Wednesday, Aug. 27, 2003 | 11:17 a.m.
When state Sen. Mike Schneider heard about the fight over a homeowners association foreclosure in Henderson, he was incredulous.
A Henderson woman had her home foreclosed on because she didn't pay her monthly assessments in a fight with the association, and state officials charged with overseeing homeowners associations didn't know about it because there was no requirement for them to be notified.
"This is the reason we worked so hard on homeowners association legislation, to stop things like this," Schneider, D-Las Vegas, said.
Schneider has been a champion of laws regulating homeowners associations and sponsored a law adding more teeth to the oversight of associations. The law, which goes into effect on Oct. 1, requires the ombudsman's office be notified of all foreclosure sales that are initiated by a homeowners association at least 30 days before the sale.
The law also calls for the creation of a new state commission to hear disputes between homeowners and associations. The toughest cases will be brought before this new five-member commission, which will have the power to levy fines, remove association board members and order resolutions to disputes, Hardy said.
The ombudsman's office offers arbitration and Hardy said he tries to resolve disputes through meetings between the opposing parties, but his office currently has no enforcement powers.
Also, Eldon Hardy, the state official who handles complaints arising from homeowners associations, generally only finds out about problems if someone contacts his office. Because of this Hardy, said he's not even sure exactly how many homeowners associations initiated foreclosures in a year, but he estimated it is no more than two or three.
Schneider said there was "no reason" for a case like the Henderson foreclosure to happen.
"We want someone to touch every foreclosure. To make sure it's an honest foreclosure," Schneider said. "With this commission it shouldn't happen anymore."
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