Henderson uncovered a “catastrophic” condition of the water distribution system in a townhouse complex earlier this month while making emergency repairs to a sinkhole that had partially swallowed a car, city officials said Wednesday.
“His car was stuck in a hole created by a leak,” Ian Massy, the city’s public response manager, told the Las Vegas Review-Journal on Wednesday.
During an initial inspection, the 38-year-old Somerset Park community’s underground water system appeared beyond repair, officials said. The city told residents Monday that it may be forced to shut off water service, forcing residents to leave their homes, if the homeowners association does not repair the system by Sept. 10.
The HOA’s management company notified the city that it did not have the funds to pay for the repairs, according to a letter the city posted on each of the 85 townhouses, leaving residents in a state of uncertainty.
Former owners’ association is being investigated
In a statement, CAMCO Homeowners Association management said it was called in to assist the community board after the previous management company was fined and dissolved by the Nevada Real Estate Division.
“Our team has been working with several departments of the city, including the Building Inspector and the Ombudsman, on behalf of the new board to find solutions – all in an effort to resolve a number of issues,” the statement said. “Due to financial stresses resulting from the municipality’s budget deficits and previous administration, the board is facing some budgetary issues and CAMCO is working to find solutions.”
The company pointed out that spending on municipalities is subject to “multiple approvals.”
Terry Wheaton, Nevada’s chief compliance officer, said the community’s former HOA is under investigation, adding that the company failed to release financial documents, preventing officials from conducting an audit.
“Assigning blame”
The city informed residents that the broken water system posed an “immediate threat to the health, safety and welfare of the public.” Turning off the water would also result in the fire hydrants no longer functioning.
“We are looking at all options,” said Lisa Corrado, director of the city’s community development and services department. “We want to do everything we can to prevent the community from having its water service shut off.”
The city held an information and information event at a nearby police station on Wednesday afternoon, attended by residents’ representatives as well as housing and legal representatives.
“Everyone is blaming someone else,” said homeowner Rick Martinez. “We still don’t get any answers.”
Martinez and his wife, Sarah, bought their home earlier this summer. They said Tuesday they pay $330 a month in HOA fees but do not know how the funds are distributed.
Underground system
It involves a privately operated system of underground water pipes that supply water to each residential unit. The pipes are leaking, causing water to leak above ground, Massy said.
“Based on the repair work carried out two weeks ago, we believe that the supply lines to all units are so damaged that repair is no longer possible,” Massy said.
The water damaged carports, asphalt and the underlying soil layer, officials said. It is not known whether there was cross-contamination in the water.
The city is responsible for the water infrastructure up to the water storage tanks in the community near Sunset and Pabco Road, which is designed like an apartment complex, officials said.
“In addition, the HOA is responsible for the distribution system and there are no individual meters per townhouse,” Massy said.
Massy said the city has been in contact with CAMCO representatives but has learned that residents do not know the extent of the damage, which prompted the city to send the letters.
“We have been informed that the tenants in this situation, as well as some of the owners or residents, have not received any communication from the HOA about the dire situation,” Massy said.
Henderson authorities said they could not estimate the extent of damage to the water system or how long residents would be away if the water was shut off.
“We would recommend that the HOA hire a contractor to excavate and inspect,” Massy said. “But they have not done that.”
Possible legal remedies
The Nevada Ombudsman’s Office has been in contact with CAMCO, said Sonya Meriweather, Nevada Ombudsman, but the office only learned of the problem after residents received the letter.
“We are in the process of gathering information and understanding the extent of this problem,” Meriweather said.
The Legal Aid Center of Southern Nevada was on site to help tenants terminate their leases.
“Tenants are our top priority,” said Venicia Considine, director of development and public relations.
“We help review the leases and determine if they want to terminate them,” Considine said.
In constructive eviction cases, where the condition of the property is so bad that the tenant has no choice but to move out, the tenant’s landlord may have to pay their tenant’s moving costs, Considine added.
Despite efforts to provide assistance to residents, they felt confused and overwhelmed.
“I’m overwhelmed,” said Sherry Robertson, 49. “We thought the HOA would be here.”
Contact Ricardo Torres-Cortez at [email protected]. Contact Annie Vong at [email protected].
