Q: Our condo membership has heard recent rumor of a nearby successful HOA board recall.
We are an upset and frustrated HOA membership and would like to learn more about the path to a successful board recall effort.
Our frustration is pent up, over years, with a do-nothing, absentee board, in the form of landlords.
As well, our management company will not take any independent action (short of emergencies, water shutoffs) that might be viewed as prudent or best practices.
A review of our CCRs has only a short, vague reference to a “reorganization”; nothing substantive for guidance there.
Please provide some wisdom and guidance to our due diligence efforts. Will we need to hire an attorney? Do you have a rough estimate of how costly this effort would be? Should we contact our state representative for help?
A: Under NRS 116.31036, associations can recall or remove board members with or without cause. The process requires a valid petition. The petition must be signed by at least 10 percent of the total members in the association or a lower percentage if specified in your governing documents. Once the valid petition is submitted to the association, the association must hold and complete a removal election within 90 days.
To have a successful recall, there is a strict two-part legal threshold. First at least 35 percent of the total voting members must cast a ballot. If this 35 percent threshold is not met, the recall automatically fails.
Assuming the 35 percent quorum is met, at least a majority, more than 50 percent of all votes cast must be in favor of the removal of the board or specific board members.
It is voted by secret ballots and follows the same procedure as a regular board annual election. If your association refuses to schedule the recall election, you can file a formal complaint with the Nevada Real Estate Division.
Q: We have a townhouse and had a complete power loss recently. We requested the city remove the gold band to inspect the damage found behind a nine-unit panel along a shared wall. We then hired a licensed residential technician whom advised the entire panel needed to be replaced, as the parts are obsolete.
We have been contacting the HOA to review this shared panel damage and assist with the next steps, but was ghosted all week until I reported the emergency to the management company.
By this point all our food was tossed and the house in unlivable conditions. We received a call later that day from a representative of our HOA advising they will send an electrician the following Monday to review damages. They confirmed that they want to redo the panel, wiring into all nine units, and set up a temporary generator, pricing around $92,000.
The issue now is that the HOA is reaching out to its attorney and trying to combat any liability in repairs, and we don’t know where to start.
Are we doing everything in our power to expedite repairs to this emergency? Is there anything more we can do to proceed with finding a resolution?
A: You will need to check your governing documents as to who is responsible to make the repairs. If this panel is shared by nine units, your governing documents could state that its the HOA’s responsibility to make repairs or that there is a procedure where the HOA will make the repairs and then bill each unit owner their share. Most likely, the CCRs addresses this maintenance issue.
Check with your insurance company if you have a separate policy, and if not, contact the association’s insurance company. You may be able to file a claim.
You may need an attorney to assist you especially since the association is seeking advice.
Barbara Holland, CPM, CMCA, AMS, is an author, educator andexpert witness on real estate issues pertaining to management and brokerage. Questions may be sent to holland744o@gmail.com.
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