COLUMN: Barbara Holland

Q. I live in an association that is still under the control of the developer. Board members consist of developer employees with only one homeowner At a recent budget meeting, a director proposed to increase dues by $4 per month in order to maintain a recreation center that is under construction.

The developer is planning to install a slide for one of the pools, which will require that the association have 18 lifeguards. The annual cost is projected at $129,000, not including liability insurance. We have argued with the board that homeowners do not have enough of a say on the recreation center.

The budget also indicates the purchase of two security vehicles costing $30,000 each.

The association plans to have a meeting to vote on the proposed budget. If 51 percent of the owners do not attend, the budget will pass and the fees will be increased. I asked if the association would allow proxies. The president said no; homeowners need to be present. We feel the developer is taking advantage of us.

A. By law, within 30 days after the adoption of any proposed budget, the board must provide a summary of the budget to all owners and set a date within a particular time frame for an owners meeting. Unless at that meeting a majority of owners (or a larger vote if required by the governing documents) rejects the budget, it is ratified. The law does not require the association to mail ballots or proxies.

Regarding the recreation center, the developer has the right to decide what is built in the subdivision.

One thing you may want to pursue is what percentage of the homes have been sold. By law, the declarant's control of the association terminates no later than 60 days after conveyance of 75 percent of the units that may be created.

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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