Page 4 - Nevada Cooperator January 2019

4 THE NEVADA COOPERATOR
—JANUARY 2019
NEVADACOOPERATOR.COM
Fri., January 18, 2019
“Non-Pro t Directors and O cers Policies”
Las Vegas Valley Community Management
7571 Tule Springs Rd., Las Vegas, NV
9:00 a.m. - 11:00 a.m.
Designation: CE.0296000-CAM. Provider:
Western Risk Insurance Agency, c/o Sara
Barry, seblv@aol.com, 702-249-0944.
Wed., January 23, 2019
CAI Nevada Reno Quarterly Breakfast
“White Collar Crime in the HOA:
Preventing Fraud & Embezzlement”
Peppermill Hotel (White Orchid)
2707 S Virginia Ave., Reno, NV
7:30 a.m. - 9:00 a.m.
1-hour general credit CE.0350000-CAM.
For information, visit www.cai-nevada.org.
Tues., January 29, 2019
“Lewd Acts, Controlled Substances, and
Rock & Roll Lifestyles in CICs”
Solera at Anthem Community Center,
2401 Somersworth Dr., Henderson, NV
9:00 a.m. 12:00 p.m.
Designation: CE.0332000-CAM. Provider:
Th e Clarkson Law Group, P.C., CAI Nevada,
admin@cai-nevada.org, 702-648-8408.
Tues., February 5, 2019
“ABCs of Fair Housing for Real Estate and
Property Management Professionals”
Reno-Sparks Association of Realtors
5650 Riggins Ct., Reno, NV
1:00 p.m. - 4:00 p.m.
Designation: CE.0060001-CAM LAW
CREDIT. Provider: Silver State Fair Housing
Council, 775-324-0990 or 1-888-585-8634
toll-free/Relay Nevada 711.
Tues., February 19, 2019
State of Nevada Laws Other an 116
at A ect the CIC
Key Realty School
3320 E Flamingo Rd., Las Vegas, NV
5:00 p.m. - 8:00 p.m.
Designation: CE.0085001-CAM LAW
CREDIT. Provider: Community Association
Solutions, Sara Barry, seblv@aol.com,
702-249-0944.
CAL EN D AR
I
P
PROPERTY MANAGEMENT
FirstService Residential to Manage
Coronado Ranch 5 Homeowners Association
in Las Vegas
Property management fi rm FirstService
Residential has been awarded the contract to
provide full-service management services for
Coronado Ranch 5 Homeowners Association
in Las Vegas. FirstService Residential assumed
management responsibilities on October 1,
2018, the company said in a press release.
“FirstService Residential is always thrilled
to partner with brand new developments like
Coronado Ranch 5 and lay the groundwork
for their future growth and success,” said Ray
Colon, Business Development Manager for
FirstService Residential in Nevada.
Currently being built by American West
Homes, this community will build out to 324
single-family homes. Th e community is located
in southwest Las Vegas off Torey Pines Drive
and adjacent to the 215 Beltway. It is also
just minutes away from the Las Vegas Strip,
McCarran International Airport, Red Rock
Canyon and Downtown Summerlin.
CONDO NEWS
Man Charged With Reno Condo Arson
Th e Reno Gazette Journal
reported that a
man was arrested December 11 on charges
of arson, following a fi re that occurred at his
northwest Reno condominium. Fire crews were
called into a condo unit off Tripp Drive and
promptly put out the fi re. Th e condo owner,
who was witnessed leaving the scene, was later
apprehended by authorities. Aft er being inter-
viewed, the unidentifi ed man was arrested
on charges of fi rst-degree arson. Th e suspect
reportedly had prior charges and was familiar to
the fi re department.
n
2019
PULSE/CALENDAR/Q&A
J -F
Legal
Q
A&
Please submit Pulse items to
David Chiu at
david@cooperator.com
THE COOPERATOR
EXPO
2019
WHERE BUILDINGS MEET SERVICES
YOUR BOARD’S ATTENDANCE
IS NOT REQUIRED.
BUT IT SHOULD BE.
RIO ALL-SUITE HOTEL AND CASINO — TUESDAY, MARCH 26, 10–3:30
FREE REGISTRATION: LV-EXPO.COM
When a Unit Owner Declares
Bankruptcy
Q
What can be done if a unit owner ruptcy, Chapter 7 and Chapter 13, the asso-
– who has not paid his or her as-
sessments for a year and owes the 13 bankruptcy. Th is is because a Chapter 13
association a substantial amount of money – bankruptcy is basically a debt reorganization
has now declared bankruptcy? How does the for an owner. Th ough payments on exist-
association recover its money?
—Concerned About Our HOA’s Financial too is that debtors in a Chapter 13 proceeding
Health
A
“Unfortunately, this type of
situation has become far more liquidation and asset sell-off . Most likely the
common since the real estate owner’s home will be lost and foreclosed by
market crash began in 2006-7,” says attorney the mortgage lender. Following that, a full
Sheila D. Van Duyne of the Van Duyne Law discharge will release the owner from any
Group in Reno. “In subsequent years, many personal obligations. Th ough assessments
homeowners were unable to meet their fi -
nancial obligations and were forced to declare will not be discharged, realistically, collecting
bankruptcy. Th is placed a great burden on as-
sociations that were tasked with maintenance a home may not be fi nancially worthwhile to
of common areas.
“Bankruptcy, however, should not be
viewed as something that completely ne-
gates an association’s ability to collect from
an owner. Given that assessments are viewed pre-petition debt.
as secured debt either by way of the CC&Rs
[covenants, conditions & restrictions] acting against the debtor to collect pre-petition debt
as a de facto lien and/or by the recordation of (no liens or foreclosure activities)
a lien, association debt will typically be treated
as secured debt. It is far better to be a secured common property or deactivate gate access.
creditor in a bankruptcy proceeding than
an unsecured creditor (such as a credit card bankruptcy proceedings. If an owner does
company) because secured creditors are paid declare bankruptcy, then have that associa-
fi rst out of any available money.
“Th ere are three types of common bank-
ruptcies: Chapter 7 (personal bankruptcy, with: proof of claim deadline, creditor’s meet-
probably the most common); Chapter 11 ing, any objection to a proposed plan for re-
(complex business reorganization); and organization. Keeping a close eye on these
Chapter 13 (wage earner debt reorganiza-
tion.)
“Chapter 11 doesn’t come into play in most
situations involving a homeowners’ associa-
tion. A Chapter 11 bankruptcy proceeding is
a quite complex and lengthy process relating
to the reorganization of a business. Nonethe-
less, in the event a Chapter 11 is initiated, the
HOA should still have its legal counsel fi le a
proof of claim and monitor the proceedings.
“Of the two remaining types of bank-
ciation will do better with an owner’s Chapter
ing debts will be spread over a long period of
time, the goal is full repayment. Noteworthy
need to keep current with any ongoing post-
petition obligations.
“In contrast, a Chapter 7 is simple debt
which become owing during a bankruptcy
them against the party who no longer owns
the association.
“Here are a few ‘Don’ts’ when it comes to
dealing with a bankrupt owner:
“Don’t persist in any collection eff orts for
“Don’t take any legal action whatsoever
“Don’t suspend the debtor’s right to use
“Finally, have your attorney monitor the
tion’s legal counsel monitor the proceedings
to make sure all dates are met and complied
deadlines.”
n
Disclaimer: Th e answers provided in this Q&A
column are of a general nature and cannot
substitute for professional advice regarding your
specifi c circumstances. Always seek the advice of
competent legal counsel or other qualifi ed profes-
sionals with any questions you may have regard-
ing technical or legal issues.