Long-time readers of this blog know that the most corrupt Homeowners Associations in the country are in Nevada. We know that from the 41 or more organized crime racketeering convictions earlier this year in Las Vegas. Just as I predicted, despite the tens of millions of dollars in losses all but one of these HOA mobsters got less than 18 months in federal prison.
That being said, there are some shining lights of honesty in that area. Dr. Gary Solomon, Jonathan Friedrich, Colonel Robert Franks among others. Sadly, the corruption is so rife within the Homeowners Association movement that the system works hard to stomp out those who sacrifice to help others.
Today, Bob Franks sent out the following letter to explain to his legions of admirers why he has to step back in the fight for homeowners’ rights:
My appointment to the HOA Commission is completed. I did not request
reappointment for a normal 3 year term. So, I can now move on with the
satisfaction that CICCH Commission records show I did my best to make a
difference on behalf of unit owners.
Regretfully, the record shows that legislative and executive branch
authorities do not appear to want the CICCH (HOA) Commission to
effectively perform its statutory mission on behalf of all home
owners. It is under the tight control of industry and government
interests–to the serous detriment of unit owners and other occupants.
The record of the past decade shows that well over 95% of unsettled law
violation complaints filed with the state by unit owners against HOA
boards and licensed managers are summarily dismissed by the state. The
division does not have to show or defend the merits and results of its
secret, multi-year investigations with board presidents and their
attorneys. The division’s dismissal decisions are not subject to
anyone’s review or dispute unless high cost civil lawsuits are
initiated. This is gross injustice for unit owners. Imagine if the
courts only tried 5% of the valid complaints filed with them?
The less than half a dozen cases out of hundreds filed each year that
are actually prosecuted under the administrative statutes by the
Attorney General staff to the CICCH Commission always reflect high level
criminal violations as well. But, criminal investigations and
prosecutions never seem to get prosecuted. HOA and Condo unit owners
are losing many millions of dollars due to known criminal violations
every year and the government is failing to do anything. This knowing
and willing failure of justice for HOA owners is a true outrage for our
The Real Estate Division is also not subject to any kind of outside
oversight of its decisions that almost always favor the boards and
licensed managers. This means the Division is given a blank check by
the Legislature to continue to hide its apparent misconduct and denial
of homeowner justice.
As a result, HOA owners currently have no viable paths for demanding and
expecting to receive citizen property rights protections from the
abusive industry and state/local government controllers.
Unfortunately, it now seems clear that a large, Nevada grassroots
organization and legislative caucus must be formed to represent
aggrieved property owners against the combined business and government
power blocs. The consequences of doing nothing can create a continuing
blight upon the previously attractive Nevada home markets.
Robert Frank, Colonel, USAF (Ret.)
(Bob Frank’s LinkedIn address)
A message to Ward Lucas and all readers:
The revelation that 95% of all unsettled law violation complaints filed in the State of Nevada by unit owners against HOA boards and licensed managers are summarily dismissed by the state is more than “disturbing”. It is criminal behavior committed by State employees who are supposed to protect our rights.
Question: “What can we do about it?” or an even better question “What ARE we going to do about it?”
Are we simply going to ignore this disgraceful example of injustice?
Are we going to petition the Nevada Governor?
Are we going to contact the News media and cry “have pity on us”
Are we finally going to come together AS A UNITED GROUP and start making demands for change — or are we going to do nothing?
Suggestions are welcomed.
Local governments love HOAs and local governments love to take money from developers. They love HOAs because HOAs will perform services that people are taxed for such as trash collection and road maintenance, AND because people “signed away their rights” they are reluctant to do anything to help homeowners in conflict with their HOAs. Thus the only real recourse for homeowners is lawsuits or just living with it. Public governments have checks and balances. Private governments have none. The HOA makes, enforces, and judges its own laws. Sure a homeowner can vote out bad boards, but often there is NO COMPETITION for board positions. Sure a homeowner can run for the board, but even that might not change anything. Plus, most of us in HOAs have to deal with inept and/or corrupt property managers, making it even worse. Other than boycotting HOAs I don’t know what can really be done. However, some things I’d really like to see are:
1. Licencing and regulation of property managers.
2. A Homeowner Bill of Rights at the state or even the federal level that CANNOT be signed away.
3. All HOA documents available on a secured website that homeowners have access too, which includes copies of the HOA’s bank statements and meeting minutes.
I know there is a lot more (see Neighbors at War book) and that nothing will fix it completely, but we have to start somewhere
The shortcoming of a Bill of Rights — unless it’s the exact SAME Bill of Rights attached to the US Constitution, it will be a compromise.
I have seen HOA Bill of Rights legislation that says HOA owners get one vote per unit rather than one vote per person. Big difference. The usual Bill of Rights for HOA – Land simply restates the “rights” granted via the HOA corporate model. Those rights are fundamentally different from what is stated in the Bill of Rights in the US Constitution.
Either we all have equal rights – regardless of where we live in the US – or we don’t.