2008 case tossed in Sun City Anthem HOA dispute

Sun City Anthem resident Tim Stebbins said his rights as a homeowner have been flushed down the drain by the state Commission for Common-Interest Communities.

The commission last week dismissed a complaint filed by the Nevada Real Estate Division, which alleged that Sun City Anthem's former HOA board violated state law in 2008 when it changed its rules and regulations without consulting homeowners.

The five-member commission, appointed by the governor, advises the Real Estate Division, adopts regulations and conducts disciplinary hearings. It has come under fire from homeowners who say it does little to rein in heavy-handed or corrupt HOA boards.

The purpose of the Aug. 23 hearing was to determine whether an administrative penalty would be imposed under provisions of Nevada Revised Statutes Chapter 116, which governs homeowners associations. The case was first filed in 2008, with an amended complaint made in June.

But the commission tossed out the complaint after noting that Deputy Attorney General Kali Fox Miller's legal papers cited two state laws that have been repealed by the Legislature.

"State officials bungled this thing so bad and the homeowners were left holding the bag," Stebbins said Monday. "The fact that it was dismissed was the right thing for them (CICC) to do, based on what was presented. One of my big frustrations is due to this bungled farce, the facts will never be known, the truth will not come out and the rights of the 12,000 homeowners in Sun City Anthem will not be protected. In my mind, that is an unnecessary tragedy."

The complaint named former Sun City Anthem board members Roz Berman, Carl Weinstein, Shirley Cheri, Rodger Cooper and Mike Dixon. In March 2008 they voted to change the covenants, conditions and restrictions (CC&Rs) and bylaws of Sun City Anthem without giving homeowners an opportunity to comment.

According to the complaint, the changes allowed the executive board to arbitrarily impose higher assessments on some homeowners than on others; eliminated homeowners' rights to discuss agenda items before a board vote; and eliminated the right of homeowners to call for a meeting.

Michael Buckley, chairman of the CCIC, said commissioners felt they couldn't go through with a complaint referring to repealed statutes, and because the respondents are no longer on the HOA board.

"We never got to the merit of the complaint -- the amended CCRs," he said. "The way Chapter 116 is set up, it doesn't really provide a means for the state to fix something like that. What I pointed out to Mr. Stebbins is the only way to correct that is go back to the board."

At the commission meeting Buckley, an attorney with Jones Vargas law firm in Las Vegas, suggested dismissal without prejudice so the case could be re-filed with correct statutory citations.

But commissioner Marilyn Brainard of Sparks, a homeowner representative, moved to dismiss the case with prejudice, meaning it cannot be re-filed. The panel did that. Brainard and Real Estate Division Administrator Gail Anderson could not be reached for comment .

"This is just another example of how Nevada homeowners are being abused and how we have an unsympathetic commission in this state," said Jonathan Friedrich, an outspoken lobbyist for homeowners' rights. "Commissioner Brainard in essence said, 'To hell with the 12,000 Anthem residents.' An HOA board can just about get away with anything and not be held accountable."

Stebbins said partial blame belongs to the lawyer who drafted the complaint with "fatal flaws," but the Nevada Real Estate Division was responsible for reviewing the complaint before it was filed.

"She (Miller) had her legs cut out from under her by the Real Estate Division," Stebbins said. "She made a mistake by putting in those expired statutes. I don't know why. Maybe she used an old template for this case. Now the homeowners are just stuck."

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.