A.B. 211
- *AB211*
ASSEMBLY BILL NO. 211–ASSEMBLYMEMBER CONSIDINE
PREFILED FEBRUARY 3, 2025
____________
Referred to Committee on Government Affairs
SUMMARY—Revises provisions relating to substandard
properties. (BDR 20-811)
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
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; authorizing a county or city to require
a property owner to repair or rehabilitate or abate certain
conditions on a residential property under certain
circumstances; establishing procedures relating to a
property owner’s failure to repair or rehabilitate or abate
certain conditions on the residential property; authorizing
certain local governments and persons to bring an action
to require the repair or rehabilitation or abatement or
appoint a receiver for substandard property in certain
circumstances; establishing the powers and duties of a
receiver appointed for substandard property; making
various other changes relating to substandard properties;
and providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law: (1) requires a landlord to maintain a dwelling unit in a habitable 1
condition at all times during the tenancy; and (2) provides that a dwelling unit is not 2
habitable if it violates provisions of housing or health codes concerning the health, 3
safety, sanitation or fitness for habitation. (NRS 118A.290) 4
Sections 8 and 27 of this bill provide that: (1) if a residential property is 5
maintained in a way that violates any applicable habitability standard, housing code 6
or building code, or any statute or ordinance relating to habitability, building safety 7
or fire safety; and (2) as a result of the violation or violations, the condition of the 8
residential property is of such a nature that the health and safety of residents or the 9
public are substantially endangered, the appropriate department of the county or 10
city, as applicable, may notify the owner and order that the owner repair or 11
rehabilitate the property or abate the condition. Sections 8 and 27 also set forth 12
certain requirements for the notice. 13
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Sections 9 and 28 of this bill provide that if the owner of the residential 14
property fails to comply with the terms of the notice and summary order, the county 15
or city, as applicable, certain actions may be brought to have the residential 16
property declared to be a substandard property, including an action to have a 17
receiver appointed to manage the repair or rehabilitation of the substandard 18
property. 19
Sections 10 and 29 of this bill: (1) set forth certain findings and considerations 20
that must be made by the district court in order to declare a residential property to 21
be a substandard property; and (2) require an order issued by the district court 22
declaring a residential property to be a substandard property to set forth the 23
conditions that make the residential property a substandard property and the repairs, 24
rehabilitations and abatements that are necessary to correct each violation of a 25
habitability standard, housing code or building code, or any statute or ordinance 26
relating to habitability, building safety or fire safety. 27
Sections 11 and 30 of this bill provide that if the district court finds that there 28
is a condition of the substandard property which substantially endangers the health 29
and safety of the residents, the district court must: (1) order the owner of the 30
substandard property to pay all reasonable and actual costs of the board of county 31
commissioners or governing body of the city, as applicable; (2) order that the board 32
of county commissioners or governing body of the city provide each tenant with 33
notice of the judgment and court order; (3) order, uncertain circumstances, the 34
owner to provide or pay certain relocation benefits and compensation to the tenants; 35
(4) determine the date when a tenant has to relocate; and (5) make certain other 36
orders. 37
Sections 12 and 31 of this bill set forth certain duties for a receiver appointed 38
for a substandard property. 39
Sections 13 and 32 of this bill provide that a receiver appointed for a 40
substandard property is entitled to the same fees, commissions and necessary 41
expenses as a receiver in an action to foreclose a mortgage. 42
Sections 14 and 33 of this bill require a receiver appointed for a substandard 43
property to prepare and submit monthly reports to the board of county 44
commissioners or governing body of a city. 45
Sections 15 and 34 of this bill: (1) require the district court to discharge the 46
receiver for a substandard property under certain circumstances; and (2) authorize 47
the district court to retain jurisdiction over the substandard property for a period of 48
time not to exceed 18 consecutive months. 49
Sections 16 and 35 of this bill authorize the district court to require the owner 50
of a substandard property to pay all unrecovered costs associated with the 51
receivership. 52
Sections 17 and 36 of this bill provide that the remedies and penalties set forth 53
in sections 2-18 and 21-37 of this bill are cumulative, may not be abrogated and 54
are in addition to any other remedies or penalties that may exist in law or equity. 55
Sections 18 and 37 provide that nothing in sections 2-18 and 21-37 is intended 56
to deprive any owner of a residential property or substandard property any right 57
guaranteed by the United States Constitution or Nevada Constitution, including, the 58
right to due process. 59
Existing law authorizes a receiver to be appointed in certain actions. (NRS 60
32.010) Section 19 of this bill authorizes a receiver to be appointed in an action to 61
have a residential property declared to be a substandard property that is brought 62
pursuant to section 10 or 29 to manage the repair or rehabilitation of the 63
substandard property. 64
Sections 2-7 and 21-26 define certain terms used in the provisions of sections 65
2-18 and 21-37, respectively. 66
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THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 244 of NRS is hereby amended by adding 1
thereto the provisions set forth as sections 2 to 18, inclusive, of this 2
act. 3
Sec. 2. As used in sections 2 to 18, inclusive, of this act, 4
unless the context otherwise requires, the words and terms defined 5
in sections 3 to 7, inclusive, of this act have the meanings ascribed 6
to them in those sections. 7
Sec. 3. “Dwelling unit” means a structure or the part of the 8
structure that is occupied as, or designed or intended for 9
occupancy as, a residence or sleeping place by one person who 10
maintains a household or by two or more persons who maintain a 11
common household. 12
Sec. 4. “Habitability standard” includes, without limitation: 13
1. Any provision of an applicable housing or health code 14
concerning the health, safety, sanitation or fitness for habitation 15
of a dwelling unit; or 16
2. The requirements of chapter 118A of NRS relating to the 17
habitability of a dwelling unit, including, without limitation, the 18
provisions of subsection 1 of NRS 118A.290. 19
Sec. 5. “Receiver” means a receiver appointed by a district 20
court in an action to declare a residential property to be a 21
substandard property pursuant to section 10 of this act. 22
Sec. 6. “Residential property” means a parcel of land in the 23
unincorporated area of the county which is primarily used for 24
personal, family or household purposes to which is affixed one or 25
more dwelling units. 26
Sec. 7. “Substandard property” means residential property 27
that has been declared to be a substandard property by a district 28
court pursuant to section 10 of this act. 29
Sec. 8. 1. If the appropriate department of a county finds 30
that: 31
(a) A residential property is maintained in a way that violates 32
any applicable habitability standard, housing code or building 33
code, or any statute or ordinance relating to habitability, building 34
safety or fire safety; and 35
(b) As a result of the violation or violations described in 36
paragraph (a), the condition of the residential property is of such a 37
nature that the health and safety of residents or the public is 38
substantially endangered, 39
the county may notify the owner of the residential property and 40
order that the owner repair or rehabilitate the residential property 41
or otherwise abate the condition. 42
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2. Any notice and order issued pursuant to subsection 1: 1
(a) Must include, without limitation: 2
(1) The name, address and telephone number of the county 3
department that issued the notice and summary order; 4
(2) The date, time and location of any public hearing or 5
proceeding concerning the notice and summary order; 6
(3) A description of each violation of a habitability 7
standard, housing code or building code, or any statute or 8
ordinance relating to habitability, building safety or fire safety, as 9
applicable; 10
(4) Any deadline by which the owner must repair or 11
rehabilitate the residential property or otherwise abate the 12
condition; and 13
(5) A statement that the owner or lessor, if applicable, is 14
prohibited from retaliating against any tenant pursuant to NRS 15
118A.510; and 16
(b) Must be either: 17
(1) Posted in a conspicuous place on the residential 18
property and mailed by first-class mail to the owner and each 19
affected resident of a dwelling unit on the residential property; or 20
(2) Posted in a conspicuous place on the residential 21
property and in a prominent place on each affected dwelling unit 22
on the residential property. 23
Sec. 9. 1. If the owner of a residential property fails to 24
comply within the terms of the notice and summary order issued 25
pursuant to section 8 of this act: 26
(a) The county may bring an action to: 27
(1) Have the residential property declared by the district 28
court to be a substandard property; 29
(2) Obtain a court order requiring the owner to repair or 30
rehabilitate the residential property or otherwise abate the 31
condition; and 32
(3) Have the district court impose a civil penalty against the 33
owner of the residential property, as provided by ordinance; or 34
(b) The county or a tenant, a tenant association or a nonprofit 35
organization representing any tenant or tenant association may 36
bring an action to: 37
(1) Have the residential property declared to be a 38
substandard property; and 39
(2) Have a receiver appointed pursuant to NRS 32.010. 40
2. A party who intends to bring an action for the appointment 41
of a receiver pursuant to paragraph (b) of subsection 1 shall: 42
(a) Not later than 3 days before filing such an action, provide 43
notice of intent to bring the action by: 44
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(1) Posting a notice in a conspicuous place on the 1
residential property; and 2
(2) Mailing the notice to each person with a recorded 3
interest in the residential property; and 4
(b) Provide with the court filing proof that the party provided 5
the notice of intent to bring the action as required pursuant to 6
paragraph (a). 7
3. A party who brings an action pursuant to subsection 1 8
must serve each owner of the residential property in the manner 9
provided by Rule 4 of the Nevada Rules of Civil Procedure. 10
4. The prevailing party in an action brought pursuant to this 11
section is entitled to reasonable attorney’s fees and costs, as may 12
be fixed by the district court. 13
Sec. 10. 1. To declare a residential property to be a 14
substandard property, the district court must find: 15
(a) The residential property is maintained in a way that 16
violates one or more applicable habitability standards, housing 17
codes or building codes, or any statute or ordinance relating to 18
habitability, building safety or fire safety; 19
(b) The condition of the residential property that is caused by 20
the violation or violations described in paragraph (a) is so 21
extensive and of such a nature that the health and safety of 22
residents of the building or the public is substantially endangered; 23
and 24
(c) Any other factor that the district court finds relevant. 25
2. In determining whether to appoint a receiver for a 26
substandard property, the district court shall consider: 27
(a) Whether the owner of the substandard property has been 28
afforded a reasonable opportunity to repair or rehabilitate the 29
property or otherwise abate the condition; and 30
(b) Any other factor that the district court finds relevant. 31
3. The district court: 32
(a) Except as otherwise provided in paragraph (b), may 33
appoint a nonprofit organization, community development 34
corporation or other person as a receiver. 35
(b) Shall not appoint any nonprofit organization, community 36
development corporation or person as a receiver unless the 37
nonprofit organization, community development corporation or 38
person has demonstrated to the district court the necessary 39
capacity and expertise to develop and supervise a viable financial 40
and construction plan for the satisfactory rehabilitation of the 41
substandard property. 42
4. An order issued by a district court declaring a residential 43
property to be a substandard property must, without limitation, set 44
forth: 45
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(a) The conditions found by the district court that make the 1
residential property a substandard property; and 2
(b) The repairs, rehabilitations and abatements that the district 3
court finds to be necessary in order to correct each violation of a 4
habitability standard, housing code or building code, or any 5
statute or ordinance relating to habitability, building safety or fire 6
safety. 7
Sec. 11. 1. If the district court finds that there is a 8
condition of the substandard property which substantially 9
endangers the health and safety of the residents of the 10
substandard property, upon the entry of any order or judgment 11
pursuant to section 10 of this act, the district court shall: 12
(a) Order the owner of the substandard property to pay all 13
reasonable and actual costs of the board of county commissioners 14
or its designee, including, without limitation, inspection costs, 15
investigation costs, enforcement costs, attorney’s fees and costs 16
and all costs of prosecution. 17
(b) Order that the board of county commissioners or its 18
designee shall provide each tenant of the substandard property 19
with the notice of the district court order or judgment. 20
(c) If the conditions of the substandard property or the repair, 21
rehabilitation or abatement thereof significantly affect the safe 22
and sanitary use of the substandard property by any lawful tenant, 23
such that the tenant cannot safely reside in the premises, order the 24
owner to provide or pay relocation benefits to each lawful tenant. 25
These benefits must consist of actual reasonable moving and 26
storage costs and relocation compensation, including, without 27
limitation, the costs and compensation for the following: 28
(1) Transportation of the personal property of the tenant to 29
the new location. The new location must be in close proximity to 30
the substandard property, except where relocation to a new 31
location beyond a close proximity is determined by the district 32
court to be justified. 33
(2) Packing, crating, unpacking and uncrating all personal 34
property of the tenant. 35
(3) Insurance of the property of the tenant while in transit. 36
(4) The reasonable replacement value of any personal 37
property lost, stolen or damaged, other than any personal property 38
that was lost, stolen or damaged through the fault or negligence of 39
the displaced tenant, or his or her agent or employee, in the 40
process of moving, where insurance covering the loss, theft or 41
damage is not reasonably available. 42
(5) The cost of disconnecting, dismantling, removing, 43
reassembling, reconnecting and reinstalling machinery, 44
equipment or other personal property of the tenant, including 45
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connection charges imposed by utility companies for starting 1
utility service. 2
(6) Relocation compensation in an amount equal to the 3
differential between the contract rent and the fair market rental 4
value determined by the United States Department of Housing and 5
Urban Development for a unit of comparable size within the area 6
for the period that the unit is being repaired or rehabilitated, for 7
not more than 120 days. 8
(d) Determine the date when the tenant is to relocate, and 9
order the tenant to notify the board of county commissioners or its 10
designee and the owner of the dwelling unit of the address to 11
which the tenant has relocated not more than 5 days after the 12
relocation. 13
(e) Order that the owner of the substandard property offer the 14
first right of occupancy of a dwelling unit to each tenant who 15
received benefits pursuant to this section, before letting the 16
dwelling unit for rent to a third party. Except as otherwise 17
provided in this paragraph, the offer for first right of occupancy to 18
the tenant must be in writing and sent by certified mail to the 19
address given by the tenant at the time of relocation. If the owner 20
has not been provided the address of the tenant by the tenant as 21
required by this section, the owner is not required to offer the 22
tenant the first right of occupancy. The tenant may accept the 23
offer by giving the owner notice in writing by certified mail not 24
later than 10 days after the owner mailed the offer. 25
(f) Order that if the owner fails to comply with any order 26
issued pursuant to sections 2 to 18, inclusive, of this act, the court 27
may: 28
(1) Sanction the person for civil contempt; 29
(2) Impose any penalty authorized pursuant to NRS 30
244.3603 as if the substandard property were a chronic nuisance; 31
or 32
(3) Any other penalty provided by law. 33
2. If the district court finds that a tenant has been 34
substantially responsible for causing or substantially contributing 35
to the conditions found by the district court that make the 36
residential property a substandard property, the court shall not 37
grant to the tenant any relocation compensation or benefits. 38
3. Any tenant of the substandard property who has been 39
ordered to relocate due to the conditions found by the district court 40
that make the residential property a substandard property and who 41
is not substantially responsible for causing or contributing to the 42
condition must be paid these benefits and moving costs at the time 43
that the tenant actually relocates. 44
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Sec. 12. 1. If the district court appoints a receiver for a 1
substandard property pursuant to section 10 of this act, the owner 2
of the substandard property, and any agent or employee of the 3
owner, shall not collect rent from any tenant, interfere with the 4
receiver in the operation of the substandard property or encumber 5
or transfer any interest in the substandard property. 6
2. Unless otherwise ordered by the district court, a receiver 7
for a substandard property shall: 8
(a) Take full and complete control of the substandard property. 9
(b) Manage the substandard property and pay any expenses of 10
the operation of the substandard property, including, without 11
limitation, paying the taxes, insurance, utilities, general 12
maintenance and debt secured by an interest in the substandard 13
property. 14
(c) Secure a cost estimate and construction plan from a 15
licensed contractor for the repairs, rehabilitation or abatement 16
necessary to correct the conditions cited in the order issued 17
pursuant to section 10 of this act. 18
(d) Enter into contracts and employ a licensed contractor as 19
necessary to correct the conditions cited in the order issued 20
pursuant to section 10 of this act. 21
(e) Collect all rents and income generated by the substandard 22
property. 23
(f) Use all rents and income generated by the substandard 24
property to pay for the cost of the repairs, rehabilitation or 25
abatement determined by the district court to be necessary to 26
correct the conditions cited in the order issued pursuant to section 27
10 of this act. 28
(g) Borrow money to pay for repairs, rehabilitation or 29
abatement necessary to correct the conditions cited in the order 30
issued pursuant to section 10 of this act and to borrow money to 31
pay for any relocation benefits for tenants that are authorized 32
pursuant to section 11 of this act and, with district court approval, 33
secure that debt and any money owed to the receiver for services 34
performed pursuant to this section with a lien on the residential 35
property upon which the substandard property is situated. The lien 36
shall be recorded in the county recorder’s office in the county 37
wherein the substandard property is situated. 38
(h) To exercise any other power granted to a receiver pursuant 39
to chapter 32 of NRS. 40
(i) Provide any relocation benefits to a tenant that are ordered 41
by the court pursuant to section 11 of this act. 42
3. If the district court appoints as a receiver a nonprofit 43
organization or community development corporation, in addition 44
to the powers and duties that are granted pursuant to subsection 2, 45
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the nonprofit organization or community development corporation 1
may apply for grants to assist in the rehabilitation of the 2
substandard property. 3
Sec. 13. A receiver appointed pursuant to section 10 of this 4
act is entitled to the same fees, commissions and necessary 5
expenses as a receiver in an action to foreclose a mortgage. 6
Sec. 14. In addition to any periodic reporting required by the 7
district court, the receiver shall prepare and submit monthly 8
reports relating to a substandard property to the board of county 9
commissioners or its designee. The report to the board of county 10
commissioners must include, without limitation: 11
1. The total amount of rent payments received from tenants 12
of the substandard property; 13
2. The nature and amount of any contract that is negotiated 14
or entered into by the receiver relating to the operation, repair or 15
rehabilitation of or the abatement of a condition at the 16
substandard property; 17
3. A record of payments made by the receiver relating to the 18
operation, repair or rehabilitation of or the abatement of a 19
condition at the substandard property; 20
4. Information relating to the progress of the repair or 21
rehabilitation of the substandard property or abatement of a 22
condition at the substandard property; and 23
5. A record of any amount paid to a tenant pursuant to 24
section 12 of this act for relocation benefits. 25
Sec. 15. 1. A district court must discharge the receiver 26
appointed pursuant to section 10 of this act when the district court 27
finds that: 28
(a) The conditions set forth in the court order issued pursuant 29
to section 10 of this act that made the residential property a 30
substandard property have been properly repaired or abated; and 31
(b) A complete accounting of all costs relating to the 32
operation, repair or rehabilitation of or abatement of a condition 33
at the substandard property has been delivered to the district court. 34
2. Upon correction of the conditions that made the residential 35
property a substandard property, the owner, the mortgagee or any 36
lienholder may apply for the discharge of all money not used by 37
the receiver for removal of the condition and all other costs. 38
3. After discharging the receiver, the district court may: 39
(a) Retain jurisdiction over the substandard property for a 40
period of time not to exceed than 18 consecutive months; and 41
(b) Require the owner of the substandard property and the 42
board of county commissioners or its designee to report to the 43
district court on the substandard property in accordance with a 44
schedule determined by the district court. 45
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Sec. 16. Upon the request of a receiver, the district court may 1
require the owner of the substandard property to pay all 2
unrecovered costs associated with the receivership. 3
Sec. 17. 1. The remedies and penalties provided in sections 4
2 to 18, inclusive, of this act are cumulative, may not be abrogated 5
and are in addition to any other remedies or penalties that may 6
exist in law or equity. 7
2. The provisions of sections 2 to 18, inclusive, of this act 8
shall not be construed to limit those rights available to a landlord 9
or tenant pursuant to any other provision of law. 10
Sec. 18. Nothing in the provisions of sections 2 to 18, 11
inclusive, of this act is intended to deprive any owner of a 12
residential property or substandard property any right guaranteed 13
by the United States Constitution or Nevada Constitution, 14
including, without limitation, the right to due process. 15
Sec. 19. NRS 32.010 is hereby amended to read as follows: 16
32.010 A receiver may be appointed by the court in which an 17
action is pending, or by the judge thereof: 18
1. In an action by a vendor to vacate a fraudulent purchase of 19
property, or by a creditor to subject any property or fund to the 20
creditor’s claim, or between partners or others jointly owning or 21
interested in any property or fund, on application of the plaintiff, or 22
of any party whose right to or interest in the property or fund, or the 23
proceeds thereof, is probable, and where it is shown that the 24
property or fund is in danger of being lost, removed or materially 25
injured. 26
2. In an action by a mortgagee for the foreclosure of the 27
mortgage and sale of the mortgaged property, where it appears that 28
the mortgaged property is in danger of being lost, removed or 29
materially injured, or that the condition of the mortgage has not 30
been performed, and that the property is probably insufficient to 31
discharge the mortgage debt. 32
3. In an action to have a residential property declared to be a 33
substandard property that is brought pursuant to section 10 or 29 34
of this act to manage the repair or rehabilitation of the 35
substandard property. 36
4. After judgment, to carry the judgment into effect. 37
[4.] 5. After judgment, to dispose of the property according to 38
the judgment, or to preserve it during the pendency of an appeal, or 39
in proceedings in aid of execution, when an execution has been 40
returned unsatisfied, or when the judgment debtor refuses to apply 41
the judgment debtor’s property in satisfaction of the judgment. 42
[5.] 6. In the cases when a corporation has been dissolved, or 43
is insolvent, or in imminent danger of insolvency, or has forfeited its 44
corporate rights. 45
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[6.] 7. In all other cases where receivers have heretofore been 1
appointed by the usages of the courts of equity. 2
Sec. 20. Chapter 268 of NRS is hereby amended by adding 3
thereto the provisions set forth as sections 21 to 37, inclusive, of this 4
act. 5
Sec. 21. As used in sections 21 to 37, inclusive, of this act, 6
unless the context otherwise requires, the words and terms defined 7
in sections 22 to 26, inclusive, of this act have the meanings 8
ascribed to them in those sections. 9
Sec. 22. “Dwelling unit” means a structure or the part of the 10
structure that is occupied as, or designed or intended for 11
occupancy as, a residence or sleeping place by one person who 12
maintains a household or by two or more persons who maintain a 13
common household. 14
Sec. 23. “Habitability standard” includes, without limitation: 15
1. Any provision of an applicable housing or health code 16
concerning the health, safety, sanitation or fitness for habitation 17
of a dwelling unit; or 18
2. The requirements of chapter 118A of NRS relating to the 19
habitability of a dwelling unit, including, without limitation, the 20
provisions of subsection 1 of NRS 118A.290. 21
Sec. 24. “Receiver” means a receiver appointed by a district 22
court in an action to declare a residential property to be a 23
substandard property pursuant to section 29 of this act. 24
Sec. 25. “Residential property” means a parcel of land in the 25
incorporated area of the city which is primarily used for personal, 26
family or household purposes to which is affixed one or more 27
dwelling units. 28
Sec. 26. “Substandard property” means residential property 29
that has been declared to be a substandard property by a district 30
court pursuant to section 29 of this act. 31
Sec. 27. 1. If the appropriate department of a city finds 32
that: 33
(a) A residential property is maintained in a way that violates 34
any applicable habitability standard, housing code or building 35
code, or any statute or ordinance relating to habitability, building 36
safety or fire safety; and 37
(b) As a result of the violation or violations described in 38
paragraph (a), the condition of the residential property is of such a 39
nature that the health and safety of residents or the public is 40
substantially endangered, 41
the city may notify the owner of the residential property and 42
order that the owner repair or rehabilitate the residential property 43
or otherwise abate the condition. 44
2. Any notice and order issued pursuant to subsection 1: 45
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(a) Must include, without limitation: 1
(1) The name, address and telephone number of the city 2
department that issued the notice and summary order; 3
(2) The date, time and location of any public hearing or 4
proceeding concerning the notice and summary order; 5
(3) A description of each violation of a habitability 6
standard, housing code or building code, or any statute or 7
ordinance relating to habitability, building safety or fire safety, as 8
applicable; 9
(4) Any deadline by which the owner must repair or 10
rehabilitate the residential property or otherwise abate the 11
condition; and 12
(5) A statement that the owner or lessor, if applicable, is 13
prohibited from retaliating against any tenant pursuant to NRS 14
118A.510; and 15
(b) Must be either: 16
(1) Posted in a conspicuous place on the residential 17
property and mailed by first-class mail to the owner and each 18
affected resident of a dwelling unit on the residential property; or 19
(2) Posted in a conspicuous place on the residential 20
property and in a prominent place on each affected dwelling unit 21
on the residential property. 22
Sec. 28. 1. If the owner of a residential property fails to 23
comply within the terms of the notice and summary order issued 24
pursuant to section 27 of this act: 25
(a) The city may bring an action to: 26
(1) Have the residential property declared by the district 27
court to be a substandard property; 28
(2) Obtain a court order requiring the owner to repair or 29
rehabilitate the residential property or otherwise abate the 30
condition; and 31
(3) Have the district court impose a civil penalty against the 32
owner of the residential property, as provided by ordinance; or 33
(b) The city or a tenant, a tenant association or a nonprofit 34
organization representing any tenant or tenant association may 35
bring an action to: 36
(1) Have the residential property declared to be a 37
substandard property; and 38
(2) Have a receiver appointed pursuant to NRS 32.010. 39
2. A party who intends to bring an action for the appointment 40
of a receiver pursuant to paragraph (b) of subsection 1 shall: 41
(a) Not later than 3 days before filing such an action, provide 42
notice of intent to bring the action by: 43
(1) Posting a notice in a conspicuous place on the 44
residential property; and 45
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(2) Mailing the notice to each person with a recorded 1
interest in the residential property; and 2
(b) Provide with the court filing proof that the party provided 3
the notice of intent to bring the action as required pursuant to 4
paragraph (a). 5
3. A party who brings an action pursuant to subsection 1 6
must serve each owner of the residential property in the manner 7
provided by Rule 4 of the Nevada Rules of Civil Procedure. 8
4. The prevailing party in an action brought pursuant to this 9
section is entitled to reasonable attorney’s fees and costs, as may 10
be fixed by the district court. 11
Sec. 29. 1. To declare a residential property to be a 12
substandard property, the district court must find: 13
(a) The residential property is maintained in a way that 14
violates one or more applicable habitability standards, housing 15
codes or building codes, or any statute or ordinance relating to 16
habitability, building safety or fire safety; 17
(b) The condition of the residential property that is caused by 18
the violation or violations described in paragraph (a) is so 19
extensive and of such a nature that the health and safety of 20
residents of the building or the public is substantially endangered; 21
and 22
(c) Any other factor that the district court finds relevant. 23
2. In determining whether to appoint a receiver for a 24
substandard property, the district court shall consider: 25
(a) Whether the owner of the substandard property has been 26
afforded a reasonable opportunity to repair or rehabilitate the 27
property or otherwise abate the condition; and 28
(b) Any other factor that the district court finds relevant. 29
3. The district court: 30
(a) Except as otherwise provided in paragraph (b), may 31
appoint a nonprofit organization, community development 32
corporation or other person as a receiver. 33
(b) Shall not appoint any nonprofit organization, community 34
development corporation or person as a receiver unless the 35
nonprofit organization, community development corporation or 36
person has demonstrated to the district court the necessary 37
capacity and expertise to develop and supervise a viable financial 38
and construction plan for the satisfactory rehabilitation of the 39
substandard property. 40
4. An order issued by a district court declaring a residential 41
property to be a substandard property must, without limitation, set 42
forth: 43
(a) The conditions found by the district court that make the 44
residential property a substandard property; and 45
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(b) The repairs, rehabilitations and abatements that the district 1
court finds to be necessary in order to correct each violation of a 2
habitability standard, housing code or building code, or any 3
statute or ordinance relating to habitability, building safety or fire 4
safety. 5
Sec. 30. 1. If the district court finds that there is a 6
condition of the substandard property which substantially 7
endangers the health and safety of the residents of the 8
substandard property, upon the entry of any order or judgment 9
pursuant to section 29 of this act, the district court shall: 10
(a) Order the owner of the substandard property to pay all 11
reasonable and actual costs of the governing body of the city or its 12
designee, including, without limitation, inspection costs, 13
investigation costs, enforcement costs, attorney’s fees and costs 14
and all costs of prosecution. 15
(b) Order that the governing body of the city or its designee 16
shall provide each tenant of the substandard property with the 17
notice of the district court order or judgment. 18
(c) If the conditions of the substandard property or the repair, 19
rehabilitation or abatement thereof significantly affect the safe 20
and sanitary use of the substandard property by any lawful tenant, 21
such that the tenant cannot safely reside in the premises, order the 22
owner to provide or pay relocation benefits to each lawful tenant. 23
These benefits must consist of actual reasonable moving and 24
storage costs and relocation compensation, including, without 25
limitation, the costs and compensation for the following: 26
(1) Transportation of the personal property of the tenant to 27
the new location. The new location must be in close proximity to 28
the substandard property, except where relocation to a new 29
location beyond a close proximity is determined by the district 30
court to be justified. 31
(2) Packing, crating, unpacking and uncrating all personal 32
property of the tenant. 33
(3) Insurance of the property of the tenant while in transit. 34
(4) The reasonable replacement value of personal property 35
lost, stolen or damaged, other than any personal property that was 36
lost, stolen or damaged through the fault or negligence of the 37
displaced tenant, or his or her agent or employee, in the process of 38
moving, where insurance covering the loss, theft or damage is not 39
reasonably available. 40
(5) The cost of disconnecting, dismantling, removing, 41
reassembling, reconnecting and reinstalling machinery, 42
equipment or other personal property of the tenant, including 43
connection charges imposed by utility companies for starting 44
utility service. 45
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(6) Relocation compensation in an amount equal to the 1
differential between the contract rent and the fair market rental 2
value determined by the United States Department of Housing and 3
Urban Development for a unit of comparable size within the area 4
for the period that the unit is being repaired or rehabilitated, for 5
not more than 120 days. 6
(d) Determine the date when the tenant is to relocate, and 7
order the tenant to notify the governing body of the city or its 8
designee and the owner of the dwelling unit of the address to 9
which the tenant has relocated not more than 5 days after the 10
relocation. 11
(e) Order that the owner of the substandard property offer the 12
first right of occupancy of a dwelling unit to each tenant who 13
received benefits pursuant to this section, before letting the 14
dwelling unit for rent to a third party. Except as otherwise 15
provided in this paragraph, the offer for first right of occupancy to 16
the tenant must be in writing and sent by certified mail to the 17
address given by the tenant at the time of relocation. If the owner 18
has not been provided the address of the tenant by the tenant as 19
required by this section, the owner is not required to offer the 20
tenant the first right of occupancy. The tenant may accept the 21
offer by giving the owner notice in writing by certified mail not 22
later than 10 days after the owner mailed the offer. 23
(f) Order that if the owner fails to comply with any order 24
issued pursuant to sections 21 to 37, inclusive, of this act, the 25
court may: 26
(1) Sanction the person for civil contempt; 27
(2) Impose any penalty authorized pursuant to NRS 28
268.4124 as if the substandard property were a chronic nuisance; 29
or 30
(3) Any other penalty provided by law. 31
2. If the district court finds that a tenant has been 32
substantially responsible for causing or substantially contributing 33
to the conditions found by the district court that make the 34
residential property a substandard property, the court shall not 35
grant to the tenant any relocation compensation or benefits. 36
3. Any tenant of the substandard property who has been 37
ordered to relocate due to the conditions found by the district court 38
that make the residential property a substandard property and who 39
is not substantially responsible for causing or contributing to the 40
condition must be paid these benefits and moving costs at the time 41
that the tenant actually relocates. 42
Sec. 31. 1. If the district court appoints a receiver for a 43
substandard property pursuant to section 29 of this act, the owner 44
of the substandard property, and any agent or employee of the 45
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owner, shall not collect rent from any tenant, interfere with the 1
receiver in the operation of the substandard property or encumber 2
or transfer any interest in the substandard property. 3
2. Unless otherwise ordered by the district court, a receiver 4
for a substandard property shall: 5
(a) Take full and complete control of the substandard property. 6
(b) Manage the substandard property and pay any expenses of 7
the operation of the substandard property, including, without 8
limitation, paying the taxes, insurance, utilities, general 9
maintenance and debt secured by an interest in the substandard 10
property. 11
(c) Secure a cost estimate and construction plan from a 12
licensed contractor for the repairs, rehabilitation or abatement 13
necessary to correct the conditions cited in the order issued 14
pursuant to section 29 of this act. 15
(d) Enter into contracts and employ a licensed contractor as 16
necessary to correct the conditions cited in the order issued 17
pursuant to section 29 of this act. 18
(e) Collect all rents and income generated by the substandard 19
property. 20
(f) Use all rents and income generated by the substandard 21
property to pay for the cost of the repairs, rehabilitation or 22
abatement determined by the district court to be necessary to 23
correct the conditions cited in the order issued pursuant to section 24
29 of this act. 25
(g) Borrow money to pay for repairs, rehabilitation or 26
abatement necessary to correct the conditions cited in the order 27
issued pursuant to section 29 of this act and to borrow money to 28
pay for any relocation benefits for tenants that are authorized 29
pursuant to section 30 of this act and, with district court approval, 30
secure that debt and any money owed to the receiver for services 31
performed pursuant to this section with a lien on the residential 32
property upon which the substandard property is situated. The lien 33
shall be recorded in the county recorder’s office in the county 34
wherein the substandard property is situated. 35
(h) To exercise any other power granted to a receiver pursuant 36
to chapter 32 of NRS. 37
(i) Provide any relocation benefits to a tenant that are ordered 38
by the court pursuant to section 30 of this act. 39
3. If the district court appoints as a receiver a nonprofit 40
organization or community development corporation, in addition 41
to the powers and duties that are granted pursuant to subsection 2, 42
the nonprofit organization or community development corporation 43
may apply for grants to assist in the rehabilitation of the 44
substandard property. 45
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Sec. 32. A receiver appointed pursuant to section 29 of this 1
act is entitled to the same fees, commissions and necessary 2
expenses as a receiver in an action to foreclose a mortgage. 3
Sec. 33. In addition to any periodic reporting required by the 4
district court, the receiver shall prepare and submit monthly 5
reports relating to a substandard property to the governing body of 6
the city or its designee. The report to the governing body of the city 7
must include, without limitation: 8
1. The total amount of rent payments received from tenants 9
of the substandard property; 10
2. The nature and amount of any contract that is negotiated 11
or entered into by the receiver relating to the operation, repair or 12
rehabilitation of or the abatement of a condition at the 13
substandard property; 14
3. A record of payments made by the receiver relating to the 15
operation, repair or rehabilitation of or the abatement of a 16
condition at the substandard property; 17
4. Information relating to the progress of the repair or 18
rehabilitation of the substandard property or abatement of a 19
condition at the substandard property; and 20
5. A record of any amount paid to a tenant pursuant to 21
section 31 of this act for relocation benefits. 22
Sec. 34. 1. A district court must discharge the receiver 23
appointed pursuant to section 29 of this act when the district court 24
finds that: 25
(a) The conditions set forth in the court order issued pursuant 26
to section 29 of this act that made the residential property a 27
substandard property have been properly repaired or abated; and 28
(b) A complete accounting of all costs relating to the 29
operation, repair or rehabilitation of or abatement of a condition 30
at the substandard property has been delivered to the district court. 31
2. Upon correction of the conditions that made the residential 32
property a substandard property, the owner, the mortgagee or any 33
lienholder may apply for the discharge of all money not used by 34
the receiver for removal of the condition and all other costs. 35
3. After discharging the receiver, the district court may: 36
(a) Retain jurisdiction over the substandard property for a 37
period of time not to exceed than 18 consecutive months; and 38
(b) Require the owner of the substandard property and the 39
governing body of the city or its designee to report to the district 40
court on the substandard property in accordance with a schedule 41
determined by the district court. 42
Sec. 35. Upon the request of a receiver, the district court may 43
require the owner of the substandard property to pay all 44
unrecovered costs associated with the receivership. 45
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Sec. 36. 1. The remedies and penalties provided in sections 1
21 to 37, inclusive, of this act are cumulative, may not be 2
abrogated and are in addition to any other remedies or penalties 3
that may exist in law or equity. 4
2. The provisions of sections 21 to 37, inclusive, of this act 5
shall not be construed to limit those rights available to a landlord 6
or tenant pursuant to any other provision of law. 7
Sec. 37. Nothing in the provisions of sections 21 to 37, 8
inclusive, of this act is intended to deprive any owner of a 9
residential property or substandard property any right guaranteed 10
by the United States Constitution or Nevada Constitution, 11
including, without limitation, the right to due process. 12
H