Las Vegas-area homeowner gets $6,800 surprise water repair bill from HOA

Q: I live in a Nevada HOA. A few months ago water repairs were made on the street in front of my property. About six years ago there were also water repairs made, and at that time, I was informed that I would be responsible for the cost of the repairs. I was given a quote by the company — the company that the association was using that I felt was too high. I received two other bids, the company that I used provided a quote that was 40 percent less and they had a rating of 4.5 compared to the association’s company rating of 3.5.

I was never informed about the repairs that were done in April and never had a chance to secure other bids. A week after the repairs were done, I received an email from the management company that I owed $6,800, and if I wanted to make payments that arrangements could be made.

Naturally, I was flabbergasted as I was never told in advance about the repairs and the cost of the repairs. I was given a “hearing” by the board to explain my case. This was a closed hearing so other members of the community were not able to hear my case. The board came back and said I am still responsible for the original amount. I was also told by the management company that they had called me previous to the work being done to advise me that these repairs might need to be done. They also said they called me the day after the work was done. This claim is totally false and I have secured my phone records for the two dates in question. There were no calls from the management company.

As an aside, the management company in question has a very poor reputation as I checked their reviews online. One site gives them a 1.6 and the other one a 1.3.

I am more than willing to pay for the repair and have offered to pay $4,000 which is roughly 40 percent less than requested.

A: As a point of information, according to NRS 116.31085 (4), an executive board shall meet in executive session to hold a hearing on an alleged violation of the governing documents unless the person who may be sanctioned for the alleged violation requests in writing that an open hearing be conducted by the board, in which case the hearing must be held in a board meeting.

The hearing would be noticed on the board’s meeting agenda.

As to the water repairs, you have a right to see the invoice. Obviously costs would be higher due to the length of time from previously made repairs. You could then compare it with your invoice from six years ago to see the difference as to time, labor and materials. You would also need to review either or both your CCRs and bylaws to determine what notification is required.

Often a repair due to an emergency must be immediately addressed, consequently, bids may not be possible.

Your last options are to file a complaint with the Nevada Real Estate Division before filing a suit in civil small claims where you would first need to pay the full amount to the association and sue for the difference.

Barbara Holland, CPM, CMCA, AMS, is an author, educator and expert witness on real estate issues pertaining to management and brokerage. Questions may be sent to holland744o@gmail.com.