Assembly Bill 10: A Vital Solution for Infrastructure Failures in HOA Communities
The introduction of Assembly Bill 10 (AB10) by the City of Henderson, Nevada, marks a pivotal moment in addressing a long-standing issue faced by many private communities with homeowner associations (HOAs): the management of critical infrastructure. Sparked by the crisis in Somerset Park, where a failing water system wreaked havoc on the community, AB10 provides a framework for local governments to intervene when HOAs are unable—or unwilling—to maintain essential infrastructure like water and sewer systems. As this bill advances in Nevada’s legislature, its implications go far beyond one neighborhood, offering a potential blueprint for resolving similar problems nationwide.
The Somerset Park Crisis: A Warning Sign
The Somerset Park case became a stark example of what can go wrong when HOA-managed infrastructure is neglected. The neighborhood’s aging water distribution system began to leak approximately 1 million gallons of water per month, causing extensive damage that included massive sinkholes. The situation quickly escalated to a full-blown crisis, leaving the City of Henderson no choice but to intervene and replace the failing system. While the city’s actions were critical to safeguarding the community, the incident revealed serious gaps in the mechanisms for addressing urgent infrastructure failures in private communities. AB10 was born out of a need to prevent such crises from recurring.
AB10: Empowering Local Governments for Swift Action
At its core, AB10 is designed to empower local governments to take necessary, timely action when infrastructure managed by HOAs begins to fail. Under the bill, municipalities are authorized to step in to repair or replace deteriorating water or sewer systems in HOA-governed communities. This proactive approach ensures that basic services essential for residents—such as access to clean water—are maintained without waiting for the problem to spiral out of control.
For communities like Somerset Park, this kind of intervention is critical. Without AB10, situations like theirs could continue to threaten public safety and the stability of neighborhoods. By addressing infrastructure issues early, the bill seeks to prevent costly, disruptive, and potentially hazardous emergencies in the future.
Financial Accountability and Resident Concerns
One of the most striking aspects of AB10 is its balanced financial approach. While it allows for immediate repair work to be conducted, the costs incurred by the local government are later recouped through a repayment structure. Homeowners affected by infrastructure repairs will contribute via assessments over time, distributing the financial burden rather than demanding upfront payments.
However, this model has raised concerns among residents. In Somerset Park, for example, liens placed on properties to help fund the repairs have put some homeowners under financial strain. Increased HOA fees and repayment obligations have left many residents questioning the fairness of bearing the brunt of their HOA’s management failures. These financial challenges highlight the need to ensure that the repayment mechanisms under AB10 are equitable and sensitive to the financial realities of homeowners, especially in lower-income communities.
Legislative Momentum and Support
AB10 has quickly gained traction in Nevada’s legislature. The Assembly Government Affairs Committee voted unanimously on April 9, 2025, to advance the bill to the full state assembly. The broad support for AB10 underscores the urgency of addressing aging infrastructure in private communities and the importance of establishing a legal safety net when HOAs fall short. Lawmakers and city officials have emphasized that the bill is not about undermining HOA governance but about protecting public wellbeing and ensuring community stability.
A Path Toward a Proactive Future
If AB10 is enacted, it will represent a critical step in bridging the gap between HOA autonomy and governmental accountability for essential services. By allowing local governments to intervene when infrastructure begins to fail, the measure addresses the underlying issues that left communities like Somerset Park vulnerable. Furthermore, it highlights the importance of proactive infrastructure maintenance within HOAs, reinforcing the need for adequate planning and accountability to avoid similar crises.
However, as AB10 inches closer to becoming law, questions remain about how to fairly allocate the financial burden of interventions. While the repayment model ensures that repairs are not delayed due to immediate cost concerns, it also places significant financial responsibilities on homeowners who may already be struggling. Finding a balance between swift government action and affordability will be key to the long-term success of this legislation.
The Broader Implications of AB10
AB10 is more than just a response to a local crisis—it’s a wake-up call for communities across the country. It underscores the importance of addressing infrastructure issues before they become emergencies and provides a potential template for other states to follow. By holding HOAs accountable and empowering local governments to act when necessary, AB10 aims to protect the safety, health, and financial stability of neighborhoods. At its heart, the bill serves as a reminder that proactive maintenance and collaboration between governments and private communities are vital to ensuring livable, resilient neighborhoods for future generations.