LAS VEGAS, Nev. (FOX5) – Sinkholes trapping cars and parking lots flooded in a Henderson townhome community last summer. Due to the safety concerns, the City of Henderson posted notices on every front door in Somerset Park: fix the problems or be forced to leave. Problem was the HOA had no money for repairs and the city had to step in.
Now one state lawmaker who represents the area wants to make sure it never happens again. State Senator Carrie Buck contends gross mismanagement of the HOA lead to their major issues.
“As our communities are aging, we are going to see more and more Somerset situations. The taxpayers in the City of Henderson or the different jurisdictions cannot be on the hook,” Buck told FOX5.
It is Henderson taxpayers initially footing the bill for emergency repairs, the complete replacement of broken pipes throughout the Somerset Park community. Homeowners now have until the end of the month to pay back their $8,000 share of the bill or have a lien put on their home.
“Somerset residents had paid into their Homeowners Association for years. There wasn’t a lot of oversight in those funds… right now we have over 3,700 Homeowners Associations in the state,” Buck reported. With more than half of homeowners in Nevada being part of an HOA, Senator Buck wants to ensure something like the situation at Somerset Park doesn’t happen anywhere else introducing Senate Bill 339 Wednesday proposing sweeping changes for HOAs.
“My bills are calling on the Nevada Department of Real Estate to really step up their game, to audit HOAs making sure that there are funds in the coffers…Oftentimes, those that may run management companies or those that are on HOA boards…don’t necessarily have the skill set, so having trainings as well as random audits,” Buck proposed. Buck says there needs to be more oversight because as communities age throughout the state, cities won’t always be able to step in to help.
“I do know that if we have say 5, 6, 7, 8 more Somerset situations, jurisdictions cannot afford that,” Buck maintained.
In addition to mandatory training and audits, Buck also wants homeowners to be able to go after HOA management companies in court if there is money mismanagement.
Next, SB339 goes before the Committee on Judiciary. A date for that is now being set.
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