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Monday, June 6, 2011 | 2:38 p.m.
Sun archives
- Bill would cap collection fees when HOA bills are past due (4-15-2011)
- Senator wrote HOA bills while working for HOA (4-3-2011)
- Las Vegas judge blocks foreclosure by HOA collection agency (4-1-2011)
- 2 NV bills would set caps on HOA collection fees (3-24-2011)
- Las Vegas HOA collection agencies sue critics (3-21-2011)
- Another lawsuit filed over HOA debt collection fees (12-18-2010)
- State panel sets limit on HOA fee collections from foreclosures (12-7-2010)
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.
The fact is super priority lien states everywhere else include collection fees. These states include CO, UT, CA, TX, FL and more. The investors have been attempting to spin this so they can maximize their profit.
Without collection costs being allowed to be collected myself and all other paying homeowners would have to pay for the debt of others and for the lost collection costs. The fact is many accounts go to collections months before you know they are delinquent on their mortgage.
Spoken like a true greed inspired collection company forcing their outragious fees on homeowners and not ONE penny goes back to the HOA community.
The real truth is that every account gets paid when the property gets sold...EVERY account. No one is left holding the bag, this bill does nothing but put hundreds of thousands of dollars into the pockets of greedy collection companies...and that's the truth.
Here's a novel idea - Pay your effin bills each month and then you won't have to worry about 'collection' fees. Everyone wants to live in a nice, clean neighborhood - free of cars parked in the front yard and 10 dogs in the back yard backing at your prospective homebuyer - ya, that scene wouldn't be too conducive to a quick sale now would it? Fact is, without these HOA rules you just might have a neighbor who does stupid, irritating and home value lowering things like that. So, in fairness to all who have to pay a fee to ensure we don't have junk cars in the front yard of a purple and pink polka dotted house, PAY YOUR FRICKEN BILLS!
meant to say 'barking' not backing...oops
I just wonder how 80% of the country dose not have HOA. and servuve!
Eliminate HOA
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.
Don't forget to recall the money grubbing politician that sponsored an supported it. These are the type of corporate shills that need to be removed from public policy making.
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.
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.
I for one would not live in this town without a gated community, and a "VERY STRONG" HOA. I want to keep my property value up. Drive around and take a look at neighboring, neighborhoods that have a weak HOA, or no HOA at all. If that is what you want.... Then you go. Las Vegas has a ton of section 8s, low lifes, and slobs. They live the way they want, which is fine with me but not in my HOOD if I can help it.
If this additional language did not concur it was lost opportunity for both the delinquent homeowners that want to stay in their home and the paying homeowners as it protected both. From what I can see the biggest obstructionist was the investor group who wants to leave the collection costs to all other owners.
This is good language as it extends the length before someone goes to collections, puts a ceiling on the fees that a delinquent owner or buyer will pay below current regulatory caps and delays the start of foreclosure based on time and money owed. There is a point where if someone has not paid a bill after several months what is the chance that they will voluntarily start paying again, that is why collections is needed.
Look at other states that don't have non judicial lien and foreclosure collection process. Those HOA's write 15-25% bad debt into their budget with the current economy where states that have non judicial processes probably average 5-10%. This is good for the paying homeowners to prevent their bills from going up.
Now for the super priority part where the investors have been fighting. First my and everyone else's HOA is not made whole. We as HOA homeowners write off bad debt of all unpaid beyond the 9 months on foreclosed properties which does cost me and my neighbors. Second if collection companies were not guaranteed their hard and other costs then the likely they would not take any account that went to collections in fear it might turn into a foreclosure after the fact or change the contracts where the HOA would have to pay the costs. That would then cost all paying homeowners (and the delinquent owners staying in their home) as the homeowners are the HOA.
Also to set the record straight to the poster 'notthetruth' I am an informed homeowner and don't work for a company in the HOA industry. As well since your user name was brand new perhaps we should look at the facts.
It is possible to rid your neighborhood of your Management Company. I dont know if it would work on some of the gigantic communtities here but my smaller community which once had a property managemnt company overseeing us is now free of them! Yay!