LAS VEGAS (KNTV) — It's been nearly five months since we first told you about the faulty water distribution system at the Somerset Park community in the City of Henderson.
Massive leaks and sinkholes plagued the community, so the city stepped in to replace the community's water distribution system.
"We had a concern from a citizen regarding a sinkhole, which was reported to our city's risk management team, requesting that the city reimburse or open a claim for the damage for the damage to that person's individual vehicle," said a city official. "Upon investigation, it was determined that there were substantial underground leaks that had led way to the asphalt collapsing because the erosion underneath from open water laterals on a private water system."
WATCH | We first told you this story when the residents faced being forced out if the water system wasn't repaired.
While the city initially fronted the $682,293.74 bill, residents are now faced with paying the city back.
According to the city, each homeowner will have to pay roughly $8,026.99.
At a council meeting Tuesday afternoon, city leaders presented the council with a possible repayment plan.
According to the presentation, residents who pay off the $8,026.99 around March 31, won't have a special assessment lien on their home.
But Starting on April 1, homeowners who do not pay will have a special assessment lien placed on their home. They will also need to follow the possible repayment plan suggested in the meeting.
WATCH | Somerset Park residents confused over length of Henderson repayment plan
A special assessment lien is a legal claim that a local government or homeowners' association places on a property to ensure the owner pays for improvements that benefit the property.
"To protect the city's interests and be able to take the total amount of $8,026.99 and to lien that against every individual parcel owner that does not repay the city," said the city official.
In the repayment plan presented to the council Tuesday, the $8,026.99 will be divided into eight installments.
The first payment will be due to the city of Henderson in August 2025, and the final payment will be made in March 2027.
All installment payments will be roughly $1,003.37.
WATCH | How much each Somerset Park homeowner will have to pay once repayments start
"It's important to note that there will be no pre-payment penalties or late-payment penalties based on that schedule," said the city official.
The city said residents will be allowed to pay the debt early. As soon as the installment is paid, the lien will be removed from the property.
If a home is sold during the two-year installment plan, the city will be able to recoup the amount due upon the sale of the home.
If at the end of the two-year payment plan, the homeowner still owes money to the city, then the account will be turned over to the Clark County Treasurer's office. There, the debt will accrue interest, fees, or other costs will be added to the account.
Meantime, council member Carrie Cox urged the city to give residents more time to pay off the debt.
"There are several families that are in jeopardy of losing their properties and I feel like this is a big enough boost that it will help them. They are already paying more in their fees from their HOA becuase they had to raise their fees because the embezzlement that happened," Cox said.
WATCH | Somerset Park repairs are coming, but how did it come to this? Where did the money go? We have the answers
"These families have been through enough. And so, my request would be for the city to consider directing staff to do 12 quarters. And I think, for me, like I said, I wanted 5, but I think if we can go to a medium area where it would help them a little bit, and yet we are not giving them so many years that it would put the city at risk."
