WHY YOUR VOTE IS IMPORTANT
WILL YOU?
POOR BOARD ELECTION PARTICIPATION
The Rhodes Ranch Association (our “HOA”) has never seen more than 20 – 25% of eligible households vote in a Board of Directors election. This extremely poor voter turnout has essentially allowed a relatively small group of homeowners to control Board election outcomes, frequently resulting in the election of individuals with highly questionable qualifications. When homeowners fail to vote in a Board of Directors election, they are giving up their only opportunity to have any say in how the HOA is run.
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When you choose NOT to vote in a Board of Directors election, you choose to GIVE UP a major opportunity to influence how the value of your Rhodes Ranch property is preserved. When you receive your ballot, DO NOT THROW IT AWAY!!
Rhodes Ranch, a Planned Community, the official name of our guard-gated, golf course Community, is known as a “common-interest community” (additional information about common-interest communities is available here). As with any Nevada common-interest community, our Community is overseen by a homeowners’ association (an “HOA”). Our HOA, which is officially known as the Rhodes Ranch Association, Inc., is responsible for the management, maintenance, operation, and control of the Community.
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Like any Nevada HOA, the Rhodes Ranch Association is a non-profit corporation whose shareholders (or Members) include every individual who owns property within the Community. This corporation is under the direction of a Board of Directors (a “Board”) that is made up of volunteer Members elected by fellow homeowners to serve 2-year terms.
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Section 116.3103 of the Nevada Revised Statutes (the “NRS”) gives the Board the legal authority to act on behalf of the homeowners in all matters relating to the HOA. At the same time, Section 9.5 of the Declaration of Covenants, Conditions, and Restrictions for Rhodes Ranch, a Planned Community (our “CC&Rs”) further specifies that “all rights and powers of the [HOA] may be exercised by the Board without a vote of the membership.”
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Taken together, these provisions give the Board the absolute authority to make decisions regarding HOA business matters without consulting with the Community’s homeowners. The only way that homeowners can influence how HOA business matters are handled is through the election of highly qualified Board members that share their concerns regarding the state of the Community.
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Unfortunately, no more than 20 – 25% of eligible Member households have ever voted in a Rhodes Ranch Association Board election. This means that a small number of homeowners has been given the opportunity to control who is elected to the Board. This means that a small number of Member households have been allowed to determine how property values are maintained.
Ultimately, an HOA such as the Rhodes Ranch Association exists to maintain or increase property values for Member households. It does this through various means, including the maintenance of Community-wide aesthetic standards (which affects the appearance of both individual properties and the Community’s common areas), the pursuit of efforts to maximally ensure the safety and security of the Community’s residents, and the advancement of the Association’s financial position so as to provide Member households with various benefits such as extensive Community amenities and services. Failure by the HOA to achieve success in these endeavors reduces the Community’s appeal and threatens to negatively impact property values.
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In addition to stating that the Board acts on behalf of the HOA, NRS 116.3103 also states that the Board must act as fiduciaries while fulfilling their duties. This means that they must ensure that the HOA’s assets (both money and property) are managed in a way that benefits every Member household. This is a huge responsibility that can only be fulfilled by individuals who possess extensive business expertise, and who are forward-thinking, methodical, and decisive.
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Unfortunately, extremely poor voter turnout in recent Board elections has resulted in the selection of individuals who are simply not qualified to meet this responsibility, and this has seriously threatened the Community’s ability to maintain its premier status. And unless the HOA’s Membership comes together to ensure that highly capable individuals are elected to the next Board, our property values are going to suffer.
Once again, Rhodes Ranch, a Planned Community (our “Community”) is known as a “common-interest community.” According to Nevada state law, this means that every individual that owns property within the Community is obligated to pay a share of all expenses associated with Community maintenance and operations. These expenses can include real estate taxes, insurance premiums, costs associated with the upkeep of “common” or shared property, and additional costs related to services and amenities that are provided for the benefit of the Community’s residents.
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For 2023, our Community’s shared expenses were expected to total nearly 10 million dollars. Major contributors to these expenditures include security services, community management and administrative services, landscape maintenance, and maintenance and operation of the Recreation Center and aquatic amenities. The majority of these expenses were to be covered by revenue obtained through monthly homeowner assessments (or “dues”), although the 2023 budget included an anticipated shortfall of over 1.1 million dollars.
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