Homeowners need not wait for a meeting to ask questions

Editor's note: Barbara Holland is on vacation this week. The following is a reprint of a column originally published April 8, 2007.

Q, Our board meets quarterly, so we owners only get three minutes to ask questions or voice complaints every 90 days. During these three minutes, am I allowed to ask questions about how much money is going into the reserves? And are the directors obligated to tell me the exact amount?

A. First, you don't have to wait until you have a board meeting to ask questions or to file complaints; all you need to do is to either call the management company, write a letter to the management or contact board members between formal meetings. Second, there should be a treasurer's report at the board meeting, which is required by state law. In that report, the treasurer or community manager should cite the balances of various accounts, including the reserve account.

Q. Am I entitled to know how many units are in arrears and how many liens are in process?

A. Yes. The board or community manager can tell you and the membership the number of units in arrears, the amount in arrears and the number of homes with liens or in the foreclosure process. What they cannot tell you are the names and addresses of these homeowners.

Q. Two years ago, our dues were increased by $15 to help increase our reserve account. This year they raised the dues by $25 for the same purpose. In 2004, we completed a construction project due to a construction defect lawsuit, so there should not be any major repairs for at least 10 years. The roofs were repaired, buildings were painted and a slurry coat was applied on the streets. Therefore, a $40 increase in dues seems excessive. Does the board have to answer to any agency or Nevada law prior to raising dues or are they allowed to do whatever they please?

A. The board may have prepared the budget and approved the budget, but the homeowners have to either ratify or reject that budget at a duly called meeting of homeowners. When homeowners are too passive or they don't attend a budget meeting, they seem to be so surprised later on that an increase has been approved. The reader needs to review the association's newsletters to see if the HOA sent notification of the budget meeting to homeowners. He can also ask for a copy of the budget ratification meeting when the increase was approved. If these procedures were not followed, the reader may contact the ombudsman's office at the Nevada Real Estate Division. If procedures were not adhered to, the Ombudsman Office will inform the board it needs to have a budget ratification meeting.

Even though the association has completed a major construction project, state law still requires the association to properly fund a reserve account. The reader should ask the board or management company to provide him with a copy of the reserve report.

Barbara Holland, certified property manager, is president and owner of H&L Realty and Management Co. She is a past president of the Greater Las Vegas Association of Realtors. Questions may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759.