As you know, We are now dealing with the mass corruption in Las Vegas Nevada. You first saw us go Head to Head with Westgate Resort's CEO David Siegel, Then You saw us run the Scam Companies of Artie and Todd Spector into the ground, as they filed a fraud bankruptcy on The ASNY Companies and Tahiti Village and Consolidated Resor. We were able to obtain millions of dollars for the victims of these two companies alone.
Now we are dealing with rogue Homeowner Associations in Nevada.
The one that hit our radar way that of THE SKY LAS VEGAS at www.Skylasvegas.com We kept receiving data about the management company, Prescott Management its rogue manager of the property Christine A, Gibbs, so in Western Capital Style, we began to gig, and dig we did. Our investigation lead us to the Office of The Nevada Attorney General.... Again.
This time, we have outlined many issues in a brief that we have presented to the members of the board of directors. Many of which simply could care less. This is a sorry situation, as the Sky Las Vegas Property is Loosing Millions of Dollars and is being Red Lined by the banks that loan against these properties. The main reason that they are redlining the property is due to the conduct of the management staff and the Board of Directors. This will cost the owners Millions of Dollars. We will be posting all correspondence with the Management of The Sky Las Vegas, with the Attorney General of the State of Nevada and the FBI. The Manager of the property, Christine Gibbs, called this news organization and it's employees TERRORISTS , for disseminating this information to the public.
So the question remains, what can you do, as an owner of a property in the State of Nevada, when you are wronged by your Home Owners Association and their Managament Company. You saw our discussions with Steve Wynn and Donald Trump, now lets see what the law says...
A. Homeowners Associations
1. Board of Directors Statutory AuthorityB. Single Family Homes:
(a) The HOA has the authority to institute litigation in its own name on behalf of itself or two or more units' owners on matters affecting the common-interest community. NRS § 116.31022. Board Of Directors Responsibilities
(b) The Board of Directors may act in all instances on behalf of the association. NRS § 116.3103(1)
There are several reasons why the Board of Directors of an Association must seriously investigate and pursue construction defect claims:
(a) Duty To Repair And Maintain Common Areas: NRS § 116.3107
(i) The HOA is responsible for maintenance, repair and replacement of the common elements.(b) Duty To Exercise Good Business Judgment: Nrs § 116.3103 (a); NRS 78.751
1. The CC&R's will determine which elements are common.(ii) The owner of each separate unit is responsible for maintenance, repair and replacement of that unit.
2. A construction defect to common areas requires the Board of Directors to exercise its fiduciary duty and to recover funds to repair and maintain those areas, even by way of a construction defect claim.
(i) The Board of Directors are required to exercise ordinary and reasonable care, subject to the business-judgment rule.
(ii) A decision not to pursue a claim in the face of serious construction defects may result in a breach of the business judgment rule and possible liability to the Board of Directors.
(iii) A proper decision to initiate the SB 395 process and/or litigation will insulate the Board of Directors from liability under applicable Nevada business laws. NRS § 116.3101(1)
1. Authority To Initiate Suit:C. Time Limits:
(a) An owner of a residence may be a claimant against a contractor for construction defects. NRS § 40.6102. Class Action Suit:
(a) Who may sue as a class?
(i) Homeowners may choose to sue as a class if there are many homes within the same development experiencing construction defects. NRCP 23
(ii) These claims arise where there is either no HOA or where there is an HOA and defects arise in exclusive use areas, not common areas, according to the CC&R's
(b) The definition of a "class".
(i) Suing as a "class" means that one person represents all of the homeowners' interests in the suit, rather than each individual homeowner being named as a claimant
(c) What are the benefits of suing as a class?
(i) When there is a large group of claimants suing the same defendant(s), a class-action suit is usually the most efficient manner to manage the claim.
1. Filing fees with the court are significantly reduced because each Plaintiff need not file their own Complaint.
2. Costs are shared, i.e., experts fees.
1. Substantial Completion:
The time limit in which a cause of action for construction defects may be filed begins at the time of "substantial completion" of the project.
(a) Substantial Completion is usually determined to be the time the contractor files a certificate of completion.2. Ten Year Statute:
(b) Title companies may have "notices of completion" on record to help the owners determine these dates.
(a) Actions based on known deficiencies by the contractor must be brought within ten (10) years. NRS § 11.2033. Eight Year Statute:
(a) Actions based on latent deficiencies, meaning a deficiency not apparent by reasonable inspection, must be brought within eight (8) years. NRS § 11.2044. Six Year Statute:
(a) Actions based on patent deficiencies, meaning a deficiency which is apparent by reasonable inspection, must be brought within six (6) years. NRS § 11.2055. Additional Two Years:
(a) If discovery of the defect occurs within the last year of each of the above statutes, an additional two (2) years is given in which to commence suit.6. Other Statutes To Consider:
(a) Actions Not Subject To The Statutes Of Repose:
(1) Actions based on willful misconduct of a contractor may be brought any time. NRS § 11.202
(b) Actions Based On Written Contracts:
(1) Actions based on written contracts must be brought within six (6) years; while contract actions not founded upon a written instrument must be brought within four (4) years. NRS § 11.190
(c) Actions Based On Tortious Injury To Real Property:
(1) Actions based upon tortious injury to real property must be commenced within four (4) years after the cause of action accrues. NRS § 11.220
(2) Nevada courts are undecided whether this statute is still applicable subsequent to the enactment of the Statutes of Repose.
(3) The Statute incorporates a rule of diligent discovery, meaning the action accrues when a plaintiff knew, or in the exercise of proper diligence should have known, of damage. Oak Grove Investors v. Bell & Gossett Co., 99 Nev. 616, 668 P.2d 1075 (1983).
From The Las Vegas Sun:
Depending on who is doing the talking, investors buying foreclosed homes in the Las Vegas area are either being gouged by greedy homeowners associations or are contributing to neighborhood decay by failing to maintain their newly purchased properties.
Those charges flew Wednesday as news circulated that investment groups had filed class action lawsuits in Las Vegas claiming they are being overcharged by hundreds of homeowners associations and collection agencies for assessments, fines, interest and collection costs that typically accumulate while homes sit vacant during foreclosure proceedings.
The lawsuits, filed by Adams Law Group Ltd., said the associations and their collection agencies charge investors more than what the law allows.
That past-due amounts are capped by law at the equivalent of nine months of association assessments and can include a combination of regular assessments, fines and other charges. After acquiring properties, investors must pay monthly assessments as well as fines like everyone else.
One lawsuit seeking class action status was filed Friday in District Court in Clark County against about 125 homeowners associations, claiming civil racketeering, negligence and breach of fiduciary duty, among other assertions.
Attorney James Adams said he was filing a second class action lawsuit Wednesday against eight collection agencies that work for the associations, claiming they, too, have wrongly collected excessive funds from the investors.
Adams said in a typical deal, an investor may buy a vacant property, paint it, fix it up and then resell it, all to the benefit of the community.
But at the closing of the sale, the investor may get hit with invoices for assessments, fines, interest and collection costs for which the investor may not be responsible, he said. These overcharges can vary widely and typically amount to a few thousand dollars, he said.
“The investors feel they are being ripped off,” Adams said, adding overcharges may have totaled millions of dollars in recent years.
None of the defendants has responded to the lawsuits, but two executives at association management companies Wednesday disputed the assertion that associations are deliberately trying to overcharge investors.
The managers said collection agencies and title companies may be informing investors of the total amount of liens piled up against properties, but that’s a far cry from requiring the investors to pay more than what’s legally obligated.
Besides, the managers said, some banks are being good citizens and paying all of the lien amounts — not just what’s due under the nine-month rule.
The bigger issue for the managers is that while homes sit vacant awaiting foreclosure, regular monthly assessments and fines pile up — and most of that amount has to be written off as bad debt.
The situation is extreme in Las Vegas, which led the nation in foreclosures in 2009, according to RealtyTrac statistics Wednesday.
The associations frequently have to shell out money to contractors to work on rundown properties, deal with stagnant and toxic swimming pools and to water lawns and vegetation. If that money can’t be recovered from previous or new owners, it hits association budgets, jeopardizing their maintenance programs.
Although there are some responsible investors, many fail to maintain their newly acquired homes and don’t pay association assessments on time — repeating the problems experienced when the homes were in foreclosure, managers say.
“Everyone wants a good deal,” said Jamie McCafferty, president of Excellence Community Management, which works with about 125 associations. “But not everyone wants to step up to the plate to maintain the property to community standards.”
At Terra West Property Management, which serves more than 170 homeowners associations, spokeswoman Wendy Linow agreed with Adams on one point: The Legislature and state regulatory agencies may need to get involved to help resolve disputes over which expenses investors are responsible for.
Linow said lawmakers may also need to clarify when the nine-month cap begins and ends.
In the meantime, Linow defended the present system in which investors apparently are being asked in some cases to pay off fines and past-due assessments they are not legally responsible for.
“The collection industry in any industry will ask for the full balance due and in many cases the foreclosing entity will pay it all off,” she said.
The plaintiffs in the Jan. 22 lawsuit are Higher Ground LLC, RRR Homes LLC, Triple Braided Cord LLC, Equisource LLC, Equisource Holdings LLC, Appleton Properties LLC, CBRIS LLC, Mega LLC and Southern Nevada Acquisitions LLC.
The approximately 125 associations sued include the Aliante Master Association, Desert Shores Community Association, Elkhorn Community Association, Estates at Seven Hills Owners Association and Seven Hills Master Community Association, Estates at Stallion Mountain Homeowners Association and the Stallion Mountain Community Association; and the Green Valley Ranch Community Association.
Also among those sued were the Mountains Edge Master Association, Panorama Towers Condominium Unit Owners Association, Peccole Ranch Community Association, Platinum Unit Owners Association, Rhodes Ranch Association, Sky Las Vegas Condominum Unit Owners Association, Southern Highlands Community Association, Summerlin South Community Association, Sun City Anthem Community Association, Sun City Macdonald Ranch Association, Sun City Summerlin Community Association and Sundridge at Macdonald Ranch Community Association.
The collection agencies to be sued Wednesday were Nevada Association Services Inc., RMI Management Inc. dba Red Rock Financial Services; Homeowner Association Services Inc., Alessi & Koenig, Hampton & Hampton, Angius & Terry Collections LLC, Eugene Burger Management Corp. and Silver State Trustee Services LLC.
David Stone, president of collection company Nevada Association Services, denied Thursday that his company tries to collect money beyond what is allowed by law -- and claimed the investors are trying to strong-arm homeowner associations into reducing fees so the investors make more money.
"These are not sympathetic plaintiffs," he said. "They are real estate speculators taking advantage of foreclosures and people losing their homes. Every dollar saved is a dollar in their pocket."
Sky Las Vegas is Named in the Lawsuit as well as Silver States Collections. We will pull a copy of the entire court file and post it for our readers. We will also post this on Wikipedia for NBC4