Lawsuit Costs Could be Passed to Homeowners - 8 News NOW

Lawsuit Costs Could be Passed to Homeowners

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LAS VEGAS -- Investors are now pitted against homeowners associations in a new lawsuit. The suit was filed by the investors, but both sides admit that no matter what happens it is the current homeowners who will end up paying.

The suit is against more than 500 HOA's, so it affects tens of thousands of Nevada homeowners.

Read the lawsuit against hundreds of HOA's

Investors filed a lawsuit saying HOA's owe federal taxpayers $50 million after overcharging the government on insurance claims. HOA's call that false, and say that if investors win, they will have no choice but to raise the monthly dues on their residents.

"I think it is a giant waste of time, frankly. I think that originally, there were legitimate complaints by investors that they were being abused by certain companies that were overcharging. I think the legislature stepped in and resolved that," said Community Association Institute President Paul Terry.

I-Team: Lawsuit Filed Against Hundreds of Las Vegas HOA's

But investors at local auctions say excessive HOA charges are keeping them from buying Nevada homes and stabilizing the housing market. 

Depending on whether this federal court lawsuit ends in settlement or a drAwn out trial, it is too early to tell how this will affect people's bottom line.

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