COLUMN: Homewner's questions remain unanswered due to privacy clause

Q. I normally do not attend board meetings, but I did recently after noticing that several residents are in violation of some of the covenants, such as parking a boat in a driveway.

I only got frustrated because after sending my complaints to the management company and being assured that they would be addressed at the meeting, I ran into a brick wall -- the "privacy act." The board could not -- or would not --tell me if notices of violation had been sent or if fines had been levied due to the privacy act.

I believe the owners have a right to know these things. Are the directors hiding behind the privacy act?

A. Based upon two state statutes, association boards and management companies have been hesitant to discuss any specifics when it comes to individual homeowners who have violated governing documents.

According to NRS 116.31085.2c, the board of an association can meet in executive session to discuss a violation of the governing documents alleged to have been committed by an owner, and NRS 116.31085.4 states homeowners are not allowed to attend executive sessions.

With regard to your concerns expressed at the board meeting and in your letter, the board and management company should indicate that they are taking appropriate action, according to their governing documents and state law. The company should also be willing to discuss the complaint and fining process, including the first and second warning letters, the time frame between the warning letters and first fine, and the maximum fine that can be assessed.

Once the board has fined someone to the maximum level, what's next? An association can place a lien on that person's property, but cannot foreclose on that lien. The association may also take the owner to court, but only after filing a complaint through the arbitration/mediation process with the Nevada Real Estate Division. All of these actions have required statutory time periods. Months could pass and the owner could still be in violation of the governing documents.

The cost for an association to enforce its governing documents through the Real Estate Division and courts can be expensive, so some boards are making tough decisions as to what battles they undertake.

In the case of a boat parked in a driveway, some towing companies do not tow a disabled vehicle or any recreational vehicle from a private driveway. Consequently, a board may be forced to fine the owner and hope he eventually complies.

Q. A director who has been sick has given his wife, who is not a director, the key to his office at the clubhouse to check his mail and messages. At board meetings, she speaks as often as she likes and shares her opinions as if she was a director. In fact, she sits at the board table next to her husband.

Should the board take action? This woman is not protected under the association's insurance policy.

A. Boards need to monitor this type of activity.

First, directors have a fiduciary responsibility to the association. Many discussions, especially those during executive session, are confidential, not only to other owners but also to directors' spouses and relatives.

Second, boards with liability coverage (all boards should have this coverage) protect only the officers and directors. Their spouses or relatives who interfere with the management of the association are not protected.

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