October 28, 2022 - 1:38 pm
Q: I serve on the four-member homeowners association board of my 66-unit community. I received an email from our property manager seeking board approval for the payment of several invoices. However, when I clicked through to record my vote, I found there was no option to vote. When I asked the manager why I didn’t have the option, I was told that only two members were required to approve payment and since two had already voted, it was closed. I checked our bylaws and covenants, conditions and restrictions but could not find anything regarding the number of required votes. The manager said Nevada state law only requires two votes to approve such things. I’ve tried reading the Nevada Revised Statutes regarding HOA’s but can find nothing that states this. Could you please tell me if this is actually true?
A: In your case, the community manager is correct as NRS 116.31153 requires two signatures in withdrawing association funds.
NRS 116.31153 lists the regulations pertaining to signatures required for withdrawal of certain funds. The law states that money in a reserve account requires at least two members of the board or the signatures of at least one board member and one officer who is not a member of the board.
As to the operating account, at least one member of the board or one officer of the association and a member of the board, an officer of the association or the community manager may co-sign the operating account checks.
There are exceptions as noted in subsection 3 as follows: “Money in the operating account may be transferred to the reserve account at regular intervals; may be automatically transferred for the payment of utilities or to a state or federal agency.”
Generally speaking, a management company will require an association to establish who are the two signers, often the president and the treasurer. You were under the impression that a vote was needed to authorize the payment of an operating expense. This is not the norm. You should confirm with the community manager who are the actual signers on the account.
Q: Can a board member and his wife, who run a club with two other board members — one who is running in this year’s election — send e-blasts to their club members asking them to vote for certain board members? Also, I’m told the same board member sending the e-blasts is supposed to run the election. I notified the management company of this but can’t get a response. I see this as a complete conflict of interest. Who is supposed to run and oversee the election? Every election I’ve been to it has been the management company.
A: The short answer is yes. It is campaigning on behalf of their candidates.
As to the running of the election, the state law does not allow a board member who is running for a board position or an existing board member not running to touch or open a ballot.
Whether the manager conducts the meeting or not, the manager has a legal obligation to make sure that there is no fraud and that the meeting is consistent with state law.
Barbara Holland is an author and educator on real estate management. Questions may be sent to email@example.com.