State Panel Imposes Disciplinary Action Against HOA Board Members and Community Manager

The Nevada Commission for Common-Interest Communities and Condominium Hotels (CICCH) has taken administrative action against multiple parties in disciplinary hearings held this week.

The Commission found that Las Vegas-based Community Manager Jean Krym committed multiple violations under state law, including failure to ensure her management agreement was in writing, using homeowner association funds for personal use and failing to deposit cash payments into the association’s operating account. The Commission revoked Ms. Krym’s community manager license and imposed a $12,000 fine plus $1,306.50 in investigative costs. Krym, who failed to appear at her disciplinary hearing, was also ordered to pay $1,547 in restitution to the homeowners association.

In addition, the Commission also imposed disciplinary measures against two current or former members of the executive board of the Parkridge Condominium Homeowners Association (HOA) and issued orders to the association for action.

Bernard Spears, current executive board member of the Parkridge Condominium HOA, was found to have committed multiple violations under NRS 116 and NAC 116, including failing to obtain two signatures on checks issued from the association’s operating account, hiring an unlicensed contractor and failing to prepare financial statements as required. In an extraordinary step, the Commission ordered Mr. Spears removed from the HOA board and precluded him from serving as a board member of any homeowners association in the state of Nevada for at least three years. The Commission also fined Spears $4,000, plus investigative costs of $5,487.35.

Julie Salazar, former executive board member and treasurer of the Parkridge Condominium HOA, was found to have committed multiple violations, including forging an association check and attempting to deposit the funds in her own personal account, failing to prepare and audit financial statements as required, and taking money from the homeowners association in 40 separate incidents amounting to $28,045.  Ms. Salazar has been precluded from serving on an HOA board of directors indefinitely and ordered to pay a fine of $9,000 plus the cost of the investigation totaling $5,487.35.  The Commission also ordered her to pay restitution in the amount $28,045 to the association within 90 days.

The Commission ordered the Parkridge Condominium Homeowner’s Association to hold a new board election, hire a certified community manager and require all board members to complete educational courses.

Terry Johnson, State Director of Business & Industry, praised both the Commission and the Real Estate Division, an agency of his department, for their enforcement actions. “Homeowners living in HOA communities can be assured that the State will hold persons accountable who seek to defraud them,” said Johnson. “The Commission and the Division have sent a strong message with their actions.”

“Persons who violate the State’s HOA laws need to understand that there will be consequences,” said Real Estate Division Administrator Gail Anderson.  “Action will be taken to make restitution, if possible, and protect homeowners from further harm.   It is also critical for homeowners, HOA board members and community managers retained by them to be educated about their rights and responsibilities under the law. It is our hope that we can help educate all parties on the front end in order to avoid the need for this kind of disciplinary action to be taken.”

Due to time constraints, the Commission was required to call a recess and will reconvene at a later date to hear the remaining disciplinary matters originally scheduled for this week’s meeting.  

About the Nevada Real Estate Division:

The mission of the Nevada Real Estate Division is to safeguard and promote interest in real estate transactions by developing an informed public and a professional real estate industry.  For more information about the Nevada Real Estate Division or the Commission for Common-Interest Communities and Condominium Hotels, please visit http://www.red.state.nv.us/ .

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