A.B. 396
- *AB396*
ASSEMBLY BILL NO. 396–ASSEMBLYMEMBER BACKUS
MARCH 11, 2025
____________
Referred to Committee on Commerce and Labor
SUMMARY—Revises provisions relating to housing.
(BDR 22-232)
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: No.
CONTAINS UNFUNDED MANDATE (§ 1)
(NOT REQUESTED BY AFFECTED LOCAL GOVERNMENT)
~
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to housing; requiring the governing body of
certain counties and cities to adopt an ordinance to
authorize the owner of certain residential properties to add
accessory dwelling units to the property; setting forth
certain requirements for the ordinance; providing that if
the governing body of certain counties and cities does not
adopt such an ordinance by January 1, 2026, accessory
dwelling units are authorized on any parcel zoned for
residential use without restriction; revising provisions
relating to the amendment of a declaration or the
termination of a common-interest community; requiring
proof of certain insurance policies be furnished in a resale
package to a purchaser of a unit in a common-interest
community; increasing the fine that may be imposed by
the Commission for Common-Interest Communities and
Condominium Hotels for certain violations; making
various other changes relating to common-interest
communities; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
Section 1 of this bill requires each governing body of a county whose 1
population is 100,000 or more (currently Clark and Washoe Counties) and each 2
governing body of a city whose population is 60,000 or more (currently the Cities 3
of Las Vegas, Henderson, North Las Vegas, Reno and Sparks) to adopt an 4
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ordinance that authorizes the owner of a residential property to apply to add an 5
accessory dwelling unit to the residential property. Section 1 further requires the 6
ordinance to authorize, under certain circumstances, an additional accessory 7
dwelling unit to the residential property. Section 1 also sets forth various 8
requirements for the ordinance, including that the ordinance set forth an expedited 9
process for the approval of the application and any appeal of the denial of such an 10
application. Section 1 further limits provisions of the ordinance, including by 11
prohibiting the ordinance from placing certain conditions on the approval of the 12
accessory dwelling unit. 13
Section 11 of this bill provides that if the governing body of a county whose 14
population is 100,000 or more (currently Clark and Washoe Counties) or the 15
governing body of a city whose population is 60,000 or more (currently the Cities 16
of Las Vegas, Henderson, North Las Vegas, Reno and Sparks) does not adopt an 17
ordinance that meets the requirements of section 1 before January 1, 2026, 18
accessory dwelling units are authorized on any parcel zoned for residential use 19
without restriction. 20
Section 12 of this bill provides that any ordinance adopted by the governing 21
body of a county or city before, on or after January 1, 2026, that conflicts with 22
section 1 is void and unenforceable. 23
Existing law authorizes the governing body of a county or city to divide the 24
county, city or region into zoning districts of such number, shape and area as are 25
best suited to carry out certain purposes. Within a zoning district, the governing 26
body is authorized to regulate and restrict the erection, reconstruction, alteration, 27
repair or use of buildings, structures or land. (NRS 278.250) Section 4 of this bill 28
creates an exception to account for the requirement that the governing body of 29
certain counties and cities adopt an ordinance to allow the addition of an accessory 30
dwelling unit pursuant to section 1. 31
Existing law requires that an action or proceeding seeking judicial relief or 32
review from or with respect to any final action, decision or order of any governing 33
body of a county or city be commenced within 25 days after the date of filing of 34
notice of the final action, decision or order with the clerk or secretary of the 35
governing body. (NRS 278.0235) Section 3 of this bill applies these provisions to 36
section 1. 37
Section 2 of this bill makes a conforming change to apply the definitions of 38
certain terms relating to planning and zoning to section 1. 39
Existing law sets forth certain requirements for the amendment of a declaration 40
of a common-interest community, including that every amendment to the 41
declaration must, with certain exceptions, be indexed in the grantee’s index in the 42
name of the common-interest community and the association and in the grantor’s 43
index in the name of the parties executing the amendment. (NRS 116.2117) Section 44
5 of this bill eliminates the exception for an amendment for the relocation of 45
boundaries between adjoining units. (NRS 116.2112) 46
Section 5 also authorizes an association to amend a declaration to restrict the 47
leasing of residential units to the extent that the restriction is reasonably designed to 48
meet certain underwriting requirements. 49
Existing law sets forth the requirements for terminating a common-interest 50
community. (NRS 116.2118) Section 6 of this bill amends the voting requirements 51
for terminating a common-interest community. 52
Sections 7 and 8 of this bill revise provisions relating to prohibiting or 53
restricting a unit owner from renting or leasing his or her unit. 54
Existing law requires a unit’s owner or his or her authorized agent, at the 55
expense of the unit’s owner, to furnish to a purchaser a resale package containing 56
certain information. (NRS 116.4109) Section 9 of this bill requires that a resale 57
package also contain proof of the insurance policies that an association is required 58
to carry. 59
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Existing law authorizes, under certain circumstances, the Commission for 60
Common-Interest Communities and Condominium Hotels to impose an 61
administrative fine of not more than $1,000 for certain violations. (NRS 116.785) 62
Section 10 of this bill increases the administrative fine to not more than $5,000. 63
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 278 of NRS is hereby amended by adding 1
thereto a new section to read as follows: 2
1. Each governing body of a county whose population is 3
100,000 or more and each governing body of a city whose 4
population is 60,000 or more shall adopt an ordinance that 5
authorizes the owner of a residential property to apply to add an 6
accessory dwelling unit to the residential property. In addition, the 7
ordinance must authorize an owner of a residential property to 8
add a second accessory dwelling unit to the residential property if 9
the owner agrees in writing to add an affordability restriction to 10
the residential property such that one of the accessory dwelling 11
units is limited to be used as housing for a household which has a 12
total monthly gross income that is equal to not more than 80 13
percent of the median monthly gross household income for the 14
county in which the housing is located. 15
2. Any accessory dwelling unit that is added to a residential 16
property pursuant to an ordinance adopted pursuant to subsection 17
1 must not be more than 75 percent of the gross floor area ratio of 18
the primary residence or 1,000 square feet, whichever is less. 19
3. The ordinance adopted pursuant to subsection 1: 20
(a) Must set forth an expedited process for: 21
(1) The appropriate staff of the planning department of the 22
county or city to process and determine whether to approve an 23
application from an owner to add an accessory dwelling unit; and 24
(2) An owner of a residential property to appeal to the 25
governing body any denial of an application to add an accessory 26
dwelling unit to the residential property; 27
(b) Must not as a condition of approval of an accessory 28
dwelling unit: 29
(1) Require or prohibit separate kitchen facilities for the 30
accessory dwelling unit; 31
(2) Require separate parking for the accessory dwelling 32
unit or charge the owner an additional fee for approval of the 33
accessory dwelling unit if the accessory dwelling unit will not have 34
separate parking; 35
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(3) Require the exterior design, roof pitch or finishing 1
materials of the accessory dwelling unit match the primary 2
residence; 3
(4) Require any side or rear setback for the accessory 4
dwelling unit that is more than 5 feet from the property line; 5
(5) Require any regulations that are more restrictive than 6
the regulations for the primary residence with regard to height, 7
setback, lot size or lot coverage; or 8
(6) Require any improvement or repair to a public street 9
unless such improvement or repair is necessary to reconstruct or 10
repair a public street that is disturbed during the construction of 11
the accessory dwelling unit. 12
(c) Must authorize the owner of the residential property to use 13
the accessory dwelling unit as long-term rental housing; 14
(d) Must not prohibit the owner of the residential property 15
from using or advertising the single-family residence or accessory 16
dwelling unit as long-term rental housing; and 17
(e) Must not require that the owner of the residential property 18
use the accessory dwelling unit for family members or other 19
persons with whom the owner has a personal or employment 20
relationship. 21
4. Except as otherwise provided in subsections 1 and 2, the 22
governing body shall not require, as a condition for the approval 23
of an accessory dwelling unit pursuant to the ordinance adopted 24
pursuant to this section, any restrictive covenant. 25
5. Any zoning regulation adopted by the governing body 26
pursuant to NRS 278.250 must allow the addition of an accessory 27
dwelling unit pursuant to the provisions of an ordinance adopted 28
pursuant to this section. 29
6. Any accessory dwelling unit approved pursuant to an 30
ordinance adopted pursuant to subsection 1: 31
(a) Must meet all applicable building codes, housing codes and 32
any other codes regulating the health and safety of residential 33
property. 34
(b) Is not required to meet any building code or other code 35
regulating the health and safety of commercial buildings, 36
including, without limitation, any code that requires a fire 37
sprinkler system in a commercial building. 38
7. As used in this section: 39
(a) “Accessory dwelling unit” means an independent living 40
space that is built on the same lot as the primary residence on a 41
residential property, regardless of whether the independent living 42
space is attached, detached or built within the primary residence. 43
(b) “Affordability restriction” means a limit on the rent that 44
owner may charge for occupancy of the accessory dwelling unit or 45
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a limit on the income for tenants for persons or families seeking to 1
qualify as tenants in the accessory dwelling unit. 2
(c) “Kitchen facilities” includes, without limitation, a sink, 3
refrigerator and a significant cooking appliance such as a range, 4
stove, oven or microwave. 5
(d) “Long-term rental” means a rental period of 90 days or 6
more. 7
(e) “Residential property” means a property that is located in 8
an area of the county or city, as applicable, zoned for single-family 9
residential use. 10
Sec. 2. NRS 278.010 is hereby amended to read as follows: 11
278.010 As used in NRS 278.010 to 278.630, inclusive, and 12
section 1 of this act, unless the context otherwise requires, the 13
words and terms defined in NRS 278.0103 to 278.0195, inclusive, 14
have the meanings ascribed to them in those sections. 15
Sec. 3. NRS 278.0235 is hereby amended to read as follows: 16
278.0235 1. No action or proceeding may be commenced for 17
the purpose of seeking judicial relief or review from or with respect 18
to any final action, decision or order of any governing body, 19
commission or board authorized by NRS 278.010 to 278.630, 20
inclusive, and section 1 of this act, unless the action or proceeding 21
is commenced within 25 days after the date of filing of notice of the 22
final action, decision or order with the clerk or secretary of the 23
governing body, commission or board. 24
2. A petitioner or cross-petitioner who is seeking judicial 25
review must serve and file a memorandum of points and authorities 26
within 40 days after an action is commenced. 27
3. The respondent or cross-petitioners shall serve and file a 28
reply memorandum of points and authorities within 30 days after the 29
service of the memorandum of points and authorities. 30
4. The petition or cross-petitioner may serve and file a reply 31
memorandum of points and authorities within 30 days after service 32
of the reply memorandum. 33
5. Within 7 days after the expiration of the time within which 34
the petitioner is required to reply, any party may request a hearing. 35
Unless a request for hearing has been filed, the matter shall be 36
deemed submitted. 37
6. All memoranda of points and authorities filed in proceedings 38
involving petitions for judicial review must be in the form provided 39
for appellate briefs in Rule 28 of the Nevada Rules of Appellate 40
Procedure. 41
7. The court, for good cause, may extend the times allowed in 42
this section for filing memoranda. 43
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Sec. 4. NRS 278.250 is hereby amended to read as follows: 1
278.250 1. For the purposes of NRS 278.010 to 278.630, 2
inclusive, and section 1 of this act, the governing body may divide 3
the city, county or region into zoning districts of such number, shape 4
and area as are best suited to carry out the purposes of NRS 278.010 5
to 278.630, inclusive [. Within] , and section 1 of this act. Except 6
as otherwise provided in section 1 of this act, within the zoning 7
district, it may regulate and restrict the erection, construction, 8
reconstruction, alteration, repair or use of buildings, structures or 9
land. 10
2. The zoning regulations must be adopted in accordance with 11
the master plan for land use and be designed: 12
(a) To preserve the quality of air and water resources. 13
(b) To promote the conservation of open space and the 14
protection of other natural and scenic resources from unreasonable 15
impairment. 16
(c) To consider existing views and access to solar resources by 17
studying the height of new buildings which will cast shadows on 18
surrounding residential and commercial developments. 19
(d) To reduce the consumption of energy by encouraging the use 20
of products and materials which maximize energy efficiency in the 21
construction of buildings. 22
(e) To provide for recreational needs. 23
(f) To protect life and property in areas subject to floods, 24
landslides and other natural disasters. 25
(g) To conform to the adopted population plan, if required by 26
NRS 278.170. 27
(h) To develop a timely, orderly and efficient arrangement of 28
transportation and public facilities and services, including public 29
access and sidewalks for pedestrians, and facilities and services for 30
bicycles. 31
(i) To ensure that the development on land is commensurate 32
with the character and the physical limitations of the land. 33
(j) To take into account the immediate and long-range financial 34
impact of the application of particular land to particular kinds of 35
development, and the relative suitability of the land for 36
development. 37
(k) To promote health and the general welfare. 38
(l) To ensure the development of an adequate supply of housing 39
for the community, including the development of affordable 40
housing. 41
(m) To ensure the protection of existing neighborhoods and 42
communities, including the protection of rural preservation 43
neighborhoods and, in counties whose population is 700,000 or 44
more, the protection of historic neighborhoods. 45
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(n) To promote systems which use solar or wind energy. 1
(o) To foster the coordination and compatibility of land uses 2
with any military installation in the city, county or region, taking 3
into account the location, purpose and stated mission of the military 4
installation. 5
3. The zoning regulations must be adopted with reasonable 6
consideration, among other things, to the character of the area and 7
its peculiar suitability for particular uses, and with a view to 8
conserving the value of buildings and encouraging the most 9
appropriate use of land throughout the city, county or region. 10
4. In exercising the powers granted in this section, the 11
governing body may use any controls relating to land use or 12
principles of zoning that the governing body determines to be 13
appropriate, including, without limitation, density bonuses, 14
inclusionary zoning and minimum density zoning. 15
5. As used in this section: 16
(a) “Density bonus” means an incentive granted by a governing 17
body to a developer of real property that authorizes the developer to 18
build at a greater density than would otherwise be allowed under the 19
master plan, in exchange for an agreement by the developer to 20
perform certain functions that the governing body determines to be 21
socially desirable, including, without limitation, developing an area 22
to include a certain proportion of affordable housing. 23
(b) “Inclusionary zoning” means a type of zoning pursuant to 24
which a governing body requires or provides incentives to a 25
developer who builds residential dwellings to build a certain 26
percentage of those dwellings as affordable housing. 27
(c) “Minimum density zoning” means a type of zoning pursuant 28
to which development must be carried out at or above a certain 29
density to maintain conformance with the master plan. 30
Sec. 5. NRS 116.2117 is hereby amended to read as follows: 31
116.2117 1. Except as otherwise provided in NRS 32
116.21175, and except in cases of amendments that may be 33
executed by a declarant under subsection 5 of NRS 116.2109 or 34
NRS 116.211, or by the association under NRS 116.1107, 116.2106, 35
subsection 3 of NRS 116.2108, subsection 1 of NRS 116.2112 or 36
NRS 116.2113, or by certain units’ owners under subsection 2 of 37
NRS 116.2108, subsection 1 of NRS 116.2112, subsection 2 of NRS 38
116.2113 or subsection 2 of NRS 116.2118, and except as otherwise 39
limited by subsections 4, 6, 7 and 8, the declaration, including any 40
plats, may be amended only by vote or agreement of units’ owners 41
of units to which at least a majority of the votes in the association 42
are allocated, unless the declaration specifies a different percentage 43
for all amendments or for specified subjects of amendment. If the 44
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declaration requires the approval of another person as a condition of 1
its effectiveness, the amendment is not valid without that approval. 2
2. No action to challenge the validity of an amendment adopted 3
by the association pursuant to this section may be brought more than 4
1 year after the amendment is recorded. 5
3. Every amendment to the declaration must be recorded in 6
every county in which any portion of the common-interest 7
community is located and is effective only upon recordation. An 8
amendment [, except an amendment pursuant to NRS 116.2112,] 9
must be indexed in the grantee’s index in the name of the common-10
interest community and the association and in the grantor’s index in 11
the name of the parties executing the amendment. 12
4. Except to the extent expressly permitted or required by other 13
provisions of this chapter, no amendment may change the 14
boundaries of any unit or change the allocated interests of a unit in 15
the absence of unanimous consent of only those units’ owners 16
whose units are affected and the consent of a majority of the owners 17
of the remaining units [.] , including a majority of the votes 18
allocated to units not owned by the declarant. 19
5. Amendments to the declaration required by this chapter to 20
be recorded by the association must be prepared, executed, recorded 21
and certified on behalf of the association by any officer of the 22
association designated for that purpose or, in the absence of 23
designation, by the president of the association. 24
6. [An] Except as otherwise provided in subsection 9, an 25
amendment to the declaration which prohibits or materially restricts 26
the permitted uses of a unit or the number or other qualifications of 27
persons who may occupy units may not be enforced against a unit’s 28
owner who was the owner of the unit on the date of the recordation 29
of the amendment as long as the unit’s owner remains the owner of 30
that unit. 31
7. A provision in the declaration creating special declarant’s 32
rights that have not expired may not be amended without the 33
consent of the declarant. 34
8. If any provision of this chapter or of the declaration requires 35
the consent of a holder of a security interest in a unit, or an insurer 36
or guarantor of such interest, as a condition to the effectiveness of 37
an amendment to the declaration, that consent is deemed granted if: 38
(a) The holder, insurer or guarantor has not requested, in 39
writing, notice of any proposed amendment; or 40
(b) Notice of any proposed amendment is required or has been 41
requested and a written refusal to consent is not received by the 42
association within 60 days after the association delivers notice of the 43
proposed amendment to the holder, insurer or guarantor, by certified 44
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mail, return receipt requested, to the address for notice provided by 1
the holder, insurer or guarantor in a prior written request for notice. 2
9. An association may amend a declaration to restrict the 3
leasing of residential units to the extent that the restriction is 4
reasonably designed to meet underwriting requirements of: 5
(a) Institutional lenders that regularly make loans secured by 6
first mortgages on units in common-interest communities or 7
regularly purchase such mortgages; or 8
(b) Insurance companies that issue insurance policies to 9
associations or units in a common-interest community. 10
Sec. 6. NRS 116.2118 is hereby amended to read as follows: 11
116.2118 1. Except in the case of a taking of all the units by 12
eminent domain, in the case of foreclosure against an entire 13
cooperative of a security interest that has priority over the 14
declaration, or in the circumstances described in NRS 116.2124, a 15
common-interest community may be terminated only by agreement 16
of units’ owners to whom at least 80 percent of the votes in the 17
association are allocated, [or any larger percentage the declaration 18
specifies,] including at least 80 percent of the votes allocated to 19
units that are not owned by the declarant, and with any other 20
approvals required by the declaration. The declaration may require 21
a larger percentage of the total votes in the association for 22
approval, but termination requires approval by at least 80 percent 23
of the votes allocated to units not owned by the declarant. The 24
declaration may specify a smaller percentage only if all of the units 25
are restricted exclusively to nonresidential uses. 26
2. An agreement to terminate must be evidenced by the 27
execution of an agreement to terminate, or ratifications thereof, in 28
the same manner as a deed, by the requisite number of units’ 29
owners. The agreement must specify a date after which the 30
agreement will be void unless it is recorded before that date. An 31
agreement to terminate and all ratifications thereof must be recorded 32
in every county in which a portion of the common-interest 33
community is situated and is effective only upon recordation. 34
3. In the case of a condominium or planned community 35
containing only units having horizontal boundaries described in the 36
declaration, an agreement to terminate may provide that all of the 37
common elements and units of the common-interest community 38
must be sold following termination. If, pursuant to the agreement, 39
any real estate in the common-interest community is to be sold 40
following termination, the agreement must set forth the minimum 41
terms of the sale. 42
4. In the case of a condominium or planned community 43
containing any units not having horizontal boundaries described in 44
the declaration, an agreement to terminate may provide for sale of 45
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the common elements, but it may not require that the units be sold 1
following termination, unless the declaration as originally recorded 2
provided otherwise or all the units’ owners consent to the sale. 3
5. The association, on behalf of the units’ owners, may contract 4
for the sale of real estate in a common-interest community, but the 5
contract is not binding on the units’ owners until approved pursuant 6
to subsections 1 and 2. If any real estate is to be sold following 7
termination, title to that real estate, upon termination, vests in the 8
association as trustee for the holders of all interests in the units. 9
Thereafter, the association has all powers necessary and appropriate 10
to effect the sale. Until the sale has been concluded and the proceeds 11
thereof distributed, the association continues in existence with all 12
powers it had before termination. Proceeds of the sale must be 13
distributed to units’ owners and lienholders as their interests may 14
appear, in accordance with NRS 116.21183 and 116.21185. Unless 15
otherwise specified in the agreement to terminate, as long as the 16
association holds title to the real estate, each unit’s owner and his or 17
her successors in interest have an exclusive right to occupancy of 18
the portion of the real estate that formerly constituted the unit. 19
During the period of that occupancy, each unit’s owner and his or 20
her successors in interest remain liable for all assessments and other 21
obligations imposed on units’ owners by this chapter or the 22
declaration. 23
6. In a condominium or planned community, if the real estate 24
constituting the common-interest community is not to be sold 25
following termination, title to the common elements and, in a 26
common-interest community containing only units having 27
horizontal boundaries described in the declaration, title to all the real 28
estate in the common-interest community, vests in the units’ owners 29
upon termination as tenants in common in proportion to their 30
respective interests as provided in NRS 116.21185, and liens on the 31
units shift accordingly. While the tenancy in common exists, each 32
unit’s owner and his or her successors in interest have an exclusive 33
right to occupancy of the portion of the real estate that formerly 34
constituted the unit. 35
7. Following termination of the common-interest community, 36
the proceeds of a sale of real estate, together with the assets of the 37
association, are held by the association as trustee for units’ owners 38
and holders of liens on the units as their interests may appear. 39
Sec. 7. NRS 116.31065 is hereby amended to read as follows: 40
116.31065 The rules adopted by an association: 41
1. Must be reasonably related to the purpose for which they are 42
adopted. 43
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2. Must be sufficiently explicit in their prohibition, direction or 1
limitation to inform a person of any action or omission required for 2
compliance. 3
3. Must not be adopted to evade any obligation of the 4
association. 5
4. [Must] Except as otherwise provided in subsection 1 of 6
NRS 116.335, must be consistent with the governing documents of 7
the association and must not arbitrarily restrict conduct or require 8
the construction of any capital improvement by a unit’s owner that 9
is not required by the governing documents of the association. 10
5. Must be uniformly enforced under the same or similar 11
circumstances against all units’ owners. Any rule that is not so 12
uniformly enforced may not be enforced against any unit’s owner. 13
6. May be enforced by the association through the imposition 14
of a fine only if the association complies with the requirements set 15
forth in NRS 116.31031. 16
Sec. 8. NRS 116.335 is hereby amended to read as follows: 17
116.335 1. [Unless, at the time a unit’s owner purchased his 18
or her unit,] If the declaration [prohibited the unit’s owner from 19
renting or leasing his or her unit,] authorizes the association [may 20
not] to prohibit or restrict the unit’s owner from renting or leasing 21
his or her unit [.] , or contains a provision establishing a maximum 22
number or percentage of units in the common-interest community 23
which may be rented or leased, the association may adopt rules 24
and regulations to prohibit or restrict the renting or leasing of 25
residential units to the extent that the restriction is reasonably 26
related to meet underwriting requirements of: 27
(a) Institutional lenders that regularly make loans secured by 28
first mortgages on units in common-interest communities or 29
regularly purchase such mortgages; or 30
(b) Insurance companies that issue insurance policies to 31
associations or units in a common-interest community. 32
2. [Unless, at the time a unit’s owner purchased his or her unit, 33
the declaration required the unit’s owner to secure or obtain any 34
approval from the association in order to rent or lease his or her unit, 35
an association may not require the unit’s owner to secure or obtain 36
any approval from the association in order to rent or lease his or her 37
unit. 38
3. If a declaration contains a provision establishing a maximum 39
number or percentage of units in the common-interest community 40
which may be rented or leased, that provision of the declaration may 41
not be amended to decrease that maximum number or percentage of 42
units in the common-interest community which may be rented or 43
leased. 44
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4. If the governing documents of an association require a unit’s 1
owner who leases or rents his or her unit, or the tenant of a unit’s 2
owner, to register with the association or its agent or otherwise 3
submit to the association or its agent information concerning the 4
lease or rental agreement or the tenant, the association or its agent: 5
(a) Must conduct such activities in accordance with the 6
governing documents; 7
(b) May not require the unit’s owner or tenant of the unit’s 8
owner to provide information which the association or its agent does 9
not require to be provided to the association or its agent by a unit’s 10
owner who occupies his or her unit, except that the association or its 11
agent may require the unit’s owner to provide a copy of the lease or 12
rental agreement; and 13
(c) May not charge a fee to the unit’s owner for the registration 14
or submission of information. 15
5.] The provisions of this section do not prohibit an association 16
from enforcing any provisions which govern the renting or leasing 17
of units and which are contained in this chapter or in any other 18
applicable federal, state or local laws or regulations [. 19
6.] , including, without limitation, any restriction on the rental 20
of units as transient lodging pursuant to NRS 244.35351 to 21
244.35359, inclusive, or 268.09791 to 268.09799, inclusive. 22
3. Notwithstanding any other provision of law or the 23
declaration to the contrary: 24
(a) If a unit’s owner is prohibited from renting or leasing a unit 25
because the maximum number or percentage of units which may be 26
rented or leased in the common-interest community have already 27
been rented or leased, the unit’s owner may seek a waiver of the 28
prohibition from the executive board based upon a showing of 29
economic hardship, and the executive board may grant such a 30
waiver and approve the renting or leasing of the unit. 31
(b) If the declaration contains a provision establishing a 32
maximum number or percentage of units in the common-interest 33
community which may be rented or leased, in determining the 34
maximum number or percentage of units in the common-interest 35
community which may be rented or leased, the number of units 36
owned by the declarant must not be counted or considered. 37
Sec. 9. NRS 116.4109 is hereby amended to read as follows: 38
116.4109 1. Except in the case of a sale in which delivery of 39
a public offering statement is required, or unless exempt under 40
subsection 2 of NRS 116.4101, a unit’s owner or his or her 41
authorized agent shall, at the expense of the unit’s owner, furnish to 42
a purchaser a resale package containing all of the following: 43
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(a) A copy of the declaration, other than any plats, the bylaws, 1
the rules or regulations of the association and the information 2
statement required by NRS 116.41095. 3
(b) A statement from the association setting forth the amount of 4
the monthly assessment for common expenses and any unpaid 5
obligation of any kind, including, without limitation, management 6
fees, transfer fees, fines, penalties, interest, collection costs, 7
foreclosure fees and attorney’s fees currently due from the selling 8
unit’s owner. 9
(c) A copy of the current operating budget of the association and 10
current year-to-date financial statement for the association, which 11
must include a summary of the reserves of the association required 12
by NRS 116.31152 and which must include, without limitation, a 13
summary of the information described in paragraphs (a) to (e), 14
inclusive, of subsection 3 of NRS 116.31152. 15
(d) A statement of any unsatisfied judgments or pending legal 16
actions against the association and the status of any pending legal 17
actions relating to the common-interest community of which the 18
unit’s owner has actual knowledge. 19
(e) A statement of any transfer fees, transaction fees or any other 20
fees associated with the resale of a unit. 21
(f) In addition to any other document, a statement describing all 22
current and expected fees or charges for each unit, including, 23
without limitation, association fees, fines, assessments, late charges 24
or penalties, interest rates on delinquent assessments, additional 25
costs for collecting past due fines and charges for opening or closing 26
any file for each unit. 27
(g) Proof of the insurance policies that an association is 28
required to carry pursuant to NRS 116.3113. 29
2. The purchaser may, by written notice, cancel the contract of 30
purchase until midnight of the fifth calendar day following the date 31
of receipt of the resale package described in subsection 1, and the 32
contract for purchase must contain a provision to that effect. If the 33
purchaser elects to cancel a contract pursuant to this subsection, 34
the purchaser must hand deliver the notice of cancellation to the 35
unit’s owner or his or her authorized agent, mail the notice of 36
cancellation by prepaid United States mail to the unit’s owner or his 37
or her authorized agent or deliver the notice of cancellation by 38
electronic transmission to the unit’s owner or his or her authorized 39
agent. Cancellation is without penalty, and all payments made by 40
the purchaser before cancellation must be refunded promptly. If the 41
purchaser has accepted a conveyance of the unit, the purchaser is 42
not entitled to: 43
(a) Cancel the contract pursuant to this subsection; or 44
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(b) Damages, rescission or other relief based solely on the 1
ground that the unit’s owner or his or her authorized agent failed to 2
furnish the resale package, or any portion thereof, as required by this 3
section. 4
3. Within 10 calendar days after receipt of a written request by 5
a unit’s owner or his or her authorized agent, the association shall 6
furnish all of the following to the unit’s owner or his or her 7
authorized agent for inclusion in the resale package: 8
(a) Copies of the documents required pursuant to paragraphs (a) 9
and (c) of subsection 1; and 10
(b) A certificate containing the information necessary to enable 11
the unit’s owner to comply with paragraphs (b), (d), (e) , [and] (f) 12
and (g) of subsection 1. 13
4. If the association furnishes the documents and certificate 14
pursuant to subsection 3: 15
(a) The unit’s owner or his or her authorized agent shall include 16
the documents and certificate in the resale package provided to the 17
purchaser, and neither the unit’s owner nor his or her authorized 18
agent is liable to the purchaser for any erroneous information 19
provided by the association and included in the documents and 20
certificate. 21
(b) The association may charge the unit’s owner a reasonable 22
fee to cover the cost of preparing the certificate furnished pursuant 23
to subsection 3. Such a fee must be based on the actual cost the 24
association incurs to fulfill the requirements of this section in 25
preparing the certificate and must not exceed $185, except that if a 26
unit’s owner or an authorized agent thereof requests that the 27
certificate be furnished sooner than 3 business days after the date of 28
the request, the association may charge a fee, which must not exceed 29
$100, to expedite the preparation of the certificate. The amount of 30
the fee may increase, on an annual basis, by a percentage equal to 31
the percentage of increase in the Consumer Price Index (All Items) 32
published by the United States Department of Labor for the 33
preceding calendar year, but must not increase by more than 3 34
percent each year. 35
(c) The other documents furnished pursuant to subsection 3 36
must be provided in electronic format to the unit’s owner. If the 37
association is unable to provide such documents in electronic 38
format, the association may charge the unit’s owner a reasonable 39
fee, not to exceed 25 cents per page for the first 10 pages, and 10 40
cents per page thereafter, to cover the cost of copying. 41
(d) Except for the fees allowed pursuant to paragraphs (b) and 42
(c), the association may not charge the unit’s owner any other fees 43
for preparing or furnishing the documents and certificate pursuant to 44
subsection 3. 45
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5. Neither a purchaser nor the purchaser’s interest in a unit is 1
liable for any unpaid assessment or fee greater than the amount set 2
forth in the documents and certificate prepared by the association. If 3
the association fails to furnish the documents and certificate within 4
the 10 calendar days allowed by this section, the purchaser is not 5
liable for the delinquent assessment. A resale package provided to a 6
unit’s owner or his or her authorized agent pursuant to this section 7
remains effective for 90 calendar days. 8
6. Upon the request of a unit’s owner or his or her authorized 9
agent, or upon the request of a purchaser to whom the unit’s owner 10
has provided a resale package pursuant to this section or his or her 11
authorized agent, the association shall make the entire study of the 12
reserves of the association which is required by NRS 116.31152 13
reasonably available for the unit’s owner, purchaser or authorized 14
agent to inspect, examine, photocopy and audit. The study must be 15
made available at the business office of the association or some 16
other suitable location within the county where the common-interest 17
community is situated or, if it is situated in more than one county, 18
within one of those counties. 19
7. A unit’s owner, the authorized agent of the unit’s owner or 20
the holder of a security interest on the unit may request a statement 21
of demand from the association. Not later than 10 calendar days 22
after receipt of a written request from the unit’s owner, the 23
authorized agent of the unit’s owner or the holder of a security 24
interest on the unit for a statement of demand, the association shall 25
furnish a statement of demand to the person who requested the 26
statement and provide a copy of the statement to any other interested 27
party. The association may charge a fee of not more than $165 to 28
prepare and furnish a statement of demand pursuant to this 29
subsection and an additional fee of not more than $100 to furnish a 30
statement of demand within 3 business days after receipt of a written 31
request for a statement of demand. The amount of the fees for 32
preparing and furnishing a statement of demand and the additional 33
fee for furnishing a statement of demand within 3 business days may 34
increase, on an annual basis, by a percentage equal to the percentage 35
of increase in the Consumer Price Index (All Items) published by 36
the United States Department of Labor for the preceding calendar 37
year, but must not increase by more than 3 percent each year. The 38
statement of demand: 39
(a) Must set forth the amount of the monthly assessment for 40
common expenses and any unpaid obligation of any kind, including, 41
without limitation, management fees, transfer fees, fines, penalties, 42
interest, collection costs, foreclosure fees and attorney’s fees 43
currently due from the selling unit’s owner; and 44
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(b) Remains effective for the period specified in the statement of 1
demand, which must not be less than 15 business days after the date 2
of delivery by the association to the unit’s owner, the authorized 3
agent of the unit’s owner or the holder of a security interest on the 4
unit, whichever is applicable. 5
As used in this subsection, “interested party” includes the unit’s 6
owner selling the unit and the prospective purchaser of the unit. 7
8. In preparing, copying, furnishing or expediting or otherwise 8
providing any document or other item pursuant to this section, an 9
association, or entity related to or acting on behalf of an association, 10
shall not charge a unit’s owner, the authorized agent of a unit’s 11
owner, a purchaser or, pursuant to subsection 7, the holder of a 12
security interest on a unit, any fee: 13
(a) Not authorized in this section; or 14
(b) In an amount which exceeds any limit set forth in this 15
section. 16
9. If the association becomes aware of an error in a statement 17
of demand furnished pursuant to subsection 7 during the period in 18
which the statement of demand is effective but before the 19
consummation of a resale for which a resale package was furnished 20
pursuant to subsection 1, the association must deliver a replacement 21
statement of demand to the person who requested the statement of 22
demand. Unless the person who requested the statement of demand 23
receives a replacement statement of demand, the person may rely 24
upon the accuracy of the information set forth in the statement of 25
demand provided by the association for the resale. Payment of the 26
amount set forth in the statement of demand constitutes full payment 27
of the amount due from the selling unit’s owner. 28
Sec. 10. NRS 116.785 is hereby amended to read as follows: 29
116.785 1. If the Commission or the hearing panel, after 30
notice and hearing, finds that the respondent has committed a 31
violation, the Commission or the hearing panel may take any or all 32
of the following actions: 33
(a) Issue an order directing the respondent to cease and desist 34
from continuing to engage in the unlawful conduct that resulted in 35
the violation. 36
(b) Issue an order directing the respondent to take affirmative 37
action to correct any conditions resulting from the violation. 38
(c) Impose an administrative fine of not more than [$1,000] 39
$5,000 for each violation. 40
2. If the respondent is a member of an executive board or an 41
officer of an association, the Commission or the hearing panel may 42
order the respondent removed from his or her office or position if 43
the Commission or the hearing panel, after notice and hearing, finds 44
that: 45
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(a) The respondent has knowingly and willfully committed a 1
violation; and 2
(b) The removal is in the best interest of the association. 3
3. If the respondent violates any order issued by the 4
Commission or the hearing panel pursuant to this section, the 5
Commission or the hearing panel, after notice and hearing, may 6
impose an administrative fine of not more than [$1,000] $5,000 for 7
each violation. 8
4. If the Commission or the hearing panel takes any 9
disciplinary action pursuant to this section, the Commission or the 10
hearing panel may order the respondent to pay the costs of the 11
proceedings incurred by the Division, including, without limitation, 12
the cost of the investigation and reasonable attorney’s fees. 13
5. Notwithstanding any other provision of this section, unless 14
the respondent has knowingly and willfully committed a violation, if 15
the respondent is a member of an executive board or an officer of an 16
association: 17
(a) The association is liable for all fines and costs imposed 18
against the respondent pursuant to this section; and 19
(b) The respondent may not be held personally liable for those 20
fines and costs. 21
Sec. 11. If the governing body of a county whose population is 22
100,000 or more or the governing body of a city whose population 23
is 60,000 or more does not adopt an ordinance that meets the 24
requirements of section 1 of this act before January 1, 2026, 25
accessory dwelling units are authorized on any parcel zoned for 26
residential use without restriction. 27
Sec. 12. Any ordinance adopted by the governing body of a 28
county or city that conflicts with the provisions of section 1 of this 29
act before, on or after January 1, 2026, is void and unenforceable. 30
Sec. 13. The provisions of NRS 354.599 do not apply to any 31
additional expenses of a local government that are related to the 32
provisions of this act. 33
Sec. 14. 1. This section and section 13 of this act become 34
effective upon passage and approval. 35
2. The provisions of sections 1 to 12, inclusive, of this act 36
become effective: 37
(a) Upon passage and approval for the purpose of adopting any 38
regulations and performing any other preparatory administrative 39
tasks that are necessary to carry out the provisions of this act; and 40
(b) On January 1, 2026, for all other purposes. 41
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