requires two-thirds majority vote (§§ 20, 26)
S.B. 421
Senate Bill No. 421–Senator Schneider
March 19, 2001
____________
Referred to Committee on Commerce and Labor
SUMMARY—Makes various changes to provisions governing common-interest communities. (BDR 10‑446)
FISCAL NOTE: Effect on Local Government: Yes.
~
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; creating the commission for common-interest communities to hear and take action on complaints related to such communities; requiring property managing agents to be licensed by the administrator of the real estate division of the department of business and industry; limiting the circumstances under which an association may bring an action to recover damages resulting from constructional defects in any units of the common-interest community; clarifying the amount of a fine that may be imposed for a continuing violation of the governing documents of an association; requiring the removal of a member of the executive board of an association to be conducted by secret ballot; revising the circumstances under which an association may foreclose on its lien for unpaid assessments; providing a penalty; 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 30, inclusive, of this act.
1-3 Sec. 2. “Commission” means the commission for common-interest
1-4 communities created pursuant to section 6 of this act.
1-5 Sec. 3. “Property management” means the physical, administrative
1-6 or financial maintenance and management of real property in a
1-7 common-interest community, or the supervision of those activities for a
1-8 fee, commission or other compensation or valuable consideration.
1-9 Sec. 4. “Property manager” means a person engaged in property
1-10 management for a common-interest community.
1-11 Sec. 5. “Property managing agent” means a person who, for
1-12 another person and for compensation, provides or arranges for the
1-13 services of a property manager.
2-1 Sec. 6. 1. The commission for common-interest communities,
2-2 consisting of five members appointed by the governor, is hereby created.
2-3 2. The governor shall appoint to the commission:
2-4 (a) Two members who are units’ owners residing in this state, one of
2-5 whom is serving or has served as a member of the executive board of an
2-6 association;
2-7 (b) One member who is in the business of developing common-interest
2-8 communities in this state;
2-9 (c) One member who holds a permit to engage in property
2-10 management that is issued pursuant to the provisions of chapter 645 of
2-11 NRS or holds a certificate for property management issued by the real
2-12 estate commission pursuant to subsection 3 of NRS 116.31139; and
2-13 (d) One member who has experience with or knowledge of matters
2-14 related to common-interest communities, other than property
2-15 management.
2-16 3. At least three members of the commission must be residents of a
2-17 county whose population is 400,000 or more. At least one member of the
2-18 commission must be a resident of a county whose population is 40,000 or
2-19 more. Each member of the commission must have resided in a common-
2-20 interest community or have been actively engaged in a business related to
2-21 common-interest communities for not less than 3 years immediately
2-22 preceding the date of his appointment.
2-23 4. After the initial terms, each member of the commission shall serve
2-24 a term of 3 years. Each member may serve no more than two consecutive
2-25 full terms. If a vacancy occurs during a member’s term, the governor
2-26 shall appoint a person qualified under this section to replace the member
2-27 for the remainder of the unexpired term.
2-28 5. While engaged in the business of the commission, each member is
2-29 entitled to receive:
2-30 (a) A salary of not more than $80 per day, as established by the
2-31 commission; and
2-32 (b) The per diem allowance and travel expenses provided for state
2-33 officers and employees generally.
2-34 Sec. 7. 1. The commission shall, at the first meeting of each fiscal
2-35 year, elect from its members a chairman, vice chairman and secretary.
2-36 2. The commission shall meet at least once each calendar quarter
2-37 and at other times on the call of the chairman or a majority of its
2-38 members.
2-39 3. A majority of the members of the commission constitutes a
2-40 quorum for the transaction of all business.
2-41 Sec. 8. 1. A person who is aggrieved by any act committed in
2-42 violation of the provisions of this chapter may, within 2 years after the
2-43 alleged violation and after submitting the complaint for resolution to the
2-44 ombudsman for owners in common-interest communities, file a written
2-45 complaint with the commission specifying the relevant facts. The
2-46 commission may prescribe forms and adopt procedures for the filing of
2-47 such a complaint.
2-48 2. Except as otherwise provided in this subsection, the commission
2-49 shall, upon the receipt of such a complaint, conduct an investigation to
3-1 determine whether disciplinary action is warranted. The commission
3-2 shall not investigate or take action on a complaint that has been
3-3 submitted to mediation or arbitration pursuant to the provisions of NRS
3-4 38.300 to 38.360, inclusive.
3-5 3. The commission may require any person who knowingly files a
3-6 false or fraudulent complaint with the commission to pay a fine of not
3-7 more than $1,000.
3-8 Sec. 9. 1. To carry out its duties, the commission, or any member
3-9 thereof, may issue subpoenas to compel the attendance of witnesses and
3-10 the production of books, records and other papers.
3-11 2. If any person fails to comply with a subpoena issued by the
3-12 commission pursuant to this section within 10 days after its issuance, the
3-13 commission may petition the district court for an order of the court
3-14 compelling compliance with the subpoena.
3-15 3. Upon such a petition, the court shall enter an order directing the
3-16 person subpoenaed to appear before the court at a time and place to be
3-17 fixed by the court in its order, the time to be not more than 10 days after
3-18 the date of the order, and show cause why he has not complied with the
3-19 subpoena. A certified copy must be served upon the person subpoenaed.
3-20 4. If it appears to the court that the subpoena was regularly issued by
3-21 the commission, the court shall enter an order compelling compliance
3-22 with the subpoena, and upon failure to obey the order, the person must
3-23 be dealt with as for contempt of court.
3-24 Sec. 10. 1. If the commission determines that a complaint received
3-25 pursuant to section 8 of this act is not frivolous, the secretary of the
3-26 commission shall fix a time and place for a hearing on the complaint and
3-27 cause a notice of the hearing and a formal complaint prepared by the
3-28 commission to be served on the person who is alleged to have committed
3-29 the violation. The notice must be served at least 20 days before the date
3-30 fixed for the hearing.
3-31 2. The commission shall hold a hearing on the complaint within 90
3-32 days after the complaint is filed with the commission. The hearing may
3-33 be continued by the commission upon its own motion or upon written
3-34 request, for good cause shown.
3-35 3. Written notice may be served by delivery of it personally to the
3-36 person alleged to have committed the violation or by mailing it by
3-37 registered or certified mail to his last known address.
3-38 4. If the person alleged to have committed the violation submits a
3-39 written request, the commission shall furnish him with copies of any
3-40 communications, reports and affidavits in possession of the commission
3-41 relating to the complaint.
3-42 5. A person may be represented by an attorney at any proceeding or
3-43 hearing conducted pursuant to this section or section 11 of this act.
3-44 Sec. 11. 1. All money received by the commission must be
3-45 deposited in a bank or other financial institution in this state and paid
3-46 out on its order for its expenses.
3-47 2. The commission may delegate to an independent hearing officer
3-48 or panel its authority to take any disciplinary action pursuant to sections
3-49 6 to 14, inclusive, of this act, including the authority to impose and
4-1 collect fines and penalties. Fines and penalties imposed by an
4-2 independent hearing officer or panel must be deposited in an account for
4-3 the commission in a bank or other financial institution in this state.
4-4 3. If a hearing officer or panel is not authorized to take disciplinary
4-5 action and determine the amount of any fine or penalty imposed
4-6 pursuant to subsection 2, the commission shall deposit the money
4-7 collected from the imposition of fines with the state treasurer for credit to
4-8 the state general fund. If the money is so deposited, the commission may
4-9 present a claim to the state board of examiners for recommendation to
4-10 the interim finance committee if money is required to pay attorney’s fees
4-11 or the costs of an investigation, or both.
4-12 Sec. 12. 1. The commission shall render a decision on a complaint
4-13 within 20 days after the final hearing thereon.
4-14 2. The commission shall notify all parties to the complaint of its
4-15 decision in writing by certified mail, return receipt requested.
4-16 Sec. 13. 1. If the commission determines, after notice and hearing,
4-17 that:
4-18 (a) Any person has violated a provision of this chapter, the
4-19 commission may:
4-20 (1) Issue an order to cease and desist from engaging in such
4-21 conduct;
4-22 (2) Issue an order to take affirmative action to correct conditions
4-23 resulting from the unlawful conduct;
4-24 (3) Impose a fine of not more than $5,000 for each violation; or
4-25 (4) Take any combination of the actions authorized by
4-26 subparagraphs (1), (2) and (3).
4-27 (b) A member or officer of an executive board of an association has
4-28 knowingly and willfully violated a provision of this chapter, the
4-29 commission may remove him from his office if it determines that the
4-30 removal is in the best interest of the association.
4-31 2. If the commission takes any disciplinary action pursuant to
4-32 subsection 1, it may recover from the person against whom the action is
4-33 taken the costs of the proceedings incurred by the commission, including,
4-34 without limitation, the cost of the investigation and reasonable attorney’s
4-35 fees.
4-36 Sec. 14. 1. If the commission determines that any person has
4-37 violated or will violate a provision of this chapter, the commission may
4-38 bring an action in the district court for the county in which the person
4-39 resides or, if the person does not reside in this state, in any court of
4-40 competent jurisdiction in this state, to enjoin him from engaging in the
4-41 violation or from doing any act in furtherance of the violation.
4-42 2. The action must be brought in the name of the State of Nevada.
4-43 3. An injunction:
4-44 (a) May be issued without proof of actual damage sustained by any
4-45 person.
4-46 (b) Does not prevent the criminal prosecution and punishment of a
4-47 person who violates the provisions of this chapter.
5-1 Sec. 15. 1. A person shall not conduct business as a property
5-2 managing agent in this state without first obtaining a license from the
5-3 administrator.
5-4 2. Each applicant for a license as a property managing agent shall
5-5 file an application with the administrator on a form prescribed by the
5-6 administrator.
5-7 3. The application must:
5-8 (a) Include the social security number of the applicant;
5-9 (b) Be accompanied by the statement required pursuant to section 17
5-10 of this act; and
5-11 (c) Be accompanied by the fee prescribed by the administrator
5-12 pursuant to section 20 of this act.
5-13 Sec. 16. An applicant for a license as a property managing agent
5-14 must:
5-15 1. Be at least 18 years of age;
5-16 2. Be a citizen of the United States or lawfully entitled to remain and
5-17 work in the United States;
5-18 3. Be competent to engage in business as a property managing agent;
5-19 4. Have successfully completed a course in property management
5-20 that is approved by the administrator;
5-21 5. Have passed any examination prescribed by the administrator;
5-22 6. Hold a permit to engage in property management that is issued
5-23 pursuant to the provisions of chapter 645 of NRS or hold a certificate
5-24 issued by the real estate commission pursuant to subsection 3 of NRS
5-25 116.31139; and
5-26 7. Have such experience in property management as may be
5-27 prescribed by the administrator.
5-28 Sec. 17. 1. An applicant for the issuance or renewal of a license as
5-29 a property managing agent must submit to the administrator the
5-30 statement prescribed by the welfare division of the department of human
5-31 resources pursuant to NRS 425.520. The statement must be completed
5-32 and signed by the applicant.
5-33 2. The administrator shall include the statement required pursuant to
5-34 subsection 1 in:
5-35 (a) The application or any other forms that must be submitted for the
5-36 issuance or renewal of the license; or
5-37 (b) A separate form prescribed by the administrator.
5-38 3. A license may not be issued or renewed by the administrator if the
5-39 applicant:
5-40 (a) Fails to submit the statement required pursuant to subsection 1; or
5-41 (b) Indicates on the statement submitted pursuant to subsection 1 that
5-42 he is subject to a court order for the support of a child and is not in
5-43 compliance with the order or a plan approved by the district attorney or
5-44 other public agency enforcing the order for the repayment of the amount
5-45 owed pursuant to the order.
5-46 4. If an applicant indicates on the statement submitted pursuant to
5-47 subsection 1 that he is subject to a court order for the support of a child
5-48 and is not in compliance with the order or a plan approved by the district
5-49 attorney or other public agency enforcing the order for the repayment of
6-1 the amount owed pursuant to the order, the administrator shall advise
6-2 the applicant to contact the district attorney or other public agency
6-3 enforcing the order to determine the actions that the applicant may take
6-4 to satisfy the arrearage.
6-5 Sec. 18. 1. If the administrator receives a copy of a court order
6-6 issued pursuant to NRS 425.540 that provides for the suspension of all
6-7 professional, occupational and recreational licenses, certificates and
6-8 permits issued to the holder of a license as a property managing agent,
6-9 the administrator shall deem the license to be suspended at the end of the
6-10 30th day after the date the court order was issued unless the
6-11 administrator receives a letter issued to the licensee by the district
6-12 attorney or other public agency pursuant to NRS 425.550 stating that the
6-13 licensee has complied with a subpoena or warrant or has satisfied the
6-14 arrearage pursuant to NRS 425.560.
6-15 2. The administrator shall reinstate a license that has been
6-16 suspended by a district court pursuant to NRS 425.540 if:
6-17 (a) The administrator receives a letter issued by the district attorney or
6-18 other public agency pursuant to NRS 425.550 to the licensee stating that
6-19 the licensee has complied with the subpoena or warrant or has satisfied
6-20 the arrearage pursuant to NRS 425.560; and
6-21 (b) The licensee pays the fee for the reinstatement of the license
6-22 prescribed by the administrator pursuant to section 20 of this act.
6-23 Sec. 19. 1. Each license as a property managing agent expires 2
6-24 years after the date it is issued and may be renewed if, before the license
6-25 expires, the licensee submits to the administrator:
6-26 (a) An application on a form prescribed by the administrator;
6-27 (b) The fee for the renewal of the license prescribed by the
6-28 administrator pursuant to section 20 of this act; and
6-29 (c) The statement required by section 17 of this act.
6-30 2. A license that expires pursuant to the provisions of this section
6-31 may be restored if the applicant:
6-32 (a) Complies with the provisions of subsection 1;
6-33 (b) Submits to the administrator proof of his ability to engage in
6-34 property management; and
6-35 (c) Submits to the board the fees prescribed pursuant to section 20 of
6-36 this act.
6-37 Sec. 20. 1. The administrator shall prescribe by regulation the fees
6-38 for:
6-39 (a) An application for a license as a property managing agent.
6-40 (b) The issuance of a license.
6-41 (c) The renewal of a license.
6-42 (d) The restoration of an expired license.
6-43 (e) The reinstatement of a suspended license.
6-44 (f) The issuance of a duplicate license.
6-45 2. The administrator may adopt such other regulations as are
6-46 necessary to carry out the provisions of sections 15 to 22, inclusive, of
6-47 this act.
6-48 Sec. 21. A person who:
6-49 1. Engages in business as a property managing agent;
7-1 2. Holds himself out as licensed or qualified to engage in business as
7-2 a property managing agent; or
7-3 3. Uses in connection with his name any title, words, letters or other
7-4 designation intended to imply or designate that he engages in business as
7-5 a property managing agent,
7-6 without first obtaining a license from the administrator is guilty of a
7-7 misdemeanor.
7-8 Sec. 22. 1. The administrator may refuse to issue or renew, or may
7-9 suspend or revoke, a license as a property managing agent if, after notice
7-10 and a hearing, the administrator determines that the applicant or
7-11 licensee:
7-12 (a) Has submitted false or misleading information to the
7-13 administrator or any agency of this state, any other state, the Federal
7-14 Government or the District of Columbia.
7-15 (b) Has violated any provision of this chapter or any regulation
7-16 adopted pursuant thereto.
7-17 (c) Has been convicted of a felony, a crime relating to a controlled
7-18 substance or a crime involving moral turpitude.
7-19 (d) Is not competent to engage in the business of property
7-20 management.
7-21 2. The administrator may require the applicant or licensee to pay the
7-22 costs incurred by the administrator to conduct an investigation and
7-23 hearing required by this section.
7-24 Sec. 23. 1. If an executive board of an association receives a
7-25 written complaint from a unit’s owner alleging that the board has
7-26 violated any provision of this chapter or any provision of the governing
7-27 documents of the association, the executive board shall respond to the
7-28 complaint, in writing, within 10 days after receiving the complaint.
7-29 2. The executive board shall provide a copy of the response to a
7-30 unit’s owner within 1 business day after receiving a request therefor.
7-31 Sec. 24. A member of an executive board shall not harass or take
7-32 any reprisal or retaliatory action against a unit’s owner because the
7-33 unit’s owner has:
7-34 1. Complained in good faith about any violation of this chapter or
7-35 the governing documents of the association; or
7-36 2. Requested to review the books, records and papers of the
7-37 association.
7-38 Sec. 25. 1. A member of an executive board of an association shall
7-39 not:
7-40 (a) On or after October 1, 2001, enter into a contract or renew a
7-41 contract with the association to provide goods or services to the
7-42 association; or
7-43 (b) Otherwise accept any commission, personal profit or
7-44 compensation of any kind from the association for providing goods or
7-45 services to the association.
7-46 2. The provisions of subsection 1 do not prohibit the payment of a
7-47 salary or other income to a member of an executive board of an
7-48 association for acting in his official capacity.
8-1 Sec. 26. 1. The administrator shall:
8-2 (a) Prescribe standard forms that may be used in preparing
8-3 declarations of covenants, conditions and restrictions for common-
8-4 interest communities, the bylaws of an association, and the rules and
8-5 regulations of an association.
8-6 (b) Make the forms available to declarants and associations upon
8-7 request.
8-8 2. The administrator may charge a fee for providing the forms
8-9 prescribed pursuant to subsection 1. The fee must not exceed the cost
8-10 incurred by the administrator to provide the forms.
8-11 Sec. 27. 1. An association may bring an action to recover damages
8-12 resulting from constructional defects in any of the units of the common-
8-13 interest community, or submit such a claim to mediation pursuant to
8-14 NRS 40.680, only:
8-15 (a) If the written approval of the owners of the units that will be the
8-16 subject of the action or claim is first obtained; and
8-17 (b) Upon a vote of the units’ owners to which at least a majority of the
8-18 votes of the members of the association are allocated.
8-19 2. If an action is brought by an association to recover damages
8-20 resulting from constructional defects in any of the units of the common-
8-21 interest community, or such a claim is submitted to mediation pursuant
8-22 to NRS 40.680, the attorney representing the association shall provide to
8-23 each unit’s owner whose unit is the subject of the action or claim a
8-24 statement that includes, in reasonable detail:
8-25 (a) The defects and damages or injuries to the unit;
8-26 (b) The cause of the defects, if the cause is known;
8-27 (c) The nature and extent that is known of the damage or injury
8-28 resulting from the defects; and
8-29 (d) The location of each defect within the unit.
8-30 3. As used in this section, “constructional defect” has the meaning
8-31 ascribed to it in NRS 40.615.
8-32 Sec. 28. If a member of the immediate family of a unit’s owner
8-33 inherits the owner’s unit within a common-interest community, the
8-34 declarant or association may not prohibit that person from residing in
8-35 the common-interest community on the sole ground that he fails to
8-36 comply with qualifications relating to age that are set forth in the
8-37 governing documents of the association.
8-38 Sec. 29. A person who offers for sale any interest in a unit in a
8-39 common-interest community shall disclose in any advertisement related
8-40 to the sale:
8-41 1. That the unit is:
8-42 (a) Located within a common-interest community;
8-43 (b) Governed by an association of units’ owners; and
8-44 (c) Subject to the governing documents of the association.
8-45 2. The projected monthly assessment that a prospective purchaser
8-46 will be required to pay.
8-47 Sec. 30. Any person who engages in activities on behalf of an
8-48 association to collect assessments, fines or other money owed to the
9-1 association shall comply with the provisions of 15 U.S.C. §§ 1692b to
9-2 1692j, inclusive, as those provisions exist on October 1, 2001.
9-3 Sec. 31. NRS 116.1103 is hereby amended to read as follows:
9-4 116.1103 In the declaration and bylaws [(NRS 116.3106), unless
9-5 specifically provided otherwise or] of an association and in this chapter,
9-6 unless the context otherwise requires, [and in this chapter,] the words and
9-7 terms defined in NRS 116.110305 to 116.110393, inclusive, and sections 2
9-8 to 5, inclusive, of this act have the meanings ascribed to them in those
9-9 sections.
9-10 Sec. 32. NRS 116.11145 is hereby amended to read as follows:
9-11 116.11145 1. To carry out the purposes of this chapter, the real estate
9-12 commission, or any member thereof, may issue subpoenas to compel the
9-13 attendance of witnesses and the production of books, records and other
9-14 papers.
9-15 2. If any person fails to comply with a subpoena issued by the real
9-16 estate commission pursuant to this section within 10 days after its issuance,
9-17 the real estate commission may petition the district court for an order of
9-18 the court compelling compliance with the subpoena.
9-19 3. Upon such a petition, the court shall enter an order directing the
9-20 person subpoenaed to appear before the court at a time and place to be
9-21 fixed by the court in its order, the time to be not more than 10 days after
9-22 the date of the order, and show cause why he has not complied with the
9-23 subpoena. A certified copy must be served upon the person subpoenaed.
9-24 4. If it appears to the court that the subpoena was regularly issued by
9-25 the real estate commission, the court shall enter an order compelling
9-26 compliance with the subpoena, and upon failure to obey the order the
9-27 person shall be dealt with as for contempt of court.
9-28 Sec. 33. NRS 116.1116 is hereby amended to read as follows:
9-29 116.1116 1. The office of the ombudsman for owners in common-
9-30 interest communities is hereby created within the real estate division of the
9-31 department of business and industry.
9-32 2. The administrator shall appoint the ombudsman for owners in
9-33 common-interest communities. The ombudsman for owners in common-
9-34 interest communities is in the unclassified service of the state.
9-35 3. The ombudsman for owners in common-interest communities must
9-36 be qualified by training and experience to perform the duties and functions
9-37 of his office.
9-38 4. The ombudsman for owners in common-interest communities shall:
9-39 (a) Assist in processing claims submitted to mediation or arbitration
9-40 pursuant to NRS 38.300 to 38.360, inclusive;
9-41 (b) Assist owners in common-interest communities to understand their
9-42 rights and responsibilities as set forth in this chapter and the governing
9-43 documents of their associations, including, without limitation, publishing
9-44 materials related to those rights and responsibilities;
9-45 (c) Assist persons appointed or elected to serve on executive boards of
9-46 associations to carry out their duties; [and]
9-47 (d) Assist in resolving complaints filed with the office alleging a
9-48 violation of the provisions of this chapter or the governing documents of
9-49 the association; and
10-1 (e) Compile and maintain a registration of each association organized
10-2 within the state which includes, without limitation:
10-3 (1) The name, address and telephone number of the association;
10-4 (2) The name of the [person engaged in property management for the
10-5 common-interest community] property manager or the name of the person
10-6 who manages the property at the site of the common-interest community;
10-7 (3) The names, mailing addresses and telephone numbers of the
10-8 members of the executive board of the association;
10-9 (4) The name of the declarant;
10-10 (5) The number of units in the common-interest community; and
10-11 (6) The total annual assessment made by the association.
10-12 Sec. 34. NRS 116.2111 is hereby amended to read as follows:
10-13 116.2111 [Subject]
10-14 1. Except as otherwise provided in this section and subject to the
10-15 provisions of the declaration and other provisions of law, a unit’s owner:
10-16 [1.] (a) May make any improvements or alterations to his unit that do
10-17 not impair the structural integrity or mechanical systems or lessen the
10-18 support of any portion of the common-interest community;
10-19 [2.] (b) May not change the appearance of the common elements, or the
10-20 exterior appearance of a unit or any other portion of the common-interest
10-21 community, without permission of the association; and
10-22 [3.] (c) After acquiring an adjoining unit or an adjoining part of an
10-23 adjoining unit, may remove or alter any intervening partition or create
10-24 apertures therein, even if the partition in whole or in part is a common
10-25 element, if those acts do not impair the structural integrity or mechanical
10-26 systems or lessen the support of any portion of the common-interest
10-27 community. Removal of partitions or creation of apertures under this
10-28 [subsection] paragraph is not an alteration of boundaries.
10-29 2. An association may not:
10-30 (a) Require the removal of any structure, fixture or other
10-31 improvement made to a unit if it was approved by the association before
10-32 it was installed or constructed.
10-33 (b) Restrict, prohibit or otherwise impede the lawful rights of units’
10-34 owners to protect and care for themselves, to have reasonable access to
10-35 their homes and to feel safe and secure in their homes.
10-36 (c) Prohibit or require approval for a unit’s owner to include or add in
10-37 or outside a unit:
10-38 (1) An apparatus required to make use of solar energy or to protect
10-39 against the effects of solar energy;
10-40 (2) Improvements such as ramps, railings or elevators that are
10-41 necessary or desirable to increase the owner’s access to his home if the
10-42 owner is elderly or disabled; or
10-43 (3) Safety devices such as shutters or additional locks that are
10-44 desirable to make an owner feel safe in his home.
10-45 3. Any device or other improvement included or added to the inside
10-46 or outside of a unit pursuant to paragraph (b) or (c) of subsection 2 must
10-47 be added or installed in the most reasonable manner possible and must
10-48 be selected or designed to the maximum extent practicable to be
10-49 complimentary to the style of the common-interest community.
11-1 Sec. 35. NRS 116.31031 is hereby amended to read as follows:
11-2 116.31031 1. If a unit’s owner, or a tenant or guest of a unit’s owner,
11-3 does not comply with a provision of the governing documents of an
11-4 association, the executive board of the association may, if the governing
11-5 documents so provide:
11-6 (a) Prohibit, for a reasonable time, the unit’s owner, or the tenant or
11-7 guest of the unit’s owner, from[:
11-8 (1) Voting on matters related to the common-interest community.
11-9 (2) Using] using the common elements. The provisions of this
11-10 [subparagraph] paragraph do not prohibit the unit’s owner, or the tenant or
11-11 guest of the unit’s owner, from using any vehicular or pedestrian ingress or
11-12 egress to go to or from the unit, including any area used for parking.
11-13 (b) Require the unit’s owner, or the tenant or guest of the unit’s owner,
11-14 to pay a fine for each failure to comply . [that does not threaten the health
11-15 and welfare of the common-interest community.] The fine must be
11-16 commensurate with the severity of the violation . [, but] If the failure to
11-17 comply does not threaten the health, safety or welfare of the common-
11-18 interest community, the fine must not exceed $100 for each violation or a
11-19 total amount of $500, whichever is less.
11-20 2. If a fine is imposed pursuant to subsection 1 and the violation is not
11-21 cured within 14 days or a longer period as may be established by the
11-22 executive board, the violation shall be deemed a continuing violation.
11-23 Thereafter, the executive board may impose an additional fine for the
11-24 violation for each 7-day period or portion thereof that the violation is not
11-25 cured[.] , but in no event may the total amount of the additional fine
11-26 exceed $500. Any additional fine for the continuing violation may be
11-27 imposed without notice and an opportunity to be heard.
11-28 3. Except as otherwise provided in subsection 2, the imposition of a
11-29 fine pursuant to this section must comply with the requirements of
11-30 subsection 6 of NRS 116.31065.
11-31 4. For the purposes of this section, the administrator shall adopt by
11-32 regulation a definition of violations that threaten the health, safety or
11-33 welfare of the common-interest community.
11-34 Sec. 36. NRS 116.31034 is hereby amended to read as follows:
11-35 116.31034 1. Except as otherwise provided in subsection 5 of NRS
11-36 116.212, not later than the termination of any period of declarant’s control,
11-37 the units’ owners shall elect an executive board of at least three members,
11-38 at least a majority of whom must be units’ owners. The executive board
11-39 shall elect the officers. The members and officers of the executive board
11-40 shall take office upon election.
11-41 2. The term of office of a member of the executive board may not
11-42 exceed 2 years. A member of the executive board may be elected to
11-43 succeed himself. The governing documents of the association must set
11-44 forth the month during which elections for the members of the executive
11-45 board must be held after the termination of any period of the declarant’s
11-46 control.
11-47 3. Not less than 30 days before the preparation of a ballot for the
11-48 election of members of the executive board, the secretary or other officer
11-49 specified in the bylaws of the association shall cause notice to be given to
12-1 each unit’s owner of his eligibility to serve as a member of the executive
12-2 board. Each unit’s owner who is qualified to serve as a member of the
12-3 executive board may have his name placed on the ballot along with the
12-4 names of the nominees selected by the members of the executive board or a
12-5 nominating committee established by the association. A unit’s owner may
12-6 not be disqualified from serving as a member of the executive board on
12-7 the sole ground that he has failed to pay any assessment levied against
12-8 his unit or any fine imposed against him for failing to comply with the
12-9 governing documents of the association.
12-10 4. A unit’s owner may not be an officer or member of the executive
12-11 board if he or any member of his immediate family is the property
12-12 manager of the association.
12-13 5. An officer, employee, agent or director of a corporate owner of a
12-14 unit, a trustee or designated beneficiary of a trust that owns a unit, a partner
12-15 of a partnership that owns a unit, and a fiduciary of an estate that owns a
12-16 unit may be an officer or member of the executive board. In all events
12-17 where the person serving or offering to serve as an officer or member of
12-18 the executive board is not the record owner, he shall file proof in the
12-19 records of the association that:
12-20 (a) He is associated with the corporate owner, trust, partnership or estate
12-21 as required by this subsection; and
12-22 (b) Identifies the unit or units owned by the corporate owner, trust,
12-23 partnership or estate.
12-24 [5.] 6. The election of any member of the executive board must be
12-25 conducted by secret written ballot. The secretary or other officer specified
12-26 in the bylaws of the association shall cause to be sent prepaid by United
12-27 States mail to the mailing address of each unit within the common-interest
12-28 community or to any other mailing address designated in writing by the
12-29 unit’s owner, a secret ballot and a return envelope.
12-30 [6.] 7. Each member of the executive board shall, within 30 days after
12-31 his appointment or election, certify in writing that he has read and
12-32 understands the governing documents of the association and the provisions
12-33 of this chapter to the best of his ability.
12-34 Sec. 37. NRS 116.31036 is hereby amended to read as follows:
12-35 116.31036 1. Notwithstanding any provision of the declaration or
12-36 bylaws to the contrary, the units’ owners, by a two-thirds vote of [all
12-37 persons present and entitled to vote at any meeting of the units’ owners at
12-38 which a quorum is present,] the votes cast, may remove any member of the
12-39 executive board with or without cause . [, other than a member appointed
12-40 by the declarant.]
12-41 2. The removal of any member of the executive board must be
12-42 conducted by secret written ballot. The secretary or other officer specified
12-43 in the bylaws of the association shall cause to be sent prepaid by United
12-44 States mail to the mailing address of each unit within the common-
12-45 interest community or to any other mailing address designated in writing
12-46 by the unit’s owner, a secret ballot and a return envelope.
12-47 3. If a member of an executive board is sued for liability for actions
12-48 undertaken in his role as a member of the board, the association shall
12-49 indemnify him for his losses or claims, and undertake all costs of defense,
13-1 unless it is proven that he acted with willful or wanton misfeasance or with
13-2 gross negligence. After such proof the association is no longer liable for
13-3 the cost of defense, and may recover costs already expended from the
13-4 member of the executive board who so acted. Members of the executive
13-5 board are not personally liable to the victims of crimes occurring on the
13-6 property. Punitive damages may not be recovered against the association,
13-7 but may be recovered from persons whose activity gave rise to the
13-8 damages.
13-9 4. The provisions of this section do not prohibit the commission from
13-10 taking any disciplinary action against a member of an executive board
13-11 pursuant to section 13 or 14 of this act.
13-12 Sec. 38. NRS 116.3106 is hereby amended to read as follows:
13-13 116.3106 1. The bylaws of the association must provide:
13-14 (a) The number of members of the executive board and the titles of the
13-15 officers of the association;
13-16 (b) For election by the executive board of a president, treasurer,
13-17 secretary and any other officers of the association the bylaws specify;
13-18 (c) The qualifications, powers and duties, terms of office and manner of
13-19 electing and removing officers of the association and members of the
13-20 executive board and filling vacancies;
13-21 (d) Which, if any, of its powers the executive board or officers may
13-22 delegate to other persons or to a managing agent;
13-23 (e) Which of its officers may prepare, execute, certify and record
13-24 amendments to the declaration on behalf of the association;
13-25 (f) Procedural rules for conducting meetings of the association; [and]
13-26 (g) A method for amending the bylaws[.] ; and
13-27 (h) Procedural rules for conducting special elections. Such rules must
13-28 provide that a special election be held in a timely manner if at least 10
13-29 percent of the units’ owners of the association have signed a petition
13-30 requesting such an election. The petition must include the purpose for
13-31 which the special election is to be held.
13-32 2. Except as otherwise provided in the declaration, the bylaws may
13-33 provide for any other matters the association deems necessary and
13-34 appropriate.
13-35 3. The bylaws must be written in plain English.
13-36 Sec. 39. NRS 116.31065 is hereby amended to read as follows:
13-37 116.31065 The rules adopted by an association:
13-38 1. Must be reasonably related to the purpose for which they are
13-39 adopted.
13-40 2. Must be sufficiently explicit in their prohibition, direction or
13-41 limitation to inform a unit’s owner, or a tenant or guest of a unit’s owner,
13-42 of any action or omission required for compliance.
13-43 3. Must not be adopted to evade any obligation of the association.
13-44 4. Must be consistent with the governing documents of the association
13-45 and must not arbitrarily restrict conduct or require the construction of any
13-46 capital improvement by a unit’s owner that is not required by the governing
13-47 documents of the association.
14-1 5. Must be uniformly enforced under the same or similar
14-2 circumstances against all units’ owners. [Any rule that is not so uniformly
14-3 enforced may not be enforced against any unit’s owner.]
14-4 6. May be enforced by the assessment of a fine only if:
14-5 (a) The person alleged to have violated the rule has received notice of
14-6 the alleged violation that informs him of his opportunity to request a
14-7 hearing on the alleged violation.
14-8 (b) At least 30 days before the alleged violation, the person alleged to
14-9 have violated the rule was given written notice of the rule or any
14-10 amendment to the rule.
14-11 Sec. 40. NRS 116.3108 is hereby amended to read as follows:
14-12 116.3108 1. A meeting of the units’ owners of an association must
14-13 be held at least once each year. If the governing documents of a common-
14-14 interest community do not designate an annual meeting date of the units’
14-15 owners, a meeting of the units’ owners must be held 1 year after the date of
14-16 the last meeting of the units’ owners. If the units’ owners have not held a
14-17 meeting for 1 year, a meeting of the units’ owners must be held on the
14-18 following March 1. Special meetings of the units’ owners of an association
14-19 may be called by the president, a majority of the executive board or by
14-20 units’ owners having 10 percent, or any lower percentage specified in the
14-21 bylaws, of the votes in the association.
14-22 2. Not less than 10 nor more than 60 days in advance of any meeting
14-23 of the units’ owners of an association, the secretary or other officer
14-24 specified in the bylaws shall cause notice of the meeting to be hand-
14-25 delivered or sent prepaid by United States mail to the mailing address of
14-26 each unit or to any other mailing address designated in writing by the unit’s
14-27 owner. The notice of the meeting must state the time and place of the
14-28 meeting and include a copy of the agenda for the meeting. The notice must
14-29 include notification of the right of a unit’s owner to:
14-30 (a) Have a copy of the minutes or a summary of the minutes of the
14-31 meeting distributed to him upon request and, if required by the executive
14-32 board, upon payment to the association of the cost of making the
14-33 distribution.
14-34 (b) Speak to the association or executive board, unless the executive
14-35 board is meeting in executive session.
14-36 3. The agenda for a meeting of the units’ owners must consist of:
14-37 (a) A clear and complete statement of the topics scheduled to be
14-38 considered during the meeting, including, without limitation, any proposed
14-39 amendment to the declaration or bylaws, any fees or assessments to be
14-40 imposed or increased by the association, any budgetary changes and any
14-41 proposal to remove an officer or member of the executive board.
14-42 (b) A list describing the items on which action may be taken and clearly
14-43 denoting that action may be taken on those items. In an emergency, the
14-44 units’ owners may take action on an item which is not listed on the agenda
14-45 as an item on which action may be taken.
14-46 (c) A period devoted to comments by units’ owners and discussion of
14-47 those comments. Except in emergencies, no action may be taken upon a
14-48 matter raised under this item of the agenda until the matter itself has been
15-1 specifically included on an agenda as an item upon which action may be
15-2 taken pursuant to paragraph (b).
15-3 4. If the association adopts a policy imposing a fine on a unit’s owner
15-4 for the violation of the declaration, bylaws or other rules established by the
15-5 association, the secretary or other officer specified in the bylaws shall
15-6 prepare and cause to be hand-delivered or sent prepaid by United States
15-7 mail to the mailing address of each unit or to any other mailing address
15-8 designated in writing by the unit’s owner, a schedule of the fines that may
15-9 be imposed for those violations.
15-10 5. Not more than 30 days after any meeting of the units’ owners, the
15-11 secretary or other officer specified in the bylaws shall cause the minutes or
15-12 a summary of the minutes of the meeting to be made available to the units’
15-13 owners. A copy of the minutes or a summary of the minutes must be
15-14 provided to any unit’s owner who pays the association the cost of
15-15 providing the copy to him.
15-16 6. As used in this section, “emergency” means any occurrence or
15-17 combination of occurrences that:
15-18 (a) Could not have been reasonably foreseen;
15-19 (b) Affects the health, welfare and safety of the units’ owners of the
15-20 association;
15-21 (c) Requires the immediate attention of, and possible action by, the
15-22 executive board; and
15-23 (d) Makes it impracticable to comply with the provisions of subsection
15-24 2 or 3.
15-25 7. For the purposes of this section, the administrator shall adopt
15-26 regulations to provide for a more detailed definition of an emergency that
15-27 affects the health, welfare and safety of the units’ owners of the
15-28 association.
15-29 Sec. 41. NRS 116.31083 is hereby amended to read as follows:
15-30 116.31083 1. A meeting of the executive board of an association
15-31 must be held at least once every 90 days.
15-32 2. Except in an emergency or unless the bylaws of an association
15-33 require a longer period of notice, the secretary or other officer specified in
15-34 the bylaws of the association shall, not less than 10 days before the date of
15-35 a meeting of the executive board, cause notice of the meeting to be given to
15-36 the units’ owners. Such notice must be:
15-37 (a) Sent prepaid by United States mail to the mailing address of each
15-38 unit within the common-interest community or to any other mailing
15-39 address designated in writing by the unit’s owner; or
15-40 (b) Published in a newsletter or other similar publication that is
15-41 circulated to each unit’s owner.
15-42 3. In an emergency, the secretary or other officer specified in the
15-43 bylaws of the association shall, if practicable, cause notice of the meeting
15-44 to be sent prepaid by United States mail to the mailing address of each unit
15-45 within the common-interest community. If delivery of the notice in this
15-46 manner is impracticable, the notice must be hand-delivered to each unit
15-47 within the common-interest community or posted in a prominent place or
15-48 places within the common elements of the association.
16-1 4. The notice of a meeting of the executive board of an association
16-2 must state the time and place of the meeting and include a copy of the
16-3 agenda for the meeting or the date on which and the locations where copies
16-4 of the agenda may be conveniently obtained by the units’ owners of the
16-5 association. The notice must include notification of the right of a unit’s
16-6 owner to:
16-7 (a) Have a copy of the minutes or a summary of the minutes of the
16-8 meeting distributed to him upon request and, if required by the executive
16-9 board, upon payment to the association of the cost of making the
16-10 distribution.
16-11 (b) Speak to the association or executive board, unless the executive
16-12 board is meeting in executive session.
16-13 5. The agenda of the meeting of the executive board of an association
16-14 must comply with the provisions of subsection 3 of NRS 116.3108. The
16-15 period required to be devoted to comments by units’ owners and discussion
16-16 of those comments must be scheduled for the beginning of each meeting.
16-17 In an emergency, the executive board may take action on an item which is
16-18 not listed on the agenda as an item on which action may be taken.
16-19 6. At least once every 90 days, unless the declaration or bylaws of the
16-20 association impose more stringent standards, the executive board shall
16-21 review at one of its meetings:
16-22 (a) A current reconciliation of the operating account of the association;
16-23 (b) A current reconciliation of the reserve account of the association;
16-24 (c) The actual revenues and expenses for the reserve account, compared
16-25 to the budget for that account for the current year;
16-26 (d) The latest account statements prepared by the financial institutions
16-27 in which the accounts of the association are maintained;
16-28 (e) An income and expense statement, prepared on at least a quarterly
16-29 basis, for the operating and reserve accounts of the association; and
16-30 (f) The current status of any civil action or claim submitted to
16-31 arbitration or mediation in which the association is a party.
16-32 7. The minutes of a meeting of the executive board of an association
16-33 must [be] :
16-34 (a) Include:
16-35 (1) The date, time and place of the meeting;
16-36 (2) Those members of the executive board who were present and
16-37 those members who were absent;
16-38 (3) The substance of all matters proposed, discussed or decided and,
16-39 at the request of any member, a record of each member’s vote on any
16-40 matter decided by vote;
16-41 (4) The substance of remarks made by any unit’s owner who
16-42 addresses the executive board if he requests that the minutes reflect his
16-43 remarks or, if he has prepared written remarks, a copy of his prepared
16-44 remarks if he submits a copy for inclusion; and
16-45 (5) Any other information that any unit’s owner requests to be
16-46 included or reflected in the minutes;
16-47 (b) Be maintained by the executive board until the common-interest
16-48 community is terminated; and
17-1 (c) Be made available to the units’ owners in accordance with the
17-2 provisions of subsection 5 of NRS 116.3108.
17-3 8. As used in this section, “emergency” means any occurrence or
17-4 combination of occurrences that:
17-5 (a) Could not have been reasonably foreseen;
17-6 (b) Affects the health, welfare and safety of the units’ owners of the
17-7 association;
17-8 (c) Requires the immediate attention of, and possible action by, the
17-9 executive board; and
17-10 (d) Makes it impracticable to comply with the provisions of subsection
17-11 2 or 5.
17-12 9. For the purposes of this section, the administrator shall adopt
17-13 regulations to provide factual considerations for use in determining
17-14 whether an emergency affects the health, welfare and safety of the units’
17-15 owners of the association.
17-16 Sec. 42. NRS 116.31085 is hereby amended to read as follows:
17-17 116.31085 1. Except as otherwise provided in this section, a unit’s
17-18 owner may attend any meeting of the units’ owners of the association or of
17-19 the executive board and speak at any such meeting. The executive board
17-20 may establish reasonable limitations on the time a unit’s owner may speak
17-21 at such a meeting.
17-22 2. An executive board may meet in executive session to:
17-23 (a) Consult with the attorney for the association on matters relating to
17-24 proposed or pending litigation if the contents of the discussion would
17-25 otherwise be governed by the privilege set forth in NRS 49.035 to 49.115,
17-26 inclusive;
17-27 (b) Discuss [matters relating to personnel;] personal matters relating to
17-28 an employee of the association; or
17-29 (c) Discuss a violation of the governing documents alleged to have been
17-30 committed by a unit’s owner, including, without limitation, the failure to
17-31 pay an assessment, except as otherwise provided in subsection 3.
17-32 3. An executive board shall meet in executive session to hold a hearing
17-33 on an alleged violation of the governing documents unless the unit’s owner
17-34 who allegedly committed the violation requests in writing that the hearing
17-35 be conducted by the executive board at an open meeting. The unit’s owner
17-36 who is alleged to have committed the violation may attend the hearing and
17-37 testify concerning the alleged violation, but may be excluded by the
17-38 executive board from any other portion of the hearing, including, without
17-39 limitation, the deliberations of the executive board.
17-40 4. Except as otherwise provided in this subsection, any matter
17-41 discussed in executive session must be generally noted in the minutes of
17-42 the meeting of the executive board. The executive board shall maintain
17-43 minutes of any decision made pursuant to subsection 3 and, upon request,
17-44 provide a copy of the decision to the unit’s owner who was the subject of
17-45 the hearing or to his designated representative.
17-46 5. Except as otherwise provided in subsection 3, a unit’s owner is not
17-47 entitled to attend or speak at a meeting of the executive board held in
17-48 executive session.
18-1 Sec. 43. NRS 116.3109 is hereby amended to read as follows:
18-2 116.3109 1. Except as otherwise provided in this section and unless
18-3 the bylaws provide otherwise, a quorum is present throughout any meeting
18-4 of the association if persons entitled to cast 20 percent of the votes that
18-5 may be cast for election of the executive board are present in person or by
18-6 proxy at the beginning of the meeting.
18-7 2. Unless the bylaws specify a larger percentage, a quorum is deemed
18-8 present throughout any meeting of the executive board if persons entitled
18-9 to cast 50 percent of the votes on that board are present at the beginning of
18-10 the meeting.
18-11 3. For the purposes of [determining whether a quorum is present for
18-12 the election of] electing or removing any member of the executive board, a
18-13 quorum is not required and only the secret written ballots that are returned
18-14 to the association may be counted.
18-15 Sec. 44. NRS 116.311 is hereby amended to read as follows:
18-16 116.311 1. If only one of several owners of a unit is present at a
18-17 meeting of the association, that owner is entitled to cast all the votes
18-18 allocated to that unit. If more than one of the owners are present, the votes
18-19 allocated to that unit may be cast only in accordance with the agreement of
18-20 a majority in interest of the owners, unless the declaration expressly
18-21 provides otherwise. There is majority agreement if any one of the owners
18-22 cast the votes allocated to that unit without protest made promptly to the
18-23 person presiding over the meeting by any of the other owners of the unit.
18-24 2. Except as otherwise provided in this section, votes allocated to a
18-25 unit may be cast pursuant to a proxy executed by a unit’s owner. A unit’s
18-26 owner may give a proxy only to a member of his immediate family, a
18-27 tenant of the unit’s owner who resides in the common-interest community
18-28 or another unit’s owner who resides in the common-interest community. If
18-29 a unit is owned by more than one person, each owner of the unit may vote
18-30 or register protest to the casting of votes by the other owners of the unit
18-31 through an executed proxy. A unit’s owner may revoke a proxy given
18-32 pursuant to this section only by actual notice of revocation to the person
18-33 presiding over a meeting of the association. A proxy is void if:
18-34 (a) It is not dated or purports to be revocable without notice;
18-35 (b) It does not designate the votes that must be cast on behalf of the
18-36 unit’s owner who executed the proxy; or
18-37 (c) The holder of the proxy does not disclose at the beginning of the
18-38 meeting for which the proxy is executed the number of proxies pursuant to
18-39 which he will be casting votes. [and the voting instructions received for
18-40 each proxy.]
18-41 A proxy terminates immediately after the conclusion of the meeting for
18-42 which it was executed. A vote may not be cast pursuant to a proxy for the
18-43 election or removal of a member of the executive board of an association.
18-44 3. Only a vote cast in person, by secret ballot or by proxy, may be
18-45 counted.
18-46 4. If the declaration requires that votes on specified matters affecting
18-47 the common-interest community be cast by lessees rather than units’
18-48 owners of leased units:
19-1 (a) The provisions of subsections 1 and 2 apply to lessees as if they
19-2 were units’ owners;
19-3 (b) Units’ owners who have leased their units to other persons may not
19-4 cast votes on those specified matters; and
19-5 (c) Lessees are entitled to notice of meetings, access to records,
and other rights respecting those matters as if they were units’
owners.
19-6 Units’ owners must also be given notice, in the manner provided in NRS
19-7 116.3108, of all meetings at which lessees are entitled to vote.
19-8 5. No votes allocated to a unit owned by the association may be cast.
19-9 6. Votes cast for the election or removal of a member of the executive
19-10 board of an association must be counted in public.
19-11 Sec. 45. NRS 116.31135 is hereby amended to read as follows:
19-12 116.31135 1. [Any] Except as otherwise provided in this section,
19-13 any portion of the common-interest community for which insurance is
19-14 required under NRS 116.3113 which is damaged or destroyed must be
19-15 repaired or replaced promptly by the association unless:
19-16 (a) The common-interest community is terminated, in which case NRS
19-17 116.2118, 116.21183 and 116.21185 apply;
19-18 (b) Repair or replacement would be illegal under any state or local
19-19 statute or ordinance governing health or safety; or
19-20 (c) Eighty percent of the units’ owners, including every owner of a unit
19-21 or assigned limited common element that will not be rebuilt, vote not to
19-22 rebuild.
19-23 The cost of repair or replacement in excess of insurance proceeds and
19-24 reserves is a common expense.
19-25 2. If any damage to a portion of the common-interest community that
19-26 is required to be repaired pursuant to subsection 1 threatens the health,
19-27 welfare or safety of the units’ owners of the association, it must be
19-28 repaired as soon as practicable, but not later than 10 days after it is
19-29 discovered.
19-30 3. If the entire common-interest community is not repaired or replaced,
19-31 the proceeds attributable to the damaged common elements, must be used
19-32 to restore the damaged area to a condition compatible with the remainder
19-33 of the common-interest community, and except to the extent that other
19-34 persons will be distributees [(] pursuant to subparagraph 2 of paragraph (l)
19-35 of subsection 1 of NRS 116.2105 : [):]
19-36 (a) The proceeds attributable to units and limited common elements that
19-37 are not rebuilt must be distributed to the owners of those units and the
19-38 owners of the units to which those limited common elements were
19-39 allocated, or to lien holders, as their interests may appear; and
19-40 (b) The remainder of the proceeds must be distributed to all the units’
19-41 owners or lien holders, as their interests may appear, as follows:
19-42 (1) In a condominium, in proportion to the interests of all the units in
19-43 the common elements; and
19-44 (2) In a cooperative or planned community, in proportion to the
19-45 liabilities of all the units for common expenses.
19-46 [3.] 4. If the units’ owners vote not to rebuild any unit, that unit’s
19-47 allocated interests are automatically reallocated upon the vote as if the unit
20-1 had been condemned under subsection 1 of NRS 116.1107, and the
20-2 association promptly shall prepare, execute and record an amendment to
20-3 the declaration reflecting the reallocations.
20-4 Sec. 46. NRS 116.31139 is hereby amended to read as follows:
20-5 116.31139 1. An association may employ a [person engaged in
20-6 property management for the common-interest community.] property
20-7 manager.
20-8 2. Except as otherwise provided in this section, a [person engaged in
20-9 property management for a common-interest community] property
20-10 manager must:
20-11 (a) Hold a permit to engage in property management that is issued
20-12 pursuant to the provisions of chapter 645 of NRS; or
20-13 (b) Hold a certificate issued by the real estate commission pursuant to
20-14 subsection 3.
20-15 3. The real estate commission shall provide by regulation for the
20-16 issuance of certificates for the management of common-interest
20-17 communities to persons who are not otherwise authorized to engage in
20-18 property management pursuant to the provisions of chapter 645 of NRS.
20-19 The regulations:
20-20 (a) Must establish the qualifications for the issuance of such a
20-21 certificate, including the education and experience required to obtain such
20-22 a certificate;
20-23 (b) May require applicants to pass an examination in order to obtain a
20-24 certificate;
20-25 (c) Must establish standards of practice for [persons engaged in property
20-26 management for a common-interest community;] property managers;
20-27 (d) Must establish the grounds for initiating disciplinary action against a
20-28 person to whom a certificate has been issued, including, without limitation,
20-29 the grounds for placing conditions, limitations or restrictions on a
20-30 certificate and for the suspension or revocation of a certificate; and
20-31 (e) Must establish rules of practice and procedure for conducting
20-32 disciplinary hearings.
20-33 The real estate division of the department of business and industry may
20-34 investigate the property managers to whom certificates have been issued to
20-35 ensure their compliance with the standards of practice adopted pursuant to
20-36 this subsection and collect a fee for the issuance of a certificate by the real
20-37 estate commission in an amount not to exceed the administrative costs of
20-38 issuing the certificate.
20-39 4. The provisions of subsection 2 do not apply to:
20-40 (a) A person who is engaged in property management for a common-
20-41 interest community on October 1, 1999, and is granted an exemption from
20-42 the requirements of subsection 2 by the administrator upon demonstration
20-43 that he is qualified and competent to engage in property management for a
20-44 common-interest community.
20-45 (b) A financial institution.
20-46 (c) An attorney licensed to practice in this state.
20-47 (d) A trustee.
20-48 (e) An employee of a corporation who manages only the property of the
20-49 corporation.
21-1 (f) A declarant.
21-2 (g) A receiver.
21-3 [5. As used in this section, “property management” means the
21-4 physical, administrative or financial maintenance and management of real
21-5 property, or the supervision of those activities for a fee, commission or
21-6 other compensation or valuable consideration.]
21-7 Sec. 47. NRS 116.3115 is hereby amended to read as follows:
21-8 116.3115 1. Until the association makes an assessment for common
21-9 expenses, the declarant shall pay all common expenses. After an
21-10 assessment has been made by the association, assessments must be made at
21-11 least annually, based on a budget adopted at least annually by the
21-12 association in accordance with the requirements set forth in NRS
21-13 116.31151. Except for an association for a time-share project governed by
21-14 the provisions of chapter 119A of NRS, and unless the declaration imposes
21-15 more stringent standards, the budget must include a budget for the daily
21-16 operation of the association and the money for the reserve required by
21-17 paragraph (b) of subsection 2.
21-18 2. Except for assessments under subsections 4 to 7, inclusive:
21-19 (a) All common expenses, including a reserve, must be assessed against
21-20 all the units in accordance with the allocations set forth in the declaration
21-21 pursuant to subsections 1 and 2 of NRS 116.2107.
21-22 (b) The association shall establish an adequate reserve, funded on a
21-23 reasonable basis, for the repair, replacement and restoration of the major
21-24 components of the common elements. The reserve may be used only for
21-25 those purposes, including, without limitation, repairing, replacing and
21-26 restoring roofs, roads and sidewalks, and must not be used for daily
21-27 maintenance.
21-28 3. Any past due assessment for common expenses or installment
21-29 thereof bears interest at the rate established by the association not
21-30 exceeding 18 percent per year.
21-31 4. To the extent required by the declaration:
21-32 (a) Any common expense associated with the maintenance, repair,
21-33 restoration or replacement of a limited common element must be assessed
21-34 against the units to which that limited common element is assigned,
21-35 equally, or in any other proportion the declaration provides;
21-36 (b) Any common expense or portion thereof benefiting fewer than all of
21-37 the units must be assessed exclusively against the units benefited; and
21-38 (c) The costs of insurance must be assessed in proportion to risk and the
21-39 costs of utilities must be assessed in proportion to usage.
21-40 5. Assessments to pay a judgment against the association may be made
21-41 only against the units in the common-interest community at the time the
21-42 judgment was entered, in proportion to their liabilities for common
21-43 expenses.
21-44 6. If any common expense is caused by the misconduct of any unit’s
21-45 owner, the association may assess that expense exclusively against his unit.
21-46 7. The association of a common-interest community created before
21-47 January 1, 1992, is not required to make an assessment against a vacant lot
21-48 located within the community that is owned by the declarant.
22-1 8. If liabilities for common expenses are reallocated, assessments for
22-2 common expenses and any installment thereof not yet due must be
22-3 recalculated in accordance with the reallocated liabilities.
22-4 9. The association shall provide written notice to the owner of each
22-5 unit of a meeting at which an assessment for a capital improvement or the
22-6 commencement of a civil action is to be considered or action is to be taken
22-7 on such an assessment at least 21 calendar days before the meeting.
22-8 [Except as otherwise provided in this subsection, the] The association may
22-9 commence a civil action only upon a vote [or written agreement] of the
22-10 owners of units to which at least a majority of the votes of the members of
22-11 the association are allocated. [The provisions of this subsection do not
22-12 apply to a civil action that is commenced:
22-13 (a) By an association for a time-share project governed by the
22-14 provisions of chapter 119A of NRS;
22-15 (b) To enforce the payment of an assessment;
22-16 (c) To enforce the declaration, bylaws or rules of the association;
22-17 (d) To proceed with a counterclaim; or
22-18 (e) To protect the health, safety and welfare of the members of the
22-19 association. If a civil action is commenced pursuant to this paragraph
22-20 without the required vote or agreement, the action must be ratified within
22-21 90 days after the commencement of the action by a vote or written
22-22 agreement of the owners of the units to which at least a majority of votes of
22-23 the members of the association are allocated. If the association, after
22-24 making a good faith effort, cannot obtain the required vote or agreement to
22-25 commence or ratify such a civil action, the association may thereafter seek
22-26 to dismiss the action without prejudice for that reason only if a vote or
22-27 written agreement of the owners of the units to which at least a majority of
22-28 votes of the members of the association are allocated was obtained at the
22-29 time the approval to commence or ratify the action was sought.]
22-30 10. At least 10 days before an association commences [or seeks to
22-31 ratify the commencement of] a civil action, the association shall provide a
22-32 written statement to all units’ owners that includes:
22-33 (a) A reasonable estimate of the costs of the civil action, including
22-34 reasonable attorney’s fees;
22-35 (b) An explanation of the potential benefits of the civil action and the
22-36 potential adverse consequences if the association does not commence the
22-37 action or if the outcome of the action is not favorable to the association;
22-38 and
22-39 (c) All disclosures that are required to be made upon the sale of the
22-40 property.
22-41 11. No person other than a unit’s owner may request the dismissal of a
22-42 civil action commenced by the association on the ground that the
22-43 association failed to comply with any provision of this section.
22-44 Sec. 48. NRS 116.31158 is hereby amended to read as follows:
22-45 116.31158 1. Each association shall, at the time it pays the fee
22-46 required by NRS 116.31155, register with the ombudsman for owners in
22-47 common-interest communities on a form prescribed by the ombudsman.
23-1 2. The form for registration must include, without limitation, the
23-2 information required to be maintained pursuant to paragraph [(d)] (e) of
23-3 subsection 4 of NRS 116.1116.
23-4 Sec. 49. NRS 116.31162 is hereby amended to read as follows:
23-5 116.31162 1. Except as otherwise provided in subsection 4, in a
23-6 condominium, a cooperative where the owner’s interest in a unit is real
23-7 estate as determined pursuant to NRS 116.1105, or a planned community,
23-8 the association may foreclose its lien by sale after:
23-9 (a) The association has mailed by certified or registered mail, return
23-10 receipt requested, to the unit’s owner or his successor in interest, at his
23-11 address if known, and at the address of the unit, a notice of delinquent
23-12 assessment which states the amount of the assessments and other sums
23-13 which are due in accordance with subsection 1 of NRS 116.3116, a
23-14 description of the unit against which the lien is imposed, and the name of
23-15 the record owner of the unit;
23-16 (b) The association has given written notice to the ombudsman for
23-17 owners in common-interest communities that contains the same
23-18 information as the notice of delinquent assessment, the ombudsman
23-19 provides an explanation of the pending action to the unit’s owner or his
23-20 successor in interest, and the ombudsman approves the foreclosure, in
23-21 writing;
23-22 (c) The association or other person conducting the sale has executed and
23-23 caused to be recorded, with the county recorder of the county in which the
23-24 common-interest community or any part of it is situated, a notice of default
23-25 and election to sell the unit to satisfy the lien, which contains the same
23-26 information as the notice of delinquent assessment, but must also describe
23-27 the deficiency in payment and the name and address of the person
23-28 authorized by the association to enforce the lien by sale; and
23-29 [(c)] (d) The unit’s owner or his successor in interest has failed to pay
23-30 the amount of the lien, including costs, fees and expenses incident to its
23-31 enforcement, for 60 days following the recording of the notice of default
23-32 and election to sell.
23-33 2. The notice of default and election to sell must be signed by the
23-34 person designated in the declaration or by the association for that purpose,
23-35 or if no one is designated, by the president of the association.
23-36 3. The period of 60 days begins on the first day following the later of:
23-37 (a) The day on which the notice of default is recorded; [or]
23-38 (b) The day on which a copy of the notice of default is mailed by
23-39 certified or registered mail, return receipt requested, to the unit’s owner or
23-40 his successor in interest at his address if known, and at the address of the
23-41 unit[.] ; or
23-42 (c) The day on which the ombudsman’s written approval is received
23-43 by the association.
23-44 4. The association may not foreclose a lien by sale for the assessment
23-45 of a fine for a violation of the declaration, bylaws, rules or regulations of
23-46 the association, unless the violation is of a type that threatens the health,
23-47 safety or welfare of the residents of the common-interest community. For
23-48 the purposes of this subsection, the administrator shall adopt by
24-1 regulation a definition of violations that threaten the health, safety or
24-2 welfare of the residents of the common-interest community.
24-3 Sec. 50. NRS 116.31175 is hereby amended to read as follows:
24-4 116.31175 1. Except as otherwise provided in this subsection, the
24-5 executive board of an association shall, upon the written request of a unit’s
24-6 owner, make available the books, records and other papers of the
24-7 association for review during the regular working hours of the association
24-8 [.] , including, without limitation, all records relating to any civil or
24-9 criminal action to which the association is a party. The provisions of this
24-10 subsection do not apply to:
24-11 (a) The personnel records of the employees of the association; and
24-12 (b) The records of the association relating to another unit’s owner.
24-13 2. If the executive board refuses to allow a unit’s owner to review the
24-14 books, records or other papers of the association, the ombudsman for
24-15 owners in common-interest communities may:
24-16 (a) On behalf of the unit’s owner and upon written request, review the
24-17 books, records or other papers of the association during the regular
24-18 working hours of the association; and
24-19 (b) If he is denied access to the books, records or other papers, request
24-20 the commission to issue a subpoena for their production.
24-21 3. The books, records and other papers of an association must be
24-22 maintained for a period of at least 10 years.
24-23 Sec. 51. NRS 116.31177 is hereby amended to read as follows:
24-24 116.31177 1. The executive board of an association shall maintain
24-25 and make available for review at the business office of the association or
24-26 other suitable location:
24-27 (a) The financial statement of the association;
24-28 (b) The budgets of the association required to be prepared pursuant to
24-29 NRS 116.31151; and
24-30 (c) The study of the reserves of the association required to be conducted
24-31 pursuant to NRS 116.31152.
24-32 2. The executive board shall provide a copy of any of the records
24-33 required to be maintained pursuant to subsection 1 to a unit’s owner or the
24-34 ombudsman for owners in common-interest communities within 14 days
24-35 after receiving a written request therefor. The executive board may charge
24-36 a fee to cover the actual costs of preparing a copy, but not to exceed 25
24-37 cents per page.
24-38 3. The records required to be maintained pursuant to subsection 1
24-39 must be maintained for a period of at least 10 years.
24-40 Sec. 52. NRS 116.4109 is hereby amended to read as follows:
24-41 116.4109 1. Except in the case of a sale in which delivery of a public
24-42 offering statement is required, or unless exempt under subsection 2 of NRS
24-43 116.4101, a unit’s owner shall furnish to a purchaser before execution of
24-44 any contract for sale of a unit, or otherwise before conveyance:
24-45 (a) A copy of the declaration, other than any plats and plans, the bylaws,
24-46 the rules or regulations of the association and, except for a time share
24-47 governed by the provisions of chapter 119A of NRS, the information
24-48 statement required by NRS 116.41095;
25-1 (b) A statement setting forth the amount of the monthly assessment for
25-2 common expenses and any unpaid assessment of any kind currently due
25-3 from the selling unit’s owner;
25-4 (c) The current operating budget of the association and a financial
25-5 statement for the association; and
25-6 (d) A statement of any unsatisfied judgments or pending legal actions
25-7 against the association and the status of any pending legal actions relating
25-8 to the common-interest community of which the unit’s owner has actual
25-9 knowledge.
25-10 2. The association, within [10] 5 days after receiving a request by a
25-11 unit’s owner, shall furnish a certificate containing the information
25-12 necessary to enable the unit’s owner to comply with this section. A unit’s
25-13 owner providing a certificate pursuant to subsection 1 is not liable to the
25-14 purchaser for any erroneous information provided by the association and
25-15 included in the certificate.
25-16 3. Neither a purchaser nor the purchaser’s interest in a unit is liable for
25-17 any unpaid assessment or fee greater than the amount set forth in the
25-18 certificate prepared by the association. If the association fails to furnish the
25-19 certificate within the [10] 5 days allowed by subsection 2, the seller is not
25-20 liable for the delinquent assessment.
25-21 Sec. 53. NRS 116.41095 is hereby amended to read as follows:
25-22 116.41095 The information statement required by NRS 116.4103 and
25-23 116.4109 must be in substantially the following form:
25-24 BEFORE YOU PURCHASE PROPERTY IN A
25-25 COMMON-INTEREST COMMUNITY
25-26 DID YOU KNOW . . .
25-27 1. YOU ARE AGREEING TO RESTRICTIONS ON HOW YOU
25-28 CAN USE YOUR PROPERTY?
25-29 These restrictions are contained in a document known as the Declaration of
25-30 Covenants, Conditions and Restrictions (C, C & R’s) that should be
25-31 provided for your review before making your purchase. The C, C & R’s
25-32 become a part of the title to your property. They bind you and every future
25-33 owner of the property whether or not you have read them or had them
25-34 explained to you. The C, C & R’s, together with other “governing
25-35 documents” (such as association bylaws and rules and regulations), are
25-36 intended to preserve the character and value of properties in the
25-37 community, but may also restrict what you can do to improve or change
25-38 your property and limit how you use and enjoy your property. By
25-39 purchasing a property encumbered by C, C & R’s, you are agreeing to
25-40 limitations that could affect your lifestyle and freedom of choice. You
25-41 should review the C, C & R’s and other governing documents before
25-42 purchasing to make sure that these limitations and controls are acceptable
25-43 to you.
25-44 2. YOU WILL HAVE TO PAY OWNERS’ ASSESSMENTS FOR AS
25-45 LONG AS YOU OWN YOUR PROPERTY?
25-46 As an owner in a common-interest community, you are responsible for
25-47 paying your share of expenses relating to the common elements, such as
25-48 landscaping, shared amenities and the operation of any homeowner’s
26-1 association. The obligation to pay these assessments binds you and every
26-2 future owner of the property. Owners’ fees are usually assessed by the
26-3 homeowner’s association and due monthly. You have to pay dues whether
26-4 or not you agree with the way the association is managing the property or
26-5 spending the assessments. The executive board of the association may have
26-6 the power to change and increase the amount of the assessment and to levy
26-7 special assessments against your property to meet extraordinary expenses.
26-8 In some communities, major components of the community such as roofs
26-9 and private roads must be maintained and replaced by the association. If
26-10 the association is not well managed or fails to maintain adequate reserves
26-11 to repair, replace and restore common elements, you may be required to
26-12 pay large, special assessments to accomplish these tasks.
26-13 3. IF YOU FAIL TO PAY OWNERS’ ASSESSMENTS, YOU
26-14 COULD LOSE YOUR HOME?
26-15 If you do not pay these assessments when due, the association usually has
26-16 the power to collect them by selling your property in a nonjudicial
26-17 foreclosure sale. If fees become delinquent, you may also be required to
26-18 pay penalties and the association’s costs and attorney’s fees to become
26-19 current. If you dispute the obligation or its amount, your only remedy to
26-20 avoid the loss of your home may be to file a lawsuit and ask a court to
26-21 intervene in the dispute.
26-22 4. YOU MAY BECOME A MEMBER OF A HOMEOWNER’S
26-23 ASSOCIATION THAT HAS THE POWER TO AFFECT HOW YOU
26-24 USE AND ENJOY YOUR PROPERTY?
26-25 Many common-interest communities have a homeowner’s association. In a
26-26 new development, the association will usually be controlled by the
26-27 developer until a certain number of units have been sold. After the period
26-28 of developer control, the association may be controlled by property owners
26-29 like yourself who are elected by homeowners to sit on an executive board
26-30 and other boards and committees formed by the association. The
26-31 association, and its executive board, are responsible for assessing
26-32 homeowners for the cost of operating the association and the common or
26-33 shared elements of the community and for the day to day operation and
26-34 management of the community. Because homeowners sitting on the
26-35 executive board and other boards and committees of the association may
26-36 not have the experience or professional background required to understand
26-37 and carry out the responsibilities of the association properly, the
26-38 association may hire professional managers to carry out these
26-39 responsibilities.
26-40 Homeowner’s associations operate on democratic principles. Some
26-41 decisions require all homeowners to vote, some decisions are made by the
26-42 executive board or other boards or committees established by the
26-43 association or governing documents. Although the actions of the
26-44 association and its executive board are governed by state laws, the C, C &
26-45 R’s and other documents that govern the common-interest community,
26-46 decisions made by these persons will affect your use and enjoyment of
26-47 your property, your lifestyle and freedom of choice, and your cost of living
26-48 in the community. You may not agree with decisions made by the
26-49 association or its governing bodies even though the decisions are ones
27-1 which the association is authorized to make. Decisions may be made by a
27-2 few persons on the executive board or governing bodies that do not
27-3 necessarily reflect the view of the majority of homeowners in the
27-4 community. If you do not agree with decisions made by the association, its
27-5 executive board or other governing bodies, your remedy is typically to
27-6 attempt to use the democratic processes of the association to seek the
27-7 election of members of the executive board or other governing bodies that
27-8 are more responsive to your needs. If persons controlling the association or
27-9 its management are not complying with state laws or the governing
27-10 documents, your remedy is typically to seek to mediate or arbitrate the
27-11 dispute and, if mediation or arbitration is unsuccessful, file a lawsuit and
27-12 ask a court to resolve the dispute. In addition to your personal cost in
27-13 mediation or arbitration, or to prosecute a lawsuit, you may be responsible
27-14 for paying your share of the association’s cost in defending against your
27-15 claim. There is no government agency in this state that investigates or
27-16 intervenes to resolve disputes in homeowner’s associations.
27-17 5. YOU ARE REQUIRED TO PROVIDE PROSPECTIVE BUYERS
27-18 OF YOUR PROPERTY WITH INFORMATION ABOUT LIVING IN
27-19 YOUR COMMON-INTEREST COMMUNITY?
27-20 The law requires you to provide to a prospective purchaser of your
27-21 property, before you enter into a purchase agreement, a copy of the
27-22 community’s governing documents, including the C, C & R’s, association
27-23 bylaws, and rules and regulations, as well as a copy of this document. You
27-24 are also required to provide a copy of the association’s current financial
27-25 statement, operating budget and information regarding the amount of the
27-26 monthly assessment for common expenses, including the amount set aside
27-27 as reserves for the repair, replacement and restoration of common
27-28 elements. You are also required to inform prospective purchasers of any
27-29 outstanding judgments or lawsuits pending against the association of which
27-30 you are aware. You are also required to provide a copy of the minutes from
27-31 the most recent meeting of the homeowner’s association or its executive
27-32 board. For more information regarding these requirements, see Nevada
27-33 Revised Statutes 116.4103.
27-34 6. YOU HAVE CERTAIN RIGHTS REGARDING OWNERSHIP IN
27-35 A COMMON-INTEREST COMMUNITY THAT ARE GUARANTEED
27-36 YOU BY THE STATE?
27-37 Pursuant to provisions of chapter 116 of Nevada Revised Statutes, you
27-38 have the right:
27-39 (a) To be notified of all meetings of the association and its executive
27-40 board, except in cases of emergency.
27-41 (b) To attend and speak at all meetings of the association and its
27-42 executive board, except in some cases where the executive board is
27-43 authorized to meet in closed, executive session.
27-44 (c) To request a special meeting of the association upon petition of at
27-45 least 10 percent of the homeowners.
27-46 (d) To inspect, examine, photocopy and audit financial and other
27-47 records of the association.
27-48 (e) To be notified of all changes in the community’s rules and
27-49 regulations and other actions by the association or board that affect you.
28-1 7. QUESTIONS?
28-2 Although they may be voluminous, you should take the time to read and
28-3 understand the documents that will control your ownership of a property in
28-4 a common-interest community. You may wish to ask your real estate
28-5 professional, lawyer or other person with experience to explain anything
28-6 you do not understand. You may also request assistance from the
28-7 ombudsman for owners in common-interest communities, Nevada Real
28-8 Estate Division, at (telephone number)[.] , or the commission for
28-9 common-interest communities, at (telephone number).
28-10 Buyer or prospective buyer’s initials:_____
28-11 Date:_____
28-12 Sec. 54. NRS 38.330 is hereby amended to read as follows:
28-13 38.330 1. If all parties named in a written claim filed pursuant to
28-14 NRS 38.320 agree to have the claim submitted for mediation, the parties
28-15 shall reduce the agreement to writing and shall select a mediator from the
28-16 list of mediators maintained by the division pursuant to NRS 38.340. Any
28-17 mediator selected must be available within the geographic area. If the
28-18 parties fail to agree upon a mediator, the division shall appoint a mediator
28-19 from the list of mediators maintained by the division. Any mediator
28-20 appointed must be available within the geographic area. Unless otherwise
28-21 provided by an agreement of the parties, mediation must be completed
28-22 within 60 days after the parties agree to mediation. Any agreement
28-23 obtained through mediation conducted pursuant to this section must, within
28-24 20 days after the conclusion of mediation, be reduced to writing by the
28-25 mediator and a copy thereof provided to each party. The agreement may be
28-26 enforced as any other written agreement. Except as otherwise provided in
28-27 this section, the parties are responsible for all costs of mediation conducted
28-28 pursuant to this section.
28-29 2. If all the parties named in the claim do not agree to mediation, the
28-30 parties shall select an arbitrator from the list of arbitrators maintained by
28-31 the division pursuant to NRS 38.340. Any arbitrator selected must be
28-32 available within the geographic area. If the parties fail to agree upon an
28-33 arbitrator, the division shall appoint an arbitrator from the list maintained
28-34 by the division. Any arbitrator appointed must be available within the
28-35 geographic area. Upon appointing an arbitrator, the division shall provide
28-36 the name of the arbitrator to each party.
28-37 3. The division may provide for the payment of the fees for a mediator
28-38 or an arbitrator selected or appointed pursuant to this section from the
28-39 account for the ombudsman for owners in common-interest communities
28-40 created pursuant to NRS 116.1117, to the extent that money is available in
28-41 the account for this purpose.
28-42 4. Except as otherwise provided in this section and except where
28-43 inconsistent with the provisions of NRS 38.300 to 38.360, inclusive, the
28-44 arbitration of a claim pursuant to this section must be conducted in
28-45 accordance with the provisions of NRS 38.075 to [38.105,] 38.135,
28-46 inclusive, [38.115, 38.125, 38.135,] 38.155 and 38.165. No party to the
28-47 arbitration may be represented by an attorney. At any time during the
28-48 arbitration of a claim relating to the interpretation, application or
29-1 enforcement of any covenants, conditions or restrictions applicable to
29-2 residential property or any bylaws, rules or regulations adopted by an
29-3 association, the arbitrator may issue an order prohibiting the action upon
29-4 which the claim is based. An award must be made within 30 days after the
29-5 conclusion of arbitration, unless a shorter period is agreed upon by the
29-6 parties to the arbitration.
29-7 5. If all the parties have agreed to nonbinding arbitration, any party to
29-8 the arbitration may, within 30 days after a decision and award have been
29-9 served upon the parties, commence a civil action in the proper court
29-10 concerning the claim which was submitted for arbitration. Any complaint
29-11 filed in such an action must contain a sworn statement indicating that the
29-12 issues addressed in the complaint have been arbitrated pursuant to the
29-13 provisions of NRS 38.300 to 38.360, inclusive. If such an action is not
29-14 commenced within that period, any party to the arbitration may, within 1
29-15 year after the service of the award, apply to the proper court for a
29-16 confirmation of the award pursuant to NRS 38.135.
29-17 6. [If] Except as otherwise provided in this section, if all the parties
29-18 agree in writing to binding arbitration, the arbitration must be conducted in
29-19 accordance with the provisions of [chapter 38 of NRS.] this chapter. An
29-20 award procured pursuant to such arbitration may be vacated and a
29-21 rehearing granted upon application of a party pursuant to the provisions of
29-22 NRS 38.145.
29-23 7. If, after the conclusion of arbitration, a party:
29-24 (a) Applies to have an award vacated and a rehearing granted pursuant
29-25 to NRS 38.145; or
29-26 (b) Commences a civil action based upon any claim which was the
29-27 subject of arbitration,
29-28 the party shall, if he fails to obtain a more favorable award or judgment
29-29 than that which was obtained in the initial arbitration, pay all costs and
29-30 reasonable attorney’s fees incurred by the opposing party after the
29-31 application for a rehearing was made or after the complaint in the civil
29-32 action was filed.
29-33 8. Upon request by a party, the division shall provide a statement to
29-34 the party indicating the amount of the fees for a mediator or an arbitrator
29-35 selected or appointed pursuant to this section.
29-36 9. As used in this section, “geographic area” means an area within 150
29-37 miles from any residential property or association which is the subject of a
29-38 written claim submitted pursuant to NRS 38.320.
29-39 Sec. 55. Section 15 of this act is hereby amended to read as follows:
29-40 Sec. 15. 1. A person shall not conduct business as a property
29-41 managing agent in this state without first obtaining a license from the
29-42 administrator.
29-43 2. Each applicant for a license as a property managing agent shall
29-44 file an application with the administrator on a form prescribed by the
29-45 administrator.
29-46 3. The application must [:
29-47 (a) Include the social security number of the applicant;
29-48 (b) Be accompanied by the statement required pursuant to section
29-49 17 of this act; and
30-1 (c) Be] be accompanied by the fee prescribed by the administrator
30-2 pursuant to section 20 of this act.
30-3 Sec. 56. Section 19 of this act is hereby amended to read as follows:
30-4 Sec. 19. 1. Each license as a property managing agent expires 2
30-5 years after the date it is issued and may be renewed if, before the
30-6 license expires, the licensee submits to the administrator:
30-7 (a) An application on a form prescribed by the administrator; and
30-8 (b) The fee for the renewal of the license prescribed by the
30-9 administrator pursuant to section 20 of this act . [; and
30-10 (c) The statement required by section 17 of this act.]
30-11 2. A license that expires pursuant to the provisions of this section
30-12 may be restored if the applicant:
30-13 (a) Complies with the provisions of subsection 1;
30-14 (b) Submits to the administrator proof of his ability to engage in
30-15 property management; and
30-16 (c) Submits to the board the fees prescribed pursuant to section 20
30-17 of this act.
30-18 Sec. 57. Notwithstanding the provisions of sections 15 to 22,
30-19 inclusive, of this act, a person who engages in business as a property
30-20 managing agent is not required to be licensed pursuant to the provisions of
30-21 this act before January 1, 2002.
30-22 Sec. 58. Any declaration, bylaw or other governing document of a
30-23 common-interest community in effect on October 1, 2001, that does not
30-24 conform to the provisions of chapter 116 of NRS, as amended by this act,
30-25 shall be deemed to have been conformed to those provisions by operation
30-26 of law. Notwithstanding any other provision of law to the contrary, not
30-27 later than October 1, 2002, any declaration, bylaw or other governing
30-28 document of a common-interest community created on or after January 1,
30-29 1992, that does not conform to the provisions of chapter 116 of NRS, as
30-30 amended by this act, must be changed to conform to those provisions, and
30-31 may be so changed without complying with the procedural requirements
30-32 generally applicable to the adoption of an amendment to such a declaration,
30-33 by law or other governing document.
30-34 Sec. 59. As soon as practicable after October 1, 2001, the governor
30-35 shall appoint to the commission for common-interest communities:
30-36 1. One member whose term expires on October 1, 2002.
30-37 2. Two members whose terms expire on October 1, 2003.
30-38 3. Two members whose terms expire on October 1, 2004.
30-39 Sec. 60. The provisions of this act do not apply to offenses committed
30-40 before October 1, 2001.
30-41 Sec. 61. 1. This section and sections 1 to 53, inclusive, and 56 to 59,
30-42 inclusive, of this act become effective on October 1, 2001.
30-43 2. Sections 54 and 55 of this act become effective on the date on which
30-44 the provisions of 42 U.S.C. § 666 requiring each state to establish
30-45 procedures under which the state has authority to withhold or suspend, or
30-46 to restrict the use of professional, occupational and recreational licenses of
30-47 persons who:
31-1 (a) Have failed to comply with a subpoena or warrant relating to a
31-2 proceeding to determine the paternity of a child or to establish or enforce
31-3 an obligation for the support of a child; or
31-4 (b) Are in arrears in the payment for the support of one or more
31-5 children,
31-6 are repealed by the Congress of the Unites States.
31-7 3. Sections 17 and 18 of this act expire by limitation on the date on
31-8 which the provisions of 42 U.S.C. § 666 requiring each state to establish
31-9 procedures under which the state has authority to withhold or suspend, or
31-10 to restrict the use of professional, occupational and recreational licenses of
31-11 persons who:
31-12 (a) Have failed to comply with a subpoena or warrant relating to a
31-13 proceeding to determine the paternity of a child or to establish or enforce
31-14 an obligation for the support of a child; or
31-15 (b) Are in arrears in the payment for the support of one or more
31-16 children,
31-17 are repealed by the Congress of the Unites States.
31-18 H