Friday, April 3, 1998 | 9:55 a.m.
Eight years ago, Harry and Lillian Hopkins plunked down $200,000 cash for their three-bedroom dream home in a neatly manicured Las Vegas neighborhood.
Fresh into his retirement years, Harry Hopkins drove 4 1/2 hours from Los Angeles to the Desert Fairways West community twice a month to take pictures as construction progressed.
"I was living as high as a hog," Hopkins, a retired California state worker, said. "I had absolutely no worries."
But in the past three years, the 73-year-old's dream has slowly evaporated.
Hopkins was diagnosed with lung cancer two years ago. Once an avid golfer, now simply navigating a wheelchair through his home leaves him gasping for air.
Living off his retirement pay and Social Security -- which brings in about $2,000 a month -- Hopkins has spent the bulk of his savings on chemotherapy treatment and medication.
And three weeks ago, his troubles worsened. The Desert Fairways West Homeowners Association sent a letter saying because he has fallen behind on monthly dues, it is putting his home up for sale.
While Hopkins kept up with the master community's dues of $60 a month, he hasn't paid the $56 Desert Fairways assessments in a year. With penalty fees attached, he owes the homeowners association $820.
"I'm 73 years old and I've fallen on hard times," Hopkins said. "But they don't give a damn about me, they want my house."
Hopkins received a bundle of non-payment notices through certified mail. The latest note, which was sent through regular mail, arrived Saturday and informed Hopkins of something he already knew -- the Association was after his house.
Hopkins said he had learned of the foreclosure four days earlier when an acquaintance told him of a notice in the newspaper. Unless he comes up with the money by April 7, the couple's home will be auctioned off.
Hopkin's story isn't unusual. Judi Root, co-founder of Justice for Home & Condo Owners, said she has heard hundreds of horror stories involving homeowners associations.
"They're cruel," Root said. "I'm not minimizing anyone's problems, but I've heard from more than 300 people. Just when I think I've heard it all, well, I haven't."
The homeowners association is well within its rights -- by law it wields the power to collect delinquent assessments by selling the property.
Sen. Mike Schneider, D-Las Vegas, said Hopkins ordeal is exactly why he wants to introduce legislation that would provide more protection for homeowners, especially senior citizens.
Schneider said elderly people often move into gated communities without fully comprehending the Covenants, Conditions and Restrictions (CC&Rs). And, like Hopkins, they don't understand legal documents.
Las Vegas' elderly population is booming, which means situations like Hopkins' will continue to occur, Schneider said.
"When you get elderly people, sometimes they just don't understand," Schneider said. "I don't want to make excuses for this guy, but if I were 73 and being treated for lung cancer, I'd be so consumed with other things I may not pay attention to the letters."
Schneider said he will introduce a bill that would add a step to the foreclosure process. Many disputes would be resolved if the two sides were required to meet with a mediator, a law he plans to propose.
Schneider authored the most recent senate bill that tightened the reins on homeowners associations. The bill, SB 314, sets a $50 limit on fines for a single infraction. It also says associations can only foreclose on homes when the owner fails to pay dues, not penalty fees.
The law was the most requested piece of legislation in the history of Nevada. The state's web site where the senate bill appears, urges people to read about "common interest communities" before they move in.
"There shouldn't be a need for that senate bill at all," Schneider said of SB 314. "If you can't act like a decent human being and go out and act like good neighbors ..."
Steve Urbanetti, an assistant to the administrator for the state Department of Business and Industry, said one reason disputes reach the foreclosure stage is because homeowners associations don't communicate with their members.
"A lot of them have to do with ego problems and personality conflicts," Urbanetti said. "To me, there are less real problems; people just need to sit down and talk things out."
Urbanetti, whose agency watches over homeowners associations to ensure they follow the bylaws, said he can't help Hopkins. He said the foreclosure policy is stated clearly in the CC&Rs, which Hopkins signed.
"Personally, I think it's terrible, but what can I do?" Urbanetti, who received a call from Hopkins asking for help, said. "I feel for the man."
Hopkins situation may have occurred because he and the association failed to communicate. The two sides never met face to face; Hopkins said he was unable to reach the Association.
Lorraine James, president of American Trust Deed Services Inc., which works with more than 300 homeowners associations in Southern Nevada, said the association may have worked out a payment plan had Hopkins called.
"They don't want his home, they just want him to pay what's due," she said.
The homeowners associations were given the authority to foreclose on homes when the Uniformed Common Interest Ownership Act was adopted in 1991.
Woodburn & Wedge attorney John Leach, who handles many foreclosure cases, said homeowners associations have a statute of limitations and must begin the process soon after a resident has fallen behind on dues or it will lose its rights.
The fees are essential to keep up landscaping throughout the gated community, pay for security and maintain the streets. Leach said most associations will work with homeowners to resolve problems before they reach the foreclosure process.
"If they have financial problems, is there compassion? Can there be? Should there be?" Leach said. "You try to help people out."
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