COMMISSION FOR COMMON-INTEREST COMMUNITIES AND CONDOMINIUM HOTELS

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					COMMISSION FOR COMMON-INTEREST COMMUNITIES AND CONDOMINIUM HOTELS
MEETING
DECEMBER 3, 2008
DEPARTMENT OF BUSINESS AND INDUSTRY
2501 E. SAHARA AVE.
2ND FLOOR CONFERENCE ROOM
LAS VEGAS, NEVADA 89104

VIDEO CONFERENCED TO:
DEPARTMENT OF BUSINESS AND INDUSTRY
788 FAIRVIEW DR.
MEETING ROOM
CARSON CITY, NEVADA 89701



                                                    MINUTES
DECEMBER 3, 2008                                                                                   10:41 A.M.


1-A) Swearing in of Commissioner Randolph Watkins
Randolph Watkins was sworn in by Chairman Buckley.

1-B) Introduction of Commissioners in attendance
Marilyn Brainard, Gary Lein, Michael Buckley, Jeannie Redinger, Randolph Watkins and Senior Deputy Attorney
General Nancy Savage acting as Commission Counsel.

1-C) Introduction of Division staff in attendance
Ann McDermott, Administrator; Joanne Gierer, Legal Administrative Officer; Teralyn Thompson, Commission
Coordinator; Lindsay Waite, Ombudsman; Nicholas Haley, Education Officer; Sonya Meriweather, Program
Officer; Bruce Alitt, Compliance Chief Investigator; Victoria Broadbent, Program Officer.

In Carson City:
Christopher Cooke, Compliance Investigator.

2) Public Comment
Joy Foreman stated that it should be mandatory for a board to attend education courses. Ms. Foreman stated that
over the years she has watched the Commission give out fines and address situations where board members do not
know what the laws are. Ms. Foreman stated that she would like the Commission to consider mandatory education
because if someone is going to sit on an association board they should know the laws since they are responsible for
other board members and the association that is being represented.

Joy Foreman stated that she had a suggestion regarding elections of directors. Ms. Foreman passed out a form for
the Commission to view and stated that members of the association have the right to vote for their officers through
the secret ballot procedure. Ms. Foreman stated that after it is announced who the directors are another ballot is
handed out during the annual meeting. Ms. Foreman stated that this would increase the attendance for an annual
meeting and it would stop the “good ole boy” network. Ms. Foreman stated that it gives the members a voice on
who is going to hold the office. Ms. Foreman stated that the people who run for office do not know what they are
getting in to and if they do not go to an education seminar they will not know what is involved. Ms. Foreman stated
that it gives the members a feeling that they have some control over who is going to be handling the decisions and in
what position they are going to handle it.

Jon Friedrich is a resident in Rancho Bel Air. Mr. Friedrich stated that he served for a year on his board and was
aware of the CC&Rs but not NRS 116. Mr. Friedrich stated that he was never told about NRS 116 and moved into

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    the State of Nevada in 2003. Mr. Friedrich stated that there have been subsequent disputes between him and his
    board. Mr. Friedrich stated that one of the issues was that he learned about NRS 116 and the requirement that board
    members have to sign a statement that they have read the CC&Rs and understands to the best of their knowledge the
    statute and their CC&Rs. Mr. Friedrich stated that he was never given a form with that statement to fill out. Mr.
    Friedrich stated that he filed an intervention affidavit regarding this issue and once he did that his board sent in those
    forms which were dated and time stamped. Mr. Friedrich stated that they were not dated previous to the date that he
    joined the board. Mr. Friedrich stated that board members should be required to take some type of training or attend
    education seminars to know what the requirements are. Mr. Friedrich stated that the property manager dropped the
    ball.

    Mr. Friedrich stated that there is a lot of confusion over permitting of the reserve specialist.

3-1) NRED v. Barry Floyd
     Case No. CIS 08-02-14-110
     Type of Respondent: Property Manager
     License #: B.0022854.INDV & PM.0122854
Respondent was present and represented by Attorney Jon Lattie.

Senior Deputy Attorney General Nancy Savage was present and represented the Division.

Preliminary Matters:
Ms. Savage stated that the parties have come to a resolution that the Division will be recommending in which Mr. Floyd
has agreed that he will surrender his community manager certificate in lieu of discipline in this case within the next 30
days. Ms. Savage stated that this will include himself and his business: The Floyd Group.

Mr. Alitt stated that this is common practice with other Commissions within the Division. Mr. Alitt stated that the
respondent agrees to voluntarily surrender his certificate and to stop management of common-interest communities as of
January 1, 2009.

Ms. Savage stated that it will be formalized in a written agreement to be filed for public record but that this agreement
was just reached before the Commission meeting.

Commissioner Lein asked Mr. Floyd if he will be selling his business or just closing it down.

Mr. Floyd stated that he has not had a chance to decide but he will probably transfer the accounts to another company.

Commissioner Lein stated that he is concerned about the transition of records and making sure that the communities are
not put in a difficult position.

Chairman Buckley stated that a good way to address Commissioner Lein’s concern is to make sure that the settlement
has provisions on the time lines and where the records are going. Chairman Buckley stated that if this is going to take
place by January 1, 2009 it leaves a short amount of time to get all of Mr. Floyd’s business wrapped up.

Mr. Floyd stated that he has a contract obligation with his clients that states that he has to give them 30 days notice. Mr.
Floyd stated that if the Commission would grant him until January 15, 2009 for the transfer of records to be completed
that would give him enough time.

Ms. Savage suggested that the Commission agree to a stipulation done on the record for the purpose of this case stating
that Mr. Floyd will wind down his business by January 15, 2009 to give enough notice to his clients and a formal
stipulation to be approved by counsel with more detail will be presented at the next meeting.

Mr. Floyd agreed with Ms. Savage.

Chairman Buckley stated that the Commission will not approve the stipulation until there is a written stipulation to
review.


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Commissioner Lein stated that he is concerned about Mr. Floyd’s office being shut down on January 15, 2009 with mail
and assessments being sent to the company’s address. Commissioner Lein stated that the Commission needs to be
sensitive to everyone in the process.

Mr. Lattie stated that Mr. Floyd could provide the Commission a summary statement of each association that Mr. Floyd
manages that will have confirmation of his 30 day notice that he will be terminating and set up some sort of a process to
go through the transition. Mr. Lattie stated that it would be best if Mr. Floyd could negotiate some sale of the entire set
of assets to someone who would be taking over and handle the Commission’s concerns of receiver. Mr. Lattie stated that
The Floyd Group might not continue in business outside of community association management and this will be a
complete shutdown of the business.

Chairman Buckley stated that this matter should be continued until the parties work this out and a written stipulation is
presented to the Commission.

Commissioner Watkins moved to continue this case until the next Commission meeting. Seconded by Commissioner
Redinger. Commissioner Lein stated that management fees should no longer be charged to the associations that Mr.
Floyd has been managing effective January 1, 2009. Unanimous decision.

3-2) NRED v. Sharon Wilson
    Case No. CIS 08-11-02-060
    Type of Respondent: Property Manager
    License #: B.0030625.CORP & PM.0130625
Case continued until the next Commission meeting.


3-4) NRED v. Virginia City Highlands Property Owner’s Association
     Case No. IN-08-1411
     Type of Respondent: Board of Directors
Preliminary Matters:
Commissioner Redinger recused herself because she knows the treasurer of the association.

Attorney Quyen Pham was present and represented the respondent.

Senior Deputy Attorney General Nancy Savage was present and represented the Division.

Preliminary Matters:
Ms. Savage read the stipulation into the record.

Chairman Buckley asked Ms. Savage if page 4 of the stipulation, lines 9, 10, 24 and 25 should state “a quorum of the
board” instead of “a quorum of the association.”

Ms. Savage stated that it should state “a quorum of the board.”

Commissioner Brainard pointed out that the stipulation states under number 9 of the settlement that even if an attorney is
present on behalf of the respondents, at least one of the respondents must attend the Commission meeting.

Ms. Savage stated that this association is located in Northern Nevada and the stipulation was prepared for the last
northern meeting but was not able to be finalized at that point. Ms. Savage stated that the settlement was agreed to with
that paragraph without knowing that the case would be held in the South. Ms. Savage stated that on behalf of the
Division she would be willing to waive the respondents’ presence if the Commission is so inclined.

Chairman Buckley suggested that paragraph 9on page 6 is crossed out on the stipulation.

Commissioner Brainard moved to accept the stipulation as amended. Seconded by Commissioner Lein. Unanimous
decision.


                                                                                                                            3
7-A) Report on the Intervention Program.
Sonya Meriweather presented this report
       As of October 31, 2008: 47 active cases in both the South and the North
       Of those 47 cases: 6 were reopened due to initial information being given to the Division pertaining to the
       original issues

Commissioner Watkins asked why there were two active cases in the 2-3 year section on the last page of the report. Ms.
Meriweather referred this issue to Mr. Alitt.

Mr. Alitt stated that he would have to check on the specific cases but that it is probably because these cases are waiting
to go to a disciplinary hearing.

Chairman Buckley requested that Mr. Alitt follow up with Commissioner Watkins on this issue.

7-B) Report on the number and types of associations registered within the State.
Sonya Meriweather presented this report. Ms. Meriweather stated that the number of registered associations has
increased somewhat from the same time last year due to the number of associations that filed an initial registration form
with the Ombudsman’s Office but failed to submit the annual registration form thereafter. Ms. Meriweather stated that
the Ombudsman’s Office spends a great deal of time trying to locate the declarant to determine whether these
associations that notified the Ombudsman’s Office of their existence have materialized or not. Ms. Meriweather stated
that a good portion of these associations filed the initial registration but the project did not go forward and had to be
removed from the total number of registered associations with the Ombudsman’s Office.

7-D) Report on assessment foreclosures by associations.
Sonya Meriweather presented this report.
       Notice of sales continues to increase monthly.
       As of October 31, 2008: The Ombudsman’s Office received 335 notices compared to the 123 received at the
       same time last year.
       Majority of notices resulted in a cancellation or postponement of the sale
       12 homes sold to a third party
       Correction on page 3 of the report: FY Total states 336 and it should state 335, zip code 89002 number of notice
       of sales should state 2 instead of 4 and zip code 89009 number of notice of sales should be 3.

7-C) Report on the Alternative Dispute Resolution Program and Subsidy.
Sonya Meriweather presented this report.
      Correction on the first page, second item listed as total number of claims filed should be 38.
      As of October 31, 2008: 79 active claims filed
      50 of the 79 claims were closed with 24 claims receiving an ADR certificate of completion.

4) Regulation workshop for Temporary Regulation LCB File No. T011-08
   Introduction of Commissioners in attendance:
   Michael Buckley, Jeannie Redinger, Marilyn Brainard, Gary Lein, Randolph Watkins, Senior Deputy Attorney
   General Nancy Savage as Commission Counsel.

   Introduction of Division staff in attendance:
   Ann McDermott, Administrator; Teralyn Thompson, Commission Coordinator; Joanne Gierer, Legal Administrative
   Officer; Lindsay Waite, Ombudsman; Sonya Meriweather, Program Officer; Nicholas Haley, Education Officer;
   Bruce Alitt, Chief Compliance Investigator.

   In Carson City: Christopher Cooke, Compliance Investigator.

                                     SEE ATTACHED FOR WORKSHOP MINUTES

    Workshop closed on December 3, 2008 at 1:20 p.m.


                                                                                                                             4
3-3) NRED v. Alan Ruth
     Case No. S07-08-09-040
     Type of Respondent: Supervising Community Manager
     License #: CAM.0000237-SUPR
Respondent was presented and represented by Attorney John Leach.

Senior Deputy Attorney General Nancy Savage was present and represented the Division.

Preliminary Matters:
Ms. Savage stated that the Division has reached a stipulated settlement in this matter with a few minor changes to the
text that will be signed by the parties. Ms. Savage stated that the allegations as written have been agreed upon.

Commissioner Brainard, Redinger and Chairman Buckley stated that they knew Mr. Leach. Commissioner Lein stated
that he knew Mr. Leach and Mr. Ruth.

Ms. Savage read the stipulation into the record.

Mr. Ruth stated that he is in agreement with the settlement.

Mr. Leach stated that page 2 paragraph 5 should state “From February 2006, the date that Respondent hired Joe Bitsky,
until March 29, 2006, Respondent utilized Mr. Bitsky as an assistant.”

Ms. Savage stated that page 4 paragraph 6 should state “Community Insights” instead of “Open House”.

Commissioner Lein asked Mr. Ruth if the employment agency verified that Mr. Bitsky was licensed. Mr. Ruth stated
that the employment agency did state that Mr. Bitsky was licensed. Commissioner Lein asked if anyone knew if Mr.
Bitsky was currently employed in the industry. Mr. Alitt stated that to the best of the Division’s knowledge, Mr. Bitsky
is not acting as a community manager at this time.

Commissioner Lein moved to accept the stipulation as amended. Seconded by Commissioner Brainard. Chairman
Buckley requested that the stipulation be signed by the respondent and his attorney. Unanimous decision.

5) Regulation workshop for LCB File No. R186-07
Introduction of Commissioners in attendance:
Michael Buckley, Jeannie Redinger, Marilyn Brainard, Gary Lein, Randolph Watkins, Senior Deputy Attorney General
Nancy Savage as Commission Counsel.

Introduction of Division staff in attendance:
Ann McDermott, Administrator; Teralyn Thompson, Commission Coordinator; Joanne Gierer, Legal Administrative
Officer; Lindsay Waite, Ombudsman; Sonya Meriweather, Program Officer; Nicholas Haley, Education Officer; Bruce
Alitt, Chief Compliance Investigator.

In Carson City: Chris Cooke, Compliance Investigator.

                                     SEE ATTACHED FOR WORKSHOP MINUTES

Workshop closed on December 3, 2008 at 3:15 p.m.

8-A) Discussion regarding the current impact of foreclosure on homeowners associations.
Joanne Gierer stated that she has continued to call the City of Las Vegas regarding the results from the survey that they
conducted. Ms. Gierer stated that she has not been able to contact Dr. Lisa Morris directly which is who is personally
responsible for the survey but spoke to the person putting the information together. Ms. Gierer stated that this person said
that they are still receiving data from the survey and have yet to compile the results. Ms. Gierer stated that she will be
contacted by the City of Las Vegas once the information has been compiled and Ms. Gierer will present it to the
Commission at that time.


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Commissioner Brainard stated that in a newspaper in Northern Nevada there was an article which addressed abandoned
properties calling them “Trash Outs”. Commissioner Brainard stated that it is a new business across the country where
properties are being reclaimed.

8-B) Discussion regarding the Real Estate Commission’s opinion on Section 4 of LCB File No. R108-08.
Joanne Gierer stated that the Real Estate Commission indicated that they did not feel that this section is a necessary
addition to the Nevada Administrative Code. Ms. Gierer stated that the Real Estate Commission does not support this
change and would not suggest that this change go forward.

8-C) Discussion regarding the form regarding the disclosure requirements contained in NRS 116.31034(5)(a) and
(b), which is posted on the Real Estate Division’s website entitled “Candidacy Biography Statement.”
Commissioner Brainard recommended the question: “Is this your primary residence?” be added to the form so that home
unit owners have that knowledge before they vote for their directors.

Commissioner Brainard stated that she would like to add to the bold note at the bottom of the form “if any potential
conflict is disclosed” after that statement.

Nick Haley stated that this form started with Compliance Investigator David Garrick who pointed out that in a lot of
cases he saw a need for greater disclosure by candidates to fulfill the minimum statutory requirements. Mr. Haley stated
that this is a document that is required by statute internally within an association and it is meant to only address what is
legally required. Mr. Haley stated that the Division’s goal with this form was to make sure that the statutory minimum is
being fulfilled.


6) REGULATION WORKSHOP FOR LCB FILE No. R108-08
Introduction of Commissioners in attendance:
Michael Buckley, Jeannie Redinger, Marilyn Brainard, Gary Lein, Randolph Watkins, Senior Deputy Attorney General
Nancy Savage as Commission Counsel.

Introduction of Division staff in attendance:
Ann McDermott, Administrator; Teralyn Thompson, Commission Coordinator; Joanne Gierer, Legal Administrative
Officer; Lindsay Waite, Ombudsman; Sonya Meriweather, Program Officer; Nicholas Haley, Education Officer; Bruce
Alitt, Chief Compliance Investigator.

In Carson City: Christopher Cooke, Compliance Investigator.

                                     SEE ATTACHED FOR WORKSHOP MINUTES

Workshop closed on December 3, 2008 at 3:57 p.m.


11) Public Comment
Jean Stahl stated that she has been a realtor for 21 years, homeowner since 1990 and formerly on her association’s board
for 15 years. Ms. Stahl stated that community managers should have to present a 15 minute video pertaining to
association issues because board members do not want to go out and go somewhere. Ms. Stahl stated that this way
everyone would be on the same page and people would get paid to make the videos with a cap on the price. Ms. Stahl
stated that for realtors the MLS listings should have the rules and regulations in them. Ms. Stahl stated that she has sold
properties where they have come back to look at the documentation and there is some little thing that cancelled the sale.
Ms. Stahl stated that realtors have to contact their common-interest community management to find out basic rules like
parking. Ms. Stahl stated that in condominium rental properties the tenants become invisible. Ms. Stahl stated that her
documents provide that they are supposed to tell management who the tenant is. Ms. Stahl stated that it usually happens
the first time but years down the road as tenants change, homeowners do not bother then all of the sudden there are
mysterious people with 22 cars that are using everyone’s space and no one knows who they are, where they live or what
their name is. Ms. Stahl stated that every property manager should have to give all that information to the management
company. Ms. Stahl stated that realtors and property management people would have to communicate with the common-
interest community manager. Ms. Stahl stated that the tenant should be given the rules and regulations with a signed

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statement that states that the rules and regulations have been given to the tenant so that the tenant cannot say that they did
not know.

Jan Porter with CAMEO stated that CAMEO has been invited by a member of the legislative leadership to gather
information to look at homeowner associations and foreclosures. Ms. Porter stated that CAMEO is in the process of
contacting each management company with a request from the legislature to identify how many bank owned properties
are in a delinquent state compared to the other homes in a delinquent state. Ms. Porter stated that she will share this
information with the Commission as soon as the leadership says that she can.

Jan Porter as a homeowner stated that she would like to address the issue with the workshops and ask the Commission to
provide information as to what is allowed for a workshop. Ms. Porter stated that on Tuesday she learned that there was a
grant available and contacted the association’s landscape committee person who is on the board. Ms. Porter stated that
this person got a hold of the landscaper and they all decided to meet Monday morning at 6 a.m. Ms. Porter stated that it
was practical for two or three board members to be there because Ms. Porter had to collect the data from the landscaper
to write the grant. Ms. Porter stated that in this information gathering process there was a quorum of board members for
the purpose of seeking the information for the grant that the board approved for Ms. Porter to write. Ms. Porter requested
that the Commission give boards guidelines.

Bob Harper stated that he had a similar issue as Ms. Porter where there are times when there is a need to get with board
members but decisions are not being made. Mr. Harper stated that there should be a definition that a workshop is where
you can review contracts but not make a decision as to who you are going to hire. Mr. Harper stated that the final
decision would be made at a board of directors meeting. Mr. Harper stated that there is a difference between a workshop
and a directors meeting. Mr. Harper asked if board members were out socially together, does that constitute a board
meeting. Mr. Harper stated that he has had prominent attorneys in town state that as long as there are no decisions being
made, it is a workshop.

Gerald Northfield, Chairman of the Board with the Nevada Association of Community Managers. Mr. Northfield stated
that on behalf of the Association and its vast members that are in the community management industry there are great
concerns about the dilemma of this Commission on NRS 116.023, NAC 116.035 and NRS 116A.070 defining the
community manager. Mr. Northfield stated provisional community manager, supervisory community managers and
some people that are directors of operations for companies that are community managers are in a dilemma in the way
that a provisional management company does not want to turn over the records to the new management company. Mr.
Northfield stated that under the statutes he stands to lose his certificate by not complying with the law. Mr. Northfield
stated that there are many factions since this industry started and it has evolved to become a larger thing than what was
thought of many years ago. Mr. Northfield stated that the people who have the powers that be need to separate and
define who is more responsible to be held in front of the Commission for disciplinary action than what is currently in
place right now.

13) Adjournment
Meeting recessed at 4:13 p.m. until December 4, 2008 at 8:30 a.m.




                                                                                                                            7
COMMISSION FOR COMMON-INTEREST COMMUNITIES AND CONDOMINIUM HOTELS
MEETING
DECEMBER 4, 2008
DEPARTMENT OF BUSINESS AND INDUSTRY
2501 E. SAHARA AVE.
2ND FLOOR CONFERENCE ROOM
LAS VEGAS, NEVADA 89104

VIDEO CONFERENCED TO:
DEPARTMENT OF BUSINESS AND INDUSTRY
788 FAIRVIEW DR.
MEETING ROOM
CARSON CITY, NEVADA 89701


                                                           MINUTES
DECEMBER 4, 2008                                                                                             8:38 A.M.

8-C) Discussion regarding the form regarding the disclosure requirements contained in NRS 116.31034(5)(a) and
(b), which is posted on the Real Estate Division’s website entitled “Candidacy Biography Statement.”
Chairman Buckley commented that he felt the Candidacy Biography Statement form should stay the way it is and should
only relate to what the statute requires. Chairman Buckley stated that if the Division is going to come up with a good
disclosure form it should be a suggested form. Chairman Buckley stated that the Candidacy Biography Statement form
is not intended to be a full disclosure, only what has to be done to comply with the statute.

Commissioner Brainard stated that if the form is not an official form then why something couldn’t be added to it that
would be helpful to homeowners and associations.

Chairman Buckley stated that it is not an official form but it has a limited purpose and that it satisfies the statute.

8-D) Discussion and possible action regarding whether the Commission would like to use surveys posted on the
Division’s website or in the Community Insights newsletter to gather and provide information on topics of
interest to associations.
Commissioner Brainard stated that the intent is for more communication with unit owners because the Community
Insights newsletter was never intended to be a current and frequent publication. Commissioner Brainard stated that this
would be something much like what the City of Las Vegas is doing with its survey on foreclosures within its geographic
boundaries. Commissioner Brainard stated that this would give an opportunity for the Division and Commission to have
a more informed basis. Commissioner Brainard stated that one particular topic which could be helpful would be if there
have been successful responses in associations to the impact of foreclosures. Commissioner Brainard stated that the
results could be shared in a future newsletter or on the website. Commissioner Brainard stated that it is a way for better
communication.

Nick Haley asked if the purpose is for a formal survey where statistics would be needed.

Commissioner Brainard stated that she is not looking for statistics but an avenue for people to provide feedback to share
with others. Commissioner Brainard stated that if there are some success stories out there, it would be nice if those
stories could be shared.

Chairman Buckley stated that it sounds worthwhile to hear what associations are doing that are successful and if
Community Insights or the Division can help circulate those ideas it sounds like a good idea.

Chairman Buckley stated that a better approach would be that if any associations have a success story to have that
association contact Mr. Haley to have them contribute a story to the newsletter.



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Mr. Haley stated that he understands that the idea is to allow people to be the source of the information.

8-E) Discussion and possible action on proposed changes, additions and deletions to NAC 116, 116A and LCB File
No. T011-08; including review of public comments from regulation workshop held December 3, 2008.
Section 1:
Commissioner Lein proposed that the Commission insert the language “or in government securities that are backed by
the full faith and credit of the United States government.” Commissioner Lein stated that there are a number of
associations that invest directly in treasury bills.

Commissioner Lein stated that Mr. Robey’s intentions are for the Commission to adopt a regulation to mandate that all
funds fall within the stated limits. Commissioner Lein stated that it is not the intention of this Commission to place a
limit. Commissioner Lein stated that there are associations that have a commercial aspect where they could at any point
in time exceed the limitation.

Commissioner Lein stated that the word “federally” would need to be removed because the SIPC is not truly federal
insurance.

Chairman Buckley read the section back as stated: “Maintain association funds in a financial institution whose accounts
are insured by the FDIC, SIPC or a private insurer pursuant to NRS 678.755 or in government securities that are backed
by the full faith and credit of the United States government.”

Chairman Buckley stated that the same changes would need to be made in NAC 116A.400.

Section 2:
Chairman Buckley stated that in the heading the colon would be stricken, the number 1 would be stricken and the word
“The” should start with a lowercase “t”. Chairman Buckley stated that the “and” at the end of subsection (e) would be
stricken. Chairman Buckley stated that in subsection (f) “or” would be stricken to add the word “and”. Chairman
Buckley stated that section 2 and 2(a) would be stricken which would make subsection 2(b) become subsection (g).
Chairman Buckley stated to strike “subsection 1” in the last line and add subsections (a) through (f) to read: “Uses any
consultants and other persons with expertise having the knowledge and abilities set forth in subsections (a) through (f) to
assist in preparing the reserve study.”

Commissioner Brainard referred to the written public comment submitted by Doug Taylor who requested a limited grace
period. Commissioner Brainard stated that there should be some type of grace period until the Division can get caught
up with the permitting process.

Chairman Buckley stated that there has already been a grace period given.

Ms. McDermott stated that the Division did not have a backlog and that the applications submitted have been processed.

Chairman Buckley stated that this section should begin “Section 2: Section 17 of LCB File No. R145-06 Is hereby
amended to read as follows.”

The Commission agreed to keep the “and” after subsection (e), add a period after “study” in subsection (f) and to delete
the rest of the section.

Commissioner Brainard moved to approve the regulation as corrected. Seconded by Commissioner Redinger.
Unanimous decision.


8-F) Discussion and possible action on proposed changes, additions and deletions to NAC 116B, 116A and LCB
File No. R186-07; including review of public comments from regulation workshop held December 3, 2008.
Section 3:
Chairman Buckley stated that this section is referring to the hotel unit owner’s financial books and records. Chairman
Buckley changed this section to read “Hotel unit owner’s books and records”.


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Section 4:
Chairman Buckley stated that the second line in this section should read “support the financial statements of an
association or hotel unit owner” and the language “or hotel unit owner” should be added to the end of the section.

Commissioner Lein stated that in the third line of this section it should state “income tax returns” instead of “income tax
reports”. Chairman Buckley stated that this should be changed in NAC116.0433.

Commissioner Lein suggested that he would meet with the attorneys that played a role in drafting these regulations, re-
draft the regulation and send the regulation to LCB after Chairman Buckley reviews it. Chairman Buckley agreed.

Section 7:
Nancy Savage proposed changing the lead in language to state “In determining whether a member of an executive board
has met his fiduciary obligations under NRS 116B.425 consideration will be given to whether the board member has:”

Ms. Savage stated that the first words at the beginning of each subsections should be changed to past tense.

Chairman Buckley stated that subsection 7 should state “Caused association funds to be maintained in a financial
institution whose accounts are insured by the FDIC, SIPC or a private insurer pursuant to NRS 678.755 or in government
securities that are backed by the full faith and credit of the United States government.”

Chairman Buckley stated that subsections 10 and 10(a) were deleted which changed subsection 10(b) to the new
subsection 10.

Chairman Buckley stated that the new subsection 10 should state “Caused the financial transactions of the association to
be current, accurate and properly documented and have established policies and procedures that are designed to provide”.
Commissioner Lein stated that this language would need to be changed in NAC 116.300 and NAC 116.400. Chairman
Buckley agreed.

Chairman Buckley stated that the old subsection 10(c) is subsection 11and “Prepared or” should be stricken and “cause”
should be changed to “Caused”.

Chairman Buckley stated that the old subsection 10(d) is subsection 12 and “Make” should be changed to “Made”.
Chairman Buckley stated that the old subsection 10(e) is subsection 13 and “Cooperate” should be changed to
“Cooperated”.

The Commission decided to strike the old subsection 10(f) and make the old subsection 10(g) subsection 14. Chairman
Buckley stated to change “enforce” to “enforced”, put a period after “association” and strike the rest of the sentence.

Section 8:
Chairman Buckley stated that the lead in language should be the same as section 7 and state “In determining whether a
member of an executive board has met his fiduciary obligations under NRS 116B.425 consideration will be given to
whether the board member has:”

Chairman Buckley stated that subsections 1and 2 would change from “Act” to “Acted”.

The Commission agreed to strike subsection 3, subsection 4 would become subsection 3 and “Except” should change to
“Excepted”.

Chairman Buckley stated that the old subsection 5 is now subsection 4, “Impede” should change to “Impeded” and
“interfere” should change to “interfered”. Ms. Savage stated that “or information” should be added to the end of
subsection 4(a).

Section 9:
Commissioner Lein stated that a period should be added to the third line of subsection 1 to state “AICPA Audit and
Accounting Guide.”Commissioner Lein stated that the rest should be stricken because the price, year and edition of the
guide are not necessary and subsection 2 should be stricken.

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Chairman Buckley suggested adding at the beginning of the third line “by reference the most current published edition
of”. Commissioner Lein agreed.

Section 10:
Commissioner Lein stated that within subsection 1 “based on comparative bids or industry standards” should be stricken.

Chairman Buckley stated that subsection 2 should state “If the current amount of the accumulated cash reserves that are
set aside to repair, replace or restore the major components of the common elements are less than the current estimate of
the amount of cash reserves that are necessary to repair, replace or restore the major components of the common
elements:”

Chairman Buckley stated that this section is only dealing with the association and not the hotel unit owner.

Section 12:
Chairman Buckley stated that NRS 116B.620 says “residential unit” and that is the way it should be stated in this
section.

Section 13:
Commissioner Lein stated that subsection 1 should state “Include, at a minimum:” and strike the rest of the sentence.

Commissioner Lein stated that “month to date and year to date” should be added at the end of subsection 1(b).

Chairman Buckley stated that subsection 4 should state “Be distributed promptly upon completion, to the treasurer of the
association, the community manager, each member of the executive board and, if requested, the hotel unit owner.”

Chairman Buckley suggested changing the lead in language to state “The interim financial statements of an association
may be prepared at least quarterly using fund accounting or single-column presentation and must”.

7-E) Report on the Ombudsman’s conferences and Education Outreach program.
Nick Haley stated that there were two Outreach programs in November. Mr. Haley stated that one program targeted
managers and the other program reached homeowners where Mr. Haley and Ms. Waite went out to speak about the
services that the Ombudsman’s Office provides and other resources available to associations. Mr. Haley stated that there
were 24 attendees during the Manager’s Outreach and the next one will be on December 5, 2008 where there will be 45
attendees. Mr. Haley stated that the feedback that they received from evaluations was very positive.

Mr. Haley stated that he and Ms. Waite taught an Ombudsman’s Outreach at the Sahara West Library where 30 people
attended. Mr. Haley stated that Commissioner Lein showed up and was very helpful since there were a number of
people with financial related questions. Mr. Haley stated that the next Ombudsman’s Outreach is on December 13, 2008
at the Aliante Master Plan Community. Mr. Haley stated that there will be one in January and one in Mesquite.

Mr. Haley stated that there are 69 active continuing education classes. Mr. Haley stated that in the past year 24 classes
have been approved by the Commission on a number of new topics. Mr. Haley stated in the past year there has been a
raise in the professionalism of the education providers and thanked them. Mr. Haley stated that there are so many
continuing education courses available that education providers contact him stating that attendance is down. Mr. Haley
stated that the continuing education courses should be open to homeowner association participants of any sort because it
is valuable for all of them to have this education.

10-1) Feinberg Grant Mayfield Kaneda & Litt
     “HOA Collections”
      Request:       3 hours            General        Classroom
     Mr. Haley stated that the Division recommends approval. Commissioner Brainard moved to accept as presented.
     Seconded by Commissioner Redinger. Unanimous decision.

10-2) Classic Landscapes
     “Landscape 101”

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     Request:        3 hours            General        Classroom
     Mr. Haley stated that the Division recommends approval.

     Commissioner Brainard stated that this would be a great class for the chairman of an association’s landscape
     committee. Commissioner Brainard asked if this class will be presented in the North.

     Melissa Mills, representing Classic Landscapes, stated that there has been consideration to take this course up
     North. Ms. Mills stated that they were waiting to see if the course would be approved before the course is geared
     toward Northern Nevada requirements.

     Commissioner Lein thanked Ms. Mills and other education providers for attending the meeting. Commissioner
     Lein stated that it is helpful to have the representative at the meeting and suggested this practice for future
     meetings.

     Commissioner Brainard moved to accept the course as presented. Seconded by Commissioner Redinger.
     Unanimous decision.

10-3) Nevada Association of Community Managers
     “Management Company Transition”
     Request: 3 hours                   General        Classroom
     Mr. Haley stated that the Division recommends approval. Commissioner Lein moved to accept as presented.
     Seconded by Commissioner Redinger. Unanimous decision.

10-4) Draeger Construction
     “The ABCs of Contracting Contractors-Series IX” (Roofing)
     Request: 3 hours                   General        Classroom
     Mr. Haley stated that the Division recommends approval. Commissioner Lein moved to accept as presented.
     Seconded by Commissioner Brainard. Unanimous decision.

8-K) Discussion and possible action regarding Commissioners’ speaking engagement requests.
None

8-J) Discussion and possible action to approve minutes of the September 29, 2008 Commission meeting.
Commissioner Redinger moved to approve. Seconded by Commissioner Brainard. Unanimous decision.

8-I) Discussion and possible action regarding regulatory changes, additions and deletions to NAC 116, 116A and
NRS 116B.
Chairman Buckley stated that the Commission will be busy with the upcoming workshops. Chairman Buckley stated
that any changes made in the Chapter 116B that are the same as Chapter 116 need to be made.

Commissioner Lein stated that there are changes that need to be made that relate to the annual reporting by the board of
directors to the owners during the budget process.

8-H) Discussion and possible action regarding 2009 legislative proposals affecting common-interest communities
and condominium hotels including NRS 116.3118(2) the meaning of “All financial and other records of the
association”.
Chairman Buckley read NRS 116.3118(2) and (2)(a). Chairman Buckley read NRS 116.31175(1) and stated that a
simple legislative fix would be to state that “the provisions of this subsection or NRS 116.3118 do not apply to…”
Chairman Buckley stated that there is an exception on records that need to be available that is missing from NRS
116.3118. Chairman Buckley stated that if the Commission approves this in concept, he could put something together
for the next meeting for the Commission to review.

Commissioner Brainard stated that it is burdensome for someone to walk into a management office and request to see all
the records from the start of the association. Commissioner Brainard stated that the problem is the definition of “all
records”.


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Chairman Buckley stated that he did not know why NRS 116.3118(2) was necessary when the requirement is clearly
stated in NRS 116.31175.

Commissioner Brainard moved to have Chairman Buckley develop language to omit NRS 116.3118(2) from the NRS
statute or to make it consistent with NRS 116.31175. Seconded by Commissioner Redinger. Unanimous decision.

Commissioner Redinger stated that she is working on the NAC for community managers with Senior Deputy Attorney
General Nancy Savage and will have those regulations for Ms. Thompson to circulate to the rest of the Commission by
the next meeting.

8-G) Discussion and possible action on proposed changes, additions and deletions to NAC 116, 116A and LCB File
No. R108-08; including review of public comments from regulation workshop held December 3, 2008.

Section 2:
Chairman Buckley changed Ms. Meriweather’s purposed language to read: “Each association subject to the governing
documents of that master association, which is required to pay the fees pursuant to NRS 116.31155, shall provide to the
master association, on a form prescribed by the Division: (a) The number of units then subject to that association; (b)
The number of units which may become subject to such association, and; (c) The basis for the calculation for the
numbers described in subsection (a) and (b).”

Chairman Buckley stated that he would work with Ms. Meriweather on the language for this section.

Section 3:
The Commission agreed to keep this section as it is.

Section 4:
The Commission agreed to delete this section.

Section 6:
Chairman Buckley stated that subsection (1)(k) should be changed to read the same as Section 1 subsection (1)(k) from
Temporary LCB File No. T011-08.

The Commission agreed to delete subsection (1)(b).

Chairman Buckley stated that the second line of subsection (1)(j) should read “to the units’ owners during regular
business hours required for inspection at a reasonably…” Chairman Buckley stated that this change also needs to be
made in section 1 subsection (1)(j) of the Temporary LCB File No. T011-08.

Chairman Buckley stated that subsection (1)(k) should be changed to read the same as Section 1 subsection (1)(k) of
Temporary LCB File No. T011-08.

The Commission agreed with Mr. Northfield’s recommendation to strike “Upon consulting with an insurance
professional” and insert “Advise the association to consult with an insurance professional concerning whether…”

Section 8:
Chairman Buckley stated that this section should be the same as the changes to Section 7 of LCB File No. R186-07.
Chairman Buckley stated that subsection 16 should state “Consulted with an insurance professional to determine whether
the association has complied with the provisions of Chapter 116 and the governing documents applicable to the types
and amounts of insurance the association is required to maintain and whether the association has commercially
reasonable insurance to protect against loss of association funds.” Chairman Buckley stated that this language should be
added to LCB File No. R186-07 Section 7.

Commissioner Lein stated that “surrounding the financial transactions” should be deleted from section 6 subsection
(1)(f).

Section 9:

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Chairman Buckley stated that this section should be changed to read the same as section 8 of LCB File No. R186-07.

Commissioner Brainard moved that the Commission accept the proposed draft regulation of LCB File No. R108-08 with
the suggested modifications. Seconded by Commissioner Lein. Unanimous decision.


8-F) Discussion and possible action on proposed changes, additions and deletions to NAC 116B, 116A and LCB
File No. R186-07; including review of public comments from regulation workshop held December 3, 2008.
Section 14:
Commissioner Lein stated that the terms “long term, major repair and replacement” should be changed to state “repairs,
replacement or restoration” so that it is consistent with section 10 subsection 1.

Section 17:
Commissioner Lein stated that in subsection 2 where it states “An auditor” should be changed to “A person” because you
do not have to be an auditor but an accountant. Commissioner Lein stated that the NAC 116 that references an auditor
should be changed also.

Section 19:
Commissioner Lein stated that if subsection 3 is allowed the Commission will be inundated by every association under
$75,000.00 asking for an exemption.

Chairman Buckley stated that subsection 1 should state “The financial books and records of a hotel unit owner”.

Chairman Buckley read NRS 116.685. Chairman Buckley stated that the statute states what the hotel unit owner is
supposed to maintain. Chairman Buckley stated that the statute states “these records must be audited or reviewed by a
certified public accountant” and the statute does not prescribe any criteria for when the records are audited or reviewed.
Chairman Buckley stated that he wants it to state that it has to be audited unless given a specific exemption from the
Commission. Chairman Buckley stated that the Commission will not be inundated because there are only 16 hotel
condominiums. Chairman Buckley stated that the end of subsection 3 should state “for a hotel unit owner having an
annual budget of less than $150,000.00.”

Section 20:
Chairman Buckley stated that the lead in language should delete “condominium” and replace it with “hotel unit owner”.

Commissioner Lein stated that the language in subsection 1(a) will be similar to the language in section 13.

Commissioner Lein stated that the language in the lead in would change from “condominium” to “hotel unit owner”.

Commissioner Lein stated that the Commission could clarify that actual expenses would be operating and reserves
because the current year expenses of the operating fund should be reflected. Commissioner Lein suggested deleting
subsection (c).

Section 21:
Commissioner Lein stated that this section should mirror section 14 and 15.

Commissioner Lein stated that subsection 2 should state “A person” and delete “An auditor”.


Section 23:
Commissioner Lein stated that “and shared components” should be added to the end of the lead in language.

Section 24:
Commissioner Lein stated that at the end of subsection 2 “or review” should be deleted.

Section 25:
Chairman Buckley stated that this section is only relating to the association.

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Section 27 and 28:
Commissioner Lein stated subsections 2 of both sections are regulations that few people follow. Commissioner Lein
stated that he would like to see these sections removed.

Chairman Buckley agreed with Commissioner Lein.

Chairman Buckley stated that he did not have a problem removing these sections because it is a minor point about the
overall point which is being a good board member and full disclosure.

The Commission agreed to remove these two subsections.

Section 32:
Commissioner Lein stated that “legally binding” in subsection 2 should be removed.

Section 33:
Commissioner Lein stated that “review” in subsection 4 should be removed.

Commissioner Lein stated that the old subsections 5(1) through 5(3) have been renumbered to be the new subsections
5(a) through 5(c).

Chairman Buckley stated that the questions are missing question marks.

Chairman Buckley stated that in subsection 5(c) on the third line it should state “owned or controlled by the hotel unit
owner”.

Commissioner Lein moved to approve as corrected with further corrections to be reviewed by the Commission.
Seconded by Commissioner Watkins. Unanimous decision.


11) Public Comment
Stanley Monsef stated that he had written a letter requesting the Commission’s clarification on NAC 116.185 regarding
certification of supervising community managers versus the regulation. Mr. Monsef stated that there is a contradiction
because NAC 116.185 does not state that the person applying for a certification as a supervising community manager has
to have four years from the time that his or her first certificate for a community manager was issued. Mr. Monsef stated
that the definition states that he or she must be a certified community manager. Mr. Monsef stated that many people
come to the State of Nevada, pass their two years in this state, pass all of the requirements and are awarded certifications.
Mr. Monsef stated that the people who live in Nevada are stuck and he is requesting that the Division change the
contradiction between NAC 116.185 and the definition of a community manager.

Chairman Buckley requested that Commissioner Redinger take a look at that regulation.

Jan Porter commented on LCB File No. R186-07 section 23. Ms. Porter stated that of the sixteen condominium hotels,
she has only read three of their sets of governing documents. Ms. Porter stated that her issue with leaving the word
“and” is that she has seen two sets of governing documents that do not describe a level of maintenance sufficient for the
common elements in the governing documents. Ms. Porter stated that the governing documents written by Ms.
Shavinsky do state this. Ms. Porter stated that with the word “and” in there it would read “adequately funded reserves
mean the funds sufficient to maintain the common elements and shared components at the level described in the
governing documents and the reserve study”.

12) Commissioner Comments
Commissioner Brainard thanked Compliance for getting the open community manager cases down.
13) Adjournment
Meeting adjourned at 1:00 p.m. on December 4, 2008.



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Respectfully Yours,




Teralyn Thompson
Commission Coordinator




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