State will appoint a receiver if board resigns
Q: Our community has 546 homes. Our homeowners association board of directors has five people. In the past three days, four of the five have resigned. The only one remaining is the president. Not sure if she is staying.
We’re nearing year’ end, with lots of issues on the table (i.e., 2019 budget).
What does Nevada law say regarding our situation? Especially if we get to zero members on the board.
A: Assuming the president stays on the board as the lone board member, most governing documents would allow the president to appoint directors whose term would expire at the next annual meeting. The president could have management send out candidate applications for a new election.
If the president resigns and if there are no other homeowners willing to serve, the Nevada Real Estate Division would appoint a receiver to manage the association who in turn would select a management company to manage the association until that time the association has recovered from the resignations.
Q: My broker and business partner told me to contact you to see if we have a case here. Our community management company is withholding a new mailbox key (and our tenant’s mail) because our tenant went month to month after a year’s lease. We have a one-page addendum in writing, stating the lease was to go month to month. The tenant has been there over two years now. They are withholding the key due to the attached resolution which I am telling them does not apply since our lease is still in place. They are insisting we write the addendum for a six-month minimum. What are your thoughts?
A: Technically, the original 12-month lease agreement was legally converted to a 30-day lease agreement, i.e., month to month. You no longer have a longer lease than 30 days. Both parties, the landlord and the renter can exercise their right to a 30-day notice to vacate from the home with proper notice.
From your comments, the association is taking a hard stand on its policy, especially since the tenant has been residing in the community for about two years. I don’t agree with the association’s policy but it appears that your association has the right to enforce the six-month minimum lease agreement.
As to the withholding of the mailbox key, which is preventing the tenant from obtaining his mail, although, I could not fine the statute, I would not be surprised if the association was violating a federal law. You need to contact the local post office.
Q: I live in Arizona. Would you happen to know if most states (i.e., Arizona) have a law like you referenced with Nevada Revised Statute 116.3115 (2b)? If so, where would I find it? We have a similar issue and we can’t pass an increase either.
A: The state of Arizona does have a body of laws governing homeowner associations. That body of law is A.R.S. 33. The state law pertaining to Arizona’s associations and reserve studies can be found in section 33.1260. Here is what I found:
■ Arizona has no statutory provisions requiring a planned community association to prepare a reserve study or to fund reserves.
■ Arizona does have a statutory requirement for both condominiums and planned communities that requires certain disclosures upon the resale of a unit/lot within an association (A.R.S. 33-1260). Specifically, the purchaser must be provided with a statement regarding the total amount of money held by the association as reserves. The purchaser must also be provided with a copy of the most recent reserve study of the association, if one exists.
Barbara Holland is a certified property manager, broker and supervisory certified association manager. Questions may be sent to holland744o@gmail.com.