Homeowners association law questioned

Martin Kuz

Thursday, March 12, 1998 | 10:27 a.m.

No law is perfect. State Sen. Mike Schneider found that out Wednesday night while addressing ongoing concerns over the power wielded by homeowners associations.

The Las Vegas Democrat addressed a crowd of 50 skeptical residents at Spring Valley Library who sought details on a new state bill passed last year aimed at preventing associations from quashing home and condo owners' rights.

Informally known as the "Homeowners Association Bill of Rights," Senate Bill 314 requires association boards to hold public meetings and restricts their eminent domain authority, and creates a state ombudsman's office that will open in July to field complaints from residents. The measure is also designed to keep boards from arbitrarily fining and foreclosing on homeowners.

Residents grilled Schneider, who authored the initiative, for an hour Wednesday, seeking answers on how the state intends to resolve disputes between homeowners and their associations. Schneider's reply: If a board violates SB314, residents should use the state's muscle by going to arbitration through the Real Estate Division of the Department of Business and Industry.

When some residents wondered if arbitration would get associations to come into compliance, Schneider explained that if boards ignored the ruling, they could face revocation of their insurance.

"This (SB314) is good insurance that hopefully will take care of the problems," he said.

Roughly 60 percent of Las Vegas Valley residents live under an association. Countless horror stories -- from boards levying hefty fines for unkempt shrubbery to placing liens on homes -- prompted the passage of SB314.

But Schneider, while conceding the bill needs "some fine-tuning," said after the meeting that for the initiative to have an impact, residents will have to become even more dogged in confronting association boards.

"It's like those bumper stickers: 'Democracy is not a spectator sport.' You have to get in and participate," Schneider said.