Bill Would Place New Rules on HOAs Legislators in Carson City say they want to make sure HOA's are fair to their members. Now a bill could save you from losing your home. |
Courtesy of the
klastv.com Channel 8, Las Vegas, Nevada
More than one
million people belong to homeowner associations in Southern Nevada and nearly
90-percent of all new homes in Clark County have HOAs. Legislators in Carson
City say they want to make sure HOA's are fair to their members. Now a
bill could save you from losing your home. Warren Hardy, (R)
Clark County State Senator, said, "I hate to give up on homeowners
associations, but I can get there too." Senator Hardy is
fed-up, "We have an obligation to look at where people's most personal
right, their home ownership, is not impacted negatively." That is what
Senate Bill 153 is focusing on, making sure homeowners also own the right to
know exactly where their money is going. Sen. Hardy adds,
"I learned the middle of last summer that there were occasions in which
managers of homeowners associations had set up contractually where they were
benefiting from those fines." Hardy says the
more the managers benefit, the more common the problem. Fines are being
imposed for such things as for, says Sen. Hardy, "leaving your trash can
out too long, having weeds, any of those." Things, which
Legislators say are unfair. Hardy continues, "The
problem is that it is the fox watching the hen house. You can't allow the
person who assesses the fine to benefit from the assessment or they are going
to fine everyone they can." Legislators want
to see that issue changed by monitoring what homeowner associations are doing
with the money they receive. Pam Scott with the
Howard Hughes Corporation is concerned. "You cannot foreclose on a fine
but you can for assessments." Officials say many
managers are paying the fines with the payments rather than the assessment,
which puts houses in jeopardy. Senator Hardy says
this bill could be the foundation for more secure homeowner associations
because it gives more control to the homeowner giving them access to records. "It allows
the homeowner to specify where they want the money to be placed," Hardy
said. Pam Scott adds, "Unless
the owner tells you that he is paying a fine, all money goes to the assessment
so that they are not accruing late charges and going towards leaning and
foreclosure." This bill is also
designed to make sure that homeowner association managers abide by the same
rules as collection agencies. The bill has been
passed by the State Senate. It is currently in committee that is expected to
pass it on for a vote in the State Assembly. |