Assembly Bill No. 438–Assemblyman Perkins (by request)

 

March 19, 2001

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Authorizes creation of landscape maintenance associations. (BDR 10‑993)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to common-interest communities; authorizing the creation of planned communities governed by landscape maintenance associations; 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. Chapter 116 of NRS is hereby amended by adding thereto

1-2  the provisions set forth as sections 2 to 5, inclusive, of this act.

1-3    Sec. 2. “Landscape maintenance association” means a unit-owners’

1-4  association that has been organized for the limited purpose of

1-5  maintaining the common elements and landscaping within a landscape

1-6  maintenance community.

1-7    Sec. 3.  “Landscape maintenance community” means a planned

1-8  community that is governed by a landscape maintenance association.

1-9    Sec. 4.  “Landscaping” means grass, trees, shrubbery, drainage,

1-10  fencing, lighting or a portion of a unit or amenity that the declaration

1-11  designates that the landscape maintenance association must maintain.

1-12    Sec. 5.  1.  A landscape maintenance association may:

1-13    (a) Maintain the common elements and the landscaping of a

1-14  landscape maintenance community.

1-15    (b) Except as otherwise provided in subsection 2, exercise the powers

1-16  granted to a unit-owners’ association to the extent necessary to maintain

1-17  the common elements and landscaping of the landscape maintenance

1-18  community.

1-19    2.  A landscape maintenance association shall not:

1-20    (a) Adopt a rule regarding the appearance or use of a unit.

1-21    (b) Exercise the powers set forth in subparagraph (2) of paragraph (h)

1-22  and paragraph (r) of subsection 1 of NRS 116.3102.

2-1    3.  A provision in a declaration or other governing document which

2-2  grants a landscape maintenance association any power which is not

2-3  authorized pursuant to this section is void.

2-4    Sec. 6.  NRS 116.1103 is hereby amended to read as follows:

2-5    116.1103  In the declaration and in the bylaws [(NRS 116.3106),]

2-6  pursuant to NRS 116.3106, unless specifically provided otherwise or the

2-7  context otherwise requires, and in this chapter, the words and terms defined

2-8  in NRS 116.110305 to 116.110393, inclusive, and sections 2, 3 and 4 of

2-9  this act, have the meanings ascribed to them in those sections.

2-10    Sec. 7.  NRS 116.110318 is hereby amended to read as follows:

2-11    116.110318  “Common elements” means:

2-12    1.  In a condominium or cooperative, all portions of the common-

2-13  interest community other than the units, including easements in favor of

2-14  units or the common elements over other units . [; and]

2-15    2.  In a planned community, any real estate within the planned

2-16  community owned or leased by the association, other than a unit.

2-17    3.  In a landscape maintenance community:

2-18    (a) An element which is designated as a common element by the

2-19  declaration, a plat or a map of the common-interest community.

2-20    (b) Utility easements, drainage easements and easements in favor of

2-21  the landscape maintenance association within the landscape

2-22  maintenance community.

2-23    (c) Fencing, including, without limitation, a wall which is located on

2-24  the perimeter of the landscape maintenance community.

2-25    (d) Private roads within the landscape maintenance community.

2-26    (e) Devices, including, without limitation, gates, which control

2-27  vehicular and pedestrian ingress to and egress from the landscape

2-28  maintenance community.

2-29    Sec. 8.  NRS 116.1201 is hereby amended to read as follows:

2-30    116.1201  1.  Except as otherwise provided in this section and NRS

2-31  116.1203, this chapter applies to all common-interest communities created

2-32  within this state.

2-33    2.  This chapter does not apply to:

2-34    (a) Associations created for the limited purpose of maintaining:

2-35      (1) [The landscape of the common elements of a common-interest

2-36  community;

2-37      (2)] Facilities for flood control; or

2-38      [(3)] (2) A rural agricultural residential common-interest community.

2-39    (b) A planned community in which all units are restricted exclusively to

2-40  nonresidential use unless the declaration provides that the chapter does

2-41  apply to that planned community. This chapter applies to a planned

2-42  community containing both units that are restricted exclusively to

2-43  nonresidential use and other units that are not so restricted, only if the

2-44  declaration so provides or the real estate comprising the units that may be

2-45  used for residential purposes would be a planned community in the absence

2-46  of the units that may not be used for residential purposes.

2-47    (c) Common-interest communities or units located outside of this state,

2-48  but the provisions of NRS 116.4102 to 116.4108, inclusive, apply to all

3-1  contracts for the disposition thereof signed in this state by any party unless

3-2  exempt under subsection 2 of NRS 116.4101.

3-3    3.  The provisions of this chapter do not:

3-4    (a) Prohibit a common-interest community created before January 1,

3-5  1992, from providing for separate classes of voting for the units’ owners of

3-6  the association;

3-7    (b) Require a common-interest community created before January 1,

3-8  1992, to comply with the provisions of NRS 116.2101 to 116.2122,

3-9  inclusive;

3-10    (c) Invalidate any assessments that were imposed on or before
October 1, 1999, by a common-interest community created before
January 1, 1992; or

3-11    (d) Prohibit a common-interest community created before January 1,

3-12  1992, from providing for a representative form of government.

3-13    4.  The provisions of chapters 117 and 278A of NRS do not apply to

3-14  common-interest communities.

3-15    5.  For the purposes of this section, the administrator shall establish, by

3-16  regulation, the criteria for determining whether an association is created for

3-17  the limited purpose of [maintaining the landscape of the common elements

3-18  of a common-interest community,] maintaining facilities for flood control

3-19  or maintaining a rural agricultural residential common-interest community.

3-20    Sec. 9.  NRS 116.2105 is hereby amended to read as follows:

3-21    116.2105  1.  The declaration must contain:

3-22    (a) The names of the common-interest community and the association

3-23  and a statement that the common-interest community is either a

3-24  condominium, cooperative , [or] planned community[;] or landscape

3-25  maintenance community;

3-26    (b) The name of every county in which any part of the common-interest

3-27  community is situated;

3-28    (c) A sufficient description of the real estate included in the common-

3-29  interest community;

3-30    (d) A statement of the maximum number of units that the declarant

3-31  reserves the right to create;

3-32    (e) In a condominium , landscape maintenance community or other

3-33  planned community, a description of the boundaries of each unit created by

3-34  the declaration, including the unit’s identifying number or, in a

3-35  cooperative, a description, which may be by plats or plans, of each unit

3-36  created by the declaration, including the unit’s identifying number, its size

3-37  or number of rooms, and its location within a building if it is within a

3-38  building containing more than one unit;

3-39    (f) A description of any limited common elements, other than those

3-40  specified in subsections 2 and 4 of NRS 116.2102, as provided in

3-41  paragraph (g) of subsection 2 of NRS 116.2109 and, in a planned

3-42  community, any real estate that is or must become common elements;

3-43    (g) A description of any real estate, except real estate subject to

3-44  developmental rights, that may be allocated subsequently as limited

3-45  common elements, other than limited common elements specified in

3-46  subsections 2 and 4 of NRS 116.2102, together with a statement that they

3-47  may be so allocated;

4-1    (h) A description of any developmental rights [(] pursuant to NRS

4-2  116.11034[)] and other special declarant’s rights [(] pursuant to NRS

4-3  116.110385[)] reserved by the declarant, together with a legally sufficient

4-4  description of the real estate to which each of those rights applies, and a

4-5  time within which each of those rights must be exercised;

4-6    (i) If any developmental right may be exercised with respect to different

4-7  parcels of real estate at different times, a statement to that effect together

4-8  with:

4-9       (1) Either a statement fixing the boundaries of those portions and

4-10  regulating the order in which those portions may be subjected to the

4-11  exercise of each developmental right or a statement that no assurances are

4-12  made in those regards; and

4-13      (2) A statement whether, if any developmental right is exercised in

4-14  any portion of the real estate subject to that developmental right, that

4-15  developmental right must be exercised in all or in any other portion of the

4-16  remainder of that real estate;

4-17    (j) Any other conditions or limitations under which the rights described

4-18  in paragraph (h) may be exercised or will lapse;

4-19    (k) An allocation to each unit of the allocated interests in the manner

4-20  described in NRS 116.2107;

4-21    (l) Any restrictions:

4-22      (1) On use, occupancy and alienation of the units; and

4-23      (2) On the amount for which a unit may be sold or on the amount that

4-24  may be received by a unit’s owner on sale, condemnation or casualty to the

4-25  unit or to the common-interest community, or on termination of the

4-26  common-interest community;

4-27    (m) The file number and book or other information to show where

4-28  easements and licenses are recorded appurtenant to or included in the

4-29  common-interest community or to which any portion of the common-

4-30  interest community is or may become subject by virtue of a reservation in

4-31  the declaration; and

4-32    (n) All matters required by NRS 116.2106 to 116.2109, inclusive,

4-33  116.2115 , [and] 116.2116 and 116.31032.

4-34    2.  The declaration may contain any other matters the declarant

4-35  considers appropriate.

4-36    Sec. 10.  NRS 116.3102 is hereby amended to read as follows:

4-37    116.3102  1.  Except as otherwise provided in subsection 2, and

4-38  section 5 of this act, and subject to the provisions of the declaration, the

4-39  association may:

4-40    (a) Adopt and amend bylaws, rules and regulations;

4-41    (b) Adopt and amend budgets for revenues, expenditures and reserves

4-42  and collect assessments for common expenses from units’ owners;

4-43    (c) Hire and discharge managing agents and other employees, agents

4-44  and independent contractors;

4-45    (d) Institute, defend or intervene in litigation or administrative

4-46  proceedings in its own name on behalf of itself or two or more units’

4-47  owners on matters affecting the common-interest community;

4-48    (e) Make contracts and incur liabilities;

5-1    (f) Regulate the use, maintenance, repair, replacement and modification

5-2  of common elements;

5-3    (g) Cause additional improvements to be made as a part of the common

5-4  elements;

5-5    (h) Acquire, hold, encumber and convey in its own name any right, title

5-6  or interest to real estate or personal property, but:

5-7       (1) Common elements in a condominium or planned communitymay

5-8  be conveyed or subjected to a security interest only pursuant to NRS

5-9  116.3112; and

5-10      (2) Part of a cooperative may be conveyed, or all or part of a

5-11  cooperative may be subjected to a security interest, only pursuant to NRS

5-12  116.3112;

5-13    (i) Grant easements, leases, licenses and concessions through or over

5-14  the common elements;

5-15    (j) Impose and receive any payments, fees or charges for the use, rental

5-16  or operation of the common elements, other than limited common elements

5-17  described in subsections 2 and 4 of NRS 116.2102, and for services

5-18  provided to units’ owners;

5-19    (k) Impose charges for late payment of assessments and, except as

5-20  otherwise provided in NRS 116.31031, after notice and an opportunity to

5-21  be heard, levy reasonable fines for violations of the declaration, bylaws,

5-22  rules and regulations of the association;

5-23    (l) Impose reasonable charges for the preparation and recordation of

5-24  amendments to the declaration, the information required by NRS 116.4109

5-25  or statements of unpaid assessments;

5-26    (m) Provide for the indemnification of its officers and executive board

5-27  and maintain directors’ and officers’ liability insurance;

5-28    (n) Assign its right to future income, including the right to receive

5-29  assessments for common expenses, but only to the extent the declaration

5-30  expressly so provides;

5-31    (o) Exercise any other powers conferred by the declaration or bylaws;

5-32    (p) Exercise all other powers that may be exercised in this state by legal

5-33  entities of the same type as the association;

5-34    (q) Direct the removal of vehicles improperly parked on property owned

5-35  or leased by the association, pursuant to NRS 487.038; and

5-36    (r) Exercise any other powers necessary and proper for the governance

5-37  and operation of the association.

5-38    2.  The declaration may not impose limitations on the power of the

5-39  association to deal with the declarant which are more restrictive than the

5-40  limitations imposed on the power of the association to deal with other

5-41  persons.

5-42    Sec. 11.  This act becomes effective upon passage and approval.

 

5-43  H