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Can homeowners hire new property management company?

Q: We have been having problems — some major, some minor — in our community. Without going into details — some of the issues are ongoing and we are trying to get them settled — it is the feeling of some of the homeowners that our problems are not being addressed properly by our property manager. If we are unhappy with our management company and property manager, can we elect to hire a new company? What procedures need to be followed?

A: It is the board of directors who have the authority to select the management company that services the association. You would need to discuss this with your board of directors either in a letter, e-mail or by asking for a meeting with them during executive session or during the second homeowner forum at the end of a board meeting. The board may not agree with your assessment of the management company’s performance.

If the board does not agree, you have two choices.

One is to become a board candidate along with other homeowners who support your position. If you all were elected to the board, you could bring the motion for discussion that must be done in an open board meeting. Generally speaking, your association would have to abide by the management agreement as to when and how notice is given to the management company.

The second option is to have a petition signed by homeowners that explicitly states that you want a meeting of the homeowners for the purpose of passing a motion that the board gives the current management company a termination notice pursuant to the management contract with the association. The petition would require 10 percent of the membership unless otherwise stated a lower percentage in your governing documents.

Once a meeting is called not less than 15 days and not more than 60 days from receipt of the petition, you would need to have a quorum at the homeowner meeting and you would need to have a majority of the quorum vote in favor of termination of the management contract (check your governing documents as to what constitutes a quorum).

Q: I am looking for a book that explains the rules, bylaws, Nevada law and obligations of an homeowners association. Is there a “Book for Dummies” about running a HOA?

A: There is no such book. You need to obtain a copy of NRS 116 and NAC 116, which will give you a starting point as to the laws and procedures of association management and association living.

NRS 116 represents the laws that were passed by the Legislature and NAC 116 the regulations that were established by the Common-Interest Communities and Condominium Hotels Commission that regulates homeowner associations and community managers.

NRS 116 A and NAC 116A specifically relates to community managers and NRS 116 B and NAC 116B to hotel/high-rise associations.

In addition, there are seminars and classes that are offered by the Nevada Real Estate Division’s ombudsman office to assist homeowners and mangers and private organizations such as the Community Association Institute, the Institute of Real Estate Management and the Greater Las Vegas Association of Realtors. There are a number of publications that are produced by these organizations.

Q: I am seeking your opinion regarding a lease restriction passed in 2004. My original opinion was that only those who purchased after the effective date of the amendment were restricted from leasing based on the new NRS.

I have since been advised that NRS 116.3352 does not prohibit enforcing the provisions for renting and leasing conditions contained in our convenants, conditions and restrictions. What do you think?

A: Your association had rental restrictions in the covenants prior to this past legislative session. The board can continue to enforce the rental restrictions based upon your covenants that impacts all current and future owners.

The new law allows the association to grant variances based upon hardship cases for homeowners who apply for a variance. The association does not have to grant any variances.

Barbara Holland, certified property manager, is president and owner of H&L Realty and Management Co. To ask her a question, e-mail support@hlrealty.com.

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