COLUMN: Barbara Holland

Q. Our association has had many setbacks. The original developer went bankrupt and didn't finish the community. A second developer bought the undeveloped land and later sold it to a third developer, who hopefully will complete the project.

As a result, our reserves are depleted and we are left in debt. Many units have gone into foreclosure.

Two units have mold. It is my understanding that the association has nothing to do with the interiors.

The current developer has amended our covenants. He will loan the association $40,000 to mitigate the mold and pass this cost to our association's insurance policy to recover his money. Can he do this?

A. Since you have an existing community, even though unfinished, the developer cannot just amend your governing documents without a proper vote by the owners per the existing documents.

Second, he should not loan the association any money to mitigate the mold. The mold issue should be addressed by individual homeowner's insurance policies if, in fact, the homeowners have coverage beyond the association's policy and assuming that it covers mold. Most likely your association's insurance policy does not cover mold mitigation, and if the developer does lend money, he will probably not be able to recover that money from the association's insurance policy.

If the mold in the two units threatens more homes, then the association would have to take steps to prevent the mold from spreading and increasing the health risk. The loan would have to be absorbed by the two homeowners unless the mold is a result of a maintenance issue, which is the association's responsibility.

Whether or not the developer who took over the vacant land has a responsibility to repair any construction defects from the previous developer remains an issue to discuss with proper legal counsel.

In the interim, your membership will have to step up to the plate to make up the reserve deficit through increased dues and special assessments. You need to have a good collection company to pursue delinquent owners and help the board move as quickly as possible through the foreclosure process.

Q. I am writing to find out any information on association harassment. My husband is off the board; since then we've been harassed. Examples:

We had a shoe case on our porch for shoes. They say that we are not in compliance because they need to paint behind it. We had beautiful plum trees in the commons right next to our condominium. The association chopped them down yet other plum trees remain on the association property. We have a pine tree that we asked them not to trim unevenly -- they did not listen.

People on the other side of our home have half grass and half stone. We asked for the same -- they put all stone over our area.

We have four people on the board who have no concept of gardening or maintaining the property. They make decisions with a management company that has a woman in charge who did not like the way my husband told her how to do things. This company is causing our property to become degraded, not upgraded. How do we stop this? How do we go about getting help from the new Common-Interest Communities Commission? Can we get help without getting an attorney?

A. The issues you just raised do not necessarily indicate harassment, but rather that you disagree with the decisions made by the board and its landscape company.

They are not ones that the new commission would handle through a hearing, although you could contact the state ombudsman's office. They would contact the association and management company for their position on the issues, and may find that they can justify their position.

Ultimately, if you believe the board members cannot manage the association, you should work to find new board members and have them run for office. Through them, you may eventually change the management company whose counsel you do not support.

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.

Real Estate home