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Colleen McCarty, Investigative Reporter
HOA S.O.S.
Feb 7, 2006, 01:36 PM
HOA S.O.S.Chances are you watch the nightly news from inside a home
governed by a homeowner's association. More than 60-percent of us pay
for the privilege. But some valley homeowners find they do not exactly
get what they bargained for.
The I-Team receives a lot of phone calls from people who want our help.
And lately, too many of them have involved homeowner's associations. We
started to wonder why people were calling the I-Team instead using the
system created to help valley homeowners. Until we took a look at that
system.
Terry Pennisi believes in old-fashioned value -- things like working
hard, playing fair and being a good neighbor. Pennisi believes so
strongly in her values that she's always shocked when confronted by
those who do not. "I honestly felt that even though I was in violation
not paying on time, what happened was not fair and I know it happens to
too many people."
Pennisi almost lost her house late last year when her homeowner's
association threatened to foreclose. At issue was $1,009.07 in fees
accumulated when she fell behind on her dues. "It didn't even occur to
me that something like this could happen," Pennisi said.
In desperation, Pennisi contacted the state ombudsman for
common-interest communitiy who's job it is to help homeowners with
problems just like hers. "I sounded like a desperate little kid afraid
of the dark, that's how scared I was and no one even bothered to call me
back. And no one answered my calls, so I do not know what they're getting
paid for."
The ombudsman's office, established in 1997, is supposed to be the first
line of defense for homeowner's or associations embroiled in disputes.
Frustrated with the office's inability to settle complaints, the
legislature created the Common Interest Communities Commission in 2003.
Senator Mike Schneider sponsored the bill.
Mike Schneider (D) Clark County said, "A lot of associations have
operated kind of like dictatorial third world countries. We needed to
have something in place where someone could have a big hammer and drop
it on associations."
Commission Chairman Michael Buckley wields that hammer in the form of a
gavel. The body has the authority to make legal determinations. But like
the wheels of justice this process moves slowly. The commission has
heard only six cases since its creation.
Michael Buckley, Common Interest Communities Commission chairman, said,
"What the legislature wanted was quick solutions, quick results. But
certainly if you've got to go through the process at the real estate
division, that's not quick."
That process begins back at the ombudsman's office in the state real
estate division. From complaint to commission, it now takes an average
of two years. Due process says division administrator Gail Anderson, "I
do not believe there's a break down. I think there's just a new program
that's starting that will begin to gain momentum and should be at that
point that now we are moving. We hadn't been."
Anderson points to a learning curve, staffing shortages and the
bureaucracy as reasons for the backlog. The division currently has 138
cases awaiting resolution, including Terry Pennisi's.
Colleen McCarty: "So, there's a state agency that we all pay to support
that's supposed to be there to help us."
Pennisi: "Right."
McCarty: "And what you're telling me is it's not working."
Pennisi: "I was as naïve as you just sounded because it did not work."
True to her values Terry paid the lien.
Optimistic fair play will win out when and if the commission hears her
case. We do not know when that will be, but we're told speeding up the
process is a priority at the real estate division. Another change is the
current ombudsman retires in April. Some see that as an opportunity.
Others tell us they worry the hiring process will only contribute to the
current backlog.
The I-Team asked the division if it could have stopped Pennisi's
foreclosure until the dispute was settled. The division does not believe
it has the authority to do that. However, legislators who created the
laws disagree and say the agency could issue a cease and desist order.
We may see some additional legislation in this area next session.
Email investigative reporter Colleen McCarty at ccmcarty@klastv.com
Video here:
HOA News Network
http://www.hoanewsnetwork.com
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HOA S.O.S.
