Commission provides HOA input to Legislature

In 2003 the governor appointed five members to the Commission for Common-Interest Communities, and since 2009 Condominium Hotels and two more commissioners have been added. Commissioners are charged to exercise any power and perform any duty assigned to them by provisions of Chapter 116 of Nevada Revised Statutes.

One member is a unit's owner and has served on an executive board; two more reside in an association but are not required to have served on the board; one is a developer of common-interest communities; one holds a (manager's) certificate; one is a licensed certified public accountant; and one is a licensed attorney. Appointees must have been involved (in their roles) for at least three years prior to appointment; they serve a three year term.

The CIC Commission is charged to conduct hearings and other proceedings, collect of information, develop and promote educational guidelines, accredit education and research programs and hold extensive public workshops to enact regulations. Investigation of complaints (filing of affidavits) is conducted by the Nevada Real Estate Division in the ombudsman's office. If sufficient cause is shown, NRED files a complaint with the assistance of a deputy attorney general against the respondent; a hearing is conducted with a court reporter present to record the proceedings. NRS states the CIC "...shall not intervene in any internal activities of an association except to the extent necessary to prevent or remedy a violation."

Commissioners question hearing participants, including witnesses; debate and decide on discipline authorized by NRS statutes if the facts warrant. The "debate" process is an important function of the CIC where each commissioner brings his or her knowledge about governance matters in a community association. That is why a range of experience is such an essential ingredient in the CIC's composition. It is also how the interests of the unit owner in an association, as well as the association itself, are properly represented.

With considerable anxiety, the approach of each legislative session is met with apprehension by most commissioners. Some legislators are greatly influenced by a small minority of vocal dissident homeowners who feel their association boards are not following the dictates of NRS 116. Of course, not all boards are created equal, and a few may be on a power trip. However, those board members are subject to recall at the next association election, or even removal by a special recall election before then. Rarely, does an alleged violation reach a critical mass that requires a new bill be adopted to "cure" the problem.

Each biennial session begins knowing that many legislators need education to encourage a balanced view between the individual unit owner and the volunteer board of directors who are charged with governance in the best interests of all owners. The CIC, as a state entity, does not have lobbyists to represent its interests. Despite the best efforts of the CIC to explain the adverse impacts of some proposed legislation, it is an uphill battle. Many bills and amendments will only diminish the quality of life for homeowners who consistently honor their contracts. Equally distressing is that beneficial legislation is often dismissed.

Remember that our common interest communities are private, nonprofit corporations and are not public entities despite attempts to consider them as such. This truth is often overlooked.

Commissioner Marilyn Brainard sits on the Nevada Commission for Common-Interest Communities and Condominium Hotels. She can be reached at sparksbrain@gmail.com.