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July 31, 2014

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Nevada Territory

With HOA collection bill dead, language revived in another bill

A portion of a homeowner association bill languishing in committee got reborn in a bit of last-minute legislative maneuvering.

Senate Bill 174, which would cap fees for delinquent homeowner association dues at $3,300 per house, was virtually dead in the Senate Finance Committee.

But homeowner management company lobbyists took a related bill, Senate Bill 402, and added a portion of that language in a “conference committee,” a process typically used to clarify minor differences in bill language between the Assembly and Senate.

Now, the full Senate and Assembly have only to adopt a conference report on the bill, which usually happens in a voice vote, before going to the governor.

The language was not available immediately, said Garrett Gordon, a lobbyist for Lewis and Roca, a lobbying firm. He said homeowner-friendly provisions were being added.

But sources said it would still put the cap at $3,300 and make collection fees a “superpriority” — a legal dispute right now between investors and collection companies.

The proposal has been controversial all session, with investors and some consumer protection groups arguing the caps were too high.

Rutt Premsrirut, an investor and real estate broker fighting the legislation, said “the bill lacks transparency.” He called it a “backroom deal” brokered by powerful lobbyists.

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  1. HOAs, Management Companies, and Collection Crooks have too much power over homeowners. The Legislature should not pass anything without homeowners' input. It's time to let the homeowners make some decisions. Homeowners have no say in their own destiny.

  2. Actually HOA's drive down value for some people. Ask any real estate agent. There are a lot of buyers who refuse to live in a HOA neighborhood because of past bad experiences.

  3. HOAs and their members are generally struggling financially in this economy where about 85% of homes are priced below their mortgage values. It is absolutely essential that adequate ceilings for collection fees are established so that HOA Boards are able to go after unpaid assessments the existence of which shifts the economic burdens to those HOA Members who are paying the common area costs which the HOA is obligated to cover. Otherwise these developments fall into disrepair, and become eye sores that blight our neighborhoods. Those who oppose providing for adequate collection fees, and a way to recover months of unpaid assessments, are undermining
    the ability of our 2000-3000 HOAs to meet their financial obligations to the neighboring communities and the developments that they serve.
    Their negative campaigns against HOAs are based on ignorance and greed.