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Holland sounds off on two state bills

It is imperative that all homeowners, home association board members and community managers tell their state legislators that Senate Bill 280, with Amendment 777, should be killed. This amended bill supports the banks, but not the nonprofit association of homeowners who pay their assessments. This bill, if passed, would greatly impact your 2014 operating budget. Your HOA board will have no choice but to increase your monthly assessments.

Here is a look at how the amendment has changed the bill:

■ The amendment to the bill does not include collection costs in the association’s lien and prohibits the association from foreclosing for collection costs. This is so hypocritical. We all know that banks add these costs to a foreclosure. This forces the association into arbitration or small claims court to collect these costs if not paid by the debtor.

■ It will not extinguish the bank’s lien when the association is the first to foreclose. This takes away all incentive for any bidders at an association foreclosure sale and any incentive for the banks to move their own foreclosure sales forward. This leaves the associations to sit on their delinquent accounts for years beyond the nine-month superpriority, forcing them to write off years of association assessments when the bank does finally complete its foreclosure.

■ The bill would prohibit the association from recovering hard costs paid to third parties for title reports, publishing costs, certified mailing costs, etc., in excess of $500. The assessment-paying homeowners will have to pay for the costs that are not recoverable.

You can read the full bill with Amendment 777 at nelis.leg.state.nv.us/77th2013/App#/77th2013/Bill/Text/SB280/BA_A_SB280_R1_777.

Tell Nevada lawmakers this bill is not good for our communities and industry.

One easy way to voice your concerns is to take advantage of a powerful legislative online tool. Please indicate your disapproval of SB-280 by clicking on: https://www.leg.state.nv.us/App/Opinions/77th2013/A/. Select your view on this bill as “against.”

Assembly Bill 98 was my bill that Assemblyman Paul Aizley, D-Las Vegas, introduced to state lawmakers. It originally addressed three current state laws that I believed were defective and counterproductive. This simple bill has now been legislatively hijacked by Amendment 734. I must ask you all to please contact the Legislature and have them defeat Amendment 734, which basically turned AB98 into SB280. There are other proposed changes to this bill.

■ Amendment 734 to AB-98 mandates additional certified mailing to delinquent homeowners in addition to the certified notices already required by state law. This will be a huge increase in costs to the nonprofit associations and to the homeowners who pay their assessments. These costs are not defined as collection costs, and there is no mechanism in the bill for the recovery of these costs if the debtor chooses not to pay the $50 fee allowed for these additional notices. Experience has shown that certified mail to delinquent homeowners has a low claim rate and most often the debtor only reads the regular first class mail they receive.

■ The bill would force the community manager to calculate the cost of a payment plan for each delinquent account; the additional time will increase management fees. The best practice is for the association management to send information about the availability for homeowners to enter into a payment plan.

You can read the full bill at nelis.leg.state.nv.us/77th2013/App#/77th2013/Bill/Text/AB98/BA_A_AB98_R1_734. Again, please indicate your disapproval of AB-98 by clicking on: https://www.leg.state.nv.us/App/Opinions/77th2013/A/. Select your view on this bill as “against.”

It is very important that you contact your individual representatives, as well as other members of the Senate and Assembly, to express your opinion .

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 702-385-3759, email is support@hlrealty.com.

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