As a point of information, the Moana Litigation Settlement referred to in Mr. Gescheider’s memo (see previous post) was published earlier on this website and can be accessed via Moana Settlement Agreement
The monies received by the SOA under this agreement amounted to $375,000, which according to the BOD, made the association whole with regard to the contested $367,000 previously paid to the Somersett Development Company (SDC) by the SOA under the 2011 Subsidy Reimbursement Agreement. This agreement was approved by the SDC controlled BOD back in 2011 to reimburse monies spent by the SDC to correct common area construction defects. Much has been said about the validity of the Subsidy Reimbursement Agreement in previous blog articles and was the subject of an investigation by the Nevada Real Estate Division’s Ombudsman’s office. According to SOA counsel, with the recovery of monies under the Moana Settlement Agreement, the subsidy reimbursement matter before the Ombudsman has been closed.
Obviously, recovery of $375,000 is a substantial benefit to the Association regardless if it came from Moana Nursery or the SDC. In past articles, SU hotly contested the validity of the Subsidy Reimbursement Agreement and applauds the homeowner who pursued it before the Ombudsman’s office. To the extent this complaint was settled at the expense of Moana Nursery in lieu of the SDC may or may not have been appropriate as discussed in Mr. Gescheider’s memo. However, the bottom line is that this issue now appears to be closed, the SOA has benefited and SDC has “dodged the bullet”.