says
Lawrence Yun, chief economist at the National Association of Realtors, gives homebuyers a pulse on the Las Vegas housing market. (Eli Segall/Las Vegas Review-Journal)
NV Energy announces clean energy investment
The company is planning to add six solar projects in Nevada, along with the state's first major battery energy storage capacity. Bailey Schulz/Las Vegas Review-Journal
3 Mario Batali restaurants on Las Vegas Strip to close
Days after new sexual misconduct allegations were made against celebrity chef Mario Batali, his company announced Friday that it will close its three Las Vegas restaurants July 27. Employees of Carnevino Italian Steakhouse, B&B Ristorante and Otto Enoteca e Pizzeria, all located in The Venetian and Palazzo resorts, were informed of the decision Friday morning. Bastianich is scheduled to visit the restaurants Friday to speak to employees about the next two months of operation as well as how the company plans to help them transition to new positions.
Nevada has its first cybersecurity apprenticeship program
The Learning Center education company in Las Vegas has launched the first apprenticeship program for cybersecurity in Nevada. It was approved by the State Apprenticeship Council on May 15. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas union members voting to authorize the right to strike
Thousands of Las Vegas union members voting Tuesday morning to authorize the right to strike. A “yes” vote would give the union negotiating committee the power to call a strike anytime after June 1 at the resorts that fail to reach an agreement. (Todd Prince/Las Vegas Review-Journal)
News Headlines
Add Event
Home Front Page Footer Listing
You May Like

You May Like