Assembly Bill No. 397–Assemblymen Goldwater, Buckley, Thomas, Segerblom, Gibbons, Neighbors, Perkins, Giunchigliani, Williams, Parks, Collins, Manendo, Ohrenschall, Price, Evans, Leslie, Koivisto, Parnell, McClain, Claborn and Bache

March 4, 1999

____________

Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes to provisions concerning landlords and tenants. (BDR 10-915)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to tenancies; revising provisions for terminating a tenancy; prohibiting a landlord from terminating a tenancy except for certain reasons; revising the provisions relating to deposits for cleaning and security; allowing a tenant to withhold rent that becomes due under certain circumstances; requiring the installation of individual water meters in certain buildings; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. NRS 118.101 is hereby amended to read as follows:

1-2 118.101 1. A person may not refuse to:

1-3 (a) Authorize a person with a disability to make reasonable

1-4 modifications to a dwelling which he occupies or will occupy if:

1-5 (1) The person with the disability pays for the modifications; and

1-6 (2) The modifications are necessary to ensure that the person with the

1-7 disability may use and enjoy the dwelling; or

1-8 (b) Make reasonable accommodations in rules, policies, practices or

1-9 services if those accommodations are necessary to ensure that the person

1-10 with the disability may use and enjoy the dwelling.

2-1 2. A landlord may, as a condition for the authorization of such a

2-2 modification, reasonably require the person who requests the authorization,

2-3 upon the termination of his occupancy, to restore the dwelling to the

2-4 condition that existed before the modification, reasonable wear and tear

2-5 excepted.

2-6 3. Except as otherwise provided in subsection 4, a landlord may not

2-7 increase the amount of the deposit for security or the deposit for cleaning

2-8 which he customarily requires a person to deposit because that person has

2-9 requested authorization to modify a dwelling pursuant to subsection 1.

2-10 4. If a person requests authorization to modify a dwelling pursuant to

2-11 subsection 1, the landlord may require that person to deposit a reasonable

2-12 amount [of] for security or for cleaning in addition to the amount he

2-13 usually requires if the additional amount:

2-14 (a) Is necessary to ensure the restoration of the dwelling pursuant to

2-15 subsection 2;

2-16 (b) Does not exceed the actual cost of the restoration; and

2-17 (c) Is deposited by the landlord in an interest-bearing account. Any

2-18 interest earned on the additional amount must be paid to the person who

2-19 requested the authorization.

2-20 5. As used in this section, "security" has the meaning ascribed to it in

2-21 NRS 118A.240.

2-22 Sec. 2. Chapter 118A of NRS is hereby amended by adding thereto

2-23 the provisions set forth as sections 3 and 4 of this act.

2-24 Sec. 3. 1. A landlord may not terminate a tenancy unless the

2-25 termination is supported by one or more of the following causes:

2-26 (a) The tenant violates an obligation to the landlord created by the

2-27 rental agreement, this chapter or another provision of law or creates a

2-28 nuisance, including, but not limited to, a nuisance defined in NRS 40.140

2-29 or 202.450; or

2-30 (b) Any other reason, economic or personal, unless the reason violates

2-31 a statute, ordinance or regulation prohibiting discrimination or

2-32 retaliation, including, without limitation, a decision by the landlord to:

2-33 (1) Perform substantial renovation or repair that requires the

2-34 premises to be vacant;

2-35 (2) Occupy the premises personally or allow another member of his

2-36 immediate family to occupy the premises; or

2-37 (3) Cease to rent the premises.

2-38 2. Before terminating a tenancy pursuant to subsection 1, the

2-39 landlord shall notify the tenant in writing of each cause listed in

2-40 subsection 1 that supports the termination.

3-1 3. A tenant may:

3-2 (a) Maintain an action to enjoin the termination of the tenancy on the

3-3 basis that the termination is not supported by a cause listed in subsection

3-4 1; or

3-5 (b) Assert as a defense to a summary eviction, or other proceeding by

3-6 the landlord for possession of the premises, that the termination is not

3-7 supported by a cause listed in subsection 1.

3-8 Sec. 4. 1. Except as otherwise provided in subsection 2, the

3-9 landlord of a building containing more than 10 individual dwelling units

3-10 shall provide an individual water meter for each unit. The meters must be

3-11 installed in accordance with any uniform standard for design and

3-12 construction adopted by the public utility or governmental agency that

3-13 provides the water. On or after January 1, 2000, a certificate of

3-14 occupancy may not be issued for the building unless this requirement is

3-15 satisfied.

3-16 2. If a certificate of occupancy is issued before January 1, 2000, the

3-17 individual meters required by this section must be installed before

3-18 January 1, 2004.

3-19 Sec. 5. NRS 118A.240 is hereby amended to read as follows:

3-20 118A.240 1. Any payment, deposit, fee or charge that is to be used

3-21 for any of the following purposes is ["security"] "for security" and is

3-22 governed by the provisions of this section and NRS 118A.242 and

3-23 118A.244:

3-24 (a) Remedying any default of the tenant in the payments of rent.

3-25 (b) Repairing damages to the premises other than normal wear caused

3-26 by the tenant.

3-27 [(c) Cleaning the dwelling unit.

3-28 2. "Security"]

3-29 2. A "deposit for security" does not include any payment, deposit or

3-30 fee to secure an option to purchase the premises.

3-31 Sec. 6. NRS 118A.242 is hereby amended to read as follows:

3-32 118A.242 1. The landlord may [not demand or receive security,

3-33 including the last month’s rent, whose] require from a tenant separate

3-34 deposits for cleaning and security, but the total amount or value [exceeds]

3-35 of a deposit for security may not exceed 3 months’ periodic rent.

3-36 2. [Upon termination of the tenancy by either party for any reason,]

3-37 Except as otherwise provided in this chapter, the landlord need not

3-38 refund a deposit for cleaning.

3-39 3. If the duration of a tenancy is 1 year or more, the tenant may

3-40 request a refund of the deposit for security at any time after 1 year,

3-41 whether or not the tenancy is terminated. The landlord shall refund the

4-1 deposit for security, minus any deduction allowed pursuant to subsection

4-2 5, not later than 30 days after the tenant requests the refund and permits

4-3 an inspection of the premises.

4-4 4. If the duration of the tenancy is less than 1 year, the landlord shall

4-5 refund the deposit for security, minus any deduction allowed pursuant to

4-6 subsection 5, no later than 30 days after the tenancy is terminated.

4-7 5. Before refunding a deposit pursuant to subsection 3 or 4, the

4-8 landlord may [claim of the] deduct from the deposit for security only such

4-9 amounts as are reasonably necessary to remedy any default of the tenant in

4-10 the payment of rent [, to] and to repair any damages to the premises caused

4-11 by the tenant other than normal wear . [and to pay the reasonable costs of

4-12 cleaning the premises.]

4-13 6. The landlord shall provide the tenant with an itemized written

4-14 accounting of the disposition of the deposit for security and return any

4-15 remaining portion of the [security] deposit to the tenant [no later than 30

4-16 days after the termination of the tenancy] pursuant to subsection 3 or 4 by

4-17 handing it to him personally at the place where the rent is paid, or by

4-18 mailing it to him at his present address, or if that address is unknown, at

4-19 the tenant’s last known address.

4-20 [3.] 7. If the landlord fails or refuses to return the remainder of [a

4-21 security deposit] the deposit for security within 30 days [after the end of a

4-22 tenancy,] pursuant to subsection 3 or 4, he is liable to the tenant for

4-23 damages:

4-24 (a) In an amount equal to the entire deposit; and

4-25 (b) For a sum to be fixed by the court of not more than the amount of

4-26 the entire deposit.

4-27 [4.] 8. In determining the sum, if any, to be awarded under paragraph

4-28 (b) of subsection [3,] 7, the court shall consider:

4-29 (a) Whether the landlord acted in good faith;

4-30 (b) The course of conduct between the landlord and the tenant; and

4-31 (c) The degree of harm to the tenant caused by the landlord’s conduct.

4-32 [5. Except for an agreement which provides for a nonrefundable

4-33 charge for cleaning, in a reasonable amount, no]

4-34 9. A rental agreement may not contain any provision characterizing

4-35 [any security under this section] a deposit for security as nonrefundable or

4-36 any provision waiving or modifying a tenant’s rights under this section.

4-37 Any such provision is void as contrary to public policy.

4-38 [6.] 10. The claim of a tenant to a deposit for security to which he is

4-39 entitled under this chapter takes precedence over the claim of any creditor

4-40 of the landlord.

4-41 Sec. 7. NRS 118A.244 is hereby amended to read as follows:

4-42 118A.244 1. Upon termination of the landlord’s interest in the

4-43 dwelling unit, whether by sale, assignment, death, appointment of receiver

5-1 or otherwise, the landlord or his agent shall, within a reasonable time, do

5-2 one of the following, which relieves him of further liability with respect to

5-3 the security:

5-4 (a) Notify the tenant in writing of the name, address and telephone

5-5 number of his successor in interest, and that he has transferred to his

5-6 successor in interest the deposit for cleaning and the portion of the deposit

5-7 for security remaining after making any deductions allowed under NRS

5-8 118A.242.

5-9 (b) Return to the tenant the deposit for cleaning and the portion of the

5-10 deposit for security remaining after making any deductions allowed under

5-11 NRS 118A.242.

5-12 The successor has the rights, obligations and liabilities of the former

5-13 landlord as to [any securities] the deposits for cleaning and security which

5-14 are owed under this section or NRS 118A.242 at the time of transfer.

5-15 2. The landlord shall, before he records a deed transferring any

5-16 dwelling unit:

5-17 (a) Transfer to his successor, in writing, the portion of any tenant’s

5-18 [security] deposit for cleaning or security or other money held by him

5-19 which remains after making any deductions allowed under NRS 118A.242;

5-20 or

5-21 (b) Notify his successor in writing that he has returned all such deposits

5-22 or portions thereof to the tenant.

5-23 Sec. 8. NRS 118A.250 is hereby amended to read as follows:

5-24 118A.250 The landlord shall deliver to the tenant upon his request a

5-25 signed written receipt for a deposit for cleaning or security and any other

5-26 payments, deposits or fees, including rent, paid by the tenant and received

5-27 by the landlord. The tenant may refuse to make rent payments until the

5-28 landlord tenders the requested receipt.

5-29 Sec. 9. NRS 118A.290 is hereby amended to read as follows:

5-30 118A.290 1. The landlord shall at all times during the tenancy

5-31 maintain the dwelling unit in a habitable condition. A dwelling unit is not

5-32 habitable if it substantially lacks:

5-33 (a) Effective waterproofing and weather protection of the roof and

5-34 exterior walls, including windows and doors.

5-35 (b) Plumbing facilities which conformed to applicable law when

5-36 installed and which are maintained in good working order.

5-37 (c) A water supply approved under applicable law, which is:

5-38 (1) Under the control of the tenant or landlord and is capable of

5-39 producing hot and cold running water;

5-40 (2) Furnished to appropriate fixtures; and

5-41 (3) Connected to a sewage disposal system approved under

5-42 applicable law and maintained in good working order to the extent that the

5-43 system can be controlled by the landlord.

6-1 (d) Adequate heating facilities which conformed to applicable law when

6-2 installed and are maintained in good working order.

6-3 (e) Electrical lighting, outlets, wiring and electrical equipment which

6-4 conformed to applicable law when installed and are maintained in good

6-5 working order.

6-6 (f) An adequate number of appropriate receptacles for garbage and

6-7 rubbish in clean condition and good repair at the commencement of the

6-8 tenancy. The landlord shall arrange for the removal of garbage and rubbish

6-9 from the premises unless the parties by written agreement provide

6-10 otherwise.

6-11 (g) Building, grounds, appurtenances and all other areas under the

6-12 landlord’s control at the time of the commencement of the tenancy in every

6-13 part clean, sanitary and reasonably free from all accumulations of debris,

6-14 filth, rubbish, garbage, rodents, insects and vermin.

6-15 (h) Floors, walls, ceilings, stairways and railings maintained in good

6-16 repair.

6-17 (i) Ventilating, air conditioning and other facilities and appliances,

6-18 including elevators, maintained in good repair if supplied or required to be

6-19 supplied by the landlord.

6-20 2. The landlord and tenant may agree that the tenant is to perform

6-21 specified repairs, maintenance tasks and minor remodeling only if:

6-22 (a) The agreement of the parties is entered into in good faith; and

6-23 (b) The agreement does not diminish the obligations of the landlord to

6-24 other tenants in the premises.

6-25 3. An agreement pursuant to subsection 2 is not entered into in good

6-26 faith if the landlord has a duty under subsection 1 to perform the

6-27 specified repairs, maintenance tasks or minor remodeling and the tenant

6-28 enters into the agreement because the landlord or his agent has refused

6-29 to perform them.

6-30 Sec. 10. NRS 118A.350 is hereby amended to read as follows:

6-31 118A.350 1. Except as otherwise provided in this chapter, if the

6-32 landlord fails to comply with the rental agreement or fails to maintain the

6-33 dwelling unit in a habitable condition as required by this chapter, the tenant

6-34 shall deliver a written notice to the landlord specifying the acts and

6-35 omissions constituting the breach and stating that the rental agreement will

6-36 terminate as provided in this section. If the breach is remediable and the

6-37 landlord adequately remedies the breach or uses his best efforts to remedy

6-38 the breach within 14 days after receipt of the notice, the rental agreement

6-39 does not terminate by reason of the breach. If the landlord fails to remedy

6-40 the breach or make a reasonable effort to do so within the prescribed time,

6-41 the tenant may:

6-42 (a) Terminate the rental agreement immediately.

6-43 (b) Recover actual damages.

7-1 (c) Apply to the court for such relief as the court deems proper under

7-2 the circumstances.

7-3 2. The tenant may not terminate a rental agreement for a condition

7-4 caused by his own deliberate or negligent act or omission or that of a

7-5 member of his household or other person on the premises with his consent.

7-6 3. If the rental agreement is terminated, the landlord shall return all

7-7 deposits for cleaning, prepaid rent and deposits for security recoverable by

7-8 the tenant under this chapter.

7-9 4. A tenant may not proceed under this section unless he has given

7-10 notice as required by subsection 1, except that the tenant may, without

7-11 giving that notice, recover damages under paragraph (b) of subsection 1 if

7-12 the landlord:

7-13 (a) Admits to the court that he had knowledge of the condition

7-14 constituting the breach; or

7-15 (b) Has received written notice of that condition from a governmental

7-16 agency authorized to inspect for violations of building, housing or health

7-17 codes.

7-18 Sec. 11. NRS 118A.370 is hereby amended to read as follows:

7-19 118A.370 If the landlord fails to deliver possession of the dwelling

7-20 unit to the tenant as provided in this chapter, rent abates until possession is

7-21 delivered as required, and the tenant may [:] pursue any one of the

7-22 following remedies:

7-23 1. Terminate the rental agreement upon at least 5 days’ written notice

7-24 to the landlord . [and upon] Upon termination , the landlord shall return all

7-25 deposits for cleaning, prepaid rent, deposits for security recoverable under

7-26 this chapter, and any payment, deposit, fee or charge to secure the

7-27 execution of the rental agreement . [; or]

7-28 2. Demand performance of the rental agreement by the landlord and, if

7-29 the tenant elects, maintain an action for possession of the dwelling unit

7-30 against the landlord or any person wrongfully in possession and recover

7-31 the actual damages sustained. If the landlord has exercised due diligence to

7-32 evict the holdover tenant or remedy the condition keeping the new tenant

7-33 from taking possession, the landlord is not liable for damages . [; or]

7-34 3. Pursue any other remedies to which the tenant is entitled, including

7-35 the right to recover any actual damages suffered.

7-36 Sec. 12. NRS 118A.380 is hereby amended to read as follows:

7-37 118A.380 1. If the landlord is required by the rental agreement or

7-38 this chapter to supply heat, air conditioning, running water, hot water,

7-39 [electric,] electricity, gas, or [other] another essential service and he

7-40 willfully or negligently fails to do so, causing the premises to become unfit

7-41 for habitation, the tenant shall give written notice to the landlord

7-42 specifying the breach. If the landlord does not adequately remedy the

7-43 breach, or use

8-1 his best efforts to remedy the breach within 48 hours, except a Saturday,

8-2 Sunday or legal holiday, after it is received by the landlord, the tenant may,

8-3 in addition to any other remedy:

8-4 (a) Procure reasonable amounts of such essential services during the

8-5 landlord’s noncompliance and deduct their actual and reasonable cost from

8-6 the rent;

8-7 (b) Recover actual damages, including damages based upon the lack of

8-8 use of the premises or the diminution of the fair rental value of the

8-9 dwelling unit; [or]

8-10 (c) Withhold any rent that becomes due during the landlord’s

8-11 noncompliance without incurring late fees, charges for notice or any

8-12 other charge or fee authorized by this chapter or the rental agreement,

8-13 until the landlord has attempted in good faith to restore the essential

8-14 services; or

8-15 (d) Procure other housing which is comparable during the landlord’s

8-16 noncompliance, and the rent for the original premises fully abates during

8-17 this period. The tenant may recover the actual and reasonable cost of that

8-18 other housing which is in excess of the amount of rent which is abated.

8-19 2. If the tenant proceeds under this section, he may not proceed under

8-20 NRS 118A.350 and 118A.360 as to that breach.

8-21 3. The rights of the tenant under this section do not arise until he has

8-22 given written notice as required by subsection 1, except that the tenant

8-23 may, without having given that notice, recover damages as authorized

8-24 under paragraph (b) of subsection 1 if the landlord:

8-25 (a) Admits to the court that he had knowledge of the lack of such

8-26 essential services; or

8-27 (b) Has received written notice of the uninhabitable condition caused by

8-28 such a lack from a governmental agency authorized to inspect for

8-29 violations of building, housing or health codes.

8-30 4. If such a condition was caused by the deliberate or negligent act or

8-31 omission of the tenant, a member of his household or other person on the

8-32 premises with his consent, the tenant has no rights under this section.

8-33 Sec. 13. NRS 118A.390 is hereby amended to read as follows:

8-34 118A.390 1. If the landlord unlawfully removes the tenant from the

8-35 premises or excludes the tenant by blocking or attempting to block his

8-36 entry upon the premises or willfully interrupts or causes or permits the

8-37 interruption of any essential service required by the rental agreement or

8-38 this chapter, the tenant may recover possession, proceed under NRS

8-39 118A.380 or terminate the rental agreement and, in addition to any other

8-40 remedy, recover his actual damages, receive an amount not greater than

8-41 $1,000 to be fixed by the court, or both.

9-1 2. In determining the amount, if any, to be awarded under subsection

9-2 1, the court shall consider:

9-3 (a) Whether the landlord acted in good faith;

9-4 (b) The course of conduct between the landlord and the tenant; and

9-5 (c) The degree of harm to the tenant caused by the landlord’s conduct.

9-6 3. If the rental agreement is terminated, the landlord shall return all

9-7 deposits for cleaning, prepaid rent and deposits for security recoverable

9-8 under this chapter.

9-9 Sec. 14. NRS 118A.400 is hereby amended to read as follows:

9-10 118A.400 1. If the dwelling unit or premises are damaged or

9-11 destroyed by fire or casualty to an extent that enjoyment of the dwelling

9-12 unit is substantially impaired, the landlord may terminate the rental

9-13 agreement and the tenant may, in addition to any other remedy:

9-14 (a) Immediately vacate the premises and notify the landlord within 7

9-15 days thereafter of his intention to terminate the rental agreement, in which

9-16 case the rental agreement terminates as of the date of vacating.

9-17 (b) If continued occupancy is lawful, vacate any part of the dwelling

9-18 unit rendered unusable by the fire or casualty, in which case the tenant’s

9-19 liability for rent is reduced in proportion to the diminution in the fair rental

9-20 value of the dwelling unit or lack of use of the dwelling unit.

9-21 2. If the rental agreement is terminated, the landlord shall return all

9-22 deposits for cleaning, prepaid rent and deposits for security recoverable

9-23 under this chapter. Accounting for rent in the event of termination or such

9-24 continued occupancy [shall] must be made as of the date the premises were

9-25 vacated.

9-26 3. This section does not apply if it is determined that the fire or

9-27 casualty [were] was caused by deliberate or negligent acts of the tenant, a

9-28 member of his household or other person on the premises with his consent.

9-29 Sec. 15. NRS 118A.510 is hereby amended to read as follows:

9-30 118A.510 1. Except as otherwise provided in subsection 3, the

9-31 landlord may not, in retaliation, terminate a tenancy, refuse to renew a

9-32 tenancy, increase rent or decrease essential services required by the rental

9-33 agreement or this chapter, or bring or threaten to bring an action for

9-34 possession if:

9-35 (a) The tenant has complained in good faith of a violation of a building,

9-36 housing or health code applicable to the premises and affecting health or

9-37 safety to a governmental agency charged with the responsibility for the

9-38 enforcement of that code;

9-39 (b) The tenant has complained in good faith to the landlord or a law

9-40 enforcement agency of a violation [under] of this chapter [;] or of a

9-41 specific statute that imposes a criminal penalty;

9-42 (c) The tenant has organized or become a member of a tenant’s union or

9-43 similar organization;

10-1 (d) A citation has been issued resulting from a complaint described in

10-2 paragraph (a);

10-3 (e) The tenant has instituted or defended against a judicial or

10-4 administrative proceeding or arbitration in which he raised an issue of

10-5 compliance with the requirements of this chapter respecting the habitability

10-6 of dwelling units; or

10-7 (f) The tenant has failed or refused to give written consent to a

10-8 regulation adopted by the landlord, after the tenant enters into the rental

10-9 agreement, which requires the landlord to wait until the appropriate time

10-10 has elapsed before it is enforceable against the tenant.

10-11 2. If the landlord violates any provision of subsection 1, the tenant is

10-12 entitled to the remedies provided in NRS 118A.390 and has a defense in

10-13 any retaliatory action by the landlord for possession.

10-14 3. A landlord who acts under the circumstances described in

10-15 subsection 1 does not violate that subsection if:

10-16 (a) The violation of the applicable building, housing or health code of

10-17 which the tenant complained was caused primarily by the lack of

10-18 reasonable care by the tenant, a member of his household or other person

10-19 on the premises with his consent;

10-20 (b) The tenancy is terminated [with cause;] for a cause listed in

10-21 subsection 1 of section 3 of this act;

10-22 (c) A citation has been issued and compliance with the applicable

10-23 building, housing or health code requires alteration, remodeling or

10-24 demolition and cannot be accomplished unless the tenant’s dwelling unit is

10-25 vacant; or

10-26 (d) The increase in rent applies in a uniform manner to all tenants.

10-27 The maintenance of an action under this subsection does not prevent the

10-28 tenant from seeking damages or injunctive relief for the landlord’s failure

10-29 to comply with the rental agreement or maintain the dwelling unit in a

10-30 habitable condition as required by this chapter.

10-31 Sec. 16. NRS 118A.060 is hereby repealed.

 

10-32 TEXT OF REPEALED SECTION

 

10-33 118A.060 "Cause" defined. A tenancy is terminated with "cause"

10-34 for:

10-35 1. Nonpayment of rent.

10-36 2. Nonpayment of utility charges if the landlord customarily pays such

10-37 charges and submits a separate bill to the tenant.

11-1 3. Failure of the tenant to comply with:

11-2 (a) Basic obligations imposed on the tenant by this chapter;

11-3 (b) Valid rules or regulations established pursuant to this chapter; or

11-4 (c) Valid provisions of the rental agreement.

11-5 4. Condemnation of the dwelling unit.

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