Strengthening Fiduciary Duties and Conflict-of-Interest Protections

WHEREAS, Homeowners Association (HOA) boards and managers often prioritize industry interests over homeowners, with inadequate Nevada Administrative Code (NAC) enforcement allowing personal profits, undisclosed compensation, and biased hearings;

 

WHEREAS, the Common-Interest Communities and Condominium Hotels (CICCH) has not updated NAC 116.405 to explicitly define "personal profit" or require recusal in cases of financial ties, despite authority under NRS 116.31031 to establish robust due process standards;

 

WHEREAS, this gap enables governance failures, as highlighted by the NVHOAReform Coalition's calls for reform and the reconstituted CIC Task Force's ongoing review;

 

BE IT RESOLVED, that the IAP urges the CICCH to amend NAC 116 to:

• - Define "compensation" and "personal profit" broadly to include indirect benefits like vendor kickbacks or nepotism (e.g. family employment or favors);

• - Mandate annual conflict-of-interest disclosures by board members, managers, and Commission staff, with automatic removal for violations;

• - Require virtual access to all hearings and meetings for transparency, with recordings archived publicly;

• - Establish an independent homeowner appeals board within the Ombudsman's Office to review dismissed complaints, funded by a portion of HOA registration fees.

 

BE IT FURTHER RESOLVED, that the The Independent American Party (IAP) of Nevada endorses the NVHOAReform Coalition's reform agenda, including codifying Homeowners Associations (HOAs) as quasi-governmental entities subject to stricter oversight, and calls for a legislative audit of the Common-Interest Communities and Condominium Hotels’ (CICCH) complaint handling since 2022.

 

BE IT FURTHER RESOLVED, that The Independent American Party (IAP) of Nevada commits to advocating for these changes through candidate platforms, voter education, and support for NRS amendments if regulatory progress stalls.