Our next meeting is scheduled for Thursday, October 24 when City Attorney Micaela Moore will be our featured speaker. Please mark your calendar. We hope to see you then.
Bob Mersereau, President
NLV Alliance of Homeowner Associations and Concerned Citizens
We’re fortunate enough to Have volunteers to help this organization, We are here to help the North Las Vegas Homeowners and HOA's to have the knowledge to make the informed decisions for their communities. And Keep them informed of community events.
you are interested in learning more about HOA related Assembly Bill 369, please read the information below supplied to us by Don Schaefer. Thank you.
CONTACT YOUR ASSEMBLY REPRESENTATIVE TODAY TO OPPOSE AB 369
There is a new amendment to AB 369 that would change how HOAs collect past due assessments despite the fact that the current system works and there are no facts to support that the proposed changes are needed. This amendment is a solution in search of a problem.
There is no data to support the need for this bill, including no evidence that any significant percentage of HOAs make a profit when they own a unit or past due homeowners are not able to get longer repayment plans.
The 2015 and 2017 changes to NRS 116 struck the right balance of consideration for delinquent owners who needed additional time to straighten out their finances, giving them a 60 day right of redemption, protecting servicemembers, keeping the foreclosure mediation program alive (HOAs cannot foreclose when the lender and owner are participating in foreclosure mediation unless the owner is not staying current with assessments); and improving foreclosure notices.
Below are the key provisions of the amendment and talking points to use when communicating with your Assemblymember. This bill would:
Require the HOA to set the minimum bid on a unit at an HOA foreclosure sale at not less than 60% of fair market value.
o Requiring the unit to sell for some percentage of fair market value will dry up the pool of potential purchasers.
EXAMPLE: The appraiser sets the fair market value of the delinquent unit at $100,000. The HOA is owed $5,000. A purchaser at an HOA foreclosure sale would have to pay $60,000 for the unit. This purchaser would also potentially be taking the unit subject to the first deed of trust and subject to a right of redemption by the delinquent owner and other creditors. Who would buy an HOA foreclosure under those conditions?
o If a third party does purchase the unit and pays that amount the HOA only gets what it is owed, then the excess proceeds are distributed to the creditors in a particular order of preference. This will require filing more interpleader actions with the district courts to sort out who is entitled to these excess proceeds.
o AB 369 still says that an HOA can credit bid on the unit for what it is owed, but this creates a conflict that we are not sure how a court would resolve. How can the HOA open the bidding at $60,000 (in the example above) but only bid $5000 itself if there are no bidders? Worst case scenario is that a court would rule that the HOA has to put up the difference in cash.
Prohibit an HOA which has to credit bid on a unit at its foreclosure sale from "earning a profit" during the time the HOA owns the unit.
o In the event that an HOA does "earn a profit" after the expense of insuring, maintaining, covering the assessments, and paying utilities and taxes, that "profit" is used to offset common expenses for all owners - it is not going into the pocket of the board or anyone else.
Require an HOA to offer a 12 month repayment plan to all delinquents regardless of the amount delinquent but not allow an HOA to add any late fees, collection fees or other delinquent fees to the delinquent owner's account so long as the delinquent owner is in a repayment plan.
o By law, the first offer of a repayment plan can come no earlier than when the owner is 60 days delinquent. This means that owners who may pay late but do pay (and never reach the 60 day delinquency stage) are treated worse than long term past due homeowners because these late payers can be charged the late fee.
o Late fees exist because associations are not allowed to assess more than the HOA estimates is needed to pay its expenses. If all owners do not pay timely, the HOA loses the use of that money. A late fee is both an incentive to timely pay and a way to make up for the lost use of delinquent assessments.
o Is the Legislature asking mortgage holders, medical providers or any other creditor to forego late fees and other delinquent fees (which term is not defined)? Why should non-profit community associations be singled out?
Require that any payments made under a repayment plan pay off the delinquent assessments first and in full and then late fees and the cost of collections, but prohibit an HOA from foreclosing when the delinquent owes only late fees.
o Any smart past due homeowners would never pay the late fees since there is no consequence for failing to pay.
Change notices to continually remind the delinquent of the availability of a repayment plan.
Mandate mailing collection notices to the unit address even if the USPS does not deliver mail to the unit address and even if the Owner has requested email notices (where it is acceptable under statute to email notices).
o There is no evidence that "lack of knowledge" of the repayment plan option is the reason past due homeowners fail to enter into a plan.
o Continual offers of repayment plans, mailing to addresses where the USPS will not deliver mail; requiring mailing when the owner has requested email notice is a waste of money for no perceivable benefit.
How to Contact Your Legislator
Go to http://mapserve1.leg.state.nv.us/whoRU/ and type in your home address. Click on the blue "Pin" to see your representatives. Click on the link of the Assembly District representative's name. This will take you to the representative's Legislator Information page. Click on the email address under the photo of your representative.
In your email, be sure to state "I am your constituent and I live in a community association" and give your home address.
Please respectfully list 2-3 reasons why you oppose the bill. If you have an example of why this bill is bad, include it. Include your name and your address on your email. Forward a copy of your email to LAC at ____________________________ so we can keep track of our impact. Ask three friends or neighbors to do the same.
Text of AB 369 is available on:https://www.leg.state.nv.us/, select NELIS, select Bills, select Assembly Bills and scroll to AB 369.
Community Associations Institute - Nevada Chapter, 3230 S. Buffalo Drive, Suite 105,Unit 6, Las Vegas, NV 89117Type your paragraph here.
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The North Las Vegas Alliance for Home Owners Associations and Concerned Citizens (informally known as the North Las Vegas Alliance or NLVA), a not for profit organization, was created to expedite communication flow between North Las Vegas citizens and home owners associations, the leadership and city departments of the City of North Las Vegas, and developers and service providers within North Las Vegas.