2nd Petition submitted to Lake Village HOA (Zephyr Cove, NV) - NRS 116.31036 Removal of member(s) of executive board
This is a petition to call for the removal of Board of Director members not acting in the unbiased interest of the Lake Village community, regarding Transient Commercial Use of Units (TCUs). A draft policy was presented to the Board on 11/18/17 that WILL TAKE AWAY YOUR RIGHTS as a homeowner. Pursuant to NRS 116.31036 a removal election can be called by written request from units’ owners constituting at least 10 percent, or any lower percentage specified in the bylaws, of the total number of voting members of the association.
PLEASE NOTE: the board threw out the first petition submitted on 11/15/17 after making one (1) email attempt to validate the petition signatures and a 1 week response deadline during the holiday seasons. In comparison the summer STR survey that was issued to all homeowners was given a 3 week deadline and then an 11 day extension (32 total days to respond during a non-holiday time) due to only 1/3 of the community (majority of the initial responses were in favor of no STR restrictions) responding to the initial survey request in the allotted time frame.
Section 2 of the NRS can be found below:
The purpose of this petition is to obtain the necessary 33 signatures/units required to meet the 10% (Lake Village is comprised of 330 units) threshold to call for a Removal Election compliant with the NRS 116.31036. This is not the forum to outline the entirety of the actions of the Board leaders, GM and office, Legal Counsel or STR ad hoc committee.
The Board of Director Members that this Petition would seek to remove include:
Owen T. Carter, President
Robert Drabant, Vice-President
A) These 2 are the top 2 executives of the board (President and Vice President)
B) Owen Carter has repeatedly ignored the wishes of the community by forging forward with restrictions against the wishes of the homeowners and without just cause.
C) In the September 9th Board meeting Owen Carter asked that the results from the survey go back to the VHR/STR Committee and staff to develop and recommend a policy. Even though summer stats showed that community violations were LESS THAN 2% and Clubhouse & Rec Area usage was LESS THAN 25% during the peak summer months. The ad hoc committee then came back with an even more restrictive cap of 25% from the first policy draft of 30%. Reminder: the cap reduction comes AFTER the summer stats indicated Lake Village does not currently have an STR issue that would trigger the necessity of a cap on STRs.
D) CORRECTION: Robert Drabant is not the chairman of the legal committee. Rather he is on the CC&R committee. The P and VP had not taken action prior to the 1st petition submittal (11/15/17) to review the CC&Rs or to work with the HOA attorney to ensure the movement to implement a TCU policy is in compliance with our CC&Rs. An inquiry was sent on 12/25/17 to Owen on the status of Legal Counsel's review of the CC&Rs in relation to the proposed CAP and other portions of the STR policy discussed at the November Board meeting.
*Note homeowners have discussed the community CC&Rs with several outside attorneys and the consensus is that a CAP on the STRs would require a CC&R amendment which would required a 75% in favor vote by the membership. Verbal discussions have indicated that the Board and Lake Village Legal Counsel believe a CAP can be instituted via a Board approved policy only. Official determination by the Lake Village Legal Counsel pending as of this petition.
E) Neither of these directors have acted in the interests of homeowners and as a result have put Lake Village home values at risk. A clear pattern of biased behavior of the Board decisions (currently holding a 5-2 majority in favor of placing restrictions on STRs leaving no recourse for those against STR restrictions other than 3 min at the end of board meetings. Then the board proceeds with voting in favor of or proceeding with restrictive STR policy reviews even though we do not have a current STR problem), biased STR ad hoc committee appointments of the chair position and subsequently gaining a committee member majority (6-2) in favor of limiting STR rights putting into question the agenda, actions and results of the ad hoc committee as a whole, holding off attempts of homeowners to participate in the CC&R committee for 3+ months without even an acknowledgement of the community member's interest in the committee after the P stated in the meeting and meeting minutes that "Owen encouraged members that are interested in participating on a Committee to please contact the office", etc.
This also includes the lack of action from the Board P and VP to attempt to implement processes recommended by community members that could assist in streamlining office efforts related to processing the STRs especially during peak hours. Further indicating that the Board's immediate intention is not to work together with everyone to find positive solutions that are scaleable as the industry changes, but rather to push a predetermined agenda with a hard stance against STR rights in general.
F) The P & VP's have not acted in the best interest of the community in relation to the GM and Legal Counsel positions. The P and VP are responsible for ensuring that the community is operated in accordance with our our CC&Rs and By-Laws and the recent actions of both the GM and Legal Counsel during the original petition validation process have caused reasonable doubt that they are actually operating in an unbiased nature. This ultimately is cause for concern about the eventual removal election ballot collection and counting process unless it's completed by an impartial 3rd party. Many homeowners have voiced concerns regarding potential secret ballots "going missing" prior to any kind of ballot count based on the exterior of the envelope containing their unit number and known stance on the STR process. Prior to the invalidating of the initial petition the GM and Legal Counsel were given the benefit of the doubt. However, as of this second petition we are officially raising concern to this topic and would like the ballots to be sent back to an impartial 3rd party. The P and VP are responsible to take action to ensure a fair and impartial process by the Legal Counsel and GM and that did not happen during the original validation process of the original petition. As such, we are resubmitting a new petition in an effort to again try to ensure the community leadership is working together with all homeowners to complete a fair, unbiased and impartial evaluation of STRs in Lake Village.
We will separately be filing the 530A form to the state.
Since this petition was started due to the TCU policy being presented to the Board, we respectfully request that the TCU policy discussion be placed on hold until after the Removal Election. The Board did not listen to this request on the 11/15/17 petition. They proceeded with an in depth review of the STR policy in the November Board Meeting. This petition is again requesting that the Board cease pursuing the STR policy until after the removal election is held.
This petition will result in a REMOVAL election. The Lake Village homeowners will have the opportunity vote to remove these two board members who are ALLOWING FOR THE CONTINUATION of a draft policy to CAP (which equals a BAN) STRs in Lake Village. Not voting to remove these Board Members means you will be VOLUNTEERING to give up your homeowner rights. We will be submitting "validated" emails along with your online signature to the office per the precedence set by the Legal Counsel, GM and Board during the first petition.
Please have your voices heard by signing this petition, and more importantly, by VOTING IN THE REMOVAL ELECTION.
At present, there are LESS THAN 75 county-approved STRs (short term rental) in Lake Village or about 23% of the units in the village. A few decades ago, it’s estimated that we had MORE THAN 140 STRs or 43+%. Our number of STRs is slowly DECLINING, not increasing.
WHY SHOULD I CARE ABOUT THE STR (short-term rental) BAN? I don’t rent my home on a short-term basis?
- Property Owner Rights: The LV Board is planning to TAKE AWAY your rights as a homeowner
- The summer stats PROVE that our community DOES NOT have, and is NOT close to having, a STR issue.
- Version 3 (released early on November 1) of the TCU policy actually has a MORE RESTRICTIVE BAN on the STRs than Version 1 (25% in V2 vs original 30% in V1)
- Property Values:
- 30 local realtors polled in 2017 stated that property values would drop 20-50% if a ban/cap was approved
- County STR Permits couldn’t be transferrable to a future buyer – or no homes could secure a permit once the CAP/BAN is met.
- Increased Community Maintenance Costs: Impact of STRs converting to LTRs or Owner Occupied Homes
- STRs occupy Lake Village 25-50% of the time and Owner Occupied or LTRs (long-term rentals) would have 100% occupancy
- Owner Occupied & LTRs would increase the wear and tear on the roads, require more frequent plowing and shoveling to units, increased trash pickup, increased use of community amenities and staff workloads.
- Increased HOA dues to compensate for additional maintenance costs
- Reduced Parking Overall: Owner Occupied & LTRs will need more permanent stalls than the community could support.
- Owner Occupied & LTRs would result in 2-4 cars per unit with local renters such as Heavenly Ski Resort, Hotel or Casino Employees.
- Whereas STRs can easily be limited to 1-2 parking stalls and easily enforced.
- Owner Occupied & LTRs would result in 2-4 cars per unit with local renters such as Heavenly Ski Resort, Hotel or Casino Employees.
WHY IS THE LAKE VILLAGE BOARD TAKING AWAY OUR PROPERTY RIGHTS? Our community DOES NOT have a current STR problem….
- Summer Survey Results:
82% of homeowners favored continuation of Transient Commercial Units (TCUs) in Lake Village
56% did not support a Cap on TCUs.
2. Summer (2017) Violation Report: WE DO NOT HAVE A PROBLEM IN LAKE VILLAGE WITH VIOLATIONS
Percentages of violations vs potential occurrences: 92 days in summer * 330 units = 30,360 total possible incidents for the summer
Fourteen (14) Noise violations = .046%
Four (4) Animal violations = .0132%
Four (4) Architectural Compliance issues / 330 units = 1.21%
Six (6) parking tickets attributed to TCU/Family = .0197%
Four Hundred Sixty Three (463) parking tickets not attributed to anyone = 1.53%
*Note: Parking tickets include owners and guests arriving after 10pm without access to a parking pass until the following day AFTER staff arrives & starts issuing tickets. Parking tickets also include violations such as not pulling in far enough to the stalls.
**NOTE: If stats were tripled to account for violations occurring after hours or due to a lack of community personnel, ALL violations would still be LESS THAN 5%
3. Summer Usage Rates for Recreational LV Areas: WE DO NOT HAVE A PROBLEM IN LAKE VILLAGE WITH USAGE RATES (Our current dues cover staff hours)
The common area usage stats are below: 330 units X 2 people per day = 660 possible people to use the facilities daily
660 * June 30 days = 19,800 and 2238 actual guests = 11.3% usage rate in June
660 * July 31 days = 20,460 and 4566 actual guests = 22.32% usage rate in July
660 * August 31 days = 20,460 and 3066 actual guest = 14.99% usage rate in August
*Note 2 people per unit is conservative and the usages percentages are STILL UNDER 25%. 4 people per unit would result in the actual usage % above being cut in half.
The Board would like you to think that if we don’t cap the STRs then:
- HOA insurance would be impacted: NO STATS OR FACTS PROVIDED TO DATE
- Violations will become out of control: SUMMER VIOLATIONS DIDN’T EXCEED 2%
- Usage of the community amenities that the HOA Dues already pay for would become out of control: CONSERVATIVE SUMMER USAGE STATS DIDN’T EXCEED 25%
- STR bans in other communities will impact the Lake Village community: OUR CC&Rs PROVIDE A CLEAR PATH FOR HANDLING COMMUNITY VIOLATIONS.
- Local casinos, hotels and motels have an annual occupancy rate of about 25%. If there’s an increase in tourist volume, they’re positioned to absorb it
- The South Lake Tahoe BAN/CAP is only for the residential areas NOT the tourist areas
The Board intends to take away YOUR rights as a property owner WITHOUT JUST CAUSE!!! We DO NOT have a current STR problem in our community and we should not volunteer to GIVE UP our rights.
The intent of this petition is to help "level the playing field" so that the community can have a fair and unbiased evaluation of the change happening in the lodging industry. All homeowners agree that the industry is changing and we do not know the real impact to the industry and more importantly the impact to our community as a whole. However, the aggressive nature that the board, GM, legal counsel and ad hoc committee are taking with this discussion has raised many red flags. It has shown that their intent is not to complete an impartial evaluation and discussion of the industry changes and how we can best position our community to ensure that we absorb the changes in the most beneficial way possible to all community members. Rather, their actions indicate that they intend to pass the most restrictive conditions immediately on STRs and then evaluate the community as necessary in the following years.
If you have any questions related to this petition and why a REMOVAL ELECTION is the current course of action you can contact:
Kristi Kandel – 84D North Rubicon 310.946.9562 mobile email@example.com
Gaston Deferrari – Unit 75B 916.220.6258 mobile firstname.lastname@example.org
Along with signing this petition we would encourage everyone to call Owen Carter 775 588 4682 or 818 222 6342 President of our board (email@example.com)and Hardy Nielsen Head Chair of Short Term committee 805 460 9085 (firstname.lastname@example.org) and let them know your opinion.
The Draft policy that was presented to the board at the 5 hour, 11/18/17 BOD meeting is below:
DRAFT 2017 V3
LAKE VILLAGE HOMEOWNERS ASSOCIATION POLICY – M10
Title: Transient Commercial Use of Units Date: November 18, 2017
Authorization: NRS 116.340; CC&Rs Article II, IV, V, VII and IX; Bylaws Article VII, Section 1.
1.1 This Policy applies to the Board, the General Manager, Unit Owners, and their Rental Agents, and Transient Commercial Use Tenants.
2.1 This Policy establishes the requirements for Transient Commercial Use of Units (TCU), also known as Short-term rental (STR) and Vacation Home Rental (VHR).
3.1 Universal definitions are contained in Policy D1.
3.2 “Common Area” shall mean real property owned by the Association.
3.3 “Lot” shall mean and refer to any plot of land shown upon the recorded subdivision
maps of the properties, with the exception of the common area.
3.4 “Unit” shall mean and refer to any group of rooms within a building that provides a toilet,
cooking and sleeping facilities with direct access to the roadway without passing through
another residential unit.
3.5 “Transient Commercial Use (TCU)” shall mean and refer to the leasing or rental of a Unit
and/or Units in Lake Village Homeowners Association for twenty-eight (28) or fewer
3.6 “Vacation Home Rental (VHR) and Short-term rental (STR)” shall have the same meaning
ascribed to 3.5 Transient Commercial Use, above.
3.7 “Overnight Parking” shall mean and refer to occupancy of parking spaces located in Lake
Village for four (4) hours or more between 11 p.m. and 5 a.m.
3.8 “Local Contact Person” shall mean and refer to the person required by Douglas County
Development Code Chapter 5.40 Vacation Rentals in the Tahoe Township.
4.1 No Owner, their Invitees and/or Tenants shall create a time-share license or program in any Residential unit or Lot.
4.2 Any owner desiring to delegate the use of their unit for Transient Commercial Use must apply for and be granted a permit annually from the Association prior to such use.
4.3 Any unit used for TCU must have a current, active Douglas County VHR permit, a copy of which shall be on file at the Association office, and comply with all requirements of Chapter 5.40 of the Douglas County Development Code. The Association shall communicate freely with the County regarding any permit concerns and/or violations. The local contact person provided must be kept current and their contact info supplied to the Association also.
4.4 Owners are responsible for violations of the Association’s governing documents committed by their tenants, including this policy. Penalties for such violations may include fines, sanctions including loss of recreation area privileges, and possible revocation of the VHR permit.
LAKE VILLAGE HOMEOWNERS ASSOCIATION POLICY – M10 (Continued)
4.5 An owner or their rental agent or local contact person shall provide to their TCU tenants, prior to their arrival, a rental agreement and package of information containing, at a minimum, the Association Rules & Regulations, parking space location map, trash box location, noise / pets / BBQ / smoking / fireworks restrictions, etc. The tenants shall sign for receipt of the package and agree to comply with all Association rules, regulations and requirements. Owners are strongly encouraged to require a security deposit from the tenant to cover any possible fines that may be imposed on the owner for violations by their tenant.
4.6 The Unit’s Owner or rental agent shall provide the Association with the tenant’s name, contact info & occupancy dates a minimum of forty-eight (48) hours prior to tenant check- in, when available. The tenant must come to the office upon arrival to complete the Short- term Guest form and obtain parking (2 max.) and recreation (1) passes. Parking passes are required for overnight parking.
4.7 The Unit’s Owner or his/her rental agent shall immediately inform the Association of any modifications to the length of stay and update required registrations and permits.
4.8 An owner delegating the use of their unit to TCU tenants shall refrain from using the recreation facilities during the time their unit is rented.
4.9 There shall be no more than ___% of units permitted for TCU use. If ___% of units are using their unit for TCU, additional owners desiring to do VHR will be placed on a list in the order of their written request. Owners on the list must wait until one of the ___% of permitted TCU units stops renting as a VHR. (The Committee suggests 25% TCU max. due to potential impacts on Insurance and Mortgage rates)
4.10 An owner using their unit for TCU shall provide the Association with a Certificate of Liability Insurance listing the Association as an additional insured on the policy.
4.11 Transient Commercial Use of a unit requires a two-night minimum stay.
5. Process / Responsibilities
5.1 The Board shall establish, publish, distribute and enforce rules and monitoring processes and enforcement practices to control Unit leasing and rentals.
5.2 The General Manager shall maintain a log of all “Short Term Rentals” for a period of one year.
6. Effectivity and Approval
6.1 This Policy shall be in effect as of the date above and remain in effect until superceded.
6.2 Signed: ______________________
Owen Carter, President
Lake Village Homeowners Association