Filing a NRED complaint

If you are having issues and/or accept my assessments on one or more of the issues alleged in SHCA- what can you do?

First, contact a SHCA director for assistance and answers. My contact information is on this website. Please take some time to become knowledgeable. This site has a wealth of resources. Seek out others. NRED has recently provided some good presentations. Please, don't just "b--ch." Be a constructive force. Not just a detractor.

Second, participate in the quarterly SHCA Board meeting. Owners that speak at HOA board meetings are entitled to the same free speech protections of any public governance meeting. Vote in our rapidly approaching annual election (You can find updated information at the bottom of my Home page). Elect people who will work for you- the owner. Most owners are largely absent in our community's governance. I get it, we all have additional priorities. But your home is likely your largest investment.

Third, if you believe a violation of the law (NRS 116) has occurred, contact NRED- Ombudsman's office. Ask they get involved- it is after all, their duty as a regulator. They should(?) help to inform you of the law. But do not expect much. It is my assessment the Division is far more likely "...to do the bidding of the multi-million dollar industry it overseas, at the expense of homeowners." (read the full article here)

Fourth, if you have contacted the offender, have provided a reasonable opportunity to the association or unit owner to respond, and/or correct the alleged violation with no success, you can file an an administrative complaint and/or engage in mediation. Here is the needed form (Form 530) and information to do so. It can also be found on the NRED website.

BEFORE FILING LITIGATION YOU WILL NEED TO EXHAUST ALL ADMINISTRATIVE OPTIONS (see NRS 38.310 required action.) The NRED's Alternate Dispute Resolution (ADR) Process can be found here.

The complaint process against a homeowner's association board member or unit owner:

Print Form 530, Intervention Affidavit.
The form will require a notary. One is available at the NRED office at no cost.
Send a certified return receipt letter to the HOA (or unit owner) detailing your complaint and a suggested resolution. The complaint will be rejected and you will need to start over if this is not completed.
Wait at least 10 calendar days. Then attach a copy of your certified letter and a copy of the certified return receipt card to the completed Intervention Affidavit.
Provide a summary explanation of your issue. The form 530 provides little space. Attached additional inform as needed.
Mail, or hand deliver, the notarized Intervention Affidavit to the Ombudsman’s office.
The Ombudsman shall give such guidance to the parties as the Ombudsman deems necessary to assist the parties to resolve the alleged violation. The office will send you a letter informing you it has received the IA and providing a file number.
If the Ombudsman fails to engage and/or the parties are unable to resolve the alleged violation with the assistance of the Ombudsman, the office shall provide to the Division a report concerning the alleged violation and any information collected by the Ombudsman during his or her efforts (if applicable) to assist the parties to resolve the alleged violation.
At this point, the Ombudsman will either terminate your complaint or forwarded it to the Division for investigation. You will get a letter in either case.
The Division will then assess the merits of investigating you complaint. It will either conduct an investigation to determine whether good cause exists to proceed with a hearing on the alleged violation or terminate your complaint. Here again, you will get a third letter. It will include a case number and the name of the investigator.
If, after investigating the alleged violation, the Division determines that the allegations in the affidavit are not frivolous, false or fraudulent and that good cause exists to proceed with a hearing on the alleged violation, the Administrator shall file a formal complaint with the Commission and schedule a hearing on the complaint before the Commission or a hearing panel.

The above process can be complicated and lengthy. Patience will be required.

My thoughts on the process having used it.

Important- NRED asserts it must be involved "not later than 1 year after the person discovers or reasonably should have discovered the alleged violation" (NRS 116.760) They will assert this position even if the violation is alleged as on-going. I believe the Division has greater authority to act than it suggests and certainly on-going violations should not go uninvestigated because they were not discovered during the first year. NRED does not need a formal complaint to investigate violations. Nonetheless, it has been my unfortunate experience NRED too often uses this provision to turn a blind-eye on a number of issues involving SHCA- most notably declarant control change. See a good Nevada Current article on regulatory capture here- what may be the reason for this.

If your complaint involves the manager, developer, or other deep pocket, you are very unlikely to get your complaint before the Commission or a hearing panel as our legislators intended. Deep pockets have a decisive advantage in our court system and could act to make this the only option. A finding of good cause is needed for a Commission hearing. NRED is the sole authority to make this determination. There is no appeal process to this determination of good cause outside a court action. It has been my experience the NRED investigator, if a case is opened, may find your complaint "unsubstantiated" and close it even where the facts supporting an alleged violation are clear and undisputed. They are likely to do so without even talking to you. Here is an example of this in a SHCA complaint I filed related to SHCA repeated renewal of Olympia's million dollar management contract without soliciting bids. Many more exist.

All documents and information sent to and/or obtained by NRED, to include what was "investigated" are confidential if or until NRED finds good case and purses a hearing. So do not expect much of an explanation should your complaint be found "unsubstantiated" and closed.