HOA boards, community managers have their roles

Q: I am on the board of a homeowners association, and we are trying to get a reading on our management service provider. The other board members and I have some concerns about service level and approach and would like to exchange notes and information with other HOAs. Is there a listing of management service providers and the HOAs they support or some other resource or method to get this information.

A: The responsibilities of an association manager or management are listed. There are different levels of services:

1. Technical. In this modern age of electronics, more and more homeowners want the ability to go online to obtain information and forms from their management company. What is the response time in providing answers to homeowners’ questions? Websites and links to information that are user-friendly are important services.

2. Payment of assessments. Again, the ability to pay online through your management company.

3. Call centers for after-business hours and weekends. This provides answers to questions from homeowners.

4. Regular monthly inspections and enforcement of the governing documents.

5. Enforcement of delinquency and collection policies.

6. Levels of customer service. You can contact management companies to discuss their services as a means of comparison with the services that the present management company is providing.

As to a list of management companies, you can contact the CAI Organization at 702-648-8408. CAI may have written information about management services.

Q: What are the board of directors’ responsibility? Does the state law address their responsibility?

A: Nevada Administrative Code 116 are the regulations that are established by the Common-Interest Communities and Hotel Commission as authorized by the state Legislature. NAC 116.405 pertains to the responsibilities of association boards, as follows:

1. To be kept informed of the laws, regulations and developments to common-interest communities.

2. To comply with all applicable federal, state and local laws and regulations and the governing documents of the association.

3. To uniformly enforce the governing documents of the association. (Please note that this regulation has not been modified by the commission, as Nevada Revised Statutes 116.3102 subsections 3-4, does allow a board not to enforce action under certain circumstances).

4. To hold meetings with such frequency as to properly and efficiently address the affairs of the association.

5. To obtain, when practicable, at least three bids from reputable service providers who possess the proper licensing before purchasing any such service for use by the association.

6. To consult with appropriate professionals as necessary before making any major decisions affecting the association or the common elements.

7. To deposit all funds of the association for investment in government securities that are backed by the full faith and credit of the United States or in a financial institution whose accounts are insured by the Federal Deposit Insurance Corporation, or the National Credit Union Share Insurance Fund, the Securities Investor Protection Corporation or a private insurer approved per NRS 678.755.

8. To maintain current, accurate and properly documented financial records.

9. To establish policies and procedures for the disclosure of potential conflicts of interest and the appropriate manner by which to resolve such conflicts.

10. To establish policies and procedures that are designed to provide reasonable assurances in the reliability of financial reporting, including, without limitation, proper maintenance of the accounting records, documentation of the authorization for receipts and disbursements, verification of the integrity of the data used in making business decisions, facilitation of fraud detection and prevention and compliance with applicable laws and regulations governing financial records.

11. To prepare interim and annual financial statements that will allow the division, the board, the unit owners and the accountant or auditor to determine whether the financial position of the association is fairly presented in accordance with the provisions of NAC 116. 451-461, inclusive.

12. To make financial records of the association available for inspection by the division in accordance with the applicable laws and regulations of the state.

13. To cooperate with the division in resolving complaints.

14. To adopt and fairly enforce the collection policies of the association.

As you can see many of the responsibilities of the board are actually administrated by the board’s management company, even so, the boards have the ultimate responsibility of overseeing the management companies’ work.

Q: I enjoy reading your column. I finally have something worth writing to you about. I was hoping you could answer a question for me.

Can a subassociation deny an Architectural Review Committee request if the sunscreens meet the guidelines set forth in the master association?

A: Yes. The subassociation’s regulations can be more restrictive than those of the master association. It cannot be less restrictive than the master association’s guidelines.