COLUMN: Use of clubhouse questioned

Q. Our association has 90 completed units in the first two phases, and the developer is offering another 89 lots in the third and fourth phases.

Two years ago, homeowners voted to make a $1,200 per unit assessment on all owners in the first two phases to construct a new clubhouse. Now, the developer is making the clubhouse available to the purchasers of phase three and four.

This causes two problems. The developer is promoting the clubhouse as an amenity and probably getting a premium on the sale of the new lots, but is not investing any of that extra income toward the facility. Second, the clubhouse has a maximum capacity of 90 because of fire codes and cannot house the new residents.

How can the association remedy this situation? Can the new owners be assessed for future clubhouse amenities that may be required?

A. Assuming that each phase is annexed into the association, the newcomers would have the same privileges as the previous phases. The monthly assessment should include maintenance, repairs and improvements on the clubhouse that all owners would contribute.

Let's suppose that you wanted to purchase new furniture for the clubhouse. You would not be able to assess just the owners in phase three or four. This special assessment is like any other that an association may place upon the current residents that also will benefit future residents.

You may have some legal recourse against the developer. Since the developer is receiving benefits in the selling of units, he may have a legal responsibility to contribute to the clubhouse construction funds.

As for the clubhouse's size, that is irrelevant, as most are unable to accommodate all of the homeowners at the same time. Technically, you could only assess the third or fourth phase for a clubhouse in their section, assuming you secured the necessary votes from the owners of those two phases. Still, you likely could not segregate the clubhouses so certain residents used certain facilities.

Q. How can we dissolve our association? The same four or five homeowners come to the quarterly board meetings and it is a waste of time. The only common area we have are the streets and perimeter wall.

A. State law requires the vote of 80 percent of all unit owners to terminate an association, unless the association's governing documents require a higher percentage. In addition, since this is a material change, the governing documents may require the consent of any affected lending institutions.

Assuming that termination was approved, who would repair and replace the common streets and perimeter walls? If possible, you would have to make some arrangements with your municipality to transfer ownership of the streets and walls to them.

Questions for Barbara Holland may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759.

Barbara Holland, Certified Property Manager, is president and co-owner of H&L Realty and Management Co. She is a member of the Institute of Real Estate Management and is the author of two books on the subject. Holland is a past president of the Greater Las Vegas Association of Realtors.

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