HENDERSON (KTNV) — When you walk through the streets of Somerset Park today, all the puddles, sinkholes and leaking water are gone.
We introduced you to this Henderson condo community in August.
AUGUST REPORT: Somerset Park residents could be forced out of homes if HOA doesn't fix water distribution system
The community was plagued by massive leaks and sinkholes, so the city stepped in to replace the community's water distribution system.
The cost is fronted by the city but recouped through a tax lien on each property, and that repayment process is starting shortly.
The City of Henderson sent a letter to all property owners at Somerset Park saying the total cost of the project came out to $682,293.74. That breaks down to $8,026.99 per homeowner.
“I’m just happy it wasn’t $10,000," said Hugh Craig, a Somerset Park condo owner of 38 years.
Craig is happy the city fixed the community's water system.
“We could have not done it by ourselves," Craig said. "There’s no way you get 85 homes, each owner has to sign off if we were going to get a loan from anybody to be responsible. All 85 owners would have to sign that paperwork and agree to it.:”
Craig believes the most efficient and cheapest repair plan came from the city.
There was some controversy surrounding this plan though. The HOA board was creating one of their own and the concerns of the homeowners were at the top of both of their lists.
This was due to the HOA not having enough money to cover the cost of the repair, so the homeowners had to take on the payment.
For details on how the HOA got into this position, watch this.
According to the city, each homeowner will have a special assessment lien put on their property for $8,026.99. If the homeowner does not pay that off within 60 days, there could be an additional lien recordation and release fee of $150.00 tacked on.
This amount will then turn into a tax lien on each property, which would have to be paid in installments, four payments per year starting in August 2025.
Letter sent to homeowners
Somerset Owner Close Out Letter 11-25-2024 Final (1) by christian.hudspeth on Scribd
Craig is able to cover the cost, but he worries his neighbors might not be able to.
“Everyone here doesn’t have that ability. If the owners don’t take total responsibility and take care of this and not pass it on 100% to their renters, this is the fear of a lot of these people," Craig said.
74-year-old Carmelita Pulido rents in the community. She says money is tight and she can't afford any type of increase.
“I don’t know, I guess I’ll have to ask my children I guess for help," Pulido said.
How long do the homeowners have to repay the city though?
Henderson's Community Development and Services Department Public Response Manager Ian Massy tells me that the city and county are working on a plan.
“What we’ve seen historically, it’s a minimum of eight quarters, right and it can go up significantly from there," Massy said.
Four quarters means one year, eight quarters is two years and so on and so forth. So, the more quarters to pay this off means cheaper payments and more of them, which Pulido and others believe could help them pay the tax lien off.
Just for example, if there were eight quarters, each payment would be $1,003.37, but 12 quarters means $668.92 for each payment, so a significant difference.
Massy says the city is working with the Clark County Treasurer to figure out the exact payment plan.
One thing that hasn't been released just yet is the penalty for not paying. Massy tells me they are focused on keeping each resident in their home and will do everything possible to keep everyone in Somerset Park.
However, according to Clark County's Real Property Tax information, which was referenced in the city's letter to residents, there is mention of the payment dates, plus the punishments for not paying.
That includes interest on each payment, a two-year redemption period with interest and the County Treasurer holding your property, plus a final punishment of the County Treasurer getting the deed to your property after years of non-payment.
This is still being discussed between the county and the city.
Henderson City Councilwoman Carrie Cox wants all the details ironed out before a city council vote to approve this plan, happens.
“We need to understand fully what the consequences are for the residents," Cox said.
The Henderson City Council will meet Tuesday night at 4 p.m. to discuss the Somerset Park issue. One topic not expected to be figured out is how long the homeowners will be paying the tax lien off.
City staff is recommending the payment plan to be approved as is.
Channel 13 will be at the meeting on Tuesday night and will bring you the latest online and on air.
