(Reprinted with amendments adopted on April 21, 2025)
FIRST REPRINT A.B. 396
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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 provides that any such 6
ordinance does not apply in a region in a county or city for which there has been 7
created by interstate compact a regional planning agency and the regional plan 8
adopted by the regional planning agency calls for the regulation of housing. Section 9
1 further requires the ordinance to authorize, under certain circumstances, an 10
additional accessory dwelling unit to the residential property. Section 1 also sets 11
forth various requirements for the ordinance, including that the ordinance set forth 12
an expedited process for the approval of the application and any appeal of the 13
denial of such an application. Section 1 further limits provisions of the ordinance, 14
including by prohibiting the ordinance from placing certain conditions on the 15
approval of the accessory dwelling unit. 16
Section 11 of this bill provides that: (1) if, before January 1, 2026, the 17
governing body of a county whose population is 100,000 or more or the governing 18
body of a city whose population is 60,000 or more has adopted an ordinance that is 19
consistent with section 1, the governing body is not required to adopt another 20
ordinance relating to accessory dwelling units pursuant to section 1; and (2) if the 21
governing body of a county whose population is 100,000 or more or the governing 22
body of a city whose population is 60,000 or more does not adopt an ordinance that 23
is consistent with section 1 before January 1, 2026, accessory dwelling units are 24
authorized on any parcel zoned for residential use without restriction. 25
Existing law authorizes the governing body of a county or city to divide the 26
county, city or region into zoning districts of such number, shape and area as are 27
best suited to carry out certain purposes. Within a zoning district, the governing 28
body is authorized to regulate and restrict the erection, reconstruction, alteration, 29
repair or use of buildings, structures or land. (NRS 278.250) Section 4 of this bill 30
creates an exception to account for the requirement that the governing body of 31
certain counties and cities adopt an ordinance to allow the addition of an accessory 32
dwelling unit pursuant to section 1. 33
Existing law requires that an action or proceeding seeking judicial relief or 34
review from or with respect to any final action, decision or order of any governing 35
body of a county or city be commenced within 25 days after the date of filing of 36
notice of the final action, decision or order with the clerk or secretary of the 37
governing body. (NRS 278.0235) Section 3 of this bill applies these provisions to 38
section 1. 39
Section 2 of this bill makes a conforming change to apply the definitions of 40
certain terms relating to planning and zoning to section 1. 41
Existing law sets forth certain requirements for the amendment of a declaration 42
of a common-interest community, including that every amendment to the 43
declaration must, with certain exceptions, be indexed in the grantee’s index in the 44
name of the common-interest community and the association and in the grantor’s 45
index in the name of the parties executing the amendment. (NRS 116.2117) Section 46
5 of this bill eliminates the exception for an amendment for the relocation of 47
boundaries between adjoining units. (NRS 116.2112) 48
Section 5 also authorizes an association to amend a declaration to restrict the 49
leasing of residential units to the extent that the restriction is reasonably designed to 50
meet certain underwriting requirements. 51
Existing law sets forth the requirements for terminating a common-interest 52
community. (NRS 116.2118) Section 6 of this bill amends the voting requirements 53
for terminating a common-interest community. 54
Sections 7 and 8 of this bill revise provisions relating to prohibiting or 55
restricting a unit owner from renting or leasing his or her unit. 56
Existing law requires a unit’s owner or his or her authorized agent, at the 57
expense of the unit’s owner, to furnish to a purchaser a resale package containing 58
certain information. (NRS 116.4109) Section 9 of this bill requires that a resale 59
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package also contain proof of the insurance policies that an association is required 60
to carry. 61
Existing law authorizes, under certain circumstances, the Commission for 62
Common-Interest Communities and Condominium Hotels to impose an 63
administrative fine of not more than $1,000 for certain violations. (NRS 116.785) 64
Section 10 of this bill increases the administrative fine to not more than $5,000. 65
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. Except as otherwise provided in this section, each 3
governing body of a county whose population is 100,000 or more 4
and each governing body of a city whose population is 60,000 or 5
more shall adopt an ordinance that authorizes the owner of a 6
residential property to apply to add an accessory dwelling unit to 7
the residential property. In addition, the ordinance must authorize 8
an owner of a residential property to add a second accessory 9
dwelling unit to the residential property if the owner agrees in 10
writing to add an affordability restriction to the residential 11
property such that one of the accessory dwelling units is limited to 12
be used as housing for a household which has a total monthly 13
gross income that is equal to not more than 80 percent of the 14
median monthly gross household income for the county in which 15
the housing is located. 16
2. The ordinance adopted pursuant to subsection 1: 17
(a) Must set forth an expedited process for: 18
(1) The appropriate staff of the planning department of the 19
county or city to process and determine whether to approve an 20
application from an owner to add an accessory dwelling unit; and 21
(2) An owner of a residential property to appeal to the 22
governing body any denial of an application to add an accessory 23
dwelling unit to the residential property; 24
(b) Must not as a condition of approval of an accessory 25
dwelling unit: 26
(1) Require or prohibit separate kitchen facilities for the 27
accessory dwelling unit; 28
(2) Require separate parking for the accessory dwelling 29
unit or charge the owner an additional fee for approval of the 30
accessory dwelling unit if the accessory dwelling unit will not have 31
separate parking; 32
(3) Require the exterior design, roof pitch or finishing 33
materials of the accessory dwelling unit match the primary 34
residence; 35
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(4) Require any side or rear setback for the accessory 1
dwelling unit that is more than 5 feet from the property line; 2
(5) Require any regulations that are more restrictive than 3
the regulations for the primary residence with regard to height, 4
setback, lot size or lot coverage; or 5
(6) Require any improvement or repair to a public street 6
unless such improvement or repair is necessary to reconstruct or 7
repair a public street that is disturbed during the construction of 8
the accessory dwelling unit; 9
(c) Must authorize the owner of the residential property to use 10
the accessory dwelling unit as long-term rental housing; 11
(d) Must not prohibit the owner of the residential property 12
from using or advertising the single-family residence or accessory 13
dwelling unit as long-term rental housing; and 14
(e) Must not require that the owner of the residential property 15
use the accessory dwelling unit for family members or other 16
persons with whom the owner has a personal or employment 17
relationship. 18
3. Except as otherwise provided in subsection 1, the 19
governing body shall not require, as a condition for the approval 20
of an accessory dwelling unit pursuant to the ordinance adopted 21
pursuant to this section, any restrictive covenant. 22
4. Any zoning regulation adopted by the governing body 23
pursuant to NRS 278.250 must allow the addition of an accessory 24
dwelling unit pursuant to the provisions of an ordinance adopted 25
pursuant to this section. 26
5. Any accessory dwelling unit approved pursuant to an 27
ordinance adopted pursuant to subsection 1: 28
(a) Must meet all applicable building codes, housing codes and 29
any other codes regulating the health and safety of residential 30
property. 31
(b) Is not required to meet any building code or other code 32
regulating the health and safety of commercial buildings, 33
including, without limitation, any code that requires a fire 34
sprinkler system in a commercial building. 35
6. Nothing in this section shall be construed to: 36
(a) Prohibit the governing body of a county or a city from 37
implementing a process that sets forth more favorable conditions 38
for adding an accessory dwelling unit to residential property, 39
including, without limitation, providing for the approval of the 40
construction of an additional dwelling unit by building permit in 41
lieu of approval by the planning department of the county or city; 42
or 43
(b) Authorize more than two accessory dwelling units on any 44
residential property. 45
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7. Any ordinance adopted pursuant to this section does not 1
apply in a region in a county or city in this State for which there 2
has been created by interstate compact a regional planning agency 3
and the regional plan adopted by the regional planning agency 4
calls for the regulation of housing. 5
8. As used in this section: 6
(a) “Accessory dwelling unit” means an independent living 7
space that is built on the same lot as the primary residence on a 8
residential property, regardless of whether the independent living 9
space is attached, detached or built within the primary residence. 10
(b) “Affordability restriction” means a limit on the rent that 11
owner may charge for occupancy of the accessory dwelling unit or 12
a limit on the income for tenants for persons or families seeking to 13
qualify as tenants in the accessory dwelling unit. 14
(c) “Kitchen facilities” includes, without limitation, a sink, 15
refrigerator and a significant cooking appliance such as a range, 16
stove, oven or microwave. 17
(d) “Long-term rental” means a rental period of 90 days or 18
more. 19
(e) “Residential property” means a property that is located in 20
an area of the county or city, as applicable, zoned for single-family 21
residential use. 22
Sec. 2. NRS 278.010 is hereby amended to read as follows: 23
278.010 As used in NRS 278.010 to 278.630, inclusive, and 24
section 1 of this act, unless the context otherwise requires, the 25
words and terms defined in NRS 278.0103 to 278.0195, inclusive, 26
have the meanings ascribed to them in those sections. 27
Sec. 3. NRS 278.0235 is hereby amended to read as follows: 28
278.0235 1. No action or proceeding may be commenced for 29
the purpose of seeking judicial relief or review from or with respect 30
to any final action, decision or order of any governing body, 31
commission or board authorized by NRS 278.010 to 278.630, 32
inclusive, and section 1 of this act, unless the action or proceeding 33
is commenced within 25 days after the date of filing of notice of the 34
final action, decision or order with the clerk or secretary of the 35
governing body, commission or board. 36
2. A petitioner or cross-petitioner who is seeking judicial 37
review must serve and file a memorandum of points and authorities 38
within 40 days after an action is commenced. 39
3. The respondent or cross-petitioners shall serve and file a 40
reply memorandum of points and authorities within 30 days after the 41
service of the memorandum of points and authorities. 42
4. The petition or cross-petitioner may serve and file a reply 43
memorandum of points and authorities within 30 days after service 44
of the reply memorandum. 45
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5. Within 7 days after the expiration of the time within which 1
the petitioner is required to reply, any party may request a hearing. 2
Unless a request for hearing has been filed, the matter shall be 3
deemed submitted. 4
6. All memoranda of points and authorities filed in proceedings 5
involving petitions for judicial review must be in the form provided 6
for appellate briefs in Rule 28 of the Nevada Rules of Appellate 7
Procedure. 8
7. The court, for good cause, may extend the times allowed in 9
this section for filing memoranda. 10
Sec. 4. NRS 278.250 is hereby amended to read as follows: 11
278.250 1. For the purposes of NRS 278.010 to 278.630, 12
inclusive, and section 1 of this act, the governing body may divide 13
the city, county or region into zoning districts of such number, shape 14
and area as are best suited to carry out the purposes of NRS 278.010 15
to 278.630, inclusive [. Within] , and section 1 of this act. Except 16
as otherwise provided in section 1 of this act, within the zoning 17
district, it may regulate and restrict the erection, construction, 18
reconstruction, alteration, repair or use of buildings, structures or 19
land. 20
2. The zoning regulations must be adopted in accordance with 21
the master plan for land use and be designed: 22
(a) To preserve the quality of air and water resources. 23
(b) To promote the conservation of open space and the 24
protection of other natural and scenic resources from unreasonable 25
impairment. 26
(c) To consider existing views and access to solar resources by 27
studying the height of new buildings which will cast shadows on 28
surrounding residential and commercial developments. 29
(d) To reduce the consumption of energy by encouraging the use 30
of products and materials which maximize energy efficiency in the 31
construction of buildings. 32
(e) To provide for recreational needs. 33
(f) To protect life and property in areas subject to floods, 34
landslides and other natural disasters. 35
(g) To conform to the adopted population plan, if required by 36
NRS 278.170. 37
(h) To develop a timely, orderly and efficient arrangement of 38
transportation and public facilities and services, including public 39
access and sidewalks for pedestrians, and facilities and services for 40
bicycles. 41
(i) To ensure that the development on land is commensurate 42
with the character and the physical limitations of the land. 43
(j) To take into account the immediate and long-range financial 44
impact of the application of particular land to particular kinds of 45
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development, and the relative suitability of the land for 1
development. 2
(k) To promote health and the general welfare. 3
(l) To ensure the development of an adequate supply of housing 4
for the community, including the development of affordable 5
housing. 6
(m) To ensure the protection of existing neighborhoods and 7
communities, including the protection of rural preservation 8
neighborhoods and, in counties whose population is 700,000 or 9
more, the protection of historic neighborhoods. 10
(n) To promote systems which use solar or wind energy. 11
(o) To foster the coordination and compatibility of land uses 12
with any military installation in the city, county or region, taking 13
into account the location, purpose and stated mission of the military 14
installation. 15
3. The zoning regulations must be adopted with reasonable 16
consideration, among other things, to the character of the area and 17
its peculiar suitability for particular uses, and with a view to 18
conserving the value of buildings and encouraging the most 19
appropriate use of land throughout the city, county or region. 20
4. In exercising the powers granted in this section, the 21
governing body may use any controls relating to land use or 22
principles of zoning that the governing body determines to be 23
appropriate, including, without limitation, density bonuses, 24
inclusionary zoning and minimum density zoning. 25
5. As used in this section: 26
(a) “Density bonus” means an incentive granted by a governing 27
body to a developer of real property that authorizes the developer to 28
build at a greater density than would otherwise be allowed under the 29
master plan, in exchange for an agreement by the developer to 30
perform certain functions that the governing body determines to be 31
socially desirable, including, without limitation, developing an area 32
to include a certain proportion of affordable housing. 33
(b) “Inclusionary zoning” means a type of zoning pursuant to 34
which a governing body requires or provides incentives to a 35
developer who builds residential dwellings to build a certain 36
percentage of those dwellings as affordable housing. 37
(c) “Minimum density zoning” means a type of zoning pursuant 38
to which development must be carried out at or above a certain 39
density to maintain conformance with the master plan. 40
Sec. 5. NRS 116.2117 is hereby amended to read as follows: 41
116.2117 1. Except as otherwise provided in NRS 42
116.21175, and except in cases of amendments that may be 43
executed by a declarant under subsection 5 of NRS 116.2109 or 44
NRS 116.211, or by the association under NRS 116.1107, 116.2106, 45
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subsection 3 of NRS 116.2108, subsection 1 of NRS 116.2112 or 1
NRS 116.2113, or by certain units’ owners under subsection 2 of 2
NRS 116.2108, subsection 1 of NRS 116.2112, subsection 2 of NRS 3
116.2113 or subsection 2 of NRS 116.2118, and except as otherwise 4
limited by subsections 4, 6, 7 and 8, the declaration, including any 5
plats, may be amended only by vote or agreement of units’ owners 6
of units to which at least a majority of the votes in the association 7
are allocated, unless the declaration specifies a different percentage 8
for all amendments or for specified subjects of amendment. If the 9
declaration requires the approval of another person as a condition of 10
its effectiveness, the amendment is not valid without that approval. 11
2. No action to challenge the validity of an amendment adopted 12
by the association pursuant to this section may be brought more than 13
1 year after the amendment is recorded. 14
3. Every amendment to the declaration must be recorded in 15
every county in which any portion of the common-interest 16
community is located and is effective only upon recordation. An 17
amendment [, except an amendment pursuant to NRS 116.2112,] 18
must be indexed in the grantee’s index in the name of the common-19
interest community and the association and in the grantor’s index in 20
the name of the parties executing the amendment. 21
4. Except to the extent expressly permitted or required by other 22
provisions of this chapter, no amendment may change the 23
boundaries of any unit or change the allocated interests of a unit in 24
the absence of unanimous consent of only those units’ owners 25
whose units are affected and the consent of a majority of the owners 26
of the remaining units [.] , including a majority of the votes 27
allocated to units not owned by the declarant. 28
5. Amendments to the declaration required by this chapter to 29
be recorded by the association must be prepared, executed, recorded 30
and certified on behalf of the association by any officer of the 31
association designated for that purpose or, in the absence of 32
designation, by the president of the association. 33
6. [An] Except as otherwise provided in subsection 9, an 34
amendment to the declaration which prohibits or materially restricts 35
the permitted uses of a unit or the number or other qualifications of 36
persons who may occupy units may not be enforced against a unit’s 37
owner who was the owner of the unit on the date of the recordation 38
of the amendment as long as the unit’s owner remains the owner of 39
that unit. 40
7. A provision in the declaration creating special declarant’s 41
rights that have not expired may not be amended without the 42
consent of the declarant. 43
8. If any provision of this chapter or of the declaration requires 44
the consent of a holder of a security interest in a unit, or an insurer 45
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or guarantor of such interest, as a condition to the effectiveness of 1
an amendment to the declaration, that consent is deemed granted if: 2
(a) The holder, insurer or guarantor has not requested, in 3
writing, notice of any proposed amendment; or 4
(b) Notice of any proposed amendment is required or has been 5
requested and a written refusal to consent is not received by the 6
association within 60 days after the association delivers notice of the 7
proposed amendment to the holder, insurer or guarantor, by certified 8
mail, return receipt requested, to the address for notice provided by 9
the holder, insurer or guarantor in a prior written request for notice. 10
9. An association may amend a declaration to restrict the 11
leasing of residential units to the extent that the restriction is 12
reasonably designed to meet underwriting requirements of: 13
(a) Institutional lenders that regularly make loans secured by 14
first mortgages on units in common-interest communities or 15
regularly purchase such mortgages; or 16
(b) Insurance companies that issue insurance policies to 17
associations or units in a common-interest community. 18
Sec. 6. NRS 116.2118 is hereby amended to read as follows: 19
116.2118 1. Except in the case of a taking of all the units by 20
eminent domain, in the case of foreclosure against an entire 21
cooperative of a security interest that has priority over the 22
declaration, or in the circumstances described in NRS 116.2124, a 23
common-interest community may be terminated only by agreement 24
of units’ owners to whom at least 80 percent of the votes in the 25
association are allocated, [or any larger percentage the declaration 26
specifies,] including at least 80 percent of the votes allocated to 27
units that are not owned by the declarant, and with any other 28
approvals required by the declaration. The declaration may require 29
a larger percentage of the total votes in the association for 30
approval, but termination requires approval by at least 80 percent 31
of the votes allocated to units not owned by the declarant. The 32
declaration may specify a smaller percentage only if all of the units 33
are restricted exclusively to nonresidential uses. 34
2. An agreement to terminate must be evidenced by the 35
execution of an agreement to terminate, or ratifications thereof, in 36
the same manner as a deed, by the requisite number of units’ 37
owners. The agreement must specify a date after which the 38
agreement will be void unless it is recorded before that date. An 39
agreement to terminate and all ratifications thereof must be recorded 40
in every county in which a portion of the common-interest 41
community is situated and is effective only upon recordation. 42
3. In the case of a condominium or planned community 43
containing only units having horizontal boundaries described in the 44
declaration, an agreement to terminate may provide that all of the 45
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common elements and units of the common-interest community 1
must be sold following termination. If, pursuant to the agreement, 2
any real estate in the common-interest community is to be sold 3
following termination, the agreement must set forth the minimum 4
terms of the sale. 5
4. In the case of a condominium or planned community 6
containing any units not having horizontal boundaries described in 7
the declaration, an agreement to terminate may provide for sale of 8
the common elements, but it may not require that the units be sold 9
following termination, unless the declaration as originally recorded 10
provided otherwise or all the units’ owners consent to the sale. 11
5. The association, on behalf of the units’ owners, may contract 12
for the sale of real estate in a common-interest community, but the 13
contract is not binding on the units’ owners until approved pursuant 14
to subsections 1 and 2. If any real estate is to be sold following 15
termination, title to that real estate, upon termination, vests in the 16
association as trustee for the holders of all interests in the units. 17
Thereafter, the association has all powers necessary and appropriate 18
to effect the sale. Until the sale has been concluded and the proceeds 19
thereof distributed, the association continues in existence with all 20
powers it had before termination. Proceeds of the sale must be 21
distributed to units’ owners and lienholders as their interests may 22
appear, in accordance with NRS 116.21183 and 116.21185. Unless 23
otherwise specified in the agreement to terminate, as long as the 24
association holds title to the real estate, each unit’s owner and his or 25
her successors in interest have an exclusive right to occupancy of 26
the portion of the real estate that formerly constituted the unit. 27
During the period of that occupancy, each unit’s owner and his or 28
her successors in interest remain liable for all assessments and other 29
obligations imposed on units’ owners by this chapter or the 30
declaration. 31
6. In a condominium or planned community, if the real estate 32
constituting the common-interest community is not to be sold 33
following termination, title to the common elements and, in a 34
common-interest community containing only units having 35
horizontal boundaries described in the declaration, title to all the real 36
estate in the common-interest community, vests in the units’ owners 37
upon termination as tenants in common in proportion to their 38
respective interests as provided in NRS 116.21185, and liens on the 39
units shift accordingly. While the tenancy in common exists, each 40
unit’s owner and his or her successors in interest have an exclusive 41
right to occupancy of the portion of the real estate that formerly 42
constituted the unit. 43
7. Following termination of the common-interest community, 44
the proceeds of a sale of real estate, together with the assets of the 45
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association, are held by the association as trustee for units’ owners 1
and holders of liens on the units as their interests may appear. 2
Sec. 7. NRS 116.31065 is hereby amended to read as follows: 3
116.31065 The rules adopted by an association: 4
1. Must be reasonably related to the purpose for which they are 5
adopted. 6
2. Must be sufficiently explicit in their prohibition, direction or 7
limitation to inform a person of any action or omission required for 8
compliance. 9
3. Must not be adopted to evade any obligation of the 10
association. 11
4. [Must] Except as otherwise provided in subsection 1 of 12
NRS 116.335, must be consistent with the governing documents of 13
the association and must not arbitrarily restrict conduct or require 14
the construction of any capital improvement by a unit’s owner that 15
is not required by the governing documents of the association. 16
5. Must be uniformly enforced under the same or similar 17
circumstances against all units’ owners. Any rule that is not so 18
uniformly enforced may not be enforced against any unit’s owner. 19
6. May be enforced by the association through the imposition 20
of a fine only if the association complies with the requirements set 21
forth in NRS 116.31031. 22
Sec. 8. NRS 116.335 is hereby amended to read as follows: 23
116.335 1. [Unless, at the time a unit’s owner purchased his 24
or her unit,] If the declaration [prohibited the unit’s owner from 25
renting or leasing his or her unit,] authorizes the association [may 26
not] to prohibit or restrict the unit’s owner from renting or leasing 27
his or her unit [.] , or contains a provision establishing a maximum 28
number or percentage of units in the common-interest community 29
which may be rented or leased, the association may adopt rules 30
and regulations to prohibit or restrict the renting or leasing of 31
residential units to the extent that the restriction is reasonably 32
related to meet underwriting requirements of: 33
(a) Institutional lenders that regularly make loans secured by 34
first mortgages on units in common-interest communities or 35
regularly purchase such mortgages; or 36
(b) Insurance companies that issue insurance policies to 37
associations or units in a common-interest community. 38
2. [Unless, at the time a unit’s owner purchased his or her unit, 39
the declaration required the unit’s owner to secure or obtain any 40
approval from the association in order to rent or lease his or her unit, 41
an association may not require the unit’s owner to secure or obtain 42
any approval from the association in order to rent or lease his or her 43
unit. 44
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3. If a declaration contains a provision establishing a maximum 1
number or percentage of units in the common-interest community 2
which may be rented or leased, that provision of the declaration may 3
not be amended to decrease that maximum number or percentage of 4
units in the common-interest community which may be rented or 5
leased. 6
4. If the governing documents of an association require a unit’s 7
owner who leases or rents his or her unit, or the tenant of a unit’s 8
owner, to register with the association or its agent or otherwise 9
submit to the association or its agent information concerning the 10
lease or rental agreement or the tenant, the association or its agent: 11
(a) Must conduct such activities in accordance with the 12
governing documents; 13
(b) May not require the unit’s owner or tenant of the unit’s 14
owner to provide information which the association or its agent does 15
not require to be provided to the association or its agent by a unit’s 16
owner who occupies his or her unit, except that the association or its 17
agent may require the unit’s owner to provide a copy of the lease or 18
rental agreement; and 19
(c) May not charge a fee to the unit’s owner for the registration 20
or submission of information. 21
5.] The provisions of this section do not prohibit an association 22
from enforcing any provisions which govern the renting or leasing 23
of units and which are contained in this chapter or in any other 24
applicable federal, state or local laws or regulations [. 25
6.] , including, without limitation, any restriction on the rental 26
of units as transient lodging pursuant to NRS 244.35351 to 27
244.35359, inclusive, or 268.09791 to 268.09799, inclusive. 28
3. Notwithstanding any other provision of law or the 29
declaration to the contrary: 30
(a) If a unit’s owner is prohibited from renting or leasing a unit 31
because the maximum number or percentage of units which may be 32
rented or leased in the common-interest community have already 33
been rented or leased, the unit’s owner may seek a waiver of the 34
prohibition from the executive board based upon a showing of 35
economic hardship, and the executive board may grant such a 36
waiver and approve the renting or leasing of the unit. 37
(b) If the declaration contains a provision establishing a 38
maximum number or percentage of units in the common-interest 39
community which may be rented or leased, in determining the 40
maximum number or percentage of units in the common-interest 41
community which may be rented or leased, the number of units 42
owned by the declarant must not be counted or considered. 43
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Sec. 9. NRS 116.4109 is hereby amended to read as follows: 1
116.4109 1. Except in the case of a sale in which delivery of 2
a public offering statement is required, or unless exempt under 3
subsection 2 of NRS 116.4101, a unit’s owner or his or her 4
authorized agent shall, at the expense of the unit’s owner, furnish to 5
a purchaser a resale package containing all of the following: 6
(a) A copy of the declaration, other than any plats, the bylaws, 7
the rules or regulations of the association and the information 8
statement required by NRS 116.41095. 9
(b) A statement from the association setting forth the amount of 10
the monthly assessment for common expenses and any unpaid 11
obligation of any kind, including, without limitation, management 12
fees, transfer fees, fines, penalties, interest, collection costs, 13
foreclosure fees and attorney’s fees currently due from the selling 14
unit’s owner. 15
(c) A copy of the current operating budget of the association and 16
current year-to-date financial statement for the association, which 17
must include a summary of the reserves of the association required 18
by NRS 116.31152 and which must include, without limitation, a 19
summary of the information described in paragraphs (a) to (e), 20
inclusive, of subsection 3 of NRS 116.31152. 21
(d) A statement of any unsatisfied judgments or pending legal 22
actions against the association and the status of any pending legal 23
actions relating to the common-interest community of which the 24
unit’s owner has actual knowledge. 25
(e) A statement of any transfer fees, transaction fees or any other 26
fees associated with the resale of a unit. 27
(f) In addition to any other document, a statement describing all 28
current and expected fees or charges for each unit, including, 29
without limitation, association fees, fines, assessments, late charges 30
or penalties, interest rates on delinquent assessments, additional 31
costs for collecting past due fines and charges for opening or closing 32
any file for each unit. 33
(g) Proof of the insurance policies that an association is 34
required to carry pursuant to NRS 116.3113. 35
2. The purchaser may, by written notice, cancel the contract of 36
purchase until midnight of the fifth calendar day following the date 37
of receipt of the resale package described in subsection 1, and the 38
contract for purchase must contain a provision to that effect. If the 39
purchaser elects to cancel a contract pursuant to this subsection, 40
the purchaser must hand deliver the notice of cancellation to the 41
unit’s owner or his or her authorized agent, mail the notice of 42
cancellation by prepaid United States mail to the unit’s owner or his 43
or her authorized agent or deliver the notice of cancellation by 44
electronic transmission to the unit’s owner or his or her authorized 45
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agent. Cancellation is without penalty, and all payments made by 1
the purchaser before cancellation must be refunded promptly. If the 2
purchaser has accepted a conveyance of the unit, the purchaser is 3
not entitled to: 4
(a) Cancel the contract pursuant to this subsection; or 5
(b) Damages, rescission or other relief based solely on the 6
ground that the unit’s owner or his or her authorized agent failed to 7
furnish the resale package, or any portion thereof, as required by this 8
section. 9
3. Within 10 calendar days after receipt of a written request by 10
a unit’s owner or his or her authorized agent, the association shall 11
furnish all of the following to the unit’s owner or his or her 12
authorized agent for inclusion in the resale package: 13
(a) Copies of the documents required pursuant to paragraphs (a) 14
and (c) of subsection 1; and 15
(b) A certificate containing the information necessary to enable 16
the unit’s owner to comply with paragraphs (b), (d), (e) , [and] (f) 17
and (g) of subsection 1. 18
4. If the association furnishes the documents and certificate 19
pursuant to subsection 3: 20
(a) The unit’s owner or his or her authorized agent shall include 21
the documents and certificate in the resale package provided to the 22
purchaser, and neither the unit’s owner nor his or her authorized 23
agent is liable to the purchaser for any erroneous information 24
provided by the association and included in the documents and 25
certificate. 26
(b) The association may charge the unit’s owner a reasonable 27
fee to cover the cost of preparing the certificate furnished pursuant 28
to subsection 3. Such a fee must be based on the actual cost the 29
association incurs to fulfill the requirements of this section in 30
preparing the certificate and must not exceed $185, except that if a 31
unit’s owner or an authorized agent thereof requests that the 32
certificate be furnished sooner than 3 business days after the date of 33
the request, the association may charge a fee, which must not exceed 34
$100, to expedite the preparation of the certificate. The amount of 35
the fee may increase, on an annual basis, by a percentage equal to 36
the percentage of increase in the Consumer Price Index (All Items) 37
published by the United States Department of Labor for the 38
preceding calendar year, but must not increase by more than 3 39
percent each year. 40
(c) The other documents furnished pursuant to subsection 3 41
must be provided in electronic format to the unit’s owner. If the 42
association is unable to provide such documents in electronic 43
format, the association may charge the unit’s owner a reasonable 44
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- *AB396_R1*
fee, not to exceed 25 cents per page for the first 10 pages, and 10 1
cents per page thereafter, to cover the cost of copying. 2
(d) Except for the fees allowed pursuant to paragraphs (b) and 3
(c), the association may not charge the unit’s owner any other fees 4
for preparing or furnishing the documents and certificate pursuant to 5
subsection 3. 6
5. Neither a purchaser nor the purchaser’s interest in a unit is 7
liable for any unpaid assessment or fee greater than the amount set 8
forth in the documents and certificate prepared by the association. If 9
the association fails to furnish the documents and certificate within 10
the 10 calendar days allowed by this section, the purchaser is not 11
liable for the delinquent assessment. A resale package provided to a 12
unit’s owner or his or her authorized agent pursuant to this section 13
remains effective for 90 calendar days. 14
6. Upon the request of a unit’s owner or his or her authorized 15
agent, or upon the request of a purchaser to whom the unit’s owner 16
has provided a resale package pursuant to this section or his or her 17
authorized agent, the association shall make the entire study of the 18
reserves of the association which is required by NRS 116.31152 19
reasonably available for the unit’s owner, purchaser or authorized 20
agent to inspect, examine, photocopy and audit. The study must be 21
made available at the business office of the association or some 22
other suitable location within the county where the common-interest 23
community is situated or, if it is situated in more than one county, 24
within one of those counties. 25
7. A unit’s owner, the authorized agent of the unit’s owner or 26
the holder of a security interest on the unit may request a statement 27
of demand from the association. Not later than 10 calendar days 28
after receipt of a written request from the unit’s owner, the 29
authorized agent of the unit’s owner or the holder of a security 30
interest on the unit for a statement of demand, the association shall 31
furnish a statement of demand to the person who requested the 32
statement and provide a copy of the statement to any other interested 33
party. The association may charge a fee of not more than $165 to 34
prepare and furnish a statement of demand pursuant to this 35
subsection and an additional fee of not more than $100 to furnish a 36
statement of demand within 3 business days after receipt of a written 37
request for a statement of demand. The amount of the fees for 38
preparing and furnishing a statement of demand and the additional 39
fee for furnishing a statement of demand within 3 business days may 40
increase, on an annual basis, by a percentage equal to the percentage 41
of increase in the Consumer Price Index (All Items) published by 42
the United States Department of Labor for the preceding calendar 43
year, but must not increase by more than 3 percent each year. The 44
statement of demand: 45
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(a) Must set forth the amount of the monthly assessment for 1
common expenses and any unpaid obligation of any kind, including, 2
without limitation, management fees, transfer fees, fines, penalties, 3
interest, collection costs, foreclosure fees and attorney’s fees 4
currently due from the selling unit’s owner; and 5
(b) Remains effective for the period specified in the statement of 6
demand, which must not be less than 15 business days after the date 7
of delivery by the association to the unit’s owner, the authorized 8
agent of the unit’s owner or the holder of a security interest on the 9
unit, whichever is applicable. 10
As used in this subsection, “interested party” includes the unit’s 11
owner selling the unit and the prospective purchaser of the unit. 12
8. In preparing, copying, furnishing or expediting or otherwise 13
providing any document or other item pursuant to this section, an 14
association, or entity related to or acting on behalf of an association, 15
shall not charge a unit’s owner, the authorized agent of a unit’s 16
owner, a purchaser or, pursuant to subsection 7, the holder of a 17
security interest on a unit, any fee: 18
(a) Not authorized in this section; or 19
(b) In an amount which exceeds any limit set forth in this 20
section. 21
9. If the association becomes aware of an error in a statement 22
of demand furnished pursuant to subsection 7 during the period in 23
which the statement of demand is effective but before the 24
consummation of a resale for which a resale package was furnished 25
pursuant to subsection 1, the association must deliver a replacement 26
statement of demand to the person who requested the statement of 27
demand. Unless the person who requested the statement of demand 28
receives a replacement statement of demand, the person may rely 29
upon the accuracy of the information set forth in the statement of 30
demand provided by the association for the resale. Payment of the 31
amount set forth in the statement of demand constitutes full payment 32
of the amount due from the selling unit’s owner. 33
Sec. 10. NRS 116.785 is hereby amended to read as follows: 34
116.785 1. If the Commission or the hearing panel, after 35
notice and hearing, finds that the respondent has committed a 36
violation, the Commission or the hearing panel may take any or all 37
of the following actions: 38
(a) Issue an order directing the respondent to cease and desist 39
from continuing to engage in the unlawful conduct that resulted in 40
the violation. 41
(b) Issue an order directing the respondent to take affirmative 42
action to correct any conditions resulting from the violation. 43
(c) Impose an administrative fine of not more than [$1,000] 44
$5,000 for each violation. 45
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2. If the respondent is a member of an executive board or an 1
officer of an association, the Commission or the hearing panel may 2
order the respondent removed from his or her office or position if 3
the Commission or the hearing panel, after notice and hearing, finds 4
that: 5
(a) The respondent has knowingly and willfully committed a 6
violation; and 7
(b) The removal is in the best interest of the association. 8
3. If the respondent violates any order issued by the 9
Commission or the hearing panel pursuant to this section, the 10
Commission or the hearing panel, after notice and hearing, may 11
impose an administrative fine of not more than [$1,000] $5,000 for 12
each violation. 13
4. If the Commission or the hearing panel takes any 14
disciplinary action pursuant to this section, the Commission or the 15
hearing panel may order the respondent to pay the costs of the 16
proceedings incurred by the Division, including, without limitation, 17
the cost of the investigation and reasonable attorney’s fees. 18
5. Notwithstanding any other provision of this section, unless 19
the respondent has knowingly and willfully committed a violation, if 20
the respondent is a member of an executive board or an officer of an 21
association: 22
(a) The association is liable for all fines and costs imposed 23
against the respondent pursuant to this section; and 24
(b) The respondent may not be held personally liable for those 25
fines and costs. 26
Sec. 11. 1. If, before January 1, 2026, the governing body of 27
a county whose population is 100,000 or more or the governing 28
body of a city whose population is 60,000 or more has adopted an 29
ordinance that is consistent with the provisions of section 1 of this 30
act, the governing body is not required to adopt another ordinance 31
relating to accessory dwelling units pursuant to section 1 of this act. 32
2. If the governing body of a county whose population is 33
100,000 or more or the governing body of a city whose population 34
is 60,000 or more does not adopt an ordinance that is consistent with 35
the provisions of section 1 of this act before January 1, 2026, 36
accessory dwelling units are authorized on any parcel zoned for 37
residential use without restriction. 38
Sec. 12. (Deleted by amendment.) 39
Sec. 13. The provisions of NRS 354.599 do not apply to any 40
additional expenses of a local government that are related to the 41
provisions of this act. 42
Sec. 14. 1. This section and section 13 of this act become 43
effective upon passage and approval. 44
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2. The provisions of sections 1 to 12, inclusive, of this act 1
become effective: 2
(a) Upon passage and approval for the purpose of adopting any 3
regulations and performing any other preparatory administrative 4
tasks that are necessary to carry out the provisions of this act; and 5
(b) On January 1, 2026, for all other purposes. 6
H