Nevada residents facing a $1.3M HOA bill to fix a failing water system — what happens if they can't afford it?

Yahoo

21-04-2025

A homeowner can expect to pay expenses to maintain their home and the occasional surprise repair bill. Sure, you can expect that your roof and even landscaping is your responsibility.
But what about your community water system? On top of that, you're being asked to shell out $16,000?
That's the exact situation homeowners in a Henderson, Nevada, residential community are being asked to do.
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Renaissance Townhomes residents told ABC's KTNV that they received a letter from their homeowners association (HOA) detailing the total cost to replace the community's water system.
Despite attempts to fix it in the past, it was merely a Band-Aid solution.
Some residents are worried about where they'll get the money for a complete overhaul.
A copy of the HOA letter sent was shared with KTNV, it revealed that homeowners had requested the board to get a quote from a plumbing company to replace the 73 lateral waterlines still causing issues. The explanation for the request was from a February HOA meeting, when it was suggested that getting the failing water system replaced all at once could offer the most 'cost-effective' solution.
The letter shows that the board was quoted a total $1,367,168.00, or $16,879 charged to each resident of Renaissance Townhomes, via a special assessment. Homeowners would need to pay $4,220 in four installments.
Homeowners were being asked to cast their vote on the repairs. If there is a majority, the assessment will go through. The board said that there would be attempts to work with homeowners on arranging their finances before scheduling the repairs.
The amount doesn't include monthly $450 HOA fees residents also need to pay.
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Some residents say that the failing water system has been ongoing and has had negative effects in the area.
Current resident Debbie Grim told KTNV that there was what looked like a sinkhole with water gushing in front of her home soon after she moved in almost eight years ago.
'Well, my happy place isn't quite as happy," she recalled thinking.
Another resident, Lance Oslund, said that he's experiencing sinking issues with his property, saying that the water system has created issues below the surface.
'It's sinking down in here, somewhere,' he told KTNV reporters, while standing in his garage.
Both say that the money they've paid to the HOA has mostly gone to pay for temporary water system repairs and build up the reserve fund. As a result, the landscaping in the community has been neglected and homes haven't been painted. Nor have other repairs been completed.
When asked about how she would pay for the special assessment, Grim said, 'I was looking into a HELOC, which is basically telling me that I'm going to be working until I'm 85.'
While the HOA letter received by Renaissance Townhomes residents doesn't list another alternative, it doesn't mean there aren't any. If you're part of a HOA and a special assessment is being put up for a vote, you can vote against it.
Another option is to contact your municipal council members to see what they can do.
For example, residents in the Somerset Park community in Henderson were able to have the city cover the cost up-front, reported KTNV in September 2024. A letter sent to residents from the city council stated that the special assessment would be charged as a tax lien on their property, with the fee paid over eight quarterly installments.
Although residents are still on the hook for charges, the fee was lower than what their HOA was able to negotiate.
Ask your homeowners insurance company to see whether your policy would cover any related damages. For example, if your home's foundation suffered damages from a slab leak, insurance may cover the costs for repair. Or, insurance may provide coverage for a burst pipe which resulted in water damage in your home.
That is as long as the reason for the damage is covered under your policy. In most cases, damage because of negligent behavior or wear and tear of pipes aren't.
Contact your insurance carrier to find out what you may be entitled to.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.