Henderson, Nev. (FOX5) – After months of uncertainty and construction, the City of Henderson told FOX5 in a statement crews have finished repairing the plumbing issues at Somerset Park Townhomes.
The 85 pipes that commented to the 85 townhomes were replaced. The city said crews also removed “hazardous structures” and brought the community up to city code.
“I am pleased that the City was able to step in and successfully repair the underground water leaks and that we were able to keep Somerset residents in their homes. I want to acknowledge our City departments and the partners who helped with the coordinated construction effort and thank the community for their patience and cooperation as we worked as quickly as possible to resolve these critical issues with little disruption,” Henderson Mayor Michelle Romero said in the statement.
FOX5 has stayed on top of this story for months.
In August, the city discovered the townhome community’s pipes were a safety and health hazard. Letters informed the 85 families they had two weeks to find a new place to live unless they were replaced.
That’s how residents learned their homeowners association did not have the money to get new pipes. So, the City of Henderson stepped in, keeping those families in their homes but not without blaming the HOA for failing their homeowners.
In a September press conference, Mayor Michelle Romero said the busted pipes were the result of the worst case of HOA mismanagement the city has ever seen.
FOX5 Investigates spent months digging into homeowners associations in Nevada and all the ways they’re supposed o keep situations like the one at Somerset Park Townhomes from happening.
Crews got to work repairing the pipes in mid-September.
Homeowner Irene Montano was thrilled to finally hear the construction noise after her neighborhood dealt with years of running water in the streets, and pools causing potholes. One puddle created a sinkhole that swallowed part of a car.
“It was kind of nice to know that it’s being repaired and that we are going to be able to stay here,” Montano said in October.
The noise represented relief after her and her neighbors thought they’d have to leave their homes in August.
“You feel like you’re losing everything all of a sudden. No other options, nothing to fall back on. Just, you have to go,” Montano described. “It’s just an emotional rollercoaster, not knowing what’s coming. Not knowing the financial aspect, the emotional aspect.”
Troy Isaacson has decades of experience as a lawyer representing homeowners associations. He says studies show HOAs improve and stabilize property values.
“If you have board members who may not understand their functions and their roles, then they can have an adverse impact on the association,” Isaacson said.
Nevada law says board members have to live in the community. That means people without any business experience could wind up in charge. It’s common for boards to hire a management company and a lawyer to help keep them on track and make suggestions.
“It really takes everybody in the community working cooperatively together to make the community function,” Isaacson added.
State law gives control of community rules and regulations to an HOA. It’s also in charge of setting budgets, collecting fees, and maintaining common areas. The law also requires HOAs to reserve money in cases of emergency, like the one at Somerset Park.
“So as common area components grow older, the reserves are there to replace those components as may be needed,” said Isaacson.
Nevada law doesn’t explicitly say how much money an HOA is supposed to have in reserves, but it does say they have to do a reserve study every five years. It needs to list all of those common area components, like pipes, and how much they would cost to fix and replace them.
“Then boards can look at that and say, ‘we need to put X number of dollars per home aside each month to meet these requirements in the years to come,” Isaacson continued.
Somerset Park’s HOA board told FOX5 they had money saved up, but the former management company ran off with it. They’ve since hired a new management company.
The Nevada Real Estate Division oversees HOAs. It requires HOAs to register and pay assessments every year. A state spokesperson told FOX5 in a statement the Somerset Park HOA is in compliance with that requirement but the Real Estate Division still has a case open against Somerset Park.
It’s working with the current management company to get back on track.
The City of Henderson took on the repairs and the bill. It could cost anywhere between $600,000 to more than a million dollars. Homeowners will have to pay it all back through tax liens over two years.
In a statement sent Thursday, the city said “the final cost remained within the budget approved by the City Council. The City will continue to contact Somerset residents on the next steps. An agenda item will be place on an upcoming City Council meeting to approve the assessment.”
Montano isn’t sure how much she’s on the hook for yet but that uncertainty beats paying the mortgage on the home she was kicked out of while paying rent somewhere else.
“It’s going to be a little bit of a hassle trying to figure things out in the beginning, but I hope it works out,” Montana said.
Now that repairs are complete, Montano said the community is already reaping the benefits. The water bill has dropped significantly. The next hurdle is the landscaping.
The City of Henderson statement also included “the Somerset HOA is responsible for all other property maintenance.”
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