'Can my HOA really do that?'

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 hate them, HOAs are common place in the Virgin Valley. Estimates are that one-third of the homes in Nevada are located in HOAs.

If you purchase a home in an HOA, you automatically become a member of the HOA and are subject to the HOA rules. These rules generally include covenants, conditions, and restrictions (“CC&Rs”) governing what you can and can’t do with your property – everything from where you can park your car to what color your front door can be.

Many believe that one of the benefits of the HOA is that it helps to maintain property values.  HOAs prohibit owners from doing things that could decrease property values. Owners are generally required to maintain their property in good condition and are prohibited from doing things like painting their houses neon green or parking their car in their front yard.

On the flip side, those that despise HOAs usually do not like the idea of someone telling them what they can and can’t do with their property. Owners don’t want to be told they can’t keep their ski-boat against the curb or aren’t allowed to pour cement for a basketball hoop next to their driveway. Many simply don’t want to pay the HOA’s monthly assessments, which are charged primarily so the HOA can maintain the owners’ common area.

A surprising number of those that move to our valley have never lived in an HOA before. Some happily purchase a home in an HOA and everything is great until they suddenly receive a letter from the HOA telling them that they are in violation of what they consider to be an obscure HOA rule that they didn’t even know about. After receiving a letter like this they may ask, “Can my HOA really do that?”

The answer usually depends on what the CC&Rs say. CC&Rs and other HOA rules can generally restrict and control property ownership as long as they are reasonable and don’t conflict with existing HOA laws.

Sometimes there is a section of the CC&Rs that deals directly with the issue at hand, which can make resolution of the dispute easy.  However, often CC&Rs will be subject to multiple interpretations. The HOA interprets the CC&Rs one way, while the homeowner interprets them differently. Those situations can be difficult to resolve and sometimes even result in lawsuits.

Another way disputes involving your HOA can be resolved is through the Nevada Real Estate Division. If the dispute involves a potential violation of the law, you can submit a complaint to the Nevada Ombudsman. If there is a dispute about whether the CC&Rs have been violated, the parties may engage in arbitration.

The best course is to avoid a dispute altogether. One of the best ways to do this is to carefully review the CC&Rs before purchasing a home.  A wise buyer may ask those living in the HOA about their experiences with the HOA. Some even attend an HOA meeting before buying to get a feel for what things are like.

Hopefully, owners who take the time to do this up front won’t ever have to ask, “Can my HOA really do that?”

Bo Bingham lives in Mesquite and is an attorney with Bingham Snow & Caldwell. He is licensed to practice in Nevada, Arizona and Utah. He can be reached at 702-346-7300, bo@binghamsnow.com, or 840 Pinnacle Ct., Ste. 202 in Mesquite.