HOA members tired of paying special assessment
December 1, 2012 - 2:03 am
Q: Our homeowners association has assessed a $50 fee per month to replace roofs, which are tile, in this complex that was built during 1993 to 1994. This began in 2012, is continuing in 2013 and appears to be open-ended. Are open-ended assessments legal? It has been impossible to find out any information regarding the status of the special funding assessment.
Also, I have asked the management company as to a warranty on the roofs, and was told that no such warranty exists. I don't know a great deal about construction, but I have always thought that a roof warranty was a standard business practice in the construction industry. Is the lifetime of tile roofs only 18 years or so? What little research I have been able to do seems to indicate the lifetime is more in the 30- to 50-year range.
Needless to say, our board is controlled by three people so other board members have just given up in the past as these three have the votes to do whatever they like.
I would appreciate any information or suggestions you may have as many of us are beyond frustration with the board and management company.
A: As a homeowner, upon request, the board and or management company must provide you with financial statements, which would reflect the income to the community and specifically the income received for the special assessment. You are entitled to know the balances in the reserve account and also receive a copy of the reserve study. The association does have the right to charge you for the copying of this information unless the association can email it to you for free.
In order to build funds for the replacement of the roofs, you could easily have a $ 50 a month special assessment that requires two or more years to complete the funding. You should be able to obtain from the management company or the board the projected cost for the roof funding and the length of time of the $ 50 per month special assessment.
As to original roof warranties, I would be very surprised if the association even had a 10-year warranty when the roofs were first installed in 1993. I would also be very surprised if the roofing company still is doing business in Las Vegas. As to the current replacement of your roofs, the association should have a warranty on labor and on materials (often from the manufacturer), prior to signing any contracts.
Send the board and or management company your requests for information. If they do not respond, you can contact the Ombudsman's Office at the Nevada Real Estate Division on East Sahara Avenue for assistance. Nevada Revised Statutes 116 laws allows the Ombudsman Office to intervene on your behalf to obtain this information.
Barbara Holland, certified property manager, broker and supervisory certified association manager, is president and owner of H&L Realty and Management Co. Questions may be sent to Association Q&A, P.O. Box 7440, Las Vegas, NV 89125. Fax is 385-3759, email is support@hlrealty.com.