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
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
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Section 1. NRS 116.110313 is hereby amended to read as follows: 116.110313 "Allocated interests" means the following interests1-3
allocated to each unit:1-4
1. In a condominium1-5
a planned community that is a cooperative, the undivided interest in the1-6
common elements, the liability for common expenses, and votes in the1-7
association; and1-8
2. In a cooperative, the liability for common expenses and the1-9
ownership and votes in the association .1-10
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Sec. 2. NRS 116.110318 is hereby amended to read as follows: 116.110318 "Common elements" means1-14
1-15
interest community other than the units, including easements in favor of1-16
units or the common elements over other units .1-17
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Sec. 3. NRS 116.110368 is hereby amended to read as follows: 116.110368 "Planned community" means a common-interest2-3
community that2-4
1. Existed on June 30, 1999, and was designated as such in the2-5
declaration creating it; or2-6
2. Is created on or after July 1, 1999, and is not exclusively a2-7
condominium or a cooperative. A condominium or cooperative may be2-8
part of a planned community.2-9
Sec. 4. NRS 116.2107 is hereby amended to read as follows: 116.2107 1. The declaration must allocate to each unit:2-11
(a) In a condominium2-12
a planned community that is a cooperative, a fraction or percentage of2-13
undivided interests in the common elements and in the common expenses2-14
of the association (NRS 116.3115) and a portion of the votes in the2-15
association; and2-16
(b) In a cooperative, a proportionate ownership in the association, a2-17
fraction or percentage of the common expenses of the association (NRS2-18
116.3115) and a portion of the votes in the association .2-19
2-20
2-21
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2. The declaration must state the formulas used to establish allocations2-23
of interests. Those allocations may not discriminate in favor of units2-24
owned by the declarant or an affiliate of the declarant.2-25
3. If units may be added to or withdrawn from the common-interest2-26
community, the declaration must state the formulas to be used to reallocate2-27
the allocated interests among all units included in the common-interest2-28
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 particular2-31
matters specified in the declaration;2-32
(b) For cumulative voting only for the purpose of electing members of2-33
the executive board; and2-34
(c) For class voting on specified issues affecting the class if necessary to2-35
protect valid interests of the class.2-36
Except as otherwise provided in NRS 116.31032, a declarant may not2-37
utilize cumulative or class voting for the purpose of evading any limitation2-38
imposed on declarants by this chapter nor may units constitute a class2-39
because they are owned by a declarant.2-40
5. Except for minor variations because of rounding, the sum of the2-41
liabilities for common expenses and, in a condominium2-42
community, except any portion of a planned community that is a2-43
cooperative, the sum of the undivided interests in the common elements3-1
allocated at any time to all the units must each equal one if stated as a3-2
fraction or 100 percent if stated as a percentage. In the event of3-3
discrepancy between an allocated interest and the result derived from3-4
application of the pertinent formula, the allocated interest prevails.3-5
6. In a condominium3-6
a planned community that is a cooperative, the common elements are not3-7
subject to partition, and any purported conveyance, encumbrance, judicial3-8
sale or other voluntary or involuntary transfer of an undivided interest in3-9
the common elements made without the unit to which that interest is3-10
allocated is void.3-11
7. In a cooperative, any purported conveyance, encumbrance, judicial3-12
sale or other voluntary or involuntary transfer of an ownership interest in3-13
the association made without the possessory interest in the unit to which3-14
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 assign3-18
its leasehold, in undivided interests to all of the units’ owners in proportion3-19
to their respective allocated interests as augmented by this act.3-20
Sec. 6. This act becomes effective on June 30, 1999.~