How confidential are complaints filed against the HOA board?

by · Las Vegas Review-Journal

Q: If a member of an HOA makes a complaint, verbal abuse by a board of directors member, for instance, it seems clear that this complaint, as received by the HOA, should be treated as confidential.

What’s not clear to me is if the person making the claim is also bound by some rules of privacy.

Here’s the (not so) hypothetical. A woman feels a BOD member (male) verbally abused her. There were lots of witnesses so the situation is somewhat known in the community. She filed a complaint with the HOA. She also felt it rose to the level of “assault” and filed a police report. Is she bound by any regulation to not discuss this?

A: The association has to treat the complaint as confidential under NRS 116.31175, subsections 4b, 5a and 5b.

The homeowner is not bound to any confidentiality laws under NRS 116, but the homeowner needs to be aware that the association could take legal action for defamatory statements (slander) or defamatory statements (libel).

Q: Our HOA board frequently takes actions outside of regular board meetings. Examples include deciding whether to accept a bid opened at a regular board meeting and time-sensitive issues like renewing certificates of deposit and insurance contracts. I understand NRED strongly discourages this approach, but it is legal. However, is any documentation required of these actions without meetings? The board acknowledges actions by adding an agenda item ratifying the expense in a future regular board meeting, but does not offer details as would appear in meeting minutes.

A: According to NRS 116.31083, action items should take place during the scheduled board meeting, with the exceptions of action items in the executive session under NRS 116.31085. At an executive session, the board discuss proposed or pending litigation with their legal counsel; alleged misconduct/professional competence/ mental health of a community manager or employee of the association; and alleged violations, including the failure to pay assessments and alleged failure pertaining to construction (subsection 3a-3d).

Subsection 2 specifically states that the board may not meet in executive session to open or consider bids for an association project, or to enter into, renew, modify or terminate or take any other action regarding a contract.

Associations don’t technically have an open meeting law requirement. Board members can meet to discuss items in a committee but are not supposed to make any decisions.

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.