Majority board vote needed to oust management

Q: One of our three board members resigned recently. We have a board meeting this month. There are only two of three authorized board members that can vote. One board member has a conflict of interest because he works for the president of our management company, which is not good at all. Is it possible to have just one vote to oust the management company.

A: The law explicitly states that a person may not be a board member if that person performs the duties of a community manager for that association (NRS 116.31034. 9a). In this case, the board member works for the management company. He should not participate in the voting process. As to whether or not the management company is to be terminated, that would be a major conflict of interest. To terminate the management company, you will need a majority of the board to approve such action.

Q: I am on the board of a condominium complex.  Like most homeowners associations we are owed fees and fines. We have little leverage and hope of collecting some of these debts. Do we have the right to cut-off privileges to these homeowners and/or their tenants?  In particular, can we deprive them the right to use the common parking area, pool, and clubhouse?

A: If your covenants and collection policy allows the suspension of privileges, then the answer would be yes, with the exception of the common parking areas. You would have to send these owners a letter notifying them that they have 30 days to contact your association and to either pay their assessments or arrange a payment schedule or else they could not vote or use the clubhouse and the swimming pool. If the homeowner is in bankruptcy, you cannot suspend their privileges and would have to utilize the services of an attorney to help you with your collections.

Q: I have searched the NRS 116 quite a bit and I cannot find the procedure for replacing a board member that resigned. I assume to be legal the present board members need to vote in the next meeting for a replacement, and not just an informal opinion before the meeting. Maybe an election is required.

A: NRS 116.3103 subsection 2 allows the board to replace vacant director positions for their unexpired portion of any term unless your governing documents provide for an election by the homeowners (which is rare).

Q: I recently purchased a condominium. Before the purchase I read the covenants, conditions and restrictions to make sure they did not adversely impact me. After moving in, I have found we have a new board that seems to have taken the positions for the sole purpose of not enforcing CC&Rs it doesn't agree with. Rules such as dogs on leashes, garbage containers with lids, parking in designated visitor spots and using garages as living areas are just a few examples. All outside parking is designated as visitor parking but it seems all three of our board members purchased three-bedroom condos with only a single-car garage but have multiple cars. They have tried twice to get the membership to modify the parking rules but it was voted down both times. Now, they simply ignore the parking rules and have told the towing company to look the other way. Can anything be done to force the board to abide by the CC&Rs?

A: If you believe that your current board is not enforcing the governing documents of the association, you can file a complaint with the ombudsman office at the Nevada Real Estate Department located on East Sahara Avenue. You will need to be very explicit about the violation and be able to substantiate your complaint by relating the violations to the state laws or to the governing documents of the association. You may not be satisfied with the results of your complaints as they are not the big ones that really keep the ombudsman office busy, such as financial issues or voting issues. In the final analysis, you may want to consider placing your name as a candidate for the next board election and find others who would do the same.

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.