How To File A NRED Complaint
If you are having issues in your HOA - what can you do?
First, I will assume you have contacted your community manager and had no luck. So, contact an HOA director(s) for assistance and answers. Take time to become knowledgeable. Please, don't just "b--ch". This site has a wealth of resources. Seek out others. My contact information is on this website. NRED has provided some good presentations. Be a constructive force. Not just a detractor.
Second, participate in the Board meetings. Owners that speak at HOA board meetings are entitled to the same free speech protections of any public governance meeting. Vote in annual elections. Elect people who will work for you- the owners. Keep in mind most owners are largely absent in their community's governance. I get it, we all have additional priorities. But your home is likely your largest investment.
Third, if you believe a violation of the law (not just a dispute over the CC&Rs) has occurred, contact NRED- Ombudsman's office. Ask they get involved- it is after all their duty as a regulator. They should(?) help to inform you of the law. But do not expect much. It is my assessment the Division is far more likely "...to do the bidding of the multi-million dollar industry it overseas, at the expense of homeowners." (read the full article here)
Fourth, if you have contacted the offender, have provided reasonable opportunity to the association or unit owner to respond and/or correct the alleged violation with no success, you can file an an administrative complaint and/or engage in mediation. Here is the needed form (Form 530) and information to do so. It can also be found on the NRED website.
BEFORE FILING LITIGATION YOU WILL NEED TO EXHAUST ALL ADMINISTRATIVE OPTIONS (see NRS 38.310 required action.) The NRED's Alternate Dispute Resolution (ADR) Process can be found here.
The complaint process against a homeowner's association board member or unit owner:
-
Print Form 530, Intervention Affidavit.
-
The form will require a notary. One is available at the NRED office at no cost.
-
Send a certified return receipt letter to the HOA (or unit owner) detailing your complaint and a suggested resolution. The complaint will be rejected and you will need to start over if this is not completed.
-
Wait at least 10 calendar days. Then attach a copy of your certified letter and a copy of the certified return receipt card to the completed Intervention Affidavit.
-
Provide a summary explanation of your issue. The form 530 provides little space. Attached additional inform as needed.
-
Mail, or hand deliver, the notarized Intervention Affidavit to the Ombudsman’s office.
-
The Ombudsman shall give such guidance to the parties as the Ombudsman deems necessary to assist the parties to resolve the alleged violation. The office will send you a letter informing you it has received the IA and providing a file number.
-
If the Ombudsman fails to engage and/or the parties are unable to resolve the alleged violation with the assistance of the Ombudsman, the office shall provide to the Division a report concerning the alleged violation and any information collected by the Ombudsman during his or her efforts (if applicable) to assist the parties to resolve the alleged violation.
-
At this point, the Ombudsman will either terminate your complaint or forwarded it to the Division for investigation. You will get a letter in either case.
-
The Division will then assess the merits of investigating you complaint. It will either conduct an investigation to determine whether good cause exists to proceed with a hearing on the alleged violation or terminate your complaint. Here again, you will get a third letter. It will include a case number and the name of the investigator.
-
If, after investigating the alleged violation, the Division determines that the allegations in the affidavit are not frivolous, false or fraudulent and that good cause exists to proceed with a hearing on the alleged violation, the Administrator shall file a formal complaint with the Commission and schedule a hearing on the complaint before the Commission or a hearing panel.
My thought on the process having used it.
Under NRS 116.760, the Nevada Real Estate Division (NRED) asserts that it must be involved not later than one year after the person discovers or reasonably should have discovered the alleged violation. NRED continues to apply this interpretation even in cases involving ongoing violations.
It is my position that NRED holds broader authority to investigate than it acknowledges, and ongoing violations should not be disregarded merely because they were not reported within the first year of discovery. Furthermore, a formal complaint is not required for NRED to initiate an investigation. Despite this, it has been my unfortunate experience that NRED frequently relies on this statutory interpretation to avoid addressing serious issues—particularly in cases involving questions of declarant control or when select attorneys with close ties to NRED staff represent HOAs accused of misconduct. For more insight on this dynamic, I recommend reading this article on regulatory capture from The Nevada Current.
If your complaint involves a community manager, developer, or other party with substantial financial backing, it is highly unlikely your case will be brought before the Commission or a hearing panel, as originally intended by Nevada’s legislators. The reality is simple: deep-pocketed parties possess a significant advantage in our civil court system. For this reason, the Commission’s dispute resolution process—designed specifically for HOA-related matters—was created. In many cases, it is the only realistic path to resolution.
However, before a case can proceed to the Commission, a finding of “good cause” must be made. NRED alone has the authority to make this determination. Unfortunately, the Division frequently oversteps its discretion, often declining to bring legitimate complaints forward for adjudication. There is no administrative appeal process available to challenge a denial of “good cause,” leaving court action as your only recourse.
In my experience, even when NRED agrees to open a case, investigators often close it as “unsubstantiated”—even when the facts clearly support the alleged violation. In many instances, this decision is made without any direct communication with the complainant.
Finally, it is important to understand that all documentation and information submitted to or obtained by NRED— including the nature and scope of any investigation—remains confidential unless and until NRED makes a formal finding of “good cause” and refers the matter for a hearing. As a result, if your complaint is closed as “unsubstantiated,” do not expect a detailed explanation.
