Q: Ten months ago, we purchased a single-story home in Henderson. It is in a gated community. Prior to this home, we lived in Arkansas where I was president of my association. I am troubled by the indifference and poor attitude of the professional company who manages our association. After four letters and several telephone calls, I was repeatedly told that the management company is not obligated to answer questions. At the last meeting the chair cut off debate and most of my questions were left unanswered. The community is 62 percent sold and yet the owner representation is one person. I cannot find out exactly how many members are on the board. Can the developer board members who are in the majority legally set the limits of board membership to avoid adding more owners as required by the covenants? Currently, of the 170 units, 100 to 105 homes have been sold.
A: The management company should be responding to your letters, per statute and telephone calls per professional management practices. NRS 116.31087 states that if the executive board receives a written complaint from an owner alleging that it has violated the governing documents of the association or any provision of NRS 116, it is to place the subject on the agenda of the next scheduled meeting. In addition, the board or the management has 10 business days after the complaint has been lodged to acknowledge it and notify the homeowner of the board agenda.
If the reader cannot obtain a straight answer as to the current number of directors and their names, the reader can obtain this information from the ombudsman’s office at the Nevada Real Estate Division.
As to the developer, NRS 116.31032 states the process by which homeowners are added to the board, replacing the developer’s members.
Not later than 60 days after the conveyance of 25 percent of the units, there is to be one member and not less than 25 percent of the members must be elected by the unit owners. The developer is not allowed to vote in this election.
Not later than 60 days after the conveyance of 50 percent of the units, there should be not less than 33 1/3 percent of the members elected by the unit owners. Sixty days after the conveyance of 75 percent of the units, the developer’s control would terminate. From that point, the homeowners would control their association and elect the balance of their directors.
The covenants and or bylaws will state the maximum number of directors for the association. Some governing documents will state a minimum and either allow the board, through resolution or the membership through amendment, to increase the number.
As to the management company, there is probably nothing that can be done until the majority of the board decides that it is time to select a new one. Homeowners can certainly apply pressure to the board to begin a management search.
Barbara Holland, certified property manager, is president and owner of H&L Realty and Management Co. She is a member of the Institute of Real Estate Management. Questions may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759. Questions may be shortened and are subject to editing.