HOA Meetings must be taped, saved

Are we also obligated to hold two meetings per year in the evening? We have a difficult enough time getting more than 15 people to our meetings. If we hold them in the evening, no one will come. — Jane

A: Yes, we now have to tape the meetings. Board minutes must be kept for as long as the association exists. The taping law pertains to all associations. It is one of many new laws that will absolutely require associations to increase their monthly assessments.

You will be obligated to have at least two of the board meetings held after normal business hours, i.e. after 5 p.m. Monday to Friday.

Q: I am a newly elected board member to our homeowners association. Our HOA has gone through five years of neglect by the previous developers and community manager, associates and the developers, which was foreclosed upon. The new developer is Utah State Bank that appointed several bank employees and a Realtor as the remaining members on a four-member board. I am the only resident-elected member.

We have endured over five years where the HOA has been run as a slush fund for the original developer. The community association manager was a personal friend and associate, and totally ignored NRS requirements and our covenants, conditions and restrictions.

For example, even though our budget was more than $150,000 threshold, no audits were completed for the last three years. We now have an audit in motion; the developers (contrary to our covenants, conditions and restrictions) never transferred the common elements to the HOA. We just received the deed to our pool area last week after constant prodding. We discovered that we have been maintaining lands that have been owned by the adjacent HOA, which our community manager also happens to manage as well. It just goes on.

Several residents have submitted formal complaints to the ombudsman office, but there has been no effective result. Any suggestions? — Mike, Mesquite.

A: Unfortunately, there will probably be more associations whose developers will either be foreclosed upon or who will make arrangements to transfer ownership of the remaining land and unsold units to the banks or investors, as the case may be.

In reviewing your letter, it does not appear that you cannot take any effective action against the developers who filed bankruptcy. You can send a demand letter with supporting documentation that the other association needs to reimburse your association for the funds that your association has spent on maintaining their property. If the association does not pay your association or does not negotiate an adequate payment plan, then your association can sue them in court which most likely would require approval of the board and of your homeowners.

As to the community manager, if you believe that the manager improperly managed your association and violated the NRS 116 statutes, your association or you as an individual can file a formal complaint with the ombudsman office.

Section 16, which requires the community manager to ensure that the association develops and approves an investment policy and procedures, went into effect July 1.

Unfortunately, there is more than one section pertaining to this issue found in more than one bill. You will have to look at AB 350, sections 19.5, items 12 and 16, SB 351 section 3.

In addition, there are current regulations in NAC 116 that should also be reviewed.

Boards should discuss the development of an investment policy and procedure with their current CPA and legal counsel. In addition, there are investment counseling companies that can provide associations with such policies and procedures.

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.