54°F
weather icon Cloudy

Developers need to make community repairs

Updated August 7, 2018 - 1:49 pm

Q: We are a community of 247 homes, of which the oldest homes are about three years old. The builder has finished building homes, and is in the process of leaving. The board asked my husband (due to his construction experience) to head a transition committee to identify areas they felt the builder/developer needed to repair before they left the development. My husband spent many hours creating a report and told the board that it needed to act ASAP.

For some reason, our board president is unable or unwilling to make demands on the builder or anyone else and this report sat for almost three months without anything being done. We are now afraid that the county is going to release the bond and we will be unable to have the necessary repairs done at the builder’s expense. Since some of these repairs include curb, gutter and streets, we are afraid that, as a private community, we will have to make these repairs and pay for them at a later date. Some of these repairs may effect the resale value of our homes.

This present board also refused to give my husband a copy of the management contract until he read Nevada Revised Statutes 116 and sent them a copy. This is just the tip of the iceberg with the board and the management company. We are going to do out best to get rid of the present board and elect people who are willing to follow the covenants, conditions and restrictions and bylaws.

We would appreciate any help you could provide.

A: One of the most important functions that a board of directors has pertains to the transition of control from declarant (the developer) to a homeowner-controlled board of directors. One of the functions is the community walk whereby the homeowner association has the opportunity of noting any common areas/element deficiencies that are noted on a punch list for the declarant to review before the association signs off. This punch list is presented to the declarant and lists work that the association directors believe should be repaired and or replaced.

Apparently, this was a responsibility of the transition committee to perform this function. For whatever reason, it appears that this report has not been presented to the developer. You are correct that failure to deliver the report would shift the potential costs to repair/replace from the declarant to the homeowners.

You have a few choices: from asking the board to place him on the agenda with the report; or two for you to address the board during the second homeowner forum at the next board meeting.

There is nothing specifically in NRS 116 that states that an association must do a community walk or create a punch list, but to not perform this function could be in violation of the association’s fiduciary responsibility. Directors have a fiduciary responsibility under NRS 116. 3103, as well as being subject to the business judgment rule and the exercising of ordinary and reasonable care of the community. Based upon this section of NRS 116, you could contact the Nevada Real Estate Division and file a formal complaint.

Barbara Holland is a certified property manager, broker and supervisory certified association manager. Questions may be sent to holland744o@gmail.com.

Don't miss the big stories. Like us on Facebook.
MORE STORIES
THE LATEST
Federal ruling temporarily blocks Corporate Transparency Act

Community Associations Institute applauds the Dec. 3 decision by the U.S. District Court for the Eastern District of Texas in Texas Top Cop Shop, Inc., et al. v. Garland, et al. to issue a preliminary nationwide injunction against the Corporate Transparency Act.

Disabled vet’s wife upset about flags improperly displayed

You may want to contact one of the local branch offices of the United States Armed Forces for assistance. Perhaps you could obtain a formal letter from them concerning the flying of the United States flag.

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.