Who is running your homeowner association (HOA)?

In an HOA, more so than in traditional housing, members rely heavily on their neighbors. Homeowners collectively invest in maintenance and depend on the competence and diligence of those managing the property and its finances. Therefore, understanding who runs your HOA is crucial for all HOA members, as highlighted in an article in the Nevada Current, "Who is running your HOA", which discusses issues in Southern Highlands and HOAs in general.

HOAs are not designed for the benefit of home buyers. They represent a business model that enhances profit potential for the real estate industry and improves tax revenue efficiency for local governments by privatizing public services.

To their credit, Nevada lawmakers adopted the Uniform Common-Interest Ownership Act (UCIOA) to limit industry powers. However, over the decades, the industry has influenced Nevada HOA laws and captured the regulator (NRED).

For over 25 years, my HOA has been under the control of the developer, Olympia Corporations - How is this possible and why? Is this in the best interest of owners?

• Three out of five board members are appointed by our developer, Olympia Companies.

• Olympia has not provided an estimate for when, if ever, it plans to complete construction or relinquish control.

• Until 2021, all three appointed members were Olympia employees. Currently, two remain employees and do not reside in our community.

• SHCA's manager and Olympia Management Services (OMS) is fully owned by Olympia Companies.

• OMS' management contract has been repeatedly renewed without competitive bids.

Remarkably, Nevada regulators are aware of this extensive control and have taken no action.

All owners in declarant-controlled HOAs should be concerned. Can you trust that the association's fiduciaries (Board and manager) will consistently act in the best interests of owners when these conflict with the developer's interests, an inevitable situation?