Association oversight modified

     By Barbara Holland, CPM
      Senate Bill 451, passed by the 1999 state legislature, went into effect Oct. 1, amending NRS 116. Following is the sixth of a series of articles describing how the new law affects homeowners associations.
      Several changes were made to the state law pertaining to the office of the ombudsman.
      Affected associations must pay a $3-per-unit fee to support this office. Owners within master associations are not required to pay twice, however the law does not specify whether the master association or subassociation shall pay the fee. Once paid, the administrator shall provide the association evidence of payment in compliance with the law.
      At the time it is required to pay the fee, the association must register with the ombudsman on a form that will be developed by that office. The fee is paid when the association files its annual report on the directors and resident agent to the secretary of state. The 1997 legislative session required associations to report to the secretary of state but provided many exclusions. The new law requires all associations to pay the fee, except those exempted from the new law, such as landscape, flood control and rural agricultural associations.
      Another new requirement is that specific information be given to the ombudsman as part of the duties of this office. This includes: the name, address and telephone number of the association; the name of the property manager; the name, mailing address and telephone number of the board members; the name of the declarant; the number of units in the association; and the total annual assessment made by the association.
      The ombudsman may, through the real estate commission, issue subpoenas to compel the attendance of witnesses and production of documents. If a person fails to comply, the commission may petition the district court for an order compelling compliance. If the court order is not followed in a timely manner, the court may consider contempt-of-court charges. Upon petition, the court shall enter an order directing the subpoenaed person to appear before the court not later than 10 days after the date of the order and to show cause for lack of compliance. A certified copy must be served upon the subpoenaed person.
      The real estate division may provide for the payment of fees for a mediator or arbitrator from the account for the ombudsman office to serve owners in common-interest communities to the extent that money is available in the account for this purpose.
      Changes also were made affecting mediation. The process must be completed within 60 days, reduced from a previously required 90 days, after the parties agree to mediate, unless otherwise provided by an agreement. Any agreement obtained through mediation must be reduced to writing by the mediator within 20 days of its conclusion, down from a previous 30-day requirement. The mediator must give a copy of the agreement to each party.
      At any time during arbitration of a claim relating to the interpretation, application or enforcement of an association's governing documents, the arbitrator may issue an order prohibiting the action upon which the claim was based. An award must be made within 30 days, down from 90 days, of the conclusion of arbitration, unless agreed upon by the parties for a shorter period of time.
      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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