58°F
weather icon Clear

Community Association Institute offers HOA information

Q: Ms. Holland, I recently was elected to my homeowners association board. I faithfully read your articles in the Las Vegas Review-Journal every Sunday and appreciate the information you provide to the community.

Since I have become a board member, I have downloaded both the Nevada Revised Statutes and Nevada Administration Code rules on HOAs, and I also have been going through the training slide decks provided by the Department of Business and Industry Nevada Real Estate Division — specifically the CICCH/HOA Training Presentations.

Do you know/recommend any other material that would be useful to HOA board members? Is there a company that sells a manual of all the rules, analysis of any issues and maybe citation to any pertinent court cases?

My HOA needs to have its five-year reserve study updated. The management company submitted a bid proposal by the company that did the reserve study five years ago. Depending upon what level of study we wanted and how fast we wanted it, the price could have exceeded the 3 percent threshold for our HOA (101 units and more than 3 percent of annual budget). When I asked about it, the management company implied that since we used the same company five years ago we were good to go, no matter the cost. Ultimately, not an issue as the study we are getting and the time frame we are getting it allows for the purchase to be under the 3 percent threshold. Was I missing something?

One last comment a recent question regarding whether board members could have access to the name and address of HOA violators as well as knowledge of the specific violations. As a board member we have a fiduciary duty to ensure the management company is appropriately applying the rules standards to the community. How can they preform that duty without having knowledge of what is going on? It seems to be that in order to carry out our duties as board members, we would need to have that information to ensure that no one is being over penalized/held to a higher standard, or that others are not being giving breaks. Your thoughts?

A: As to your first question about obtaining information on HOAs: Contact Christina Snow at info@cainevada.org. CAI, Community Association Institute, is a professional organization consisting of community managers, community management companies, board of directors and vendors whose mission is to empower Nevada community leadership for successful operation of communit associations through information and education. The CAI chapter in Las Vegas offers monthly meetings with speakers. In addition, seminars and classes are offered on a regular basis. Published materials can be found on the national CAI webstite at caionline.org.

As to your question about the reserve study, generally speaking the cost of the reserve study is already included in the reserve study report. You should be able to pay for the study from your reserves.

Unless the board was unhappy with the services of your last reserve specialist, it is often advantageous to use the previous company that would have much of the specific information concerning your amenities other than the new ones that your association may have added over the last five years.

Your last question about access to information is a good one. Board members are supposed to perform their duties as fiduciaries and act on an informed basis, in good faith and in honest belief that their actions are in the best interest of their associations. (NRS 116.3103). In obtaining confidential information, such as the copies of violation letters, that information is not to be used as “gossip” to your friends or family members. Unfortunately, I have seen some board members use this information to harass homeowners and to provide inappropriate information of the violations to non-board members.

Barbara Holland, CPM, CMCA, is an author, educator and expert witness on real estate issues pertaining to management and brokerage. Questions may be sent to holland744o@gmail.com.

THE LATEST
Here is what the law says about service animals

Your board can contact the local Department of Housing and Urban Development office to discuss the specifics of your association, such as these dogs who may possess a possible threat to another individual.

Pahrump community has questions about new development

Under Nevada Revised Statutes 116.3108 (2), an association shall hold a special meeting of the unit owners to address any matter affecting the community if at least 10 percent or any lower percentage specified in the bylaws of the total number of votes in the association request that the secretary call such a meeting.

HOA assessments keep increasing

You would need to review the governing documents of the association as to the percent increase the board can assess, with or without homeowner approval.

Legal action continues over Corporate Transparency Act’s reach

Thomas M. Skiba, CAE, is the CEO for Community Associations Institute. In today’s column he gives a very important update regarding Community Associations Institute v. U.S. Department of Treasury. This challenges the Corporate Transparency Act and its applicability to community associations nationwide.

Trash days always seem to be windy days

You could write a personal letter to each board member asking them to address the trash issue by proposing a regulation that all trash must be in containers or in proper trash bags.

HOA board cannot arbitrary enforce violations

Under subsection 4 of this law, the board’s decision to enforce one set of circumstances does not prevent the board from taking enforcement action under another set of circumstances but the board may not be arbitrary or capricious in taking enforcement action.

HOA board members must disclose conflict of interest

Under the law, each HOA board candidate must make a good faith effort to disclose any financial, business, professional or personal relationship or interest that would result or appeal to a reasonable person to result in potential conflict of interest in serving on the board.

HOA board hires management company

No. The selection of a management company is made by the board of directors. Many associations have search committees where the members of the committee consist of board members and interested homeowners.

Community manager refuses to provide tenant information

Management companies and community managers are sensitive and are hesitant in providing this kind of information, often citing NRS 116.31175 (4b) records of the associaiton relating to the unit owner to be confidential.