Editorial: Homeowners’ relief through a new law

Wednesday, June 18, 2003 | 8:52 a.m.

Every month the state ombudsman for homeowners associations receives about 1,500 telephone calls from people who believe they've been wronged by the boards that oversee their associations. The associations, which have powers similar to those of government, have been criticized for abusing their authority. Complaints run the gamut, from board members harassing residents, to associations banning the flying of U.S. flags, and to board members misappropriating association funds. But ombudsman Eldon Hardy and his staff of three don't have the manpower to handle the complaints and resolve the disputes. And while Hardy can try mediation, he doesn't have enforcement power.

In an effort to improve the situation for the nearly 1 million people in Nevada estimated to live under homeowners associations, the Legislature has created a commission to rule on homeowners' complaints. If there is just cause, the commission can remove a homeowners association board member or an entire board. In addition, the commission can order audits. The lawmakers also beefed up the ombudsman's unit, adding six new staffers.

One provision of the law that does worry us, however, could result in the commission imposing fines of up to $1,000 against "any person who knowingly files a false or fraudulent affidavit" with the commission. Certainly we don't want to see fictitious complaints abuse the process, but some homeowners associations could use the threat of a fine as a cudgel to intimidate residents. Homeowners should understand, however, that there is no fine for simply filing a claim and losing your case. Overall, we believe the legislation sponsored by Sen. Mike Schneider, D-Las Vegas, offers homeowners a place to turn to where they can receive immediate relief for justified grievances.