Q. At my condo board’s annual meeting the board refused to hold elections because there was not a quorum of unit owners present, so the board appointed themselves for another year. I am told they have been doing this for years. What can be done?
—Fed-Up Unit Owner
A. “Nevada Revised Statutes (NRS) 116.31034(15)(c) provides the following: ‘A quorum is not required for the election of any member of the executive board.’ NRS 116.31034(15)(c),” says attorney Shawn Johnson, senior counsel at The Clarkson Law Group, P.C., which has offices in Reno and Las Vegas.
“Further, NRS 116.3103(2)(c) provides that: ‘The executive board may not act to … [e]lect members of the executive board, but notwithstanding any provision of the governing documents to the contrary, the executive board may fill vacancies in its membership for the unexpired portion of any term or until the next regularly scheduled election of executive board members, whichever is earlier. Any executive board member elected to a previously vacant position which was temporarily filled by board appointment may only be elected to fulfill the remainder of the unexpired portion of the term.’ NRS 116.3103(2)(c).
“Lastly, NRS 116.760 sets forth the procedures that may be pursued by a unit owner who believes that their association has violated the law. NRS 116.760(1) provides that, ‘a person who is aggrieved by an alleged violation may, not later than 1 year after the person discovers or reasonably should have discovered the alleged violation, file with the Division a written affidavit that sets forth the facts constituting the alleged violation. The affidavit may allege any actual damages suffered by the aggrieved person as a result of the alleged violation.’ However, prior to filing the affidavit, the person must have previously provided the association, ‘by certified mail, return receipt requested, with written notice of the alleged violation set forth in the affidavit.’ NRS 116.760(2). Further, the written notice must be mailed to the association’s last known address, and ‘specify, in reasonable detail, the alleged violation, any actual damages suffered by the aggrieved person as a result of the alleged violation, and any corrective action proposed by the aggrieved person.’
“Accordingly, in compliance with the mailing and notice requirements NRS 116.760(2), the concerned unit owner should bring those provisions of law to their association’s board of directors’ and management company’s attention and request that appropriate action be taken. If the association does not subsequently agree to rectify the situation by holding a properly conducted election, the unit owner may proceed in filing an affidavit with the Nevada Real Estate Division (NRED) in accordance with the requirements of NRS 116.760 and request that NRED conduct a formal investigation.”