Assembly Bill No. 557–Assemblyman Beers

March 15, 1999

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Referred to Concurrent Committees on Taxation
and Commerce and Labor

 

SUMMARY—Conforms definition of common elements in planned community to other common-interest communities. (BDR 10-954)

FISCAL NOTE: Effect on Local Government: Yes.

Effect on the State or on Industrial Insurance: Yes.

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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 common-interest communities; providing a single definition of common elements for all common-interest communities; 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 116.110313 is hereby amended to read as follows:

1-2 116.110313 "Allocated interests" means the following interests

1-3 allocated to each unit:

1-4 1. In a condominium [,] or planned community, except any portion of

1-5 a planned community that is a cooperative, the undivided interest in the

1-6 common elements, the liability for common expenses, and votes in the

1-7 association; and

1-8 2. In a cooperative, the liability for common expenses and the

1-9 ownership and votes in the association . [; and

1-10 3. In a planned community, the liability for common expenses and

1-11 votes in the association.]

1-12 Sec. 2. NRS 116.110318 is hereby amended to read as follows:

1-13 116.110318 "Common elements" means [:

1-14 1. In a condominium or cooperative,] all portions of [the] a common-

1-15 interest community other than the units, including easements in favor of

1-16 units or the common elements over other units . [; and

1-17 2. In a planned community, any real estate within the planned

1-18 community owned or leased by the association, other than a unit.]

2-1 Sec. 3. NRS 116.110368 is hereby amended to read as follows:

2-2 116.110368 "Planned community" means a common-interest

2-3 community that [is] :

2-4 1. Existed on June 30, 1999, and was designated as such in the

2-5 declaration creating it; or

2-6 2. Is created on or after July 1, 1999, and is not exclusively a

2-7 condominium or a cooperative. A condominium or cooperative may be

2-8 part of a planned community.

2-9 Sec. 4. NRS 116.2107 is hereby amended to read as follows:

2-10 116.2107 1. The declaration must allocate to each unit:

2-11 (a) In a condominium [,] or planned community, except any portion of

2-12 a planned community that is a cooperative, a fraction or percentage of

2-13 undivided interests in the common elements and in the common expenses

2-14 of the association (NRS 116.3115) and a portion of the votes in the

2-15 association; and

2-16 (b) In a cooperative, a proportionate ownership in the association, a

2-17 fraction or percentage of the common expenses of the association (NRS

2-18 116.3115) and a portion of the votes in the association . [; and

2-19 (c) In a planned community, a fraction or percentage of the common

2-20 expenses of the association (NRS 116.3115) and a portion of the votes in

2-21 the association.]

2-22 2. The declaration must state the formulas used to establish allocations

2-23 of interests. Those allocations may not discriminate in favor of units

2-24 owned by the declarant or an affiliate of the declarant.

2-25 3. If units may be added to or withdrawn from the common-interest

2-26 community, the declaration must state the formulas to be used to reallocate

2-27 the allocated interests among all units included in the common-interest

2-28 community after the addition or withdrawal.

2-29 4. The declaration may provide:

2-30 (a) That different allocations of votes are made to the units on particular

2-31 matters specified in the declaration;

2-32 (b) For cumulative voting only for the purpose of electing members of

2-33 the executive board; and

2-34 (c) For class voting on specified issues affecting the class if necessary to

2-35 protect valid interests of the class.

2-36 Except as otherwise provided in NRS 116.31032, a declarant may not

2-37 utilize cumulative or class voting for the purpose of evading any limitation

2-38 imposed on declarants by this chapter nor may units constitute a class

2-39 because they are owned by a declarant.

2-40 5. Except for minor variations because of rounding, the sum of the

2-41 liabilities for common expenses and, in a condominium [,] or planned

2-42 community, except any portion of a planned community that is a

2-43 cooperative, the sum of the undivided interests in the common elements

3-1 allocated at any time to all the units must each equal one if stated as a

3-2 fraction or 100 percent if stated as a percentage. In the event of

3-3 discrepancy between an allocated interest and the result derived from

3-4 application of the pertinent formula, the allocated interest prevails.

3-5 6. In a condominium [,] or planned community, except any portion of

3-6 a planned community that is a cooperative, the common elements are not

3-7 subject to partition, and any purported conveyance, encumbrance, judicial

3-8 sale or other voluntary or involuntary transfer of an undivided interest in

3-9 the common elements made without the unit to which that interest is

3-10 allocated is void.

3-11 7. In a cooperative, any purported conveyance, encumbrance, judicial

3-12 sale or other voluntary or involuntary transfer of an ownership interest in

3-13 the association made without the possessory interest in the unit to which

3-14 that interest is related is void.

3-15 Sec. 5. If a unit-owners’ association holds record title to, or a lease of,

3-16 real property that is a portion of a planned community, other than a unit,

3-17 on June 30, 1999, the association shall convey the real property, or assign

3-18 its leasehold, in undivided interests to all of the units’ owners in proportion

3-19 to their respective allocated interests as augmented by this act.

3-20 Sec. 6. This act becomes effective on June 30, 1999.

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