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Nevada Condo & HOA Articles Archive

/ Owner - July 1, 2012
  • The right stuff: Stirring up the perfect volunteer recipe
    The CAI Nevada Chapter seems to have perfected the volunteer recipe. The chapter boasts a large, long-standing, and active contingent of homeowners who give their time, expertise, and effort to both their local communities and the chapter.   Read the article…………………………….
  • A new anti-money laundering law will affect HOAs (NV)
    The Anti-Money Laundering/Corporate Transparency Act was passed by Congress on a bipartisan basis in 2021. The goal of the Act is to empower the federal government to gather financial information about corporations to create more corporate transparency and better discover and combat money laundering, terrorist funding and other financial crimes.   Read the article…………………………….
  • Conflict Management How to Handle When Things Get Out of Hand (NV)
    Living in close quarters can—and often does—lead to conflict. In co-op, condo, and HOA communities, conflict can occur between residents, or between a resident and the board. And to complicate matters, a seemingly isolated conflict between residents may spill over to become a conflict between resident(s) and the board. What’s the key to resolving differences? Like the old British wartime poster advises: Stay calm and carry on.    Read the article…………………………….
  • Financial, Physical, & Operational Health: How Does Your Association Measure Up?
    In early 2020, our firm was hired to prepare a reserve study for an unremarkable 136-unit, 12-story condominium in south Florida. It was the kind of association you could drive right by without noticing, not much different from all the other high-rise buildings in this coastal neighborhood.  Read the article………………………..
  • Las Vegas Water Agency Seeks Power to Limit Residential Use (NV)
    Nevada lawmakers are considering a remarkable shift in allowing the water agency that manages the Colorado River supply for Las Vegas to limit single-family residential use in the desert city and surrounding county.   Read the article………………………..
  • Residential Communities vs. Climate Change: Adjusting to the New Reality (NV)
    The reality of climate change is upon us. Weather patterns have changed, and seasons have been altered. We experience more intense heat, more frequent, destructive storms, wide-ranging wildfires, and more destructive cold. Tornadoes—the spawn of conflicting hot and cold air masses—touch down in places they were once almost unheard of. What was scientific prognostication only a few years ago has become reality.   Read the article………………………..
  • Nevada Supreme Court Holds Challenges to HOA Liens Subject to 4-Year SOL, Which May Not Be Triggered by HOA Sale
    In response to certified questions from the U.S. Court of Appeals for the Ninth Circuit, the Nevada Supreme Court recently held that: (1) an action seeking to determine the validity of a homeowners association lien under NRS 40.010 is subject to NRS 11.220’s four-year statute of limitations; (2) the four-year statute of limitations does not begin to run until the titleholder “affirmatively repudiates” the lien; and (3) a homeowners association’s foreclosure sale, standing alone, does not trigger the applicable four-year statute of limitations.    Read the entire article……………………………….
  • Controlling Access to Your Building Keys, Fobs, & Door Codes
    Unless you live in Mayberry (and maybe even if you do), chances are you wouldn’t be comfortable leaving your house or going to bed and just leaving your front doors unlocked. Nor would you likely approve of anyone who passed by your home being able to just come in uninvited and roam around unescorted.    Read the entire article……………………………….
  • The Evolution of Property Management: Big Changes in the Last Decade
    Like so many other sectors of the economy, residential real estate management has changed and evolved since the turn of the millennium—and like those other sectors, much of that evolution is directly linked to the development and adoption of technology.    Read the entire article……………………………….
  • Managing Conflict: When Boards and Residents Take Sides
    One of the unique aspects of life in a condo community is that a building or HOA is in many ways a microcosm of the larger world outside. It can suffer from the same factionalism and partisan bickering as any political entity, only on a much smaller, more intimate—and therefore potentially more damaging—scale.     Read the entire article……………………………….
  • 9th Cir. Holds Mortgagee May Challenge HOA Foreclosure Sale That Violates Bankruptcy Automatic Stay (NV)
    The U.S. Court of Appeals for the Ninth Circuit recently reversed a trial court’s order granting summary judgment in favor of the buyer at a homeowners association’s non-judicial foreclosure sale that was conducted in violation of the automatic stay in the borrower’s bankruptcy, and against a mortgagee whose interest in the foreclosed property would have been extinguished.  Read the entire article……………………………….
  • 9th Circuit: Federal Foreclosure Bar preempts Nevada HOA law, maintaining Fannie Deed of Trust
    On May 5, the U.S. Court of Appeals for the Ninth Circuit affirmed summary judgment in favor of a mortgage servicer in an action asserting claims arising from a homeowners’ association’s (HOA) nonjudicial foreclosure on real property in Nevada.   Read the entire article……………………………….
  • 9th Cir. Holds Mortgage-Savings Clause Not Enough to Undo HOA’s Foreclosure Sale
    The U.S. Court of Appeals for the Ninth Circuit recently affirmed a trial court’s grant of summary judgment in favor of the defendant homeowners association in an action brought by the plaintiff mortgagee seeking to set aside the foreclosure sale of real property in Nevada.    Read the entire article……………………………….
  • HOAs vs. Mortgage Lenders (NV)
    Nevada’s Homeowner’s Associations (HOAs) have won again in their battle with mortgage lenders challenging Nevada’s super-priority lien law, this time in the United States Court of Appeals Ninth Circuit.   Read the article…………………………………..
  • 9th Cir. Holds Conditional Offer Not Sufficient to Satisfy Nevada Superpriority HOA Lien
    The U.S. Court of Appeals for the Ninth Circuit recently held that a conditional offer from a lender was not a valid tender to satisfy the superpriority portion of an HOA lien……A condominium owner fell behind on the assessments she owed her homeowners association (“HOA”) and filed a Chapter 7 bankruptcy on Feb. 29, 2012. On July 2, 2013, the HOA’s collection agency recorded a notice of delinquent assessment lien on behalf of the HOA.    A copy of the opinion in Citimortgage, Inc. v. Corte Madera Homeowners Ass’n is available at: Link to Opinion.    Read the article…………………………
  • 9th Circuit Gives Freddie Mac gets six years to sue over foreclosure of HOA superpriority lien
    The Federal Home Loan Mortgage Corp. has six years to establish that its liens survive foreclosure of state-law “superpriority” liens for unpaid homeowners association dues, a federal appeals court held Thursday.   Read the article……………………………..
  • 9th Circuit Finds HOA Foreclosure Cannot Extinguish FHFA Interest (NV)
    The Ninth Circuit relied on the Housing and Economic Recovery Act of 2008 (HERA) in ruling that Fannie Mae’s financial interest in a loan purchased in 2003 could not be extinguished by a foreclosure sale initiated by the property’s neighborhood HOA. This ruling is the most recent case in a number of cases over the last decade addressing issues surrounding HOA foreclosure actions in Nevada.   Read the article………………………………
  • 9th Cir. Rules in Favor of Mortgagee Defendants in Nevada HOA Case
    The U.S. Court of Appeals for the Ninth Circuit recently ruled in favor of the Federal Housing Finance Agency (FHFA), Fannie Mae, and the mortgage loan servicer in a title dispute arising from a homeowners’ association (HOA) lien foreclosure.   Read the article……………………………
  • New Nevada Decisions Confirm Additional Ways to Satisfy HOA Superpriority Liens
    The Nevada Supreme Court again turned its attention to superpriority liens in the first quarter of 2020, issuing two opinions dealing with tenders, i.e. attempts or offers to pay. These decisions outline additional ways that the superpriority portion of an HOA’s lien can be satisfied, offering hope to lenders embroiled in litigation over the continuing validity of their deeds of trust.  Read the article…………………………..
  • Beware the Heavy Hand: HOA board members and property managers can be personally liable for damages
    Recently, a Federal District Court in Nevada made clear that homeowners associations, their boards of directors, and their management companies should ensure that their actions and omissions are reasonable, even when dealing with residents that may not be acting in good faith. This article summarizes a case where an HOA initially prevailed in the face of a frivolous assistant animal request, but later was heavily penalized for subsequent unreasonable treatment of the homeowner.   Read the article……………………….
  • The right reasons for raising HOA dues (NV)
    A community association’s board of directors is elected by fellow homeowners to make decisions for the well-being of the community, including how the community’s finances are managed.   Read the article………………………….
  • Law Review: Take care when refusing entry of service animal (NV)
    I have written in earlier columns about the importance of honoring a request made by a disabled person for a guide dog, signal dog or service dog. Apparently, a certain homeowner association did not get the message.  A new Nevada case, Sanzaro v. Ardiente Homeowners Association, underscores the point.    Read the article……………………..
  • 9th Circuit Holds Nevada HOA Super Lien Statute is Constitutional and Not Preempted by FHA Mortgage Insurance Program
    The U.S. Court of Appeals for the Ninth Circuit recently held that Nevada’s homeowner’s association (HOA) super lien statute is constitutional, overruling its previous decision given new Nevada Supreme Court precedent rejecting the Ninth Circuit’s interpretation of the statute. Further, the Ninth Circuit held that this statue was not preempted by FHA Mortgage Insurance Program.    Read the article.,…………………
  • HOA violates the Fair Housing Act by denying a service animal in the clubhouse
    In Sanzaro v Ardiente Homeowners Association, et. al., Docket No. 2:11-CV0-1143-RFB-CWH, 2019 WL 1049380 (D Nev, March 5, 2019), a federal court imposed a judgment of $350,000 in compensatory damages, $285,000 in punitive damages and awarded the plaintiffs attorney’s fees and costs against their homeowners association. Based upon the facts of the case, the court determined that the homeowners association violated the Fair Housing Act, 42 U.S.C. 3601, et seq., by denying the plaintiffs the ability to bring a service animal into the clubhouse on three different occasions and subsequently harassing them after denying their request for a reasonable accommodation   Read the article……………………..
  • Nevada Supreme Court Holds CPL Does Not Protect Loan Assignee
    The Nevada Supreme Court recently held that the assignee of a deed of trust was not entitled to bring a claim against the title insurance company arising out of the closing protection letter. See PennyMac Holdings, LLC v. Fid. Nat’l Ins. Co., 423 P.3d 608 (Nev. 2018). In the case, a title agent issued a title insurance policy and closing protection letter (“CPL”) to a lender as part of a 2007 refinance. One week prior to the lender’s deed of trust being recorded, however, the homeowners association (the “HOA”) for the subject property recorded a lien for unpaid fees.     Read the article………………..
  • RGJ investigates: Somersett rock wall failures in Reno test Nevada construction defect law (NV)
    Desert shrubs and three small pine trees dotted a dirt slope overlooking the Somersett Golf and Country Club one morning in August. Just below, a golf cart traveled a paved concrete path while a handful of golfers walked the course nearby………….At the center of the ongoing battle at Somersett is that same dirt slope — now a linchpin for a construction defect lawsuit that’s pitting residents, contractors and Somersett’s developer against each other. The problems fueling the lawsuit can be traced back to the development’s early beginnings, which started construction during a hot real estate market that marked the turn of the millennium. It wasn’t until just a year and a half ago, however, that those problems literally came crashing ...
  • Nevada Courts Provide Additional Guidance on HOA Super Priority Lien Law for Lenders
    As we’ve discussed on this blog before, Nevada’s courts remain a battleground for lenders seeking to establish that their security interests were not eliminated by homeowners’ association foreclosure sales under NRS 116. In recent weeks, the Ninth Circuit and Supreme Court of Nevada have issued new opinions providing more guidance to ultimately resolve those issues. Lenders now have more support for two of their strongest arguments.    Read the article………………
  • Continuing Developments in Nevada HOA Lien Litigation
    Recently, in Nationstar Mortgage, LLC, vs. Saticoy Bay LLC Series 2227 Shadow Canyon, the Nevada Supreme Court issued a decision following a line of cases stemming from the analysis in SFR Investments Pool, LLC vs. U.S. Bank N.A., which holds that non-judicial foreclosures by homeowner associations (HOAs) can extinguish a first deed of trust. In this latest decision, the court declines to adopt a portion of the Restatement (Third) of Property: Mortgages.    Read the article……………..
  • Summertime is almost here; is your HOA playground ready?
    By now, homeowners associations and their community managers have discussed the recent $20 million award against an association for failure to eliminate playground hazards. According to insurance companies, the majority of playground injuries stem from falls or impact with climbers and swingers. Fatalities occur because of strangulations and elevated falls.  To eliminate playground hazards requires safe equipment design and installation, proper and regularly scheduled inspections and maintenance servicing. There is one other very important element in preventing common playground injuries and that is with adequate adult supervision, that is you and me watching our children and grandchildren.    Read the article………………..
  • What to Expect From Your Community Management Company
    What do board members really want from their HOA management company? As it turns out, the answers are pretty universal. We survey our client board members on a daily basis to better understand what they want from a community management company. Based on thousands of responses we obtain over the course of a year, board members want a management company partner that is accessible, responsive and follows through.     Read the article……………….
  • Nevada High Court Rules That Homeowners Association Can Pursue New Purchaser Claims Under Original Chapter 40 Rules
    The Nevada Supreme Court has found that homeowner associations have standing to pursue “representative” claims on behalf of any new purchasers who bought their units after the association had already initiated its lawsuit. In High Noon at Arlington Ranch HOA v. The Eighth Judicial District Court of the State of Nevada (2017) 133 Nev., Adv. Op. 66, Nevada’s high court considered whether a homeowners’ association was entitled to pursue “representative” claims on behalf of homeowners who purchased their homes after the association had already initiated its lawsuit under the pre-2015 version of Nevada’s Chapter 40 statutes.    Read the article………………….
  • Nevada’s Clarification Regarding a HOA’s Representational Standing
    On September 27, 2017, the Nevada Supreme Court issued a decision clarifying the prior version of NRS 116.3102(1)(d)1, under which numerous construction defect cases are pending in Nevada. NRS 116.3102(1)(d), at the time the Complaint was filed, allowed homeowners associations to pursue construction defect claims on behalf of their members. In High Noon2, the Nevada Supreme Court considered whether a homeowners’ association has such standing to represent (1) unit owners who purchase their units after the commencement of litigation, and (2) unit owners that sell their units after the commencement of the litigation.
  • Nevada Supreme Court Rules HOA Super-Priority Liens Can Be Revived after Release
    Homeowners’ associations have a more robust tool for forcing mortgage lenders to pay delinquent assessments following a September 14 decision by the Nevada Supreme Court. Nevada HOAs have enjoyed a super-priority lien under NRS 116.3116 for nine months of unpaid assessments preceding institution of foreclosure proceedings, in addition to certain charges for maintenance and nuisance abatement. In Property Plus Investments, LLC, v. Mortgage Electronic Registration Systems, Inc., the court found that this super-priority lien is not a “one-shot offer,” but can be revived even after a previous super-priority lien has been discharged.      Read the article……………..
  • More new laws that affect local HOAs (NV)
    This is the second column in a three-part series about the recent state laws that will affect Southern Nevada homeowners associations.  These laws were passed during the 2017 legislative session and will have an impact on our HOAs.     Read the article……………..
  • Several new laws affect local HOA boards (NV)
    This is the first in a three-part series that covers new laws affecting Southern Nevada homeowners associations.  It’s that time of year again to review the new Nevada Revised Statutes 116 laws that impact our associations. There will be a series of articles over the coming weeks. Many of these new laws will require associations to modify their rules and regulations.     Read the article………..
  • 9th Cir. Holds Federal Foreclosure Bar Preempts Nevada HOA Superpriority Statute
    The U.S. Court of Appeals for the Ninth Circuit recently held that the Federal Foreclosure Bar’s prohibition on nonconsensual foreclosure of assets of the Federal Housing Finance Agency preempted Nevada’s superpriority lien provision and invalidated a homeowners association foreclosure sale that purported to extinguish Freddie Mac’s interest in the property.    Read the article…………….
  • How to deal with rude neighbors and handle residential conflicts (NV)
    Whether it’s a rowdy family with a penchant for playing polka in the wee hours or a bachelor too busy with Tinder drama to tame the shrubs, some neighbors just drive you nuts. Dealing with them can be frustrating, but there are plenty of avenues for resolving issues. From municipal agencies to mediators, here are some things to consider.    Read the article……………
  • Nevada Supreme Court rulings favor HOAs
    The state Supreme Court on Thursday issued two rulings bolstering homeowners associations’ ability to sell houses through foreclosure.  Nevada’s highest court unanimously ruled that a 2014 decision upholding HOAs’ ability to foreclose ahead of mortgage lenders can be retroactively applied to foreclosures that took place before that ruling.  Separately, the seven-member panel also unanimously reversed a Clark County District Court’s decision to dismiss a lawsuit by a homebuyer who acquired a property through an HOA foreclosure and sued to wipe out the prior owners’ and lender’s rights to the house.    Read the article…………..
  • Nevada HOA Super-Priority Litigation Update: Nevada Supreme Court Rules in Favor of Lenders on Standing Issue
    The Government-Sponsored Enterprises (GSEs) and their servicers scored a significant victory last week in the Nevada Supreme Court. In Nationstar Mortgage, LLC v. SFR Investments Pool 1, LLC (Case No. 69400), the court held that mortgage servicers have standing to assert, on behalf of the GSE investor, that the Housing and Economic Recovery Act (HERA) preempts state law and prevents extinguishment of the GSE loan at an HOA foreclosure sale.     Read the article…………….
  • Carefully review CC&R before purchasing a home with HOA
    It wasn’t too long ago that a California Court ordered a man to pay $70,000 for violating a homeowner association (HOA) rule limiting the number of rose bushes he could have to 14. The HOA levied fines against the man and he ultimately lost his home.  Whether you love them or despise them, HOAs are common place in the Virgin Valley. Estimates are that one-third of the homes in Nevada are located in HOAs.   Read the article…………..
  • Nevada Supreme Court Departs From Ninth Circuit Ruling And Finds HOA Lien Statute Does Not Implicate Due Process
    On Jan. 26, 2017, the Nevada Supreme Court issued a 5-0-2 decision in Saticoy Bay LLC Series 350 Durango 104 v. Wells Fargo Home Mortgage, 133 Nev. Adv. Op. 5, holding that Nevada’s HOA “super priority” lien statute, NRS § 113.3116, et seq., (1) does not violate the due process requirements of the United States and Nevada constitutions and (2) does not constitute a governmental taking based on the extinguishment of a first priority deed of trust.  In Saticoy Bay, Roy and Shirley Senholtz had obtained a loan from Wells Fargo totaling $81,370 to refinance their existing mortgage. The loan was secured by a first priority deed of trust. The Senholtzes subsequently defaulted on both their mortgage and their HOA ...
  • The Super-Priority Saga Continues – Nevada Supreme Court Holds That NRS 116’s Notice Provisions Are Constitutional (NV)
    The Ninth Circuit sent shockwaves through the mortgage industry when it held that NRS 116—the statute allowing an HOA to impose a nominal super-priority lien that can extinguish a senior deed of trust when foreclosed—was facially unconstitutional under the Due Process Clause in Bourne Valley Court Trust v. Wells Fargo Bank, N.A. In Bourne Valley (see our previous blog posts on this decision here and here), the Ninth Circuit held that NRS 116’s notice scheme did not mandate that mortgagees receive actual notice of these HOA super-priority lien foreclosures, but instead required that mortgagees request such notice from the HOA in advance of the HOA’s foreclosure sale. The Ninth Circuit determined this “opt-in” notice scheme violated the Due Process Clause’s ...
  • Nevada Supreme Court ruling upholds nonjudicial foreclosure process
    The Nevada Supreme Court ruled Thursday that a nonjudicial foreclosure process used by investors and speculators to acquire HOA properties at bargain basement prices during the great recession does not violate the constitutional protections of original mortgage holders.  The court found that the process does not violate the Takings Clauses of the U.S. and Nevada constitutions. It also found that due process rights were not violated because the foreclosure process does not constitute a state action.  The ruling is significant for thousands of individuals and groups in Las Vegas that acquired foreclosed homes at a fraction of their value by paying off the super-priority liens held by homeowners associations.    Read the article………….
  • Federal Appeals Court Finds Luxury Condo Owner’s Suit Filed too Late Against Insurer (NV)
    A luxury high rise condominium located in Las Vegas, Nevada, was found to have been barred from recovery of its $5 million window damage claim, according to a ruling by the Ninth Circuit of the U.S. Court of Appeals.  The December 2016 appeals court ruling affirms a Nevada judge’s decision to dismiss the case based on an insurance limitation clause that barred the plaintiff from recovery of a claim unless an action was filed within 12 months of discovery of the loss or damage that gave rise to the claim.    Read the article………….
  • Bourne Valley Redux (Superiority of title) (NV)
    The dispute between lenders and the purchasers at homeowners’ association foreclosure sale regarding superiority of title has embroiled the State of Nevada since at least as early as 2012. Since the issue rose in volume and prominence in Nevada, major decisions from both the Nevada Supreme Court and various federal district courts have both clarified and clouded the issue. Recent events, at least at first glance, could continue the trend of clarifying and clouding the issue.     Read the article………..
  • Ninth Circuit Issued Ruling in Bourne Valley Court Trust v. Wells Fargo Bank, NA (NV)
    Last week, the Ninth Circuit held, in Bourne Valley Court Trust v. Wells Fargo Bank, NA that Nevada’s super-lien priority statute, NRS § 116.310, prior to certain amendments enacted in 2015, was facially unconstitutional.  Nev. Rev. Stat. 116.3116 establishes that liens resulting from non-payment of homeowners’ association (HOA) have priority over other secured liens for up to nine (9) months of unpaid HOA dues.    Read the article…………….
  • Nevada Supreme Court Strikes Significant Blow Against HOA Super-Priority Foreclosure-Sale Purchasers
    In September 2014, the Nevada Supreme Court held that an HOA could foreclose on its nominal super-priority lien and extinguish a senior mortgage in SFR Investments Pool 1, LLC v. U.S. Bank, N.A., a ruling that initially seemed cataclysmic to the mortgage industry. SFR Investments spawned thousands of contentious quiet-title actions, each pitting the senior mortgagee against the HOA-sale purchaser regarding whether the purchaser owned the property free and clear after its miniscule, speculative investment. While the mortgage industry’s outlook in Nevada after SFR Investments seemed rather bleak, the tide has recently turned in many respects, as the Nevada Supreme Court has issued several significant rulings in 2016 favorable to the mortgage industry in this continued battle over the effect ...
  • Nevada Fed. Court Denies Class Cert. on ‘Ascertainability’ Grounds, Confirms Fannie/Freddie Liens Not Extinguished by HOA Foreclosure
    The U.S. District Court for the District of Nevada recently confirmed that a homeowner association’s foreclosure of its superpriority lien cannot extinguish a property interest of Fannie Mae or Freddie Mac while those entities are under the Federal Housing Finance Agency’s (FHFA) conservatorship.  In so ruling, the Court also denied class certification, holding that the issue of whether Fannie Mae or Freddie Mac held an interest in the property at issue at the time of a homeowner association foreclosure sale presents an impermissible individualized factual inquiry that would require “mini-trials” as to each affected property.     Read the article………………..
  • Nevada Supreme Court Accepts Certified Question in HOA Lien Litigation Case – Should the SFR Decision Apply Retroactively?
    We previously reported on the Nevada Supreme Court’s decision in SFR Investments Pool 1, LLC. v. U.S. Bank, N.A., holding that a homeowners association (HOA) lien is a true super-priority lien that upon foreclosure extinguishes a first deed of trust. This decision came as a surprise to many, including the district court judges who sharply disagreed on the proper interpretation of Nevada’s statute and whether it in fact provided for a true super-priority lien. Yet, SFR left many unanswered questions, including whether its core holding—that foreclosure of an HOA lien could extinguish a first deed of trust—applies retroactively. That question may soon be answered.     Read the article……………..
  • Nevada Supreme Court Clarifies Limits to its SFR Investments Decision
    On June 22, 2016, in Wells Fargo Bank, N.A. v. Premier One Holdings, Inc., the Nevada Supreme Court rejected this argument, clarified that SFR Investments has limitations, and reversed and remanded a district court’s order granting a purchaser’s motion for summary judgment.    Read the article………….
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