‘Action must be taken’: Henderson to help complex replace damaged water system

The city of Henderson is prepared to front the cost of replacing a damaged private water system at Somerset Park, a move that would keep residents from having to evacuate the townhome complex, Mayor Michelle Romero announced Tuesday.

A new underground water distribution system for the complex is expected to cost between $400,000 and $600,000, Romero said during a news conference at City Hall.

“It is clear that decisive, immediate action must be taken,” the mayor said. “If the HOA cannot or will not fix this problem … the city will front the cost of the repairs to the system, ensuring that it is fixed without displacement.”

The city had given Somerset Park’s HOA and its property management company until Sept. 10 to fix the complex’s pipe system or face the possibility that water services would be shut off if it wasn’t done.

With no water, residents of the 85-unit community would have had to leave their homes for an indefinite amount of time.

CAMCO Homeowner’s Association Management, which manages the Somerset Park HOA, said Tuesday that it met with city officials, including Henderson Councilwoman Carrie Cox, Nevada Sen. Jeff Stone and Assemblywoman Danielle Gallant.

“CAMCO is hopeful the city may have a proposal to fix the issue,” the management company said. “However, this needs to be approved by the City Council.”

Sinkhole leads to discovery

The city discovered the water system’s dilapidated conditions when it made an emergency repair last month to a sinkhole that had began to swallow a car, city officials said.

CAMCO had told the city that the association lacked funds to cover the repairs, prompting city officials to inform residents about the September deadline.

Romero noted last week that responsibility for the repairs fell on the HOA and therefore the community’s residents.

The mayor said Tuesday that the HOA had failed the Somerset residents and that the city would only accept a full replacement of the water system to bring it into compliance with municipal code.

“Short-term patches are inadequate and would cost more money in the long run,” Romero said. “This private system is more than 40 years old, and the materials used at the time are out of date.”

Romero said residents — who would be allowed to stay at their homes while the system is replaced — probably would have liens imposed through installments in their property taxes for the city to recoup the cost.

Financial details being ironed out

Romero said officials were still working out the specifics of the possible arrangement. She said the city had been in touch with Gov. Joe Lombardo’s office.

The mayor said officials were discussing how to pay for Somerset’s fixes upfront, “whether it’s from utility funds, or general funds, or even emergency funds.”

“We’ll be figuring out what that looks like and working with our staff to see what makes the most sense, and then making sure that those funds are repaid,” Romero added.

The City Council recently approved a bill draft for the 2025 Legislature that if passed into law would allow local governments to step in to fix similar issues at HOA communities, with a payback system.

Possible solution

CAMCO said it was speaking to contractors to work on a fix they would pitch to residents.

“(The) association essentially has no money to make the repairs with the regular assessments that come in,” CAMCO said. “Therefore, the board has to impose an additional fee to pay for the repairs of the sinkhole and leaking.”

CAMCO said Tuesday that it was still reviewing contractor bids and searching for a vendor that offers financing for residents. A proposal would have to be approved by the HOA board.

While the management company does accounting of the association’s finances, the funds are held in HOA-controlled accounts, CAMCO said.

CAMCO told the Las Vegas Review-Journal that it had recently taken over the property after the previous management company was fined and dissolved by the Nevada Real Estate Division.

“Due to financial stressors based on the community’s budget shortfalls and past management, the board is facing some budget issues, and CAMCO is efforting solutions,” CAMCO said last week.

Romero said Tuesday that “it’s our understanding” that Nevada had pursued civil action against the previous HOA and that criminal charges were possible.

Residents react

Residents were prepared to voice their concerns during a City Council meeting on Tuesday, but Romero announced the city’s solution before the meeting.

Councilwoman Carrie Cox, who represents Ward III where Somerset Park is located, expressed anger, saying that she was not briefed on the city’s solution before the council meeting.

The residents had planned to show their dissatisfaction with the city, but instead showed a mix of emotions including gratitude but also concern for the overall condition of the complex.

Tyler Perez, 34, works in a physical rehabilitation center while also being a student at College of Southern Nevada.

“I was considering dropping a semester last week,” Perez said. “Now, I have to say thanks to so many of the people involved.”

“It just feels as if we were robbed. We felt lost, not having a place to go,” said Marvin Day, 30, adding that even beyond Tuesday’s announcement, “(the complex) needs a lot of cleaning up and support.”

Carollyn Shackelford, 64, was worried for her granddaughter, who started school a couple of weeks ago.

“She’s finally making friends for the first time. It’s keeping them in their schools,” Shackelford said during the meeting.

A previous version of this story misstated how Romero made her announcement. It was at a press conference.

Contact Annie Vong at avong@reviewjournal.com. Contact Ricardo Torres-Cortez at rtorres@reviewjournal.com.