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Somerset Park repairs are coming, but how did it come to this? Where did the money go? We have the answers

The City of Henderson will be in charge of replacing the community's water distribution system
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HENDERSON (KTNV) — The Somerset Park community in Henderson is seeking relief as a failing water distribution system has led to massive leaks and sinkholes in the community.

During an HOA board meeting Monday night, the board decided to go with the City of Henderson's plan to fully replace the water distribution system.

WATCH | City of Henderson in charge of water system replacement

Somerset Park future is revealed: City of Henderson in charge of water system replacement

While the city will be replacing the leaky system at Somerset Park, why did the city have to supply the cash? It's all about missing money and desperation.

“But it’s not even our fault. What did we do wrong," said Carmelita Pulido, a Somerset Park resident since 2019.

Pulido is 75 years old and just getting by in the community.

“At night sometimes I can’t sleep you know because I think what’s going to happen because I want to be independent no matter what," Pulido said.

But residents like Pulido say they don't know if they can continue living at Somerset Park.

“This is the only place I can afford, but if I can’t afford it, how?" Pulido said.

The City of Henderson messaged me a statement late Tuesday afternoon:

"The City received communication from the Community Association that they want to cooperate with the City’s plan. City staff is working on the next steps. We will provide additional information when available."

Henderson Mayor Michelle Romero told Channel 13 last week the city's replacement plan would put a tax lien on residents of at least $200 per month.

The HOA board also approved an increase of its HOA fees from around $347.50 to $412 which will go into effect next year.

Pulido tells me she can't afford those extra costs.

Why are the residents and owners having to pay back the taxpayer dollars though?

State and local leaders tell me the water system failure and other problems in the community happened because of money mismanagement from the former HOA management company.

That left little to no money for the current management company.

We did some digging. According to the Commission for Common Interest Communities and Condominium Hotels in Nevada and the Nevada Real Estate Division of the Department of Business and Industry, on August 14, 2023 the former HOA management company owner Diana Stegeman had her community manager certificate suspended after another property she managed suffered similar financial woes.

Complaint for Disciplinary Action and Notice of Hearing

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Summary Suspension of License

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Real estate division documents reveal forged checks.

“We do have some documentation showing that they did embezzle from this community as well which is going to be turned over to the Nevada Real Estate Division," said State Assemblywoman and Somerset Park homeowner Danielle Gallant.

I reached out to Stegeman for comment, but while I did not hear back from her, we did speak to a family member by phone who claims she was aware Stegeman mismanaged money.

“The HOA funds I know there was a lot of transferring around. I know for her personally she has a lot of financial troubles," said a family member of Stegeman who wanted to remain anonymous.

I reached out to the City of Henderson for more details about their replacement plan. A representative tells me they are now working on the next steps.