Electrical panel upgrades can lead to liens by HOA

Q: I live in a small subdivision with an active HOA board.

Last year, our insurance carrier informed the Board that our insurance premiums would triple from $50,000 to $150,000 unless all of the homeowners upgraded their electrical panels to code, an upgrade that I didn’t completely disagree with as the breakers in the panels were 50 years. I did and still question the need to lower the panels a foot or so, but that is now apparently part of the code.

As not all of the owners initially agreed to do the replacement, which cost about $3,500, the Board declared that the HOA would replace those that declined to do it and then file a lien against the affected properties.

I find nothing in the CC&Rs that addresses this issue. Does an HOA board have statutory or regulatory authority to use liens to enforce compliance?

A: Given the situation, if the board pays for the upgrade on the electrical panels, the board could place a lien, following due process procedures, against non-paying homeowners.

Q: Do open meetings include situations where a quorum of BOD members (four here) meet with a vendor, maybe a landscaping tour? Or to meet informally with the property manager?

A: Nevada does not have an open law meeting regulations for homeowner associations. They can meet together with vendors and contractors as long as the attending board members make no decisions. Decisions need to be announced on their regular board agendas with discussions and voting at their regular board meeting.

Q: My backyard neighbor has a large tilted eucalyptus tree in the center of four homes. If you draw a plus sign, it would be in the center of all four homes including theirs. It’s located near the center of the homes against all the connected retainer walls. If it fell, it would trash the walls, which are connected. The tree has shallow roots and is a great hazard. The HOA has no responsibility because it’s not in the commons. What do I do?

A: The reader is asking a hypothetical question as the tree in question has not yet fallen down. Technically no action needs to be taken at this time.

The tree is actually located in his neighbor’s backyard. If the tree was to fall on the reader’s property, the tree owner would be responsible for the damages.

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.