A Watchdog That’s Lost Its Bite
Imagine paying a state agency to protect your rights as a homeowner, only to find out they’re spending more time hassling volunteer board members than addressing real problems.
That’s exactly what’s happening in Nevada, where the state department overseeing homeowners’ associations is catching flak for being more interested in paperwork than protecting property rights.
“It’s a real administrative inefficiency we have going on here,” says Bob Sweetin, who was appointed by Governor Joe Lombardo to help oversee Nevada’s HOAs. Sweetin, who’s seen the problems firsthand, paints a picture that would make any small-government conservative shake their head.
Volunteer Boards Under Fire
Here’s what’s happening in your backyard:
Half of Nevada’s homes – that’s 623,917 housing units – are under HOA control. These associations have serious power, including the ability to fine homeowners and even take their homes through foreclosure. You’d think the state agency watching over them would focus on protecting homeowners from abuse. Instead, they’re going after the little guys.
Take this head-scratcher:
If your three-person HOA board loses a member because someone moves away or passes on, the state might drag the remaining volunteer board members through lengthy hearings just because they’re short one person. Meanwhile, bigger issues, like developers keeping control of communities longer than they should, often get ignored.
Sweetin explains.
“Let’s say you’re on an HOA board that has three members and one of them dies suddenly, if it’s a smaller association, it’s very hard to find someone to take their spot. Now the other two board members are on the hook for violating state law, and they’re being dragged before the commission.”
The Cost of Speaking Out
Even worse? The state recently increased the fine for filing what they consider a “false” complaint from $1,000 to $10,000 – a move that many see as a way to silence homeowners who speak up about problems.
Michael Kosor, a homeowner who’s fought this system, says he’s spent nearly half a million dollars taking his HOA complaints to court because the state wouldn’t help. That’s exactly the kind of situation that makes regular folks throw up their hands and give up.
The numbers tell the story: In just three months, 315 homeowners asked the state ombudsman for help. But good luck finding out what happened to those complaints – the agency keeps that information under wraps, even from their own commissioners.
Sweetin reveals:
“I’m a commissioner. I have no idea how the ombudsman’s office works. I have no idea how they pick and choose what cases they want to hear,”
A Call for Smarter Governance
Looking ahead, Governor Joe Lombardo has ordered a review of state regulations, which could help fix some of these problems. In his State of the State address, Gov. Lombardo highlighted his efforts to streamline Nevada’s regulatory system, noting that the state has over 300 boards and commissions.
Despite progress through SB 431 last session, Lombardo believes the system still falls short.
He said:
“It’s become clearer to me that our system of boards lacks the organization, the efficiency, and the accountability that our citizens expect,”
He tasked Business and Industry Director Dr. Kris Sanchez with evaluating all state boards, asking fundamental questions about their effectiveness:
“Are these boards efficiently fulfilling their mission? Are they making the best use of your hard-earned tax dollars? Or have they outlived their usefulness?”
While acknowledging that many boards provide necessary technical expertise and public safety oversight, Lombardo called for building upon last session’s reforms to create what he described as “a system that is smart, lean and productive.” This aligns with his governing philosophy that “WE ARE running government…government is not running us.”
But until then, Nevada homeowners are stuck with a classic example of bureaucracy gone wild – where the regulators seem more interested in generating paperwork than protecting property rights.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
