1. 
   Rawson, Amodei, Coffin and Porter

CHAPTER........

Section 1. Chapter 116 of NRS is hereby amended by adding thereto

Secs. 10 and 11. (Deleted by amendment.)

Sec. 14. NRS 116.1116 is hereby amended to read as follows:

1. 116.1116 1. The office of the ombudsman for owners in common

1. pursuant to NRS 38.300 to 38.360, inclusive;
2. (b) Assist owners in common-interest communities to understand their

1. rights and responsibilities as set forth in this chapter and the governing

1. documents of their associations, including, without limitation, publishing

Sec. 15. NRS 116.1117 is hereby amended to read as follows:

116.1117 1. There is hereby created the account for the ombudsman

Sec. 16. NRS 116.1201 is hereby amended to read as follows:

Sec. 16.2. NRS 116.1203 is hereby amended to read as follows:

1. 116.1203 1. Except as otherwise provided in subsection 2, if a

116.1106 and 116.1107 unless the declaration provides that this entire

chapter is applicable.

2. Except for NRS 116.3104, 116.31043, 116.31046 and 116.31138,

NRS 116.3101 to 116.3119, inclusive, and 116.11031 to 116.110393,

inclusive, to the extent necessary in construing any of those sections, apply

to a residential planned community containing more than six units.

Sec. 16.5. NRS 116.1206 is hereby amended to read as follows:

1. plans of any common-interest community created before January 1, 1992:

1. (a) If the result accomplished by the amendment was permitted by law

1. before January 1, 1992, the amendment may be made either in accordance

1. with that law, in which case that law applies to that amendment, or it may

1. be made under this chapter; and

1. (b) If the result accomplished by the amendment is permitted by this

1. chapter, and was not permitted by law before January 1, 1992, the

1. amendment may be made under this chapter.

1. authorized by this section to be made under this chapter must be adopted in

1. conformity with the applicable provisions of chapter 117 or 278A of NRS

1. and with the procedures and requirements specified by those instruments. If

1. an amendment grants to any person any rights, powers or privileges

1. permitted by this chapter, all correlative obligations, liabilities and

1. restrictions in this chapter also apply to that person.

Sec. 17. NRS 116.3102 is hereby amended to read as follows:

1. 116.3102 1. Except as otherwise provided in subsection 2, and

1. or operation of the common elements, other than limited common elements
2. described in subsections 2 and 4 of NRS 116.2102, and for services

1. provided to units’ owners;

1. be heard, levy reasonable fines for violations of the declaration, bylaws,

1. rules and regulations of the association;

1. (l) Impose reasonable charges for the preparation and recordation of

1. amendments to the declaration, the information required by NRS 116.4109

1. or statements of unpaid assessments;

1. (m) Provide for the indemnification of its officers and executive board

1. and maintain directors’ and officers’ liability insurance;

1. (n) Assign its right to future income, including the right to receive

1. assessments for common expenses, but only to the extent the declaration

1. expressly so provides;

1. (o) Exercise any other powers conferred by the declaration or bylaws;

1. (p) Exercise all other powers that may be exercised in this state by legal

1. entities of the same type as the association;

1. (q) Direct the removal of vehicles improperly parked on property owned

1. or leased by the association, pursuant to NRS 487.038; and

1. (r) Exercise any other powers necessary and proper for the governance

1. and operation of the association.

1. 2. The declaration may not impose limitations on the power of the

1. association to deal with the declarant which are more restrictive than the

1. limitations imposed on the power of the association to deal with other

1. persons.

Sec. 18. NRS 116.31031 is hereby amended to read as follows:

1. subsection 6 of NRS 116.31065.

1. Sec. 19. NRS 116.31034 is hereby amended to read as follows:

1. 116.31034 1. Except as otherwise provided in subsection 5 of NRS

1. and understands the governing documents of the association and the

Sec. 21. NRS 116.31038 is hereby amended to read as follows:

1. 116.31038 Within 30 days after units’ owners other than the declarant

1. of the improvements in the common-interest community which were

1. completed within 2 years before the declaration was recorded.

1. the association, or its directors and officers are named as insured persons.

1. issued with respect to any improvements comprising the common-interest

1. community other than units in a planned community.

1. bodies applicable to the common-interest community which are in force

1. and any other permits and approvals so issued and applicable which are

1. required by law to be kept on the premises of the community.

1. and manufacturers that are still effective.

1. addresses and telephone numbers, if known, as shown on the declarant’s

1. records.

1. contracting party.

1. contracting party or in which the association or the units’ owners have any

1. obligation to pay a fee to the persons performing the services.

1. Sec. 22. NRS 116.31065 is hereby amended to read as follows:

1. 116.31065 The rules adopted by an association:

1. amendment to the rule.

Sec. 23. NRS 116.3108 is hereby amended to read as follows:

1. 116.3108 1. A meeting of the units’ owners of an association must be

1. mail to the mailing address of each unit or to any other mailing address
2. designated in writing by the unit’s owner, a schedule of the fines that may

1. be imposed for those violations.

1. or a summary of the minutes of the meeting to be made available to the

1. units’ owners. A copy of the minutes or a summary of the minutes must be

1. provided to any unit’s owner who pays the association the cost of providing

1. the copy to him.

Sec. 24. NRS 116.31085 is hereby amended to read as follows:

1. 116.31085 1. Except as otherwise provided in this section, a unit’s

1. entitled to attend or speak at a meeting of the executive board held in

1. executive session.

Sec. 24.5. NRS 116.3109 is hereby amended to read as follows:

meeting.

Sec. 25. NRS 116.311 is hereby amended to read as follows:

1. 116.311 1. If only one of several owners of a unit is present at a

1. the common-interest community be cast by lessees rather than units’

1. owners of leased units:

1. (a) The provisions of subsections 1 and 2 apply to lessees as if they were

1. units’ owners;

1. (b) Units’ owners who have leased their units to other persons may not

1. cast votes on those specified matters; and

1. (c) Lessees are entitled to notice of meetings, access to records, and

1. other rights respecting those matters as if they were units’ owners.

1. Units’ owners must also be given notice, in the manner provided in NRS

1. 116.3108, of all meetings at which lessees are entitled to vote.

1. cast.

Sec. 26. NRS 116.31139 is hereby amended to read as follows:

1. certificate by the commission in an amount not to exceed the administrative

1. costs of issuing the certificate.

1. (c) An attorney licensed to practice in this state.

1. (d) A trustee.

1. (e) An employee of a corporation who manages only the property of the

1. corporation.

1. (f) A declarant.

1. (g) A receiver.

1. physical, administrative or financial maintenance and management of real

1. property, or the supervision of those activities for a fee, commission or

1. other compensation or valuable consideration.

Sec. 27. NRS 116.3115 is hereby amended to read as follows:

1. 116.3115 1. Until the association makes an assessment for common

1. major components of the common elements. The reserve may be used only

1. maintenance.

1. 3. Any past due assessment for common expenses or installment

1. thereof bears interest at the rate established by the association not

1. exceeding 18 percent per year.

1. 4. To the extent required by the declaration:

1. against the units to which that limited common element is assigned, equally,

1. or in any other proportion the declaration provides;

1. (b) Any common expense or portion thereof benefiting fewer than all of

1. the units must be assessed exclusively against the units benefited; and

1. (c) The costs of insurance must be assessed in proportion to risk and the

1. costs of utilities must be assessed in proportion to usage.

1. 5. Assessments to pay a judgment against the association may be made

1. only against the units in the common-interest community at the time the

1. judgment was entered, in proportion to their liabilities for common

1. expenses.

1. 6. If any common expense is caused by the misconduct of any unit’s

1. owner, the association may assess that expense exclusively against his unit.

1. common expenses and any installment thereof not yet due must be

1. recalculated in accordance with the reallocated liabilities.

1. unit of a meeting at which an assessment for a capital improvement or the

1. commencement of a civil action is to be considered or action is to be taken

1. on such an assessment at least 21 calendar days before the meeting. Except

1. as otherwise provided in this subsection, the association may commence a

1. which at least a majority of the votes of the members of the association are

1. allocated. The provisions of this subsection do not apply to a civil action

1. that is commenced:

1. (a) By an association for a time-share project governed by the

1. provisions of chapter 119A of NRS;

1. (b) To enforce the payment of an assessment;

1. (c) To enforce the declaration, bylaws or rules of the association;

1. (d) To proceed with a counterclaim; o

1. r
2. (e) To protect the health, safety and welfare of the members of the

Sec. 28. NRS 116.31155 is hereby amended to read as follows:

to NRS 116.1117.

(b) Established on the basis of the actual cost of administering the office

of the ombudsman for owners in common-interest communities and not on

Sec. 28.5. NRS 116.31155 is hereby amended to read as follows:

1. (a) If the association is required to pay the fee imposed by NRS 78.150

1. regulation of the administrator for every unit in the association used for

1. residential use.

1. (b) If the association is organized as a trust or partnership, pay to the

1. administrator a fee established by regulation of the administrator for each

ombudsman for owners in common-interest communities created pursuant

to NRS 116.1117.

1. office of the ombudsman for owners in common-interest communities and

1. not on a basis which includes any subsidy for the office. In no event may

1. the fees required to be paid pursuant to this section exceed $3 per unit.

1. required to be paid pursuant to this section to a master association and to an

1. association organized pursuant to NRS 116.3101.

Sec. 29. NRS 116.31162 is hereby amended to read as follows:

1. 116.31162 1. Except as otherwise provided in subsection 4, in a

1. the record owner of the unit;
2. (b) The association or other person conducting the sale has executed and

1. caused to be recorded, with the county recorder of the county in which the

1. common-interest community or any part of it is situated, a notice of default

1. and election to sell the unit to satisfy the lien, which contains the same

1. information as the notice of delinquent assessment, but must also describe

1. the deficiency in payment and the name and address of the person

1. authorized by the association to enforce the lien by sale; and

1. (c) The unit’s owner or his successor in interest has failed to pay the

1. amount of the lien, including costs, fees and expenses incident to its

1. enforcement, for 60 days following the recording of the notice of default

1. and election to sell.

1. 2. The notice of default and election to sell must be signed by the

1. person designated in the declaration or by the association for that purpose,

1. or if no one is designated, by the president of the association.

1. 3. The period of 60 days begins on the first day following the later of:

1. (a) The day on which the notice of default is recorded; or

1. (b) The day on which a copy of the notice of default is mailed by

1. certified or registered mail, return receipt requested, to the unit’s owner or

1. address of the unit.

1. 4. The association may not foreclose a lien by sale for the assessment

1. of a fine for a violation of the declaration, bylaws, rules or regulations of

1. the association, unless the violation is of a type that threatens the health

1. community.

Sec. 30. NRS 116.4101 is hereby amended to read as follows:

1. 116.4101 1. NRS 116.4101 to 116.412, inclusive, apply to all units

1. the purchaser without penalty; or

expenses of the planned community; and

owners.

1. 116.4101 to 116.412, inclusive, do not apply to a planned community

1. described in NRS 116.1203.

Sec. 31. NRS 116.4103 is hereby amended to read as follows:

1. 116.4103 1. Except as otherwise provided in NRS 116.41035, a

1. interest community of which a declarant has actual knowledge.
2. (k) Any current or expected fees or charges to be paid by units’ owners

1. for the use of the common elements and other facilities related to the

1. common-interest community.

1. more than once each calendar quarter, if the following warning is given

1. prominence in the statement: "THIS PUBLIC OFFERING STATEMENT

1. IS CURRENT AS OF (insert a specified date). RECENT

1. DEVELOPMENTS REGARDING (here refer to particular provisions of

1. NRS 116.4103 and 116.4105) MAY NOT BE REFLECTED IN THIS

1. STATEMENT."

Sec. 32. NRS 116.41095 is hereby amended to read as follows:

1. the power to change and increase the amount of the assessment and to levy
2. special assessments against your property to meet extraordinary expenses.

1. In some communities, major components of the community such as roofs

1. and private roads must be maintained and replaced by the association. If the

1. association is not well managed or fails to maintain adequate reserves to

1. to pay large, special assessments to accomplish these tasks.

1. 3. IF YOU FAIL TO PAY OWNERS’ ASSESSMENTS, YOU

1. COULD LOSE YOUR HOME?

1. If you do not pay these assessments when due, the association usually has

1. the power to collect them by selling your property in a nonjudicial

1. foreclosure sale. If fees become delinquent, you may also be required to

1. pay penalties and the association’s costs and attorney’s fees to become

1. current. If you dispute the obligation or its amount, your only remedy to

1. avoid the loss of your home may be to file a lawsuit and ask a court to

1. intervene in the dispute.

1. 4. YOU MAY BECOME A MEMBER OF A HOMEOWNER’S

1. ASSOCIATION THAT HAS THE POWER TO AFFECT HOW YOU

1. USE AND ENJOY YOUR PROPERTY?

1. Many common-interest communities have a homeowner’s association. In a

1. new development, the association will usually be controlled by the

1. developer until a certain number of units have been sold. After the period

1. of developer control, the association may be controlled by property owners

1. like yourself who are elected by homeowners to sit on an executive board

1. and other boards and committees formed by the association. The

1. association, and its executive board, are responsible for assessing

1. homeowners for the cost of operating the association and the common or

1. shared elements of the community and for the day to day operation and

1. management of the community. Because homeowners sitting on the

1. executive board and other boards and committees of the association may

1. not have the experience or professional background required to understand

1. and carry out the responsibilities of the association properly, the association

1. may hire professional managers to carry out these responsibilities.

1. Homeowner’s associations operate on democratic principles. Some

1. decisions require all homeowners to vote, some decisions are made by the

1. executive board or other boards or committees established by the

1. association or governing documents. Although the actions of the

1. association and its executive board are governed by state laws, the C, C &

1. R’s and other documents that govern the common-interest community,

1. decisions made by these persons will affect your use and enjoyment of your

1. property, your lifestyle and freedom of choice, and your cost of living in

1. the community. You may not agree with decisions made by the association

1. or its governing bodies even though the decisions are ones which the

1. association is authorized to make. Decisions may be made by a few persons

1. on the executive board or governing bodies that do not necessarily reflect

1. the view of the majority of homeowners in the community. If you do not

1. agree with decisions made by the association, its executive board or other
2. governing bodies, your remedy is typically to attempt to use the democratic

1. processes of the association to seek the election of members of the

1. executive board or other governing bodies that are more responsive to your

1. needs. If persons controlling the association or its management are not

1. complying with state laws or the governing documents, your remedy is

1. typically to seek to mediate or arbitrate the dispute and, if mediation or

1. arbitration is unsuccessful, file a lawsuit and ask a court to resolve the

1. dispute. In addition to your personal cost in mediation or arbitration, or to

1. prosecute a lawsuit, you may be responsible for paying your share of the

1. association’s cost in defending against your claim. There is no government

1. agency in this state that investigates or intervenes to resolve disputes in

1. homeowner’s associations.

1. 5. YOU ARE REQUIRED TO PROVIDE PROSPECTIVE BUYERS

1. OF YOUR PROPERTY WITH INFORMATION ABOUT LIVING IN

1. YOUR COMMON-INTEREST COMMUNITY?

1. The law requires you to provide to a prospective purchaser of your

1. property, before you enter into a purchase agreement, a copy of the

1. community’s governing documents, including the C, C & R’s, association

1. bylaws, and rules and regulations, as well as a copy of this document. You

1. are also required to provide a copy of the association’s current financial

1. statement, operating budget and information regarding the amount of the

1. monthly assessment for common expenses, including the amount set aside

1. elements. You are also required to inform prospective purchasers of any

1. outstanding judgments or lawsuits pending against the association of which

1. you are aware. You are also required to provide a copy of the minutes from

1. the most recent meeting of the homeowner’s association or its executive

1. board. For more information regarding these requirements, see Nevada

1. Revised Statutes 116.4103.

1. 6. YOU HAVE CERTAIN RIGHTS REGARDING OWNERSHIP IN

1. A COMMON-INTEREST COMMUNITY THAT ARE GUARANTEED

1. YOU BY THE STATE?

1. Pursuant to provisions of chapter 116 of Nevada Revised Statutes, you

1. have the right:

1. (a) To be notified of all meetings of the association and its executive

1. board, except in cases of emergency.

1. (b) To attend and speak at all meetings of the association and its

1. executive board, except in some cases where the executive board is

1. authorized to meet in closed, executive session.

1. (c) To request a special meeting of the association upon petition of at

1. least 10 percent of the homeowners.

1. (d) To inspect, examine, photocopy and audit financial and other

1. records of the association.

1. (e) To be notified of all changes in the community’s rules and

1. regulations and other actions by the association or board that affect you.

2. 7. QUESTIONS?

1. Although they may be voluminous, you should take the time to read and

1. understand the documents that will control your ownership of a property in

1. a common-interest community. You may wish to ask your real estate

1. professional, lawyer or other person with experience to explain anything

1. you do not understand. You may also request assistance from the

1. ombudsman for owners in common-interest communities, Nevada Real

1. Estate Division, at (telephone number).

1. Buyer or prospective buyer’s initials:_____

1. Date:_____

Sec. 32.5. NRS 119A.165 is hereby amended to read as follows:

1. 119A.165 1. If a matter governed by this chapter is also governed by

116.4117 do not apply to a time share or a time-share project.

1. 38.330 1. If all parties named in a written claim filed pursuant to

1. NRS 38.320 agree to have the claim submitted for mediation, the parties

1. shall reduce the agreement to writing and shall select a mediator from the

1. list of mediators maintained by the division pursuant to NRS 38.340. Any

1. mediator selected must be available within the geographic area. If the

1. parties fail to agree upon a mediator, the division shall appoint a mediator

1. from the list of mediators maintained by the division. Any mediator

1. appointed must be available within the geographic area. Unless otherwise

1. provided by an agreement of the parties, mediation must be completed

1. obtained through mediation conducted pursuant to this section must, within

1. mediator and a copy thereof provided to each party. The agreement may be

1. mediation conducted pursuant to this section.

1. 2. If all the parties named in the claim do not agree to mediation, the

1. parties shall select an arbitrator from the list of arbitrators maintained by

1. the division pursuant to NRS 38.340. Any arbitrator selected must be

1. available within the geographic area. If the parties fail to agree upon an

1. arbitrator, the division shall appoint an arbitrator from the list maintained

1. by the division. Any arbitrator appointed must be available within the
2. geographic area. Upon appointing an arbitrator, the division shall provide

1. the name of the arbitrator to each party.

1. inconsistent with the provisions of NRS 38.300 to 38.360, inclusive, the

1. arbitration of a claim pursuant to this section must be conducted in

1. accordance with the provisions of NRS 38.075 to 38.105, inclusive, 38.115

1. agreed upon by the parties to the arbitration.

1. to the arbitration may, within 30 days after a decision and award have been

1. served upon the parties, commence a civil action in the proper court

1. concerning the claim which was submitted for arbitration. Any complaint

1. filed in such an action must contain a sworn statement indicating that the

1. issues addressed in the complaint have been arbitrated pursuant to the

1. provisions of NRS 38.300 to 38.360, inclusive. If such an action is not

1. commenced within that period, any party to the arbitration may, within 1

1. year after the service of the award, apply to the proper court for a

1. confirmation of the award pursuant to NRS 38.135.

1. arbitration must be conducted in accordance with the provisions of chapter

1. 38 of NRS. An award procured pursuant to such arbitration may be vacated

1. and a rehearing granted upon application of a party pursuant to the

1. provisions of NRS 38.145.

1. (a) Applies to have an award vacated and a rehearing granted pursuant

1. to NRS 38.145; or

1. (b) Commences a civil action based upon any claim which was the

1. subject of arbitration,

1. the party shall, if he fails to obtain a more favorable award or judgment

1. than that which was obtained in the initial arbitration, pay all costs and

1. reasonable attorney’s fees incurred by the opposing party after the

1. application for a rehearing was made or after the complaint in the civil

1. to the party indicating the amount of the fees for a mediator or an arbitrator

1. selected or appointed pursuant to this section.

1. 150 miles from any residential property or association which is the subject

1. of a written claim submitted pursuant to NRS 38.320.

1. 78.150 1. A corporation organized under the laws of this state shall,

2. 7. If the corporation is an association as defined in NRS 116.110315,

1. the secretary of state shall not accept the filing required by this section

Sec. 35. NRS 116.1102, 116.1115, 116.1202, 116.1204, 116.1205,

116.1207 and 116.1208 are hereby repealed.

Sec. 36. The executive board of a unit-owners’ association organized

under NRS 116.3101 shall cause to be prepared a study of the reserves of

the association required by section 4 of this act by October 1, 2000.

Sec. 37. Any declaration, bylaw or other governing document of a

common-interest community in effect on October 1, 1999, that does not

conform to the provisions of chapter 116 of NRS, as amended by this act,

shall be deemed to have been conformed to those provisions by operation

of law. Notwithstanding any other provision of law to the contrary, not later

than October 1, 2000, any declaration, bylaw or other governing document

of a common-interest community created on or after January 1, 1992, that

does not conform to the provisions of chapter 116 of NRS, as amended by

this act, must be changed to conform to those provisions, and may be so

changed without complying with the procedural requirements generally

applicable to the adoption of an amendment to such a declaration, bylaw or

other governing document.

Sec. 38. 1. This section and sections 1 to 28, inclusive, 29 to 33,

inclusive, 35, 36 and 37 of this act become effective on October 1, 1999.

2. Sections 28.5 and 34 of this act become effective on July 1, 2000.