Association members should ask questions, attend meetings

Q: Our board meets quarterly, so we owners only get three minutes to ask questions or voice complaints every 90 days. During these three minutes am I allowed to ask questions about how much money is going into the reserves? And are the directors obligated to tell me the exact amount?

A: First, you don't have to wait until you have a board meeting to ask questions or to file complaints, all you need to do is to either call the management company, write a letter to the management or contact your board members between formal meetings. Second, there should be a treasurer's report at the board meeting, which is required by state law. In that report, the treasurer or community manager should be reporting the balances of the various accounts, including the reserve account.

Q: Am I entitled to know how many units are in arrears and how many liens are in process?

A: Yes. The board or community manager can tell you and the membership the number of units in arrears, the amount in the arrears and the number of homes with liens or in the foreclosure process. What they can not tell you are the names and addresses of these homeowners.

Q: Two years ago, our dues were increased by $15 to help increase our reserve account. This year they voted to increase the dues by $25 for the same purpose. In 2004, we completed a construction project due to a construction defect lawsuit so there should not be any major repairs for at least 10 years. The roofs were repaired, all buildings were painted and a slurry coat (was applied) on the streets. Therefore a $ 40 increase in dues seems excessive. Does the board have to answer to any agency or NRS law prior to raising the dues or are they allowed to do whatever they please?

A: The board may have prepared the budget and approved the budget but the homeowners have to either ratify or reject the budget at a duly called meeting of the homeowners. When homeowners are too passive that they don't attend a budget meeting, they seem to be so surprised later on that an increase has been approved. The reader needs to review the association's newsletters to see if his association had sent the notification of the budget meeting to the homeowners. He can also ask for a copy of the budget ratification meeting when the increased was approved. If such procedure did not take place, then the reader can contact the Ombudsman Office at the Nevada Real Estate Division on East Sahara Avenue. If the procedures were not followed, the Ombudsman Office will inform the board that they need to have a budget ratification meeting.

Even though the association has completed a major construction project for the community, state law still requires the association to properly fund a reserve account. The reader should ask the board or management company to provide him with a copy of the reserve report.

Barbara Holland, certified property manager, is president and owner of H&L Realty and Management Co. She is a member of the Institute of Real Estate Management and is the author of two books on the subject. Holland is a past president of the Greater Las Vegas Association of Realtors. Questions may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759.