Senate Bill No. 136–Senators Hardy, O’Connell, Cegavske, Townsend, Amodei, Care, Coffin, McGinness, Nolan, Schneider, Shaffer, Tiffany and Titus

 

February 17, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes relating to certain penalties and fines imposed by unit-owners’ associations. (BDR 10‑897)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

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

 

AN ACT relating to property; making various changes relating to common-interest communities; authorizing a unit-owners’ association to impose construction penalties under certain circumstances and to place and foreclose a lien on a unit for failure to pay such penalties; revising provisions governing the imposition of certain fines by a unit-owners’ association; establishing certain procedural requirements for the imposition of certain fines; providing exceptions; 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

1-2  thereto a new section to read as follows:

1-3  1.  A unit’s owner shall adhere to a schedule required by the

1-4  association for:

1-5  (a) The completion of the design of a unit or the design of an

1-6  improvement to a unit;

1-7  (b) The commencement of the construction of a unit or the

1-8  construction of an improvement to a unit;

2-1  (c) The completion of the construction of a unit or the

2-2  construction of an improvement to the unit; or

2-3  (d) The issuance of a permit which is necessary for the

2-4  occupancy of a unit or for the use of an improvement to a unit.

2-5  2.  The association may impose and enforce a construction

2-6  penalty against a unit’s owner who fails to adhere to a schedule as

2-7  required pursuant to subsection 1 if:

2-8  (a) The maximum amount of the construction penalty and the

2-9  schedule are set forth in:

2-10          (1) The declaration;

2-11          (2) Another document related to the common-interest

2-12  community that is recorded before the date on which the unit’s

2-13  owner acquired title to the unit; or

2-14          (3) A contract between the unit’s owner and the

2-15  association; and

2-16      (b) The unit’s owner receives notice of the alleged violation

2-17  which informs him that he has a right to a hearing on the alleged

2-18  violation.

2-19      3.  For the purposes of this chapter, a construction penalty is

2-20  not a fine.

2-21      Sec. 2.  NRS 116.1203 is hereby amended to read as follows:

2-22      116.1203  1.  Except as otherwise provided in subsection 2, if

2-23  a planned community contains no more than 12 units and is not

2-24  subject to any developmental rights, it is subject only to NRS

2-25  116.1105, 116.1106 and 116.1107 unless the declaration provides

2-26  that this entire chapter is applicable.

2-27      2.  Except for NRS 116.3104, 116.31043, 116.31046 and

2-28  116.31138, the provisions of NRS 116.3101 to 116.3119, inclusive,

2-29  and section 1 of this act and the definitions set forth in NRS

2-30  116.110305 to 116.110393, inclusive, to the extent that such

2-31  definitions are necessary in construing any of those [sections,]

2-32  provisions, apply to a residential planned community containing

2-33  more than six units.

2-34      Sec. 3.  NRS 116.3102 is hereby amended to read as follows:

2-35      116.3102  1.  Except as otherwise provided in subsection 2,

2-36  and subject to the provisions of the declaration, the association may:

2-37      (a) Adopt and amend bylaws, rules and regulations;

2-38      (b) Adopt and amend budgets for revenues, expenditures and

2-39  reserves and collect assessments for common expenses from units’

2-40  owners;

2-41      (c) Hire and discharge managing agents and other employees,

2-42  agents and independent contractors;

2-43      (d) Institute, defend or intervene in litigation or administrative

2-44  proceedings in its own name on behalf of itself or two or more units’

2-45  owners on matters affecting the common-interest community;

3-1  (e) Make contracts and incur liabilities;

3-2  (f) Regulate the use, maintenance, repair, replacement and

3-3  modification of common elements;

3-4  (g) Cause additional improvements to be made as a part of the

3-5  common elements;

3-6  (h) Acquire, hold, encumber and convey in its own name any

3-7  right, title or interest to real estate or personal property, but:

3-8       (1) Common elements in a condominium or planned

3-9  community may be conveyed or subjected to a security interest only

3-10  pursuant to NRS 116.3112; and

3-11          (2) Part of a cooperative may be conveyed, or all or part of a

3-12  cooperative may be subjected to a security interest, only pursuant to

3-13  NRS 116.3112;

3-14      (i) Grant easements, leases, licenses and concessions through or

3-15  over the common elements;

3-16      (j) Impose and receive any payments, fees or charges for the use,

3-17  rental or operation of the common elements, other than limited

3-18  common elements described in subsections 2 and 4 of NRS

3-19  116.2102, and for services provided to units’ owners;

3-20      (k) Impose charges for late payment of assessments [and, except

3-21  as otherwise provided in NRS 116.31031, after notice and an

3-22  opportunity to be heard, levy] ;

3-23      (l) Impose construction penalties when authorized pursuant to

3-24  section 1 of this act;

3-25      (m) Impose reasonable fines for violations of the [declaration,

3-26  bylaws, rules and regulations] governing documents of the

3-27  association[;

3-28      (l)] only if the association complies with the requirements set

3-29  forth in NRS 116.31031;

3-30      (n) Impose reasonable charges for the preparation and

3-31  recordation of amendments to the declaration, the information

3-32  required by NRS 116.4109 or statements of unpaid assessments;

3-33      [(m)] (o) Provide for the indemnification of its officers and

3-34  executive board and maintain directors’ and officers’ liability

3-35  insurance;

3-36      [(n)] (p) Assign its right to future income, including the right to

3-37  receive assessments for common expenses, but only to the extent the

3-38  declaration expressly so provides;

3-39      [(o)] (q) Exercise any other powers conferred by the declaration

3-40  or bylaws;

3-41      [(p)] (r) Exercise all other powers that may be exercised in this

3-42  state by legal entities of the same type as the association;

3-43      [(q)] (s) Direct the removal of vehicles improperly parked on

3-44  property owned or leased by the association, pursuant to NRS

3-45  487.038; and

4-1  [(r)] (t) Exercise any other powers necessary and proper for the

4-2  governance and operation of the association.

4-3  2.  The declaration may not impose limitations on the power of

4-4  the association to deal with the declarant which are more restrictive

4-5  than the limitations imposed on the power of the association to deal

4-6  with other persons.

4-7  Sec. 4.  NRS 116.31031 is hereby amended to read as follows:

4-8  116.31031  1.  [If] Except as otherwise provided in this

4-9  section, if a unit’s owner [,] or a tenant or guest of a unit’s owner [,

4-10  does not comply with a] violates any provision of the governing

4-11  documents of an association, the executive board of the association

4-12  may, if the governing documents so provide:

4-13      (a) Prohibit, for a reasonable time, the unit’s owner [,] or the

4-14  tenant or guest of the unit’s owner [,] from:

4-15          (1) Voting on matters related to the common-interest

4-16  community.

4-17          (2) Using the common elements. The provisions of this

4-18  subparagraph do not prohibit the unit’s owner [,] or the tenant or

4-19  guest of the unit’s owner [,] from using any vehicular or pedestrian

4-20  ingress or egress to go to or from the unit, including any area used

4-21  for parking.

4-22      (b) [Require] Impose a fine against the unit’s owner [,] or the

4-23  tenant or guest of the unit’s owner [, to pay a fine] for each [failure

4-24  to comply that does not threaten the health and welfare of the

4-25  common-interest community.] violation, except that a fine may not

4-26  be imposed for a violation that is the subject of a construction

4-27  penalty pursuant to section 1 of this act. The fine must be

4-28  commensurate with the severity of the violation, but must not

4-29  exceed $100 for each violation or a total amount of $500, whichever

4-30  is less.

4-31      2.  The executive board may not impose a fine pursuant to

4-32  subsection 1 unless:

4-33      (a) Not less than 30 days before the violation, the person

4-34  against whom the fine will be imposed had been provided with

4-35  written notice of the applicable provisions of the governing

4-36  documents that form the basis of the violation; and

4-37      (b) Within a reasonable time after the discovery of the

4-38  violation, the person against whom the fine will be imposed has

4-39  been provided with:

4-40          (1) Written notice specifying the details of the violation, the

4-41  amount of the fine, and the date, time and location for a hearing

4-42  on the violation; and

4-43          (2) A reasonable opportunity to contest the violation at the

4-44  hearing.

5-1  3.  The executive board must schedule the date, time and

5-2  location for the hearing on the violation so that the person against

5-3  whom the fine will be imposed is provided with a reasonable

5-4  opportunity to prepare for the hearing and to be present at the

5-5  hearing.

5-6  4.  The executive board must hold a hearing before it may

5-7  impose the fine, unless the person against whom the fine will be

5-8  imposed:

5-9  (a) Pays the fine;

5-10      (b) Executes a written waiver of the right to the hearing; or

5-11      (c) Fails to appear at the hearing after being provided with

5-12  proper notice of the hearing.

5-13      5.  If a fine is imposed pursuant to subsection 1 and the

5-14  violation is not cured within 14 days , or [a] within any longer

5-15  period [as] that may be established by the executive board, the

5-16  violation shall be deemed a continuing violation. Thereafter, the

5-17  executive board may impose an additional fine for the violation for

5-18  each 7-day period or portion thereof that the violation is not cured.

5-19  Any additional fine may be imposed without notice and an

5-20  opportunity to be heard.

5-21      [3.  Except as otherwise provided in subsection 2, the

5-22  imposition of a fine pursuant to this section must comply with the

5-23  requirements of subsection 6 of NRS 116.31065.]

5-24      6.  If the governing documents so provide, the executive board

5-25  may appoint a committee, with not less than three members, to

5-26  conduct hearings on violations and to impose fines pursuant to

5-27  this section. While acting on behalf of the executive board for

5-28  those limited purposes, the committee and its members are entitled

5-29  to all privileges and immunities and are subject to all duties and

5-30  requirements of the executive board and its members.

5-31      7.  The provisions of this section establish the minimum

5-32  procedural requirements that the executive board must follow

5-33  before it may impose a fine. The provisions of this section do not

5-34  preempt any provisions of the governing documents that provide

5-35  greater procedural protections.

5-36      Sec. 5.  NRS 116.31065 is hereby amended to read as follows:

5-37      116.31065  The rules adopted by an association:

5-38      1.  Must be reasonably related to the purpose for which they are

5-39  adopted.

5-40      2.  Must be sufficiently explicit in their prohibition, direction or

5-41  limitation to inform a [unit’s owner, or a tenant or guest of a unit’s

5-42  owner,] person of any action or omission required for compliance.

5-43      3.  Must not be adopted to evade any obligation of the

5-44  association.

6-1  4.  Must be consistent with the governing documents of the

6-2  association and must not arbitrarily restrict conduct or require the

6-3  construction of any capital improvement by a unit’s owner that is

6-4  not required by the governing documents of the association.

6-5  5.  Must be uniformly enforced under the same or similar

6-6  circumstances against all units’ owners. Any rule that is not so

6-7  uniformly enforced may not be enforced against any unit’s owner.

6-8  6.  May be enforced by the [assessment] association through

6-9  the imposition of a fine only if[:

6-10      (a) The person alleged to have violated the rule has received

6-11  notice of the alleged violation that informs him of his opportunity to

6-12  request a hearing on the alleged violation.

6-13      (b) At least 30 days before the alleged violation, the person

6-14  alleged to have violated the rule was given written notice of the rule

6-15  or any amendment to the rule.] the association complies with the

6-16  requirements set forth in NRS 116.31031.

6-17      Sec. 6.  NRS 116.3108 is hereby amended to read as follows:

6-18      116.3108  1.  A meeting of the units’ owners of an association

6-19  must be held at least once each year. If the governing documents of

6-20  a common‑interest community do not designate an annual meeting

6-21  date of the units’ owners, a meeting of the units’ owners must be

6-22  held 1 year after the date of the last meeting of the units’ owners. If

6-23  the units’ owners have not held a meeting for 1 year, a meeting of

6-24  the units’ owners must be held on the following March 1. Special

6-25  meetings of the units’ owners of an association may be called by the

6-26  president, a majority of the executive board or by units’ owners

6-27  having 10 percent, or any lower percentage specified in the bylaws,

6-28  of the votes in the association.

6-29      2.  Not less than 10 nor more than 60 days in advance of any

6-30  meeting of the units’ owners of an association, the secretary or other

6-31  officer specified in the bylaws shall cause notice of the meeting to

6-32  be hand‑delivered, sent prepaid by United States mail to the mailing

6-33  address of each unit or to any other mailing address designated in

6-34  writing by the unit’s owner or, if the association offers to send

6-35  notice by electronic mail, sent by electronic mail at the request of

6-36  the unit’s owner to an electronic mail address designated in writing

6-37  by the unit’s owner. The notice of the meeting must state the time

6-38  and place of the meeting and include a copy of the agenda for the

6-39  meeting. The notice must include notification of the right of a unit’s

6-40  owner to:

6-41      (a) Have a copy of the minutes or a summary of the minutes of

6-42  the meeting [distributed to him] provided to the unit’s owner upon

6-43  request and, if required by the executive board, upon payment to the

6-44  association of the cost of [making the distribution.] providing the

6-45  copy to the unit’s owner.

7-1  (b) Speak to the association or executive board, unless the

7-2  executive board is meeting in executive session.

7-3  3.  The agenda for a meeting of the units’ owners must consist

7-4  of:

7-5  (a) A clear and complete statement of the topics scheduled to be

7-6  considered during the meeting, including, without limitation, any

7-7  proposed amendment to the declaration or bylaws, any fees or

7-8  assessments to be imposed or increased by the association, any

7-9  budgetary changes and any proposal to remove an officer of the

7-10  association or member of the executive board.

7-11      (b) A list describing the items on which action may be taken and

7-12  clearly denoting that action may be taken on those items. In an

7-13  emergency, the units’ owners may take action on an item which is

7-14  not listed on the agenda as an item on which action may be taken.

7-15      (c) A period devoted to comments by units’ owners and

7-16  discussion of those comments. Except in emergencies, no action

7-17  may be taken upon a matter raised under this item of the agenda

7-18  until the matter itself has been specifically included on an agenda as

7-19  an item upon which action may be taken pursuant to paragraph (b).

7-20      4.  If the association adopts a policy imposing [a fine on a unit’s

7-21  owner for the violation of the declaration, bylaws or other rules

7-22  established by] fines for any violations of the governing documents

7-23  of the association, the secretary or other officer specified in the

7-24  bylaws shall prepare and cause to be hand‑delivered or sent prepaid

7-25  by United States mail to the mailing address of each unit or to any

7-26  other mailing address designated in writing by the unit’s owner, a

7-27  schedule of the fines that may be imposed for those violations.

7-28      5.  Not more than 30 days after any meeting of the units’

7-29  owners, the secretary or other officer specified in the bylaws shall

7-30  cause the minutes or a summary of the minutes of the meeting to be

7-31  made available to the units’ owners. A copy of the minutes or a

7-32  summary of the minutes must be provided to any unit’s owner who

7-33  pays the association the cost of providing the copy to him.

7-34      6.  As used in this section, “emergency” means any occurrence

7-35  or combination of occurrences that:

7-36      (a) Could not have been reasonably foreseen;

7-37      (b) Affects the health, welfare and safety of the units’ owners of

7-38  the association;

7-39      (c) Requires the immediate attention of, and possible action by,

7-40  the executive board; and

7-41      (d) Makes it impracticable to comply with the provisions of

7-42  subsection 2 or 3.

7-43      Sec. 7.  NRS 116.31085 is hereby amended to read as follows:

7-44      116.31085  1.  Except as otherwise provided in this section, a

7-45  unit’s owner may attend any meeting of the units’ owners of the

8-1  association or of the executive board and speak at any such meeting.

8-2  The executive board may establish reasonable limitations on the

8-3  time a unit’s owner may speak at such a meeting.

8-4  2.  An executive board may meet in executive session to:

8-5  (a) Consult with the attorney for the association on matters

8-6  relating to proposed or pending litigation if the contents of the

8-7  discussion would otherwise be governed by the privilege set forth in

8-8  NRS 49.035 to 49.115, inclusive;

8-9  (b) Discuss matters relating to personnel; [or

8-10      (c) Discuss]

8-11      (c) Except as otherwise provided in subsection 3, discuss a

8-12  violation of the governing documents , [alleged to have been

8-13  committed by a unit’s owner,] including, without limitation, the

8-14  failure to pay an assessment [, except as otherwise provided in

8-15  subsection 3.] ; or

8-16      (d) Discuss the alleged failure of a unit’s owner to adhere to a

8-17  schedule required pursuant to section 1 of this act if the alleged

8-18  failure may subject the unit’s owner to a construction penalty.

8-19      3.  An executive board shall meet in executive session to hold a

8-20  hearing on an alleged violation of the governing documents unless

8-21  the [unit’s owner who allegedly committed] person who may be

8-22  sanctioned for the alleged violation requests in writing that the

8-23  hearing be conducted by the executive board at an open meeting.

8-24  The [unit’s owner who is alleged to have committed] person who

8-25  may be sanctioned for the alleged violation [may] is entitled to

8-26  attend the hearing and testify concerning the alleged violation, but

8-27  the person may be excluded by the executive board from any other

8-28  portion of the hearing, including, without limitation, the

8-29  deliberations of the executive board.

8-30      4.  Except as otherwise provided in this subsection, any matter

8-31  discussed by the executive board when it meets in executive session

8-32  must be generally noted in the minutes of the meeting of the

8-33  executive board. The executive board shall maintain minutes of any

8-34  decision made pursuant to subsection 3 concerning an alleged

8-35  violation and, upon request, provide a copy of the decision to the

8-36  [unit’s owner who was the subject of the hearing] person who was

8-37  subject to being sanctioned at the hearing or to his designated

8-38  representative.

8-39      5.  Except as otherwise provided in subsection 3, a unit’s owner

8-40  is not entitled to attend or speak at a meeting of the executive board

8-41  held in executive session.

8-42      Sec. 8.  NRS 116.3116 is hereby amended to read as follows:

8-43      116.3116  1.  The association has a lien on a unit for any

8-44  construction penalty that is imposed against the unit’s owner

8-45  pursuant to section 1 of this act, any assessment levied against that

9-1  unit or any fines imposed against the unit’s owner from the time the

9-2  construction penalty, assessment or fine becomes due. Unless the

9-3  declaration otherwise provides, any penalties, fees, charges, late

9-4  charges, fines and interest charged pursuant to paragraphs (j) [, (k)

9-5  and (l)] to (n), inclusive, of subsection 1 of NRS 116.3102 are

9-6  enforceable as assessments under this section. If an assessment is

9-7  payable in installments, the full amount of the assessment is a lien

9-8  from the time the first installment thereof becomes due.

9-9  2.  A lien under this section is prior to all other liens and

9-10  encumbrances on a unit except:

9-11      (a) Liens and encumbrances recorded before the recordation of

9-12  the declaration and, in a cooperative, liens and encumbrances which

9-13  the association creates, assumes or takes subject to;

9-14      (b) A first security interest on the unit recorded before the date

9-15  on which the assessment sought to be enforced became delinquent

9-16  [,] or, in a cooperative, the first security interest encumbering only

9-17  the unit’s owner’s interest and perfected before the date on which

9-18  the assessment sought to be enforced became delinquent; and

9-19      (c) Liens for real estate taxes and other governmental

9-20  assessments or charges against the unit or cooperative.

9-21  The lien is also prior to all security interests described in paragraph

9-22  (b) to the extent of the assessments for common expenses based on

9-23  the periodic budget adopted by the association pursuant to NRS

9-24  116.3115 which would have become due in the absence of

9-25  acceleration during the 6 months immediately preceding institution

9-26  of an action to enforce the lien. This subsection does not affect the

9-27  priority of mechanics’ or materialmen’s liens, or the priority of liens

9-28  for other assessments made by the association.

9-29      3.  Unless the declaration otherwise provides, if two or more

9-30  associations have liens for assessments created at any time on the

9-31  same property, those liens have equal priority.

9-32      4.  Recording of the declaration constitutes record notice and

9-33  perfection of the lien. No further recordation of any claim of lien for

9-34  assessment under this section is required.

9-35      5.  A lien for unpaid assessments is extinguished unless

9-36  proceedings to enforce the lien are instituted within 3 years after the

9-37  full amount of the assessments becomes due.

9-38      6.  This section does not prohibit actions to recover sums for

9-39  which subsection 1 creates a lien or prohibit an association from

9-40  taking a deed in lieu of foreclosure.

9-41      7.  A judgment or decree in any action brought under this

9-42  section must include costs and reasonable attorney’s fees for the

9-43  prevailing party.

9-44      8.  The association , upon written request , shall furnish to a

9-45  unit’s owner a statement setting forth the amount of unpaid

10-1  assessments against the unit. If the interest of the unit’s owner is real

10-2  estate, the statement must be in recordable form. The statement must

10-3  be furnished within 10 business days after receipt of the request and

10-4  is binding on the association, the executive board and every unit’s

10-5  owner.

10-6      9.  In a cooperative, upon nonpayment of an assessment on a

10-7  unit, the unit’s owner may be evicted in the same manner as

10-8  provided by law in the case of an unlawful holdover by a

10-9  commercial tenant, and the lien may be foreclosed as provided by

10-10  this section or by NRS 116.31162 to 116.31168, inclusive.

10-11     10.  In a cooperative where the owner’s interest in a unit is

10-12  personal property [(] under NRS 116.1105 , [),] the association’s

10-13  lien may be foreclosed [in like manner] as a security interest under

10-14  NRS 104.9101 to 104.9709, inclusive.

10-15     Sec. 9.  NRS 116.31162 is hereby amended to read as follows:

10-16     116.31162  1.  Except as otherwise provided in subsection 4,

10-17  in a condominium, in a cooperative where the owner’s interest in a

10-18  unit is real estate [as determined pursuant to] under NRS 116.1105,

10-19  or in a planned community, the association may foreclose its lien by

10-20  sale after:

10-21     (a) The association has mailed by certified or registered mail,

10-22  return receipt requested, to the unit’s owner or his successor in

10-23  interest, at his address if known[,] and at the address of the unit, a

10-24  notice of delinquent assessment which states the amount of the

10-25  assessments and other sums which are due in accordance with

10-26  subsection 1 of NRS 116.3116, a description of the unit against

10-27  which the lien is imposed[,] and the name of the record owner of

10-28  the unit;

10-29     (b) The association or other person conducting the sale has

10-30  executed and caused to be recorded, with the county recorder of the

10-31  county in which the common-interest community or any part of it is

10-32  situated, a notice of default and election to sell the unit to satisfy the

10-33  lien, which contains the same information as the notice of

10-34  delinquent assessment, but must also describe the deficiency in

10-35  payment and the name and address of the person authorized by the

10-36  association to enforce the lien by sale; and

10-37     (c) The unit’s owner or his successor in interest has failed to pay

10-38  the amount of the lien, including costs, fees and expenses incident to

10-39  its enforcement, for 60 days following the recording of the notice of

10-40  default and election to sell.

10-41     2.  The notice of default and election to sell must be signed by

10-42  the person designated in the declaration or by the association for that

10-43  purpose[,] or , if no one is designated, by the president of the

10-44  association.

11-1      3.  The period of 60 days begins on the first day following the

11-2  later of:

11-3      (a) The day on which the notice of default is recorded; or

11-4      (b) The day on which a copy of the notice of default is mailed

11-5  by certified or registered mail, return receipt requested, to the unit’s

11-6  owner or his successor in interest at his address , if known, and at

11-7  the address of the unit.

11-8      4.  The association may not foreclose a lien by sale [for the

11-9  assessment of] based on a fine or penalty for a violation of the

11-10  [declaration, bylaws, rules or regulations] governing documents of

11-11  the association [, unless the violation is of a type that threatens]

11-12  unless:

11-13     (a) The violation threatens the health, safety or welfare of the

11-14  residents of the common-interest community [.] ; or

11-15     (b) The penalty is imposed for failure to adhere to a schedule

11-16  required pursuant to section 1 of this act.

11-17     Sec. 10.  NRS 38.300 is hereby amended to read as follows:

11-18     38.300  As used in NRS 38.300 to 38.360, inclusive, unless the

11-19  context otherwise requires:

11-20     1.  “Assessments” means:

11-21     (a) Any charge which an association may impose against an

11-22  owner of residential property pursuant to a declaration of covenants,

11-23  conditions and restrictions, including any late charges, interest and

11-24  costs of collecting the charges; and

11-25     (b) Any penalties, fines, fees and other charges which may be

11-26  imposed by an association pursuant to paragraphs (j) [, (k) and (l)]

11-27  to (n), inclusive, of subsection 1 of NRS 116.3102.

11-28     2.  “Association” has the meaning ascribed to it in

11-29  NRS 116.110315.

11-30     3.  “Civil action” includes an action for money damages or

11-31  equitable relief. The term does not include an action in equity for

11-32  injunctive relief in which there is an immediate threat of irreparable

11-33  harm, or an action relating to the title to residential property.

11-34     4.  “Division” means the Real Estate Division of the

11-35  Department of Business and Industry.

11-36     5.  “Residential property” includes, but is not limited to, real

11-37  estate within a planned community subject to the provisions of

11-38  chapter 116 of NRS. The term does not include commercial property

11-39  if no portion thereof contains property which is used for residential

11-40  purposes.

11-41     Sec. 11.  1.  The amendatory provisions of this act apply to

11-42  any violation of the governing documents of an association or

11-43  master association that occurs on or after October 1, 2003.

12-1      2.  Notwithstanding any other law to the contrary, if the

12-2  provisions of the governing documents of an association or master

12-3  association do not conform to the amendatory provisions of this act:

12-4      (a) The nonconforming provisions of the governing documents

12-5  shall be deemed to have been conformed to the amendatory

12-6  provisions of this act by operation of law on October 1, 2003; and

12-7      (b) If the association or master association is associated with a

12-8  common-interest community that was created on or after January 1,

12-9  1992, the executive board of the association or master association

12-10  may change the nonconforming provisions of the governing

12-11  documents to conform to the amendatory provisions of this act. The

12-12  executive board of the association or master association may make

12-13  such changes without complying with any procedural requirements

12-14  that would otherwise apply if the executive board were to amend the

12-15  governing documents of the association or master association in

12-16  accordance with law.

12-17     3.  As used in this section:

12-18     (a) “Association” has the meaning ascribed to it in

12-19  NRS 116.110315.

12-20     (b) “Common-interest community” has the meaning ascribed to

12-21  it in NRS 116.110323.

12-22     (c) “Executive board” has the meaning ascribed to it in

12-23  NRS 116.110345.

12-24     (d) “Governing documents” has the meaning ascribed to it in

12-25  NRS 116.110347.

12-26     (e) “Master association” has the meaning ascribed to it in

12-27  NRS 116.110358.

 

12-28  H