Office of the Ombudsman fills need

Among Nevada's homeowners associations, it's known simply as "the ombudsman." Part of the Real Estate Division, it's an office that fills an essential niche in modern life: helping communities govern themselves fairly and responsibly.

It's a pretty big niche -- there are nearly 3,000 HOAs encompassing close to 500,000 homes in Nevada, about half of all homes in the state -- and it's expected to grow. Most new homes are built within a common-interest community.

Such is the clientele for the Office of the Ombudsman for Owners in Common-Interest Communities and Condominium Hotels, which just had its 10th anniversary. Its purpose is to help Nevadans understand their rights and responsibilities as HOA directors, residents and owners. The agency also assists in resolving disputes, maintains a registry of HOAs, and regulates community managers and other professionals.

"Our name is a little long and it contains an unusual word," said Nicholas Haley, education and information officer with the Nevada Real Estate Division. "What's important is that HOA residents understand what we have to offer.

"There's a lot to know about association living and governance. They play a prominent role in the enjoyment and use of their members' homes, so it pays for residents to understand how they work. We believe education is the primary tool to ensure well governed HOAs and satisfied residents."

Toward that last goal, the Ombudsman's Office recently completed several new products, including two instructional videos intended for new HOA residents and board members, and a series of brochures. The videos and brochures are available online at red.state.nv.us. DVDs containing the videos are also available, as are print copies of the brochures.

Haley said. "For HOA newcomers, we have the videos. They're quick, simple to understand, and are intended for beginners. When home buyers move into homeowners associations, they usually must teach themselves about their rights and responsibilities. That's pretty tough, especially given all the other difficulties involved with moving. Since the concept is foreign to a lot of people, we saw a need for a tutorial that starts from the very beginning."

The videos explain the purpose and functions of HOAs, the duties of directors, and how the Ombudsman's dispute resolution process works. It also teaches some important definitions.

HOA residents interested in a particular topic may want to check out the Ombudsman's new brochures. Recent subjects include meetings and elections and step-by-step instructions on using the mediation and arbitration processes to resolve disputes. Older brochures include "Before You Buy a Home in a Common-Interest Community Did You Know ..."

"Not every inquiry that comes our way is a dispute," Haley said. "Oftentimes, people call because they're new to running an association, and they want to make sure they're doing things right. Over time we hope to create more and more FAQ products based on the questions we receive."

For those seeking more advanced knowledge, the Ombudsman's Office sponsors a seminar series that addresses association business, such as reserve studies, financial management and risk management. The next one in the Las Vegas Valley is to be held Sept. 24 on the subject of Financial Management of a CIC.

While the office encourages HOA residents to work with one another to resolve matters that arise, sometimes talks break down. When they do, residents may file an Intervention Affidavit. That's where the word "ombudsman" comes in.

Ombudsman Lindsay Waite directly handles the informal mediation process, one of the functions most commonly associated with the office. Parties with disagreements are invited to a conference to find an agreed-upon resolution. In nearly half of disputes, that's all it takes.

"Sometimes, the two sides will work out a solution before they even come for the conference. Often a little information and a willingness to be reasonable goes a long way," Waite said.

While some disputes may become protracted or difficult to resolve, most HOAs appear content. Complaints are relatively rare: Fewer than 1,000 are filed annually, representing much less than 1 percent of all households.

That figure includes applications for arbitration, requests for intervention and investigations opened by the Real Estate Division's Compliance office against HOAs and community managers.

As recent economic hardships have shown, not all problems in HOAs center on disputes. With many associations facing challenges such as high foreclosure rates and inflation, Haley said the importance of good governance has never been more essential.

"HOAs are some of the purest forms of democracy," she said. "Their success or failure is strongly tied to how well prepared their members are to govern and plan for the future. Our goal is to ensure they have education resources they need to make good decisions."

For more information, visit red.state.nv.us.