HOAs suffer during recession

HOAs suffer during recession
Dispute continues with investors

By Buck Wargo (contact), In Business reporter
Fri, Mar 12, 2010 (3 a.m.)

Foreclosures are taking a toll on some Las Vegas homeowner associations, some of which are closing pools and deferring maintenance as they deal with a drop in revenue.

The financial woes faced by the associations come as they are locked in legal and legislative battles with investors in foreclosed homes who complain they are overcharged for fines and fees by the associations and their collection agencies.

Associations are struggling with their budgets and some have closed pools and clubhouses and cut back on maintenance, including landscaping, said Nicholas Haley, the education and information officer of the state ombudsmen for the owners of common-interest communities and condo hotels office.

Haley’s office takes complaints from homeowners and handles mediation.

“People have complained about the maintenance and what’s been closed down and questioned what are they paying for,” Haley said. “Associations have to balance their budgets, given their communities have faced a lot of foreclosures. Sometimes it is a temporary measure until people start paying their assessments. But you have many people who are retired or out of work and they can’t make up the difference, so the community has to scale back.”