Nevada 2025 Regular Session

Nevada Senate Bill SB433 Latest Draft

Bill / Introduced Version

                              
  
  	S.B. 433 
 
- 	*SB433* 
 
SENATE BILL NO. 433–COMMITTEE ON JUDICIARY 
 
MARCH 24, 2025 
____________ 
 
Referred to Committee on Judiciary 
 
SUMMARY—Revises provisions governing common-interest 
communities. (BDR 10-1105) 
 
FISCAL NOTE: Effect on Local Government: Increases or Newly 
Provides for Term of Imprisonment in County or City 
Jail or Detention Facility. 
 Effect on the State: Yes. 
 
~ 
 
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. 
 
 
AN ACT relating to property; authorizing the executive board of a 
unit-owners’ association to make an assessment to fund 
certain repairs; requiring a structural inspection of certain 
buildings in a common-interest community; requiring an 
association to establish reserves for corrective repairs; 
requiring a study of reserves of an association to include 
an estimate of the costs of certain repairs; revising 
provisions governing the duty of the executive board to 
provide or make available to a unit’s owner certain 
records; prohibiting certain persons within or associated 
with a common-interest community from committing 
certain acts; requiring a written report from a structural 
inspection of certain buildings in a common-interest 
community to be provided under certain circumstances; 
eliminating the authority of the Real Estate Division of 
the Department of Business and Industry to establish a 
program for rendering of certain disputes; authorizing the 
Commission for Common-Interest Communities and 
Condominium Hotels or a hearing panel to prohibit 
certain persons from serving on the executive board; 
revising certain provisions governing actions for 
constructional defects; providing penalties; and providing 
other matters properly relating thereto.   
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Legislative Counsel’s Digest: 
 Section 16 of this bill: (1) establishes certain requirements for the structural 1 
inspection of the primary load-bearing system of a residential building in a 2 
common-interest community that meets certain criteria relating to height and 3 
materials and techniques of construction, defined as a “covered building” in section 4 
5 of this bill; and (2) imposes certain duties on a structural inspector who performs 5 
such a structural inspection. Section 16 also: (1) prohibits a certificate of 6 
occupancy to be issued for a covered building until a structural inspector confirms 7 
that the primary-load bearing system of the building conforms to approved 8 
construction plans; (2) authorizes the office of a city or county building official to 9 
recover any additional cost incurred as a result of such structural inspections; and 10 
(3) requires the governing body of certain cities and counties to adopt ordinances to 11 
carry out these provisions. 12 
 Section 17 of this bill sets forth certain periods by which an owner of a covered 13 
building is required to retain a structural inspector to perform certain structural 14 
inspections of the building components of the primary load-bearing system of a 15 
covered building. Section 57 of this bill requires the owner of a covered building to 16 
retain a structural inspector to perform such a structural inspection of the building 17 
components of the primary load-bearing system of a covered building for which a 18 
certificate of occupancy was issued before the date on which certain provisions of 19 
this bill become effective. 20 
 Section 18 of this bill provides that a structural inspection may be performed in 21 
conjunction with any other required inspection. Section 19 of this bill requires a 22 
structural inspector, before undertaking a structural inspection of a covered 23 
building, to review the written report from the most recent structural inspection of 24 
the covered building. Sections 20, 31 and 32 of this bill require a structural 25 
inspector who has performed a structural inspection to issue a written report and 26 
sets forth certain requirements for that report, including, without limitation, 27 
requiring the report to be: (1) filed with, or provided or made available to, certain 28 
persons; and (2) included within a public offering statement of a common-interest 29 
community and a resale package. Section 21 of this bill imposes certain duties on 30 
the owner of a covered building who receives a written report of a structural 31 
inspection. Section 22 of this bill requires the Commission for Common-Interest 32 
Communities and Condominium Hotels to adopt regulations relating to structural 33 
inspections. Sections 3-6, 8-13 and 23 of this bill define certain words and terms 34 
for the purposes of such inspections. 35 
 Sections 15 and 26 of this bill: (1) authorize the executive board of an 36 
association to make assessments for certain corrective repairs; and (2) require an 37 
association to establish reserves for corrective repairs. Section 27 of this bill 38 
requires the study of reserves of an association to include an estimate of the costs 39 
associated with implementing any corrective repairs deemed necessary pursuant to 40 
a written report of a structural inspector. 41 
 Section 24 of this bill revises certain provisions for the applicability to certain 42 
planned communities of words and terms defined in sections 2-14 of this bill and 43 
provisions governing structural inspections in sections 15-22 of this bill. 44 
 Existing law requires a declarant of a common-interest community to deliver to 45 
an association certain property of the units’ owners and of the association held or 46 
controlled by the declarant. (NRS 116.31038) Section 25 of this bill eliminates the 47 
requirement that the declarant deliver a copy of any plans and specifications used in 48 
the construction of the improvements in the common-interest community which 49 
were completed within 2 years before the declaration was recorded. Section 25 50 
requires the declarant to deliver: (1) a copy of any plans and specifications used in 51 
the construction of the improvements to common elements in the common-interest 52 
community; and (2) for any covered building, a manual of preventive maintenance 53 
relating to the common elements with a statement of the funds necessary to perform 54   
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the preventive maintenance in accordance with the schedule provided in the 55 
manual. 56 
 Existing law: (1) prohibits certain persons within a common-interest 57 
community from committing certain acts against another person within that same 58 
common-interest community; and (2) provides that committing any such act is a 59 
misdemeanor. (NRS 116.31184) Section 30 of this bill includes bullying and cyber-60 
bullying among the prohibited acts. Sections 2 and 7 of this bill define the terms 61 
“bullying” and “cyber-bullying” for the purposes of such prohibitions. Section 14 62 
of this bill revises the definition of the term “violation” to include violations of 63 
such new prohibitions for the purposes of authorizing investigations and remedial 64 
and disciplinary action, and section 59 of this bill repeals the existing definition of 65 
the term “violation.” Sections 33, 38-40 and 44 of this bill make conforming 66 
changes to eliminate references to the repealed definition of the term “violation.” 67 
 Existing law sets forth procedures by which: (1) a person who is aggrieved by 68 
an alleged violation may file a written affidavit with the Real Estate Division of the 69 
Department of Business and Industry; (2) the Division is required, except under 70 
certain circumstances, to refer the affidavit to the Ombudsman for Owners in 71 
Common-Interest Communities and Condominium Hotels for guidance and a 72 
report; and (3) the Division investigates the alleged violation, files a formal 73 
complaint with the Commission and schedules a hearing. (NRS 116.760, 116.765) 74 
Section 41 of this bill requires the Division to refer the affidavit to the Ombudsman 75 
if the Division determines that: (1) the allegations in the affidavit are not vexatious, 76 
misleading, retaliatory, frivolous, false or fraudulent; and (2) the alleged violation, 77 
if assumed to be true, would constitute a violation. Section 42 of this bill requires 78 
the Administrator of the Division to file a formal complaint with the Commission 79 
and schedule a hearing if, after receiving a report from the Ombudsman and 80 
investigating the alleged violation, the Division reasonably believes that: (1) the 81 
allegations in the affidavit are supported by probable cause; (2) the admissible 82 
evidence is sufficient to support sanctions against the respondent by a 83 
preponderance of the evidence; and (3) a decision to file a formal complaint with 84 
the Commission is in the best interests of justice and associations in this State. 85 
 Section 43 of this bill authorizes the Commission or a hearing panel to prohibit 86 
a respondent from serving on the executive board of an association for a period not 87 
to exceed 10 years under certain circumstances. 88 
 Existing law requires the executive board of an association to provide, upon the 89 
written request of a unit’s owner, a copy of certain records in electronic format at 90 
no cost to the unit’s owner. (NRS 116.31175) Section 28 of this bill: (1) authorizes 91 
the executive board to charge a fee to cover the actual costs of preparing a copy of 92 
the records in electronic format, not to exceed 25 cents per page for the first 10 93 
pages, and 10 cents per page thereafter; (2) revises the amount an executive board 94 
may charge a unit’s owner to review any books, records, contracts or other papers 95 
of the association; and (3) provides that the requirement to provide a copy of 96 
records to a unit’s owner does not apply to the personnel records of the employees 97 
of the association, including, without limitation, information relating to the salaries 98 
and benefits of the employees and other information concerning the employees. 99 
 Existing law: (1) prohibits an executive board, a member of an executive board, 100 
a community manager or an officer, employee or agent of an association from 101 
taking, or directing or encouraging another person to take, any retaliatory action 102 
against a unit’s owner under certain circumstances; and (2) authorizes, in addition 103 
to any other remedy provided by law, a unit’s owner to bring a separate action to 104 
recover compensatory damages and attorney’s fees and costs of bringing the action. 105 
(NRS 116.31183) Section 29 of this bill: (1) similarly prohibits a unit’s owner, 106 
tenant of a unit’s owner or guest or invitee of a unit’s owner or tenant of a unit’s 107 
owner from taking retaliatory action against an executive board, a member of an 108 
executive board, a community manager or an officer, employee or agent of an 109   
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association under certain circumstances; (2) authorizes an executive board, a 110 
member of an executive board, a community manager or an officer, employee or 111 
agent of an association to bring an action for the same remedies; and (3) provides a 112 
definition of the term “retaliatory action.” 113 
 Existing law authorizes the Division to establish a program for the rendering of 114 
decisions on disputes relating to: (1) the interpretation, application or enforcement 115 
of any covenants, conditions or restrictions applicable to residential property or any 116 
bylaws, rules or regulations adopted by an association; or (2) the procedures used 117 
for increasing, decreasing or imposing additional assessments upon residential 118 
property. Existing law also provides that a civil action based upon a claim relating 119 
to such a dispute may not be commenced in any court in this State unless the action 120 
has been submitted to mediation or, if the parties agree, has been referred to the 121 
program of the Division for the rendering of decisions on such disputes. (NRS 122 
38.300-38.360) Sections 34-37 and 45-54 of this bill: (1) eliminate the authority of 123 
the Division to establish a program for the rendering of decisions on such disputes; 124 
(2) provide for such disputes to be submitted to arbitration as well as mediation; 125 
and (3) delete references to the eliminated program of the Division. 126 
 Section 55 of this bill revises the definition of the term “constructional defect” 127 
for the purposes of actions for constructional defects. Section 56 of this bill 128 
authorizes a claimant in an action for constructional defects to recover any 129 
reasonable attorney’s fees sufficient to place the claimant in as good a position as 130 
the claimant would have been if the constructional defect did not exist. Section 58 131 
of this bill provides that the provisions amended in sections 55 and 56 apply to 132 
actions for constructional defects commenced before, on or after the effective date 133 
of those sections. 134 
 
 
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN 
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: 
 
 Section 1.  Chapter 116 of NRS is hereby amended by adding 1 
thereto the provisions set forth as sections 2 to 22, inclusive, of this 2 
act. 3 
 Sec. 2.  1. “Bullying” means written, verbal or electronic 4 
expressions or physical acts or gestures, or any combination 5 
thereof, that are directed at a person or group of persons, or a 6 
single severe and willful act or expression that is directed at a 7 
person or group of persons, and: 8 
 (a) Have the effect of: 9 
  (1) Physically harming a person or damaging the property 10 
of a person; or 11 
  (2) Placing a person in reasonable fear of physical harm to 12 
the person or damage to the property of the person; 13 
 (b) Interfere with the rights of a person by: 14 
  (1) Creating an intimidating or hostile environment for the 15 
person; or 16 
  (2) Substantially interfering with the ability of the person to 17 
participate in or benefit from services, activities or privileges 18 
provided by an association; or 19   
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 (c) Are acts or conduct described in paragraph (a) or (b) and 1 
are based upon the: 2 
  (1) Actual or perceived race, color, national origin, 3 
ancestry, religion, gender identity or expression, sexual 4 
orientation, physical or mental disability of a person, sex or any 5 
other distinguishing characteristic or background of a person; or 6 
  (2) Association of a person with another person having one 7 
or more of those actual or perceived characteristics. 8 
 2. The term includes, without limitation: 9 
 (a) Repeated or pervasive taunting, name-calling, belittling, 10 
mocking or use of put-downs or demeaning humor regarding the 11 
actual or perceived race, color, national origin, ancestry, religion, 12 
gender identity or expression, sexual orientation, physical or 13 
mental disability of a person, sex or any other distinguishing 14 
characteristic or background of a person; 15 
 (b) Behavior that is intended to harm another person by 16 
damaging or manipulating his or her relationships with others by 17 
conduct that includes, without limitation, spreading false rumors; 18 
 (c) Repeated or pervasive nonverbal threats or intimidation 19 
such as the use of aggressive, menacing or disrespectful gestures; 20 
 (d) Threats of harm to a person, to his or her possessions or to 21 
other persons, whether such threats are transmitted verbally, 22 
electronically or in writing; 23 
 (e) Blackmail, extortion or demands for protection money or 24 
involuntary loans or donations; 25 
 (f) Unlawfully blocking access to any property or facility of a 26 
common-interest community; 27 
 (g) Stalking; and 28 
 (h) Physically harmful contact with or injury to another 29 
person or his or her property. 30 
 3. As used in this section: 31 
 (a) “Protective hairstyle” includes, without limitation, 32 
hairstyles such as natural hairstyles, afros, bantu knots, curls, 33 
braids, locs and twists. 34 
 (b) “Race” includes traits associated with race, including, 35 
without limitation, hair texture and protective hairstyles. 36 
 Sec. 3.  “Building official” has the meaning ascribed to it in 37 
NRS 278.0115. 38 
 Sec. 4.  “Corrective repair” means repairs or other 39 
corrections to be undertaken following the detection of: 40 
 1. A potential failure; 41 
 2. Deterioration; or 42 
 3. A condition that may lead to premature deterioration, 43   
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 of the primary load-bearing system of a covered building, as 1 
reported by a structural inspector with the goal of remediating the 2 
condition described in subsection 1, 2 or 3. 3 
 Sec. 5.  “Covered building” means a residential building in a 4 
common-interest community that is greater than three stories in 5 
height and constructed, without limitation: 6 
 1. With load-bearing concrete, masonry, steel, heavy timber 7 
or podium decks; or 8 
 2. As a hybrid structure. 9 
 Sec. 6.  “Covered building owner” means: 10 
 1. A person whose name appears in the register or other 11 
records of a county clerk as the owner of record of a covered 12 
building; or 13 
 2. An association of a common-interest community which 14 
includes a covered building. 15 
 Sec. 7.  “Cyber-bullying” means bullying through the use of 16 
electronic communication. As used in this section, “electronic 17 
communication” means the communication of any written, verbal 18 
or pictorial information through the use of an electronic device, 19 
including, without limitation, a telephone, a cellular telephone, a 20 
computer or any similar means of communication. 21 
 Sec. 8.  “Enforcing agency” means the office of a city or 22 
county building official. 23 
 Sec. 9.  “Initial structural inspection” means a structural 24 
inspection required or performed pursuant to subsection 1 of 25 
section 17 of this act. 26 
 Sec. 10.  “Primary load-bearing system” means the 27 
assemblage of structural components within a building that, by 28 
contiguous interconnection, form a path by which external and 29 
internal forces applied to the covered building are delivered to the 30 
ground. 31 
 Sec. 11.  “Structural inspection” means an inspection 32 
performed by a structural inspector of the building components 33 
forming the primary load-bearing system of a covered building. 34 
 Sec. 12.  “Structural inspector” means: 35 
 1. A building official who is also a professional engineer 36 
licensed as a structural engineer in this State pursuant to chapter 37 
625 of NRS and the regulations adopted pursuant thereto; or 38 
 2. A professional engineer licensed as a structural engineer 39 
in this State pursuant to chapter 625 of NRS and the regulations 40 
adopted pursuant thereto, with whom a covered building owner or 41 
enforcing agency enters into a contract to perform structural 42 
inspections of covered buildings pursuant to sections 16 to 22, 43 
inclusive, of this act. 44   
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 Sec. 13.  “Subsequent structural inspection” means a 1 
structural inspection required or performed pursuant to 2 
subsection 2 of section 17 of this act. 3 
 Sec. 14.  “Violation” means a violation of: 4 
 1. Any provision of this chapter; 5 
 2. Any regulation adopted pursuant to this chapter; or 6 
 3. Any order of the Commission or a hearing panel. 7 
 Sec. 15.  1. Notwithstanding the terms of a declaration, a 8 
master deed, the bylaws or any other governing document of an 9 
association, the executive board may, without the consent of the 10 
units’ owners or the approval of a declarant selling units in a 11 
common-interest community, make an assessment payable by the 12 
units’ owners over one or more fiscal years or obtain a loan on 13 
such terms as the executive board determines are reasonable, 14 
including, without limitation, by assigning rights to future income, 15 
whenever necessary to fund the cost of corrective repair of the 16 
primary load-bearing system of a covered building pursuant to 17 
sections 16 to 22, inclusive, of this act or to maintain adequate 18 
reserve funds for an association pursuant to the current study of 19 
the reserves. 20 
 2. Before making an assessment or obtaining a loan pursuant 21 
to this section for a corrective repair to a covered building, the 22 
executive board must: 23 
 (a) Make a determination that the assessment or loan for the 24 
constructive repair is necessary to maintain the structural integrity 25 
of the covered building; and 26 
 (b) Obtain a written report from an engineer licensed by this 27 
State that states that the failure to undertake corrective repair of 28 
the primary load-bearing system of the covered building will: 29 
  (1) Constitute an imminent or reasonably foreseeable 30 
hazard to health or safety; 31 
  (2) Constitute a violation of the provisions of sections 16 to 32 
22, inclusive, of this act; or 33 
  (3) Result in a material increase in the cost of such 34 
corrective repair if delayed. 35 
 3. Nothing in this section shall be construed to prevent an 36 
association from pursuing or interfere with the right of an 37 
association to pursue an action for a constructional defect related 38 
to any common element of the common-interest community. 39 
 Sec. 16.  1. When an application for a building permit that 40 
proposes to create, amend or modify the primary load-bearing 41 
system of a covered building is filed with an enforcing agency, the 42 
enforcing agency shall, before issuing a building permit, consult 43 
with a structural inspector chosen by the enforcing agency or 44 
covered building owner and, except as otherwise provided in this 45   
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subsection, establish a schedule of structural inspections to 1 
confirm that the primary load-bearing system conforms to the 2 
plans submitted by the applicant for the building permit. 3 
Inspections must not be required as a condition for the issuance of 4 
a building permit pursuant to this subsection if the structural 5 
inspector consulted by the enforcing agency determines that the 6 
building which is the subject of the application for a building 7 
permit is not in fact a covered building. 8 
 2. Structural inspections performed pursuant to a schedule 9 
established pursuant to subsection 1 must be performed under the 10 
direction of a structural inspector. The structural inspector may be 11 
assisted by other licensed professionals who are qualified in 12 
various special disciplines, including, without limitation, 13 
geotechnical and civil engineering practices, as needed to perform 14 
the structural inspections required by this section. 15 
 3. In performing a structural inspection pursuant to this 16 
section, a structural inspector shall review the construction plans 17 
submitted with the application for a building permit and issue a 18 
written report which includes a statement whether the primary 19 
load-bearing system of the covered building conforms to the 20 
construction plans. If the structural inspector determines that the 21 
primary load-bearing system does not conform to the construction 22 
plans, the applicant for the building permit shall provide 23 
additional construction plans which conform to the modification 24 
to the primary load-bearing system. 25 
 4. The creation, repair, renovation, alteration or modification 26 
of the primary load-bearing system of a covered building required 27 
as a result of any inspection must be inspected by a structural 28 
inspector before a certificate of occupancy may be issued for the 29 
covered building. 30 
 5. A certificate of occupancy for a covered building must not 31 
be issued until a structural inspector issues a written report which 32 
includes a statement confirming that the primary load-bearing 33 
system of the covered building conforms to approved construction 34 
plans. 35 
 6. Any additional cost to an enforcing agency incurred as a 36 
result of structural inspections performed pursuant to this section 37 
may be recovered through a fee which: 38 
 (a) Is associated with an application for a building permit for a 39 
covered building; and 40 
 (b) Must be paid by a covered building owner during the 41 
application process. 42 
 7. The governing body of a city or county to which an 43 
enforcing agency pertains shall adopt ordinances necessary to 44 
carry out the purposes of this section. 45   
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 Sec. 17.  A covered building owner shall retain a structural 1 
inspector to perform: 2 
 1. An initial structural inspection of the building components 3 
of the primary load-bearing system of the covered building for 4 
which a certificate of occupancy has been issued not later than the 5 
earlier of: 6 
 (a) Five years after the date on which a certificate of 7 
occupancy is issued for the covered building; or 8 
 (b) Sixty days after the date on which damage to the primary 9 
load-bearing system is observed. 10 
 2. A subsequent structural inspection of the building 11 
components of the primary load-bearing system of the covered 12 
building in accordance with the schedule specified by a structural 13 
inspector in the written report for the most recent structural 14 
inspection as described in paragraph (f) of subsection 2 of section 15 
20 of this act. 16 
 Sec. 18.  A structural inspection performed pursuant to 17 
sections 16 to 22, inclusive, of this act may be performed in 18 
conjunction with any other required inspection. 19 
 Sec. 19.  Before undertaking a subsequent structural 20 
inspection of the building components of the primary load-bearing 21 
system of a covered building pursuant to subsection 2 of section 17 22 
of this act, a structural inspector shall review the written report 23 
from the most recent structural inspection of the covered building. 24 
 Sec. 20.  1. After a structural inspector has performed a 25 
structural inspection of the building components of the primary 26 
load-bearing system of a covered building pursuant to sections 16 27 
to 22, inclusive, of this act, the structural inspector shall issue a 28 
written report describing the condition of the primary load-bearing 29 
system. 30 
 2. A written report issued pursuant to subsection 1 must: 31 
 (a) Be prepared in accordance with the most recent edition of 32 
Guideline for Structural Condition Assessment of Existing 33 
Buildings, published by the American Society of Civil Engineers 34 
or its successor organization, or a similar protocol established by 35 
another nationally recognized structural engineering 36 
organization; 37 
 (b) If the structural inspector finds that corrective repairs of 38 
the primary load-bearing system are required, specify with 39 
reasonable detail the required corrective repairs; 40 
 (c) Set forth with specificity any other required preventive 41 
maintenance or repairs needed by the primary load-bearing 42 
system; 43 
 (d) Provide any other information or guidance necessary to 44 
maintain or repair the structural integrity of the covered building; 45   
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 (e) Identify any additional inspections and testing that are 1 
recommended based upon the conditions visually observed, which 2 
must be performed not later than 1 year after the date of the 3 
report; and 4 
 (f) Specify when the next structural inspection of the primary 5 
load-bearing system must be performed, but in no event shall the 6 
next inspection occur later than the earlier of 60 days after the 7 
date on which damage to the primary load-bearing system is 8 
observed or: 9 
  (1) If 20 years or less has elapsed since a certificate of 10 
occupancy was issued for the covered building, 5 years after the 11 
date on which the most recent structural inspection for the covered 12 
building was performed; or 13 
  (2) If more than 20 years has elapsed since a certificate of 14 
occupancy was issued for the covered building, 3 years after the 15 
date on which the most recent structural inspection for the covered 16 
building was performed. 17 
 3. In addition to the requirements of subsection 2, a written 18 
report for a subsequent structural inspection must: 19 
 (a) Identify any new or progressive deterioration; and 20 
 (b) If the structural inspector finds that corrective repairs of 21 
the primary load-bearing system are required, specify with 22 
reasonable detail the required corrective repairs, including, 23 
without limitation, the corrective repairs required to address any 24 
new or progressive deterioration identified pursuant to paragraph 25 
(a). 26 
 4. A structural inspector who issues a written report pursuant 27 
to subsection 1 shall: 28 
 (a) Provide a copy of the report to the covered building owner; 29 
and 30 
 (b) File a copy of the report with: 31 
  (1) The building official for the jurisdiction in which the 32 
covered building is located; 33 
  (2) The enforcing agency for the jurisdiction in which the 34 
covered building is located; and 35 
  (3) The Division. 36 
 5. A written report issued pursuant to subsection 1 must be: 37 
 (a) Upon request of any resident of the covered building which 38 
is the subject of the written report, made available to that resident 39 
by: 40 
  (1) The covered building owner; 41 
  (2) The enforcing agency for the jurisdiction in which the 42 
covered building is located; and 43 
  (3) The Division; and 44 
 (b) Included within: 45   
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  (1) A public offering statement of a common-interest 1 
community prepared pursuant to NRS 116.4102; and 2 
  (2) A resale package furnished pursuant to NRS 116.4109. 3 
 6. A written report which identifies additional inspections and 4 
testing that are recommended based upon conditions visually 5 
observed as described in paragraph (e) of subsection 2 must be 6 
updated to address the necessary repairs or maintenance identified 7 
through any additional inspections and testing which are 8 
performed. 9 
 Sec. 21.  A covered building owner who receives a written 10 
report of a structural inspection pursuant to section 20 of this act 11 
shall: 12 
 1. Undertake measures necessary to effectuate any corrective 13 
repairs specified in the written report, including, without 14 
limitation, engaging the services of: 15 
 (a) A person who holds a certificate of registration to practice 16 
architecture in this State pursuant to chapter 623 of NRS; or 17 
 (b) A structural engineer, 18 
 who is qualified in structural repairs to create plans or 19 
specifications to implement the corrective repairs. 20 
 2. Cause any plans or specifications created pursuant to 21 
subsection 1 to be filed with: 22 
 (a) The enforcing agency; and 23 
 (b) The Division. 24 
 Sec. 22.  The Commission shall adopt regulations to carry out 25 
the purposes of sections 16 to 22, inclusive, of this act. 26 
 Sec. 23.  NRS 116.003 is hereby amended to read as follows: 27 
 116.003 As used in this chapter and in the declaration and 28 
bylaws of an association, the words and terms defined in NRS 29 
116.005 to 116.095, inclusive, and sections 2 to 14, inclusive, of 30 
this act have the meanings ascribed to them in those sections. 31 
 Sec. 24.  NRS 116.1203 is hereby amended to read as follows: 32 
 116.1203 1.  Except as otherwise provided in subsections 2 33 
and 3, if a planned community contains no more than 12 units and is 34 
not subject to any developmental rights, it is subject only to NRS 35 
116.1106 and 116.1107 unless the declaration provides that this 36 
entire chapter is applicable. 37 
 2.  The provisions of NRS 116.12065 and the definitions set 38 
forth in NRS 116.005 to 116.095, inclusive, and sections 2 to 14, 39 
inclusive, of this act, to the extent that the definitions are necessary 40 
to construe any of those provisions, apply to a residential planned 41 
community containing more than 6 units. 42 
 3.  Except for NRS 116.3104, 116.31043, 116.31046 and 43 
116.31138, the provisions of NRS 116.3101 to 116.350, inclusive, 44 
and sections 15 to 22, inclusive, of this act and the definitions set 45   
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forth in NRS 116.005 to 116.095, inclusive, and sections 2 to 14, 1 
inclusive, of this act, to the extent that such definitions are 2 
necessary in construing any of those provisions, apply to a 3 
residential planned community containing more than 6 units. 4 
 Sec. 25.  NRS 116.31038 is hereby amended to read as 5 
follows: 6 
 116.31038 In addition to any applicable requirement set forth 7 
in NRS 116.310395, within 30 days after units’ owners other than 8 
the declarant may elect a majority of the members of the executive 9 
board, the declarant shall deliver to the association all property of 10 
the units’ owners and of the association held by or controlled by the 11 
declarant, including: 12 
 1.  The original or a certified copy of the recorded declaration 13 
as amended, the articles of incorporation, articles of association, 14 
articles of organization, certificate of registration, certificate of 15 
limited partnership, certificate of trust or other documents of 16 
organization for the association, the bylaws, minute books and other 17 
books and records of the association and any rules or regulations 18 
which may have been adopted. 19 
 2.  An accounting for money of the association and audited 20 
financial statements for each fiscal year and any ancillary period 21 
from the date of the last audit of the association to the date the 22 
period of the declarant’s control ends. The financial statements must 23 
fairly and accurately report the association’s financial position. The 24 
declarant shall pay the costs of the ancillary audit. The ancillary 25 
audit must be delivered within 210 days after the date the period of 26 
the declarant’s control ends. 27 
 3.  A complete study of the reserves of the association, 28 
conducted by a person who is registered as a reserve study specialist 29 
pursuant to chapter 116A of NRS. At the time the control of the 30 
declarant ends, the declarant shall: 31 
 (a) Except as otherwise provided in this paragraph, deliver to the 32 
association a reserve account that contains the declarant’s share of 33 
the amounts then due, and control of the account. If the declaration 34 
was recorded before October 1, 1999, and, at the time the control of 35 
the declarant ends, the declarant has failed to pay his or her share of 36 
the amounts due, the executive board shall authorize the declarant to 37 
pay the deficiency in installments for a period of 3 years, unless the 38 
declarant and the executive board agree to a shorter period. 39 
 (b) Disclose, in writing, the amount by which the declarant has 40 
subsidized the association’s dues on a per unit or per lot basis. 41 
 4.  The association’s money or control thereof. 42 
 5.  All of the declarant’s tangible personal property that has 43 
been represented by the declarant as property of the association or, 44 
unless the declarant has disclosed in the public offering statement 45   
 	– 13 – 
 
 
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that all such personal property used in the common-interest 1 
community will remain the declarant’s property, all of the 2 
declarant’s tangible personal property that is necessary for, and has 3 
been used exclusively in, the operation and enjoyment of the 4 
common elements, and inventories of these properties. 5 
 6.  A copy of any plans and specifications used in the 6 
construction of the improvements to common elements in the 7 
common-interest community . [which were completed within 2 8 
years before the declaration was recorded.] 9 
 7.  All insurance policies then in force, in which the units’ 10 
owners, the association, or its directors and officers are named as 11 
insured persons. 12 
 8.  Copies of any certificates of occupancy that may have been 13 
issued with respect to any improvements comprising the common-14 
interest community other than units in a planned community. 15 
 9.  Any renewable permits and approvals issued by 16 
governmental bodies applicable to the common-interest community 17 
which are in force and any other permits and approvals so issued 18 
and applicable which are required by law to be kept on the premises 19 
of the community. 20 
 10.  Written warranties of the contractor, subcontractors, 21 
suppliers and manufacturers that are still effective. 22 
 11.  A roster of owners and mortgagees of units and their 23 
addresses and telephone numbers, if known, as shown on the 24 
declarant’s records. 25 
 12.  Contracts of employment in which the association is a 26 
contracting party. 27 
 13.  Any contract for service in which the association is a 28 
contracting party or in which the association or the units’ owners 29 
have any obligation to pay a fee to the persons performing the 30 
services. 31 
 14. For any covered building, a manual of preventive 32 
maintenance to be performed over the life of the components of 33 
the common elements, including, without limitation, the primary 34 
load-bearing system. The manual must provide a schedule for the 35 
preventive maintenance, including, without limitation, a minimum 36 
schedule for periodic inspections of the primary load-bearing 37 
system. The declarant shall include in the study of the reserves of 38 
the association required by subsection 3, or the budget of the 39 
association, as appropriate, a statement of the amount of the funds 40 
necessary to perform the preventive maintenance in accordance 41 
with the schedule provided. 42 
 Sec. 26.  NRS 116.3115 is hereby amended to read as follows: 43 
 116.3115 1.  Until the association makes an assessment for 44 
common expenses, the declarant shall pay all common expenses. 45   
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After an assessment has been made by the association, assessments 1 
must be made at least annually, based on a budget adopted at least 2 
annually by the association in accordance with the requirements set 3 
forth in NRS 116.31151. Unless the declaration imposes more 4 
stringent standards, the budget must include a budget for the daily 5 
operation of the association and a budget for the reserves required 6 
by paragraph (b) of subsection 2. 7 
 2.  Except for assessments under subsections 4 to 7, inclusive, 8 
or as otherwise provided in this chapter: 9 
 (a) All common expenses, including the reserves, must be 10 
assessed against all the units in accordance with the allocations set 11 
forth in the declaration pursuant to subsections 1 and 2 of  12 
NRS 116.2107. 13 
 (b) The association shall establish adequate reserves, funded on 14 
a reasonable basis, for the repair, replacement and restoration of the 15 
major components of the common elements and any other portion of 16 
the common-interest community that the association is obligated to 17 
maintain, repair, replace or restore. The reserves may be used only 18 
for those purposes, including, without limitation, repairing, 19 
replacing and restoring roofs, roads and sidewalks [,] and 20 
implementing corrective repairs, and must not be used for daily 21 
maintenance. The association may comply with the provisions of 22 
this paragraph through a funding plan that is designed to allocate the 23 
costs for the repair, replacement and restoration of the major 24 
components of the common elements and any other portion of the 25 
common-interest community that the association is obligated to 26 
maintain, repair, replace or restore over a period of years if the 27 
funding plan is designed in an actuarially sound manner which will 28 
ensure that sufficient money is available when the repair, 29 
replacement and restoration of the major components of the 30 
common elements or any other portion of the common-interest 31 
community that the association is obligated to maintain, repair, 32 
replace or restore are necessary. Notwithstanding any provision of 33 
the governing documents to the contrary, to establish adequate 34 
reserves pursuant to this paragraph, including, without limitation, to 35 
establish or carry out a funding plan, the executive board may, 36 
without seeking or obtaining the approval of the units’ owners, 37 
impose any necessary and reasonable assessments against the units 38 
in the common-interest community. Any such assessments imposed 39 
by the executive board must be based on the study of the reserves of 40 
the association conducted pursuant to NRS 116.31152 [.] and any 41 
written report of a structural inspector issued pursuant to section 42 
20 of this act. 43 
 3.  Any assessment for common expenses or installment thereof 44 
that is 60 days or more past due bears interest at a rate equal to the 45   
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prime rate at the largest bank in Nevada as ascertained by the 1 
Commissioner of Financial Institutions on January 1 or July 1, as 2 
the case may be, immediately preceding the date the assessment 3 
becomes past due, plus 2 percent. The rate must be adjusted 4 
accordingly on each January 1 and July 1 thereafter until the balance 5 
is satisfied. 6 
 4.  Except as otherwise provided in the governing documents: 7 
 (a) Any common expense associated with the maintenance, 8 
repair, restoration or replacement of a limited common element 9 
must be assessed against the units to which that limited common 10 
element is assigned, equally, or in any other proportion the 11 
declaration provides; 12 
 (b) Any common expense benefiting fewer than all of the units 13 
or their owners, including, without limitation, common expenses 14 
consisting of the payment, on behalf of a unit’s owner, of delinquent 15 
property taxes or utility charges owed by the unit’s owner, may be 16 
assessed exclusively against the units or units’ owners benefited; 17 
and 18 
 (c) The costs of insurance must be assessed in proportion to risk 19 
and the costs of utilities must be assessed in proportion to usage. 20 
 5.  Assessments to pay a judgment against the association may 21 
be made only against the units in the common-interest community at 22 
the time the judgment was entered, in proportion to their liabilities 23 
for common expenses. 24 
 6.  If damage to a unit or other part of the common-interest 25 
community, or if any other common expense is caused by the willful 26 
misconduct or gross negligence of any unit’s owner, tenant or 27 
invitee of a unit’s owner or tenant, the association may assess that 28 
expense exclusively against his or her unit, even if the association 29 
maintains insurance with respect to that damage or common 30 
expense, unless the damage or other common expense is caused by a 31 
vehicle and is committed by a person who is delivering goods to, or 32 
performing services for, the unit’s owner, tenant or invitee of the 33 
unit’s owner or tenant. 34 
 7.  The association of a common-interest community created 35 
before January 1, 1992, is not required to make an assessment 36 
against a vacant lot located within the community that is owned by 37 
the declarant. 38 
 8.  If liabilities for common expenses are reallocated, 39 
assessments for common expenses and any installment thereof not 40 
yet due must be recalculated in accordance with the reallocated 41 
liabilities. 42 
 9.  The association shall provide written notice to each unit’s 43 
owner of a meeting at which an assessment for a capital 44   
 	– 16 – 
 
 
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improvement is to be considered or action is to be taken on such an 1 
assessment at least 21 calendar days before the date of the meeting. 2 
 Sec. 27.  NRS 116.31152 is hereby amended to read as 3 
follows: 4 
 116.31152 1.  The executive board shall: 5 
 (a) At least once every 5 years, cause to be conducted a study of 6 
the reserves required to repair, replace and restore the major 7 
components of the common elements and any other portion of the 8 
common-interest community that the association is obligated to 9 
maintain, repair, replace or restore; 10 
 (b) At least annually, review the results of that study to 11 
determine whether those reserves are sufficient; and 12 
 (c) At least annually, make any adjustments to the association’s 13 
funding plan which the executive board deems necessary to provide 14 
adequate funding for the required reserves. 15 
 2.  Except as otherwise provided in this subsection, the study of 16 
the reserves required by subsection 1 must be conducted by a person 17 
who holds a permit issued pursuant to chapter 116A of NRS. If the 18 
common-interest community contains 20 or fewer units and is 19 
located in a county whose population is less than 55,000, the study 20 
of the reserves required by subsection 1 may be conducted by any 21 
person whom the executive board deems qualified to conduct the 22 
study. 23 
 3.  The study of the reserves must include, without limitation: 24 
 (a) A summary of an inspection of the major components of the 25 
common elements and any other portion of the common-interest 26 
community that the association is obligated to maintain, repair, 27 
replace or restore; 28 
 (b) An identification of the major components of the common 29 
elements and any other portion of the common-interest community 30 
that the association is obligated to maintain, repair, replace or 31 
restore which have a remaining useful life of less than 30 years; 32 
 (c) An estimate of the remaining useful life of each major 33 
component of the common elements and any other portion of the 34 
common-interest community that the association is obligated to 35 
maintain, repair, replace or restore identified pursuant to paragraph 36 
(b); 37 
 (d) An estimate of the cost of maintenance, repair, replacement 38 
or restoration of each major component of the common elements 39 
and any other portion of the common-interest community identified 40 
pursuant to paragraph (b) during and at the end of its useful life; 41 
[and] 42 
 (e) An estimate of the costs associated with implementing any 43 
corrective repairs deemed necessary pursuant to a written report 44   
 	– 17 – 
 
 
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of a structural inspector issued pursuant to section 20 of this act; 1 
and 2 
 (f) An estimate of the total annual assessment that may be 3 
necessary to cover the cost of maintaining, repairing, replacement or 4 
restoration of the major components of the common elements and 5 
any other portion of the common-interest community identified 6 
pursuant to paragraph (b), including, without limitation, the 7 
estimate of the costs described in paragraph (e), after subtracting 8 
the reserves of the association as of the date of the study, and an 9 
estimate of the funding plan that may be necessary to provide 10 
adequate funding for the required reserves. 11 
 4.  A summary of the study of the reserves required by 12 
subsection 1 must be submitted to the Division not later than 45 13 
days after the date that the executive board adopts the results of the 14 
study. 15 
 5.  If a common-interest community was developed as part of a 16 
planned unit development pursuant to chapter 278A of NRS and is 17 
subject to an agreement with a city or county to receive credit 18 
against the amount of the residential construction tax that is imposed 19 
pursuant to NRS 278.4983 and 278.4985, the association that is 20 
organized for the common-interest community may use the money 21 
from that credit for the repair, replacement or restoration of park 22 
facilities and related improvements if: 23 
 (a) The park facilities and related improvements are identified as 24 
major components of the common elements of the association; and 25 
 (b) The association is obligated to repair, replace or restore the 26 
park facilities and related improvements in accordance with the 27 
study of the reserves required by subsection 1. 28 
 Sec. 28.  NRS 116.31175 is hereby amended to read as 29 
follows: 30 
 116.31175 1.  Except as otherwise provided in subsection 4, 31 
the executive board of an association shall, upon the written request 32 
of a unit’s owner, make available the books, records and other 33 
papers of the association for review at the business office of the 34 
association or a designated business location not to exceed 60 miles 35 
from the physical location of the common-interest community and 36 
during the regular working hours of the association, including, 37 
without limitation: 38 
 (a) The financial statement of the association; 39 
 (b) The budgets of the association required to be prepared 40 
pursuant to NRS 116.31151; 41 
 (c) The study of the reserves of the association required to be 42 
conducted pursuant to NRS 116.31152; and 43   
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 (d) All contracts to which the association is a party and all 1 
records filed with a court relating to a civil or criminal action to 2 
which the association is a party. 3 
 2.  The executive board shall provide a copy of any of the 4 
records described in paragraphs (a), (b) and (c) of subsection 1 to a 5 
unit’s owner or the Ombudsman within 21 days after receiving a 6 
written request therefor. Such records must be provided in electronic 7 
format [at no charge to the unit’s owner] or, if the association is 8 
unable to provide the records in electronic format, [the] in paper 9 
format. The executive board may charge a fee to cover the actual 10 
costs of preparing a copy, but the fee may not exceed 25 cents per 11 
page for the first 10 pages, and 10 cents per page thereafter. 12 
 3.  If the executive board fails to provide a copy of any of the 13 
records pursuant to subsection 2 within 21 days, the executive board 14 
must pay a penalty of $25 for each day the executive board fails to 15 
provide the records. 16 
 4. The provisions of subsection 1 do not apply to: 17 
 (a) The personnel records of the employees of the association, 18 
[except for those records] including, without limitation, 19 
information relating to [the number of hours worked and] the 20 
salaries and benefits of [those] the employees [;] and any other 21 
information concerning the employees; 22 
 (b) The records of the association relating to another unit’s 23 
owner, including, without limitation, any architectural plan or 24 
specification submitted by a unit’s owner to the association during 25 
an approval process required by the governing documents, except 26 
for those records described in subsection 5; and 27 
 (c) Any document, including, without limitation, minutes of an 28 
executive board meeting, a reserve study and a budget, if the 29 
document: 30 
  (1) Is in the process of being developed for final 31 
consideration by the executive board; and 32 
  (2) Has not been placed on an agenda for final approval by 33 
the executive board. 34 
 5.  The executive board of an association shall maintain a 35 
general record concerning each violation of the governing 36 
documents, other than a violation involving a failure to pay an 37 
assessment, for which the executive board has imposed a fine, a 38 
construction penalty or any other sanction. The general record: 39 
 (a) Must contain a general description of the nature of the 40 
violation and the type of the sanction imposed. If the sanction 41 
imposed was a fine or construction penalty, the general record must 42 
specify the amount of the fine or construction penalty. 43 
 (b) Must not contain the name or address of the person against 44 
whom the sanction was imposed or any other personal information 45   
 	– 19 – 
 
 
- 	*SB433* 
which may be used to identify the person or the location of the unit, 1 
if any, that is associated with the violation. 2 
 (c) Must be maintained in an organized and convenient filing 3 
system or data system that allows a unit’s owner to search and 4 
review the general records concerning violations of the governing 5 
documents. 6 
 6.  If the executive board refuses to allow a unit’s owner to 7 
review the books, records or other papers of the association, the 8 
Ombudsman may: 9 
 (a) On behalf of the unit’s owner and upon written request, 10 
review the books, records or other papers of the association during 11 
the regular working hours of the association; and 12 
 (b) If the Ombudsman is denied access to the books, records or 13 
other papers, request the Commission, or any member thereof acting 14 
on behalf of the Commission, to issue a subpoena for their 15 
production. 16 
 7.  The books, records and other papers of an association must 17 
be maintained for at least 10 years. The provisions of this subsection 18 
do not apply to: 19 
 (a) The minutes of a meeting of the units’ owners which must be 20 
maintained in accordance with NRS 116.3108; or 21 
 (b) The minutes of a meeting of the executive board which must 22 
be maintained in accordance with NRS 116.31083. 23 
 8.  The executive board [shall not] may require a unit’s owner 24 
to pay [an amount in excess of $25 per hour] the actual costs 25 
incurred by the association for the unit’s owner to review any 26 
books, records, contracts or other papers of the association pursuant 27 
to the provisions of subsection 1. 28 
 9. As used in this section, “actual costs” include, without 29 
limitation: 30 
 (a) The cost of gathering, preparing, copying or providing 31 
records, regardless of format; 32 
 (b) The cost of retrieving records from storage; and 33 
 (c) Any other related cost incurred by the association in 34 
allowing a unit’s owner to review any books, records, contracts or 35 
other papers of the association. 36 
 Sec. 29.  NRS 116.31183 is hereby amended to read as 37 
follows: 38 
 116.31183 1. An executive board, a member of an executive 39 
board, a community manager or an officer, employee or agent of an 40 
association shall not take, or direct or encourage another person to 41 
take, any retaliatory action against a unit’s owner because the unit’s 42 
owner has: 43   
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 (a) Complained in good faith about any alleged violation of any 1 
provision of this chapter or the governing documents of the 2 
association; 3 
 (b) Recommended the selection or replacement of an attorney, 4 
community manager or vendor; or 5 
 (c) Requested in good faith to review the books, records or other 6 
papers of the association. 7 
 2.  A unit’s owner, tenant of a unit’s owner or guest or invitee 8 
of a unit’s owner or tenant of a unit’s owner shall not take, or 9 
direct or encourage another person to take, any retaliatory action 10 
against an executive board, a member of an executive board, a 11 
community manager or an officer, employee or agent of an 12 
association because the executive board, community manager or 13 
officer, employee or agent of an association has: 14 
 (a) Provided in good faith a unit’s owner or tenant with notice 15 
of the applicable provisions of law or governing documents of the 16 
association that form the basis of an alleged violation; 17 
 (b) Failed in good faith to respond to a request or demand 18 
within the prescribed period pursuant to the provisions of this 19 
chapter or the governing documents of the association; or 20 
 (c) Refused in good faith to provide confidential information 21 
of the association upon request or to otherwise engage in an 22 
unlawful activity. 23 
 3. In addition to any other remedy provided by law, upon a 24 
violation of this section, a unit’s owner , an executive board, a 25 
member of an executive board, a community manager or an 26 
officer, employee or agent of an association may bring a separate 27 
action to recover: 28 
 (a) Compensatory damages; and 29 
 (b) Attorney’s fees and costs of bringing the separate action. 30 
 4. As used in this section: 31 
 (a) “Retaliatory action” includes, without limitation, making 32 
defamatory statements on social media or another similar online 33 
platform. 34 
 (b) “Social media” has the meaning ascribed to it in  35 
NRS 232.003. 36 
 Sec. 30.  NRS 116.31184 is hereby amended to read as 37 
follows: 38 
 116.31184 1.  A community manager, an agent or employee 39 
of the community manager, a member of the executive board, an 40 
officer, employee or agent of an association, a unit’s owner or a 41 
guest or tenant of a unit’s owner shall not willfully and without legal 42 
authority threaten, harass or otherwise engage in bullying, cyber-43 
bullying or a course of conduct against any other person who is the 44 
community manager of his or her common-interest community or an 45   
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agent or employee of that community manager, a member of the 1 
executive board of his or her association, an officer, employee or 2 
agent of his or her association, another unit’s owner in his or her 3 
common-interest community or a guest or tenant of a unit’s owner 4 
in his or her common-interest community which: 5 
 (a) Causes harm or serious emotional distress, or the reasonable 6 
apprehension thereof, to that person; or 7 
 (b) Creates a hostile environment for that person. 8 
 2.  A person who violates the provisions of subsection 1 is 9 
guilty of a misdemeanor. 10 
 Sec. 31.  NRS 116.4103 is hereby amended to read as follows: 11 
 116.4103 1.  Except as otherwise provided in NRS 12 
116.41035, a public offering statement must set forth or fully and 13 
accurately disclose each of the following: 14 
 (a) The name and principal address of the declarant and of the 15 
common-interest community, and a statement that the common-16 
interest community is a condominium, cooperative or planned 17 
community. 18 
 (b) A general description of the common-interest community, 19 
including to the extent possible, the types, number and declarant’s 20 
schedule of commencement and completion of construction of 21 
buildings, and amenities that the declarant anticipates including in 22 
the common-interest community. 23 
 (c) The estimated number of units in the common-interest 24 
community. 25 
 (d) Copies of the declaration, bylaws, and any rules or 26 
regulations of the association, but a plat is not required. 27 
 (e) The financial information required by subsection 2. 28 
 (f) A description of any services or subsidies being provided by 29 
the declarant or an affiliate of the declarant, not reflected in the 30 
budget that the declarant provides, or expenses which the declarant 31 
pays and which the declarant expects may become at any 32 
subsequent time a common expense of the association and the 33 
projected common expense assessment attributable to each of those 34 
services or expenses for the association and for each type of unit. 35 
 (g) Any initial or special fee due from the purchaser or seller at 36 
closing, including, without limitation, any transfer fees, whether 37 
payable to the association, the community manager of the 38 
association or any third party, together with a description of the 39 
purpose and method of calculating the fee. 40 
 (h) The terms and significant limitations of any warranties 41 
provided by the declarant, including statutory warranties and 42 
limitations on the enforcement thereof or on damages. 43 
 (i) A statement that unless the purchaser or his or her agent has 44 
personally inspected the unit, the purchaser may cancel, by written 45   
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- 	*SB433* 
notice, his or her contract for purchase until midnight of the fifth 1 
calendar day following the date of execution of the contract, and the 2 
contract must contain a provision to that effect. 3 
 (j) A statement of any unsatisfied judgment or pending action 4 
against the association, and the status of any pending action material 5 
to the common-interest community of which a declarant has actual 6 
knowledge. 7 
 (k) Any current or expected fees or charges to be paid by units’ 8 
owners for the use of the common elements and other facilities 9 
related to the common-interest community. 10 
 (l) In addition to any other document, a statement describing all 11 
current and expected fees or charges for each unit, including, 12 
without limitation, association fees, fines, assessments, late charges 13 
or penalties, interest rates on delinquent assessments, additional 14 
costs for collecting past due fines and charges for opening or closing 15 
any file for each unit. 16 
 (m) Any restraints on alienation of any portion of the common-17 
interest community and any restrictions: 18 
  (1) On the leasing or renting of units; and 19 
  (2) On the amount for which a unit may be sold or on the 20 
amount that may be received by a unit’s owner on the sale or 21 
condemnation of or casualty loss to the unit or to the common-22 
interest community, or on termination of the common-interest 23 
community. 24 
 (n) A description of any arrangement described in NRS 25 
116.1209 binding the association. 26 
 (o) The information statement set forth in NRS 116.41095. 27 
 (p) A copy of every written report from structural inspections 28 
of the building components forming the primary load-bearing 29 
systems of covered buildings located in the common-interest 30 
community, if any, performed pursuant to sections 16 to 22, 31 
inclusive, of this act. 32 
 2.  The public offering statement must contain any current 33 
balance sheet and a projected budget for the association, either 34 
within or as an exhibit to the public offering statement, for 1 year 35 
after the date of the first conveyance to a purchaser, and thereafter 36 
the current budget of the association, a statement of who prepared 37 
the budget and a statement of the budget’s assumptions concerning 38 
occupancy and inflation factors. The budget must include: 39 
 (a) A statement of the amount included in the budget as a 40 
reserve for repairs, replacement and restoration pursuant to  41 
NRS 116.3115; 42 
 (b) A statement of any other reserves; 43 
 (c) The projected common expense assessment by category of 44 
expenditures for the association; and 45   
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- 	*SB433* 
 (d) The projected monthly common expense assessment for each 1 
type of unit, including the amount established as reserves pursuant 2 
to NRS 116.3115. 3 
 3.  A declarant is not required to revise a public offering 4 
statement more than once each calendar quarter, if the following 5 
warning is given prominence in the statement: “THIS PUBLIC 6 
OFFERING STATEMENT IS CURRENT AS OF (insert a 7 
specified date). RECENT DEVELOPMENTS REGARDING (here 8 
refer to particular provisions of NRS 116.4103 and 116.4105) MAY 9 
NOT BE REFLECTED IN THIS STATEMENT.” 10 
 Sec. 32.  NRS 116.4109 is hereby amended to read as follows: 11 
 116.4109 1.  Except in the case of a sale in which delivery of 12 
a public offering statement is required, or unless exempt under 13 
subsection 2 of NRS 116.4101, a unit’s owner or his or her 14 
authorized agent shall, at the expense of the unit’s owner, furnish to 15 
a purchaser a resale package containing all of the following: 16 
 (a) A copy of the declaration, other than any plats, the bylaws, 17 
the rules or regulations of the association and the information 18 
statement required by NRS 116.41095. 19 
 (b) A statement from the association setting forth the amount of 20 
the monthly assessment for common expenses and any unpaid 21 
obligation of any kind, including, without limitation, management 22 
fees, transfer fees, fines, penalties, interest, collection costs, 23 
foreclosure fees and attorney’s fees currently due from the selling 24 
unit’s owner. 25 
 (c) A copy of the current operating budget of the association and 26 
current year-to-date financial statement for the association, which 27 
must include a summary of the reserves of the association required 28 
by NRS 116.31152 and which must include, without limitation, a 29 
summary of the information described in paragraphs (a) to [(e),] (f), 30 
inclusive, of subsection 3 of NRS 116.31152. 31 
 (d) A statement of any unsatisfied judgments or pending legal 32 
actions against the association and the status of any pending legal 33 
actions relating to the common-interest community of which the 34 
unit’s owner has actual knowledge. 35 
 (e) A statement of any transfer fees, transaction fees or any other 36 
fees associated with the resale of a unit. 37 
 (f) In addition to any other document, a statement describing all 38 
current and expected fees or charges for each unit, including, 39 
without limitation, association fees, fines, assessments, late charges 40 
or penalties, interest rates on delinquent assessments, additional 41 
costs for collecting past due fines and charges for opening or closing 42 
any file for each unit. 43 
 (g) A copy of every written report from structural inspections 44 
of the building components forming the primary load-bearing 45   
 	– 24 – 
 
 
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systems of covered buildings located in the common-interest 1 
community, if any, performed pursuant to sections 16 to 22, 2 
inclusive, of this act. 3 
 2.  The purchaser may, by written notice, cancel the contract of 4 
purchase until midnight of the fifth calendar day following the date 5 
of receipt of the resale package described in subsection 1, and the 6 
contract for purchase must contain a provision to that effect. If the 7 
purchaser elects to cancel a contract pursuant to this subsection,  8 
the purchaser must hand deliver the notice of cancellation to the 9 
unit’s owner or his or her authorized agent, mail the notice of 10 
cancellation by prepaid United States mail to the unit’s owner or his 11 
or her authorized agent or deliver the notice of cancellation by 12 
electronic transmission to the unit’s owner or his or her authorized 13 
agent. Cancellation is without penalty, and all payments made by 14 
the purchaser before cancellation must be refunded promptly. If the 15 
purchaser has accepted a conveyance of the unit, the purchaser is 16 
not entitled to: 17 
 (a) Cancel the contract pursuant to this subsection; or 18 
 (b) Damages, rescission or other relief based solely on the 19 
ground that the unit’s owner or his or her authorized agent failed to 20 
furnish the resale package, or any portion thereof, as required by this 21 
section. 22 
 3.  Within 10 calendar days after receipt of a written request by 23 
a unit’s owner or his or her authorized agent, the association shall 24 
furnish all of the following to the unit’s owner or his or her 25 
authorized agent for inclusion in the resale package: 26 
 (a) Copies of the documents required pursuant to paragraphs (a) 27 
, [and] (c) and (g) of subsection 1; and 28 
 (b) A certificate containing the information necessary to enable 29 
the unit’s owner to comply with paragraphs (b), (d), (e) and (f) of 30 
subsection 1. 31 
 4.  If the association furnishes the documents and certificate 32 
pursuant to subsection 3: 33 
 (a) The unit’s owner or his or her authorized agent shall include 34 
the documents and certificate in the resale package provided to the 35 
purchaser, and neither the unit’s owner nor his or her authorized 36 
agent is liable to the purchaser for any erroneous information 37 
provided by the association and included in the documents and 38 
certificate. 39 
 (b) The association may charge the unit’s owner a reasonable 40 
fee to cover the cost of preparing the certificate furnished pursuant 41 
to subsection 3. Such a fee must be based on the actual cost the 42 
association incurs to fulfill the requirements of this section in 43 
preparing the certificate and must not exceed $185, except that if a 44 
unit’s owner or an authorized agent thereof requests that the 45   
 	– 25 – 
 
 
- 	*SB433* 
certificate be furnished sooner than 3 business days after the date of 1 
the request, the association may charge a fee, which must not exceed 2 
$100, to expedite the preparation of the certificate. The amount of 3 
the fee may increase, on an annual basis, by a percentage equal to 4 
the percentage of increase in the Consumer Price Index (All Items) 5 
published by the United States Department of Labor for the 6 
preceding calendar year, but must not increase by more than 3 7 
percent each year. 8 
 (c) The other documents furnished pursuant to subsection 3 9 
must be provided in electronic format to the unit’s owner. If the 10 
association is unable to provide such documents in electronic 11 
format, the association may charge the unit’s owner a reasonable 12 
fee, not to exceed 25 cents per page for the first 10 pages, and 10 13 
cents per page thereafter, to cover the cost of copying. 14 
 (d) Except for the fees allowed pursuant to paragraphs (b) and 15 
(c), the association may not charge the unit’s owner any other fees 16 
for preparing or furnishing the documents and certificate pursuant to 17 
subsection 3. 18 
 5.  Neither a purchaser nor the purchaser’s interest in a unit is 19 
liable for any unpaid assessment or fee greater than the amount set 20 
forth in the documents and certificate prepared by the association. If 21 
the association fails to furnish the documents and certificate within 22 
the 10 calendar days allowed by this section, the purchaser is not 23 
liable for the delinquent assessment. A resale package provided to a 24 
unit’s owner or his or her authorized agent pursuant to this section 25 
remains effective for 90 calendar days. 26 
 6.  Upon the request of a unit’s owner or his or her authorized 27 
agent, or upon the request of a purchaser to whom the unit’s owner 28 
has provided a resale package pursuant to this section or his or her 29 
authorized agent, the association shall make the entire study of the 30 
reserves of the association which is required by NRS 116.31152 31 
reasonably available for the unit’s owner, purchaser or authorized 32 
agent to inspect, examine, photocopy and audit. The study must be 33 
made available at the business office of the association or some 34 
other suitable location within the county where the common-interest 35 
community is situated or, if it is situated in more than one county, 36 
within one of those counties. 37 
 7.  A unit’s owner, the authorized agent of the unit’s owner or 38 
the holder of a security interest on the unit may request a statement 39 
of demand from the association. Not later than 10 calendar days 40 
after receipt of a written request from the unit’s owner, the 41 
authorized agent of the unit’s owner or the holder of a security 42 
interest on the unit for a statement of demand, the association shall 43 
furnish a statement of demand to the person who requested the 44 
statement and provide a copy of the statement to any other interested 45   
 	– 26 – 
 
 
- 	*SB433* 
party. The association may charge a fee of not more than $165 to 1 
prepare and furnish a statement of demand pursuant to this 2 
subsection and an additional fee of not more than $100 to furnish a 3 
statement of demand within 3 business days after receipt of a written 4 
request for a statement of demand. The amount of the fees for 5 
preparing and furnishing a statement of demand and the additional 6 
fee for furnishing a statement of demand within 3 business days may 7 
increase, on an annual basis, by a percentage equal to the percentage 8 
of increase in the Consumer Price Index (All Items) published by 9 
the United States Department of Labor for the preceding calendar 10 
year, but must not increase by more than 3 percent each year. The 11 
statement of demand: 12 
 (a) Must set forth the amount of the monthly assessment for 13 
common expenses and any unpaid obligation of any kind, including, 14 
without limitation, management fees, transfer fees, fines, penalties, 15 
interest, collection costs, foreclosure fees and attorney’s fees 16 
currently due from the selling unit’s owner; and 17 
 (b) Remains effective for the period specified in the statement of 18 
demand, which must not be less than 15 business days after the date 19 
of delivery by the association to the unit’s owner, the authorized 20 
agent of the unit’s owner or the holder of a security interest on the 21 
unit, whichever is applicable. 22 
 As used in this subsection, “interested party” includes the unit’s 23 
owner selling the unit and the prospective purchaser of the unit. 24 
 8.  In preparing, copying, furnishing or expediting or otherwise 25 
providing any document or other item pursuant to this section, an 26 
association, or entity related to or acting on behalf of an association, 27 
shall not charge a unit’s owner, the authorized agent of a unit’s 28 
owner, a purchaser or, pursuant to subsection 7, the holder of a 29 
security interest on a unit, any fee: 30 
 (a) Not authorized in this section; or 31 
 (b) In an amount which exceeds any limit set forth in this 32 
section. 33 
 9. If the association becomes aware of an error in a statement 34 
of demand furnished pursuant to subsection 7 during the period in 35 
which the statement of demand is effective but before the 36 
consummation of a resale for which a resale package was furnished 37 
pursuant to subsection 1, the association must deliver a replacement 38 
statement of demand to the person who requested the statement of 39 
demand. Unless the person who requested the statement of demand 40 
receives a replacement statement of demand, the person may rely 41 
upon the accuracy of the information set forth in the statement of 42 
demand provided by the association for the resale. Payment of the 43 
amount set forth in the statement of demand constitutes full payment 44 
of the amount due from the selling unit’s owner. 45   
 	– 27 – 
 
 
- 	*SB433* 
 Sec. 33.  NRS 116.4117 is hereby amended to read as follows: 1 
 116.4117 1.  Subject to the requirements set forth in 2 
subsection 2, if a declarant, community manager or any other person 3 
subject to this chapter fails to comply with any of its provisions or 4 
any provision of the declaration or bylaws, any person or class of 5 
persons suffering actual damages from the failure to comply may 6 
bring a civil action for damages or other appropriate relief. 7 
 2.  Subject to the requirements set forth in NRS 38.310 and 8 
except as otherwise provided in NRS 116.3111, a civil action for 9 
damages or other appropriate relief for a failure or refusal to comply 10 
with any provision of this chapter or the governing documents of an 11 
association may be brought: 12 
 (a) By the association against: 13 
  (1) A declarant; 14 
  (2) A community manager; or 15 
  (3) A unit’s owner. 16 
 (b) By a unit’s owner against: 17 
  (1) The association; 18 
  (2) A declarant; or 19 
  (3) Another unit’s owner of the association. 20 
 (c) By a class of units’ owners constituting at least 10 percent of 21 
the total number of voting members of the association against a 22 
community manager. 23 
 3.  Members of the executive board are not personally liable to 24 
the victims of crimes occurring on the property. 25 
 4.  Except as otherwise provided in subsection 5, punitive 26 
damages may be awarded for a willful and material failure to 27 
comply with any provision of this chapter if the failure is established 28 
by clear and convincing evidence. 29 
 5.  Punitive damages may not be awarded against: 30 
 (a) The association; 31 
 (b) The members of the executive board for acts or omissions 32 
that occur in their official capacity as members of the executive 33 
board; or 34 
 (c) The officers of the association for acts or omissions that 35 
occur in their capacity as officers of the association. 36 
 6.  The court may award reasonable attorney’s fees to the 37 
prevailing party. 38 
 7.  The civil remedy provided by this section is in addition to, 39 
and not exclusive of, any other available remedy or penalty. 40 
 8.  The provisions of this section do not prohibit the 41 
Commission from taking any disciplinary action against a member 42 
of an executive board pursuant to NRS [116.745] 116.750 to 43 
116.795, inclusive. 44   
 	– 28 – 
 
 
- 	*SB433* 
 Sec. 34.  NRS 116.625 is hereby amended to read as follows: 1 
 116.625 1.  The Office of the Ombudsman for Owners in 2 
Common-Interest Communities and Condominium Hotels is hereby 3 
created within the Division. 4 
 2.  The Administrator shall appoint the Ombudsman. The 5 
Ombudsman is in the unclassified service of the State. 6 
 3.  The Ombudsman must be qualified by training and 7 
experience to perform the duties and functions of office. 8 
 4.  In addition to any other duties set forth in this chapter, the 9 
Ombudsman shall: 10 
 (a) Assist in processing claims submitted to mediation or 11 
arbitration [or referred to a program] pursuant to NRS 38.300 to 12 
38.360, inclusive; 13 
 (b) Assist owners in common-interest communities and 14 
condominium hotels to understand their rights and responsibilities 15 
as set forth in this chapter and chapter 116B of NRS and the 16 
governing documents of their associations, including, without 17 
limitation, publishing materials related to those rights and 18 
responsibilities; 19 
 (c) Assist members of executive boards and officers of 20 
associations to carry out their duties; 21 
 (d) When appropriate, investigate disputes involving the 22 
provisions of this chapter or chapter 116B of NRS or the governing 23 
documents of an association and assist in resolving such disputes; 24 
and 25 
 (e) Compile and maintain a registration of each association 26 
organized within the State which includes, without limitation, the 27 
following information: 28 
  (1) The name, address and telephone number of the 29 
association; 30 
  (2) The name of each community manager for the common-31 
interest community or the association of a condominium hotel and 32 
the name of any other person who is authorized to manage the 33 
property at the site of the common-interest community or 34 
condominium hotel; 35 
  (3) The names, mailing addresses and telephone numbers of 36 
the members of the executive board of the association; 37 
  (4) The name of the declarant; 38 
  (5) The number of units in the common-interest community 39 
or condominium hotel; 40 
  (6) The total annual assessment made by the association; 41 
  (7) The number of foreclosures which were completed on 42 
units within the common-interest community or condominium hotel 43 
and which were based on liens for the failure of the unit’s owner to 44   
 	– 29 – 
 
 
- 	*SB433* 
pay any assessments levied against the unit or any fines imposed 1 
against the unit’s owner; and 2 
  (8) Whether the study of the reserves of the association has 3 
been conducted pursuant to NRS 116.31152 or 116B.605 and, if so, 4 
the date on which it was completed. 5 
 Sec. 35.  NRS 116.630 is hereby amended to read as follows: 6 
 116.630 1.  There is hereby created the Account for Common-7 
Interest Communities and Condominium Hotels in the State General 8 
Fund. The Account must be administered by the Administrator. 9 
 2.  Except as otherwise provided in subsection 3, all money 10 
received by the Commission, a hearing panel or the Division 11 
pursuant to this chapter or chapter 116B of NRS, including, without 12 
limitation, the fees collected pursuant to NRS 116.31155 and 13 
116B.620, must be deposited into the Account. 14 
 3.  If the Commission imposes a fine or penalty, the 15 
Commission shall deposit the money collected from the imposition 16 
of the fine or penalty with the State Treasurer for credit to the State 17 
General Fund. If the money is so deposited, the Commission may 18 
present a claim to the State Board of Examiners for recommendation 19 
to the Interim Finance Committee if money is required to pay 20 
attorney’s fees or the costs of an investigation, or both. 21 
 4.  The interest and income earned on the money in the 22 
Account, after deducting any applicable charges, must be credited to 23 
the Account. 24 
 5.  The money in the Account must be used solely to defray: 25 
 (a) The costs and expenses of the Commission and the Office of 26 
the Ombudsman; 27 
 (b) If authorized by the Commission or any regulations adopted 28 
by the Commission, the costs and expenses of subsidizing 29 
proceedings for mediation [,] and arbitration [and a program] 30 
conducted pursuant to NRS 38.300 to 38.360, inclusive; and 31 
 (c) If authorized by the Legislature or by the Interim Finance 32 
Committee if the Legislature is not in session, the costs and 33 
expenses of administering the Division. 34 
 Sec. 36.  NRS 116.665 is hereby amended to read as follows: 35 
 116.665 1.  The Commission shall conduct such hearings and 36 
other proceedings as are required by the provisions of this chapter. 37 
 2.  The Commission shall collect and maintain or cause to be 38 
collected and maintained accurate information relating to: 39 
 (a) The number and kind of common-interest communities in 40 
this State; 41 
 (b) The effect of the provisions of this chapter and any 42 
regulations adopted pursuant thereto on the development and 43 
construction of common-interest communities, the residential 44   
 	– 30 – 
 
 
- 	*SB433* 
lending market for units within common-interest communities and 1 
the operation and management of common-interest communities; 2 
 (c) Violations of the provisions of this chapter and any 3 
regulations adopted pursuant thereto; 4 
 (d) The accessibility and use of, and the costs related to, the 5 
arbitration [,] and mediation [and program] procedures set forth in 6 
NRS 38.300 to 38.360, inclusive, and the decisions rendered and 7 
awards made pursuant to those procedures; 8 
 (e) The number of foreclosures which were completed on units 9 
within common-interest communities and which were based on liens 10 
for the failure of the unit’s owner to pay any assessments levied 11 
against the unit or any fines imposed against the unit’s owner; 12 
 (f) The study of the reserves required by NRS 116.31152; and 13 
 (g) Other issues that the Commission determines are of concern 14 
to units’ owners, associations, community managers, developers and 15 
other persons affected by common-interest communities. 16 
 3.  The Commission shall develop and promote: 17 
 (a) Educational guidelines for conducting the elections of the 18 
members of an executive board, the meetings of an executive board 19 
and the meetings of the units’ owners of an association; and 20 
 (b) Educational guidelines for the enforcement of the governing 21 
documents of an association through liens, penalties and fines. 22 
 4.  The Commission shall recommend and approve for 23 
accreditation programs of education and research relating to 24 
common-interest communities, including, without limitation: 25 
 (a) The management of common-interest communities; 26 
 (b) The sale and resale of units within common-interest 27 
communities; 28 
 (c) Alternative methods that may be used to resolve disputes 29 
relating to common-interest communities; and 30 
 (d) The enforcement, including by foreclosure, of liens on units 31 
within common-interest communities for the failure of the unit’s 32 
owner to pay any assessments levied against the unit or any fines 33 
imposed against the unit’s owner. 34 
 Sec. 37.  NRS 116.670 is hereby amended to read as follows: 35 
 116.670 The Commission may: 36 
 1.  By regulation, establish standards for subsidizing 37 
proceedings for mediation [,] and arbitration [and a program] 38 
conducted pursuant to NRS 38.300 to 38.360, inclusive, to ensure 39 
that such proceedings are not lengthy and are affordable and readily 40 
accessible to all parties; 41 
 2.  By regulation, establish standards for subsidizing 42 
educational programs for the benefit of units’ owners, members of 43 
executive boards and officers of associations; 44 
 3.  Accept any gifts, grants or donations; and 45   
 	– 31 – 
 
 
- 	*SB433* 
 4.  Enter into agreements with other entities that are required or 1 
authorized to carry out similar duties in this State or in other 2 
jurisdictions and cooperate with such entities to develop uniform 3 
procedures for carrying out the provisions of this chapter and for 4 
accumulating information needed to carry out those provisions. 5 
 Sec. 38.  NRS 116.750 is hereby amended to read as follows: 6 
 116.750 1.  In carrying out the provisions of NRS [116.745] 7 
116.750 to 116.795, inclusive, the Division and the Ombudsman 8 
have jurisdiction to investigate and the Commission and each 9 
hearing panel has jurisdiction to take appropriate action against any 10 
person who commits a violation, including, without limitation: 11 
 (a) Any association and any officer, employee or agent of an 12 
association. 13 
 (b) Any member of an executive board. 14 
 (c) Any community manager who holds a certificate and any 15 
other community manager. 16 
 (d) Any person who is registered as a reserve study specialist, or 17 
who conducts a study of reserves, pursuant to chapter 116A of NRS. 18 
 (e) Any declarant or affiliate of a declarant. 19 
 (f) Any unit’s owner. 20 
 (g) Any tenant of a unit’s owner if the tenant has entered into an 21 
agreement with the unit’s owner to abide by the governing 22 
documents of the association and the provisions of this chapter and 23 
any regulations adopted pursuant thereto. 24 
 2.  The jurisdiction set forth in subsection 1 applies to any 25 
officer, employee or agent of an association or any member of an 26 
executive board who commits a violation and who: 27 
 (a) Currently holds his or her office, employment, agency or 28 
position or who held the office, employment, agency or position at 29 
the commencement of proceedings against him or her. 30 
 (b) Resigns his or her office, employment, agency or position: 31 
  (1) After the commencement of proceedings against him or 32 
her; or 33 
  (2) Within 1 year after the violation is discovered or 34 
reasonably should have been discovered. 35 
 Sec. 39.  NRS 116.755 is hereby amended to read as follows: 36 
 116.755 1.  The rights, remedies and penalties provided by 37 
NRS [116.745] 116.750 to 116.795, inclusive, are cumulative and 38 
do not abrogate and are in addition to any other rights, remedies and 39 
penalties that may exist at law or in equity. 40 
 2.  If the Commission, a hearing panel or another agency or 41 
officer elects to take a particular action or pursue a particular 42 
remedy or penalty authorized by NRS [116.745] 116.750 to 43 
116.795, inclusive, or another specific statute, that election is not 44 
exclusive and does not preclude the Commission, the hearing panel 45   
 	– 32 – 
 
 
- 	*SB433* 
or another agency or officer from taking any other actions or 1 
pursuing any other remedies or penalties authorized by NRS 2 
[116.745] 116.750 to 116.795, inclusive, or another specific statute. 3 
 3.  In carrying out the provisions of NRS [116.745] 116.750 to 4 
116.795, inclusive, the Commission or a hearing panel shall not 5 
intervene in any internal activities of an association except to the 6 
extent necessary to prevent or remedy a violation. 7 
 Sec. 40.  NRS 116.757 is hereby amended to read as follows: 8 
 116.757 1.  Except as otherwise provided in this section and 9 
NRS 239.0115, a written affidavit filed with the Division pursuant 10 
to NRS 116.760, all documents and other information filed with the 11 
written affidavit and all documents and other information compiled 12 
as a result of an investigation conducted to determine whether to file 13 
a formal complaint with the Commission are confidential. The 14 
Division shall not disclose any information that is confidential 15 
pursuant to this subsection, in whole or in part, to any person, 16 
including, without limitation, a person who is the subject of an 17 
investigation or complaint, unless and until a formal complaint is 18 
filed pursuant to subsection 2 and the disclosure is required pursuant 19 
to subsection 2. 20 
 2.  A formal complaint filed by the Administrator with the 21 
Commission and all documents and other information considered by 22 
the Commission or a hearing panel when determining whether to 23 
impose discipline or take other administrative action pursuant to 24 
NRS [116.745] 116.750 to 116.795, inclusive, are public records. 25 
 Sec. 41.  NRS 116.760 is hereby amended to read as follows: 26 
 116.760 1.  Except as otherwise provided in this section, a 27 
person who is aggrieved by an alleged violation may, not later than 28 
1 year after the person discovers or reasonably should have 29 
discovered the alleged violation, file with the Division a written 30 
affidavit that sets forth the facts constituting the alleged violation. 31 
The affidavit may allege any actual damages suffered by the 32 
aggrieved person as a result of the alleged violation. 33 
 2.  An aggrieved person may not file such an affidavit unless 34 
the aggrieved person has provided the respondent by certified mail, 35 
return receipt requested, with written notice of the alleged violation 36 
set forth in the affidavit. The notice must: 37 
 (a) Be mailed to the respondent’s last known address. 38 
 (b) Specify, in reasonable detail, the alleged violation, any 39 
actual damages suffered by the aggrieved person as a result of the 40 
alleged violation, and any corrective action proposed by the 41 
aggrieved person. 42 
 3.  A written affidavit filed with the Division pursuant to this 43 
section must be: 44 
 (a) On a form prescribed by the Division. 45   
 	– 33 – 
 
 
- 	*SB433* 
 (b) Accompanied by evidence that: 1 
  (1) The respondent has been given a reasonable opportunity 2 
after receiving the written notice to correct the alleged violation; and 3 
  (2) Reasonable efforts to resolve the alleged violation have 4 
failed. 5 
 4.  If the Division determines that: 6 
 (a) The allegations in the affidavit are not vexatious, 7 
misleading, retaliatory, frivolous, false or fraudulent; and 8 
 (b) The alleged violation, if assumed to be true, would 9 
constitute a violation, 10 
 the Division shall refer the affidavit to the Ombudsman. 11 
 5. The Commission or a hearing panel may impose either or 12 
both of the following:  13 
 (a) An administrative fine of not more than $10,000; or 14 
 (b) Sanctions disqualifying a person from serving as a member 15 
of the executive board for a period of not more than 10 years, 16 
 against any person who [knowingly] files a vexatious, 17 
misleading, retaliatory, frivolous, false or fraudulent affidavit with 18 
the Division. 19 
 [5.  The Commission or a hearing panel may designate a person 20 
as a vexatious affiant if the Commission or a hearing panel has 21 
imposed an administrative fine or sanctions against the person 22 
pursuant to subsection 4 for knowingly filing a false or fraudulent 23 
affidavit with the Division on two or more occasions. If the 24 
Commission or a hearing panel has designated a person as a 25 
vexatious affiant pursuant to this subsection, the Commission or 26 
hearing panel shall transmit a copy of the order designating the 27 
person as a vexatious affiant to the Division and the Division shall 28 
not thereafter accept an affidavit filed by the person unless: 29 
 (a) The person first submits a copy of the affidavit to the 30 
Ombudsman; and 31 
 (b) After reviewing the affidavit, the Ombudsman grants leave 32 
for the person to file the affidavit with the Division.] 33 
 Sec. 42.  NRS 116.765 is hereby amended to read as follows: 34 
 116.765 1.  Upon receipt of an affidavit that complies with 35 
the provisions of NRS 116.760, the [Division shall refer the 36 
affidavit to the Ombudsman. 37 
 2.  The] Ombudsman shall give such guidance to the parties as 38 
the Ombudsman deems necessary to assist the parties to resolve the 39 
alleged violation. 40 
 [3.] 2.  If the parties are unable to resolve the alleged violation 41 
with the assistance of the Ombudsman, the Ombudsman shall 42 
provide to the Division a report concerning the alleged violation and 43 
any information collected by the Ombudsman during his or her 44 
efforts to assist the parties to resolve the alleged violation. 45   
 	– 34 – 
 
 
- 	*SB433* 
 [4.] 3.  Upon receipt of the report from the Ombudsman, the 1 
Division shall conduct an investigation to determine whether good 2 
cause exists to proceed with a hearing on the alleged violation. 3 
 [5.] 4.  If, after investigating the alleged violation, the Division 4 
[determines] reasonably believes that [the] : 5 
 (a) The allegations in the affidavit are [not frivolous, false or 6 
fraudulent and that good] supported by probable cause [exists to 7 
proceed with a hearing on the alleged violation,] ; 8 
 (b) The admissible evidence is sufficient to support sanctions 9 
against the respondent by a preponderance of the evidence; and 10 
 (c) A decision to file a formal complaint with the Commission 11 
is in the best interests of justice and associations in this State, 12 
 the Administrator shall file a formal complaint with the 13 
Commission and schedule a hearing on the complaint before the 14 
Commission or a hearing panel. 15 
 Sec. 43.  NRS 116.785 is hereby amended to read as follows: 16 
 116.785 1.  If the Commission or the hearing panel, after 17 
notice and hearing, finds that the respondent has committed a 18 
violation, the Commission or the hearing panel may take any or all 19 
of the following actions: 20 
 (a) Issue an order directing the respondent to cease and desist 21 
from continuing to engage in the unlawful conduct that resulted in 22 
the violation. 23 
 (b) Issue an order directing the respondent to take affirmative 24 
action to correct any conditions resulting from the violation. 25 
 (c) Impose an administrative fine of not more than $1,000 for 26 
each violation. 27 
 2.  If the respondent is a member of an executive board or an 28 
officer of an association, the Commission or the hearing panel may 29 
order the respondent removed from his or her office or position and 30 
prohibited from serving on the executive board of an association 31 
for a period not to exceed 10 years if the Commission or the 32 
hearing panel, after notice and hearing, finds that: 33 
 (a) The respondent has knowingly and willfully committed a 34 
violation; and 35 
 (b) The removal is in the best interest of the association. 36 
 3.  If the respondent violates any order issued by the 37 
Commission or the hearing panel pursuant to this section, the 38 
Commission or the hearing panel, after notice and hearing, may 39 
impose an administrative fine of not more than $1,000 for each 40 
violation. 41 
 4.  If the Commission or the hearing panel takes any 42 
disciplinary action pursuant to this section, the Commission or the 43 
hearing panel may order the respondent to pay the costs of the 44 
proceedings incurred by the Division, including, without limitation, 45   
 	– 35 – 
 
 
- 	*SB433* 
the cost of the investigation and reasonable attorney’s fees [.] , after 1 
providing due process to the respondent through an opportunity to 2 
review and dispute such costs. 3 
 5.  Notwithstanding any other provision of this section, unless 4 
the respondent has knowingly and willfully committed a violation, if 5 
the respondent is a member of an executive board or an officer of an 6 
association: 7 
 (a) The association is liable for all fines and costs imposed 8 
against the respondent pursuant to this section; and 9 
 (b) The respondent may not be held personally liable for those 10 
fines and costs. 11 
 Sec. 44.  NRS 116.793 is hereby amended to read as follows: 12 
 116.793 1. Notwithstanding the provisions of NRS [116.745] 13 
116.750 to 116.795, inclusive, a person who is aggrieved by an 14 
alleged violation of subsection 6 of NRS 116.3102 or subsection 8 15 
of NRS 116.4109 may file with the Division a written complaint 16 
that sets forth the facts constituting the alleged violation. The 17 
complaint may allege any actual damages suffered by the aggrieved 18 
person as a result of the alleged violation. 19 
 2. The Division shall: 20 
 (a) Review a complaint filed pursuant to subsection 1 in a timely 21 
manner. 22 
 (b) If circumstances warrant, issue to the person who is alleged 23 
to have committed the violation a notice requesting a written 24 
response and proof of corrective action, including, without 25 
limitation, the reimbursement of any excessive fees to the aggrieved 26 
person. 27 
 3. Failure to respond to a notice issued pursuant to paragraph 28 
(b) of subsection 2 within 30 days after receipt of the notice: 29 
 (a) Shall be deemed to be an admission of the violation; and 30 
 (b) Is punishable by an administrative fine in the amount of 31 
$250. 32 
 Sec. 45.  NRS 116B.815 is hereby amended to read as follows: 33 
 116B.815 The Office of the Ombudsman for Owners in 34 
Common-Interest Communities and Condominium Hotels created 35 
by NRS 116.625 shall: 36 
 1. Assist in processing claims arising under this chapter that 37 
are submitted to mediation or arbitration [or referred to a program] 38 
pursuant to NRS 38.300 to 38.360, inclusive; 39 
 2. Assist owners in condominium hotels to understand their 40 
rights and responsibilities as set forth in this chapter and the 41 
governing documents of their associations, including, without 42 
limitation, publishing materials related to those rights and 43 
responsibilities; 44   
 	– 36 – 
 
 
- 	*SB433* 
 3. Assist members of executive boards and officers of 1 
associations to carry out their duties; 2 
 4. When appropriate, investigate disputes involving the 3 
provisions of this chapter or the governing documents of an 4 
association and assist in resolving such disputes; and 5 
 5. Compile and maintain a registration of each association 6 
organized within the State which includes, without limitation, the 7 
following information: 8 
 (a) The name, address and telephone number of the association; 9 
 (b) The names, mailing addresses and telephone numbers of the 10 
members of the executive board of the association; 11 
 (c) The name of the declarant; 12 
 (d) The name of the hotel unit owner; 13 
 (e) The number of units in the condominium hotel; 14 
 (f) The total annual assessment made by the association; and 15 
 (g) The number of foreclosures which were completed on units 16 
within the condominium hotel and which were based on liens for the 17 
failure of the unit’s owner to pay any assessments levied against the 18 
unit or any fines imposed against the unit’s owner. 19 
 Sec. 46.  NRS 116B.845 is hereby amended to read as follows: 20 
 116B.845 1. The Commission shall conduct such hearings 21 
and other proceedings as are required by the provisions of this 22 
chapter. 23 
 2. The Commission shall collect and maintain or cause to be 24 
collected and maintained accurate information relating to: 25 
 (a) The number of condominium hotels in this State; 26 
 (b) The effect of the provisions of this chapter and any 27 
regulations adopted pursuant thereto on the development and 28 
construction of condominium hotels, the residential lending market 29 
for units within condominium hotels and the operation and 30 
management of condominium hotels; 31 
 (c) Violations of the provisions of this chapter and any 32 
regulations adopted pursuant thereto; 33 
 (d) The accessibility and use of, and the costs related to, the 34 
arbitration [,] and mediation [and program] procedures set forth in 35 
NRS 38.300 to 38.360, inclusive, and the decisions rendered and 36 
awards made pursuant to those procedures; 37 
 (e) The number of foreclosures which were completed on units 38 
within condominium hotels and which were based on liens for the 39 
failure of the unit’s owner to pay any assessments levied against the 40 
unit or any fines imposed against the unit’s owner; and 41 
 (f) Other issues that the Commission determines are of concern 42 
to units’ owners, associations, developers and other persons affected 43 
by condominium hotels. 44 
 3. The Commission shall develop and promote: 45   
 	– 37 – 
 
 
- 	*SB433* 
 (a) Educational guidelines for conducting the elections of the 1 
members of an executive board, the meetings of an executive board 2 
and the meetings of the units’ owners of an association; and 3 
 (b) Educational guidelines for the enforcement of the governing 4 
documents of an association through liens, penalties and fines. 5 
 4. The Commission shall recommend and approve for 6 
accreditation programs of education and research relating to 7 
condominium hotels, including, without limitation: 8 
 (a) The management of condominium hotels; 9 
 (b) The sale and resale of units within condominium hotels; 10 
 (c) Alternative methods that may be used to resolve disputes 11 
relating to condominium hotels; and 12 
 (d) The enforcement, including by foreclosure, of liens on units 13 
within condominium hotels for the failure of the unit’s owner to pay 14 
any assessments levied against the unit or any fines imposed against 15 
the unit’s owner. 16 
 Sec. 47.  NRS 116B.850 is hereby amended to read as follows: 17 
 116B.850 The Commission may: 18 
 1. By regulation, establish standards for subsidizing 19 
proceedings for mediation [,] and arbitration [and a program] 20 
conducted pursuant to NRS 38.300 to 38.360, inclusive, to ensure 21 
that such proceedings are not lengthy and are affordable and readily 22 
accessible to all parties; 23 
 2. By regulation, establish standards for subsidizing 24 
educational programs for the benefit of units’ owners, members of 25 
executive boards and officers of associations; 26 
 3. Accept any gifts, grants or donations; and 27 
 4. Enter into agreements with other entities that are required or 28 
authorized to carry out similar duties in this State or in other 29 
jurisdictions and cooperate with such entities to develop uniform 30 
procedures for carrying out the provisions of this chapter and for 31 
accumulating information needed to carry out those provisions. 32 
 Sec. 48.  NRS 38.300 is hereby amended to read as follows: 33 
 38.300 As used in NRS 38.300 to 38.360, inclusive, unless the 34 
context otherwise requires: 35 
 1.  “Assessments” means: 36 
 (a) Any charge which an association may impose against an 37 
owner of residential property pursuant to a declaration of covenants, 38 
conditions and restrictions, including any late charges, interest and 39 
costs of collecting the charges; and 40 
 (b) Any penalties, fines, fees and other charges which may be 41 
imposed by an association pursuant to paragraphs (j) to (o), 42 
inclusive, of subsection 1 of NRS 116.3102 or subsections 10, 11 43 
and 12 of NRS 116B.420. 44   
 	– 38 – 
 
 
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 2.  “Association” has the meaning ascribed to it in NRS 1 
116.011 or 116B.030. 2 
 3.  “Civil action” includes an action for money damages or 3 
equitable relief. The term does not include an action in equity for 4 
injunctive relief in which there is an immediate threat of irreparable 5 
harm, or an action relating to the title to residential property. 6 
 4.  “Division” means the Real Estate Division of the 7 
Department of Business and Industry. 8 
 5.  [“Program” means a program established by the Division 9 
under which a person, including, without limitation, a referee or 10 
hearing officer, can render decisions on disputes relating to: 11 
 (a) The interpretation, application or enforcement of any 12 
covenants, conditions or restrictions applicable to residential 13 
property or any bylaws, rules or regulations adopted by an 14 
association; or 15 
 (b) The procedures used for increasing, decreasing or imposing 16 
additional assessments upon residential property. 17 
 6.]  “Residential property” includes, but is not limited to, real 18 
estate within a planned community subject to the provisions of 19 
chapter 116 of NRS or real estate within a condominium hotel 20 
subject to the provisions of chapter 116B of NRS. The term does not 21 
include commercial property if no portion thereof contains property 22 
which is used for residential purposes. 23 
 Sec. 49.  NRS 38.310 is hereby amended to read as follows: 24 
 38.310 1.  No civil action based upon a claim relating to: 25 
 (a) The interpretation, application or enforcement of any 26 
covenants, conditions or restrictions applicable to residential 27 
property or any bylaws, rules or regulations adopted by an 28 
association; or 29 
 (b) The procedures used for increasing, decreasing or imposing 30 
additional assessments upon residential property, 31 
 may be commenced in any court in this State unless the action 32 
has been submitted to mediation or [, if the parties agree, has been 33 
referred to a program] arbitration pursuant to the provisions of NRS 34 
38.300 to 38.360, inclusive, and, if the civil action concerns real 35 
estate within a planned community subject to the provisions of 36 
chapter 116 of NRS or real estate within a condominium hotel 37 
subject to the provisions of chapter 116B of NRS, all administrative 38 
procedures specified in any covenants, conditions or restrictions 39 
applicable to the property or in any bylaws, rules and regulations of 40 
an association have been exhausted. 41 
 2.  A court shall dismiss any civil action which is commenced 42 
in violation of the provisions of subsection 1. 43   
 	– 39 – 
 
 
- 	*SB433* 
 Sec. 50.  NRS 38.320 is hereby amended to read as follows: 1 
 38.320 1.  Any civil action described in NRS 38.310 must be 2 
submitted to mediation or [referred to a program] arbitration by 3 
filing a written claim with the Division. The claim must include: 4 
 (a) The complete names, addresses and telephone numbers of all 5 
parties to the claim; 6 
 (b) A specific statement of the nature of the claim; 7 
 (c) A statement of whether the person wishes to have the claim 8 
[referred] submitted to [a program;] mediation or arbitration and, if 9 
the person wishes to have the claim submitted to arbitration, 10 
whether the person agrees to binding arbitration; and 11 
 (d) Such other information as the Division may require. 12 
 2.  The written claim must be accompanied by a filing fee of 13 
$50. 14 
 3.  Upon the filing of the written claim, the claimant shall serve 15 
a copy of the claim in the manner prescribed in Rule 4 of the 16 
Nevada Rules of Civil Procedure for the service of a summons and 17 
complaint. The claim so served must be accompanied by a statement 18 
explaining the procedures for mediation and [for a program] 19 
arbitration set forth in NRS 38.300 to 38.360, inclusive. 20 
 4.  Upon being served pursuant to subsection 3, the person upon 21 
whom a copy of the written claim was served shall, within 30 days 22 
after the date of service, file a written answer with the Division, 23 
which must include a statement of whether the person wishes to 24 
have the claim [referred to a program.] submitted to mediation or 25 
arbitration. The answer must be accompanied by a filing fee of $50. 26 
 Sec. 51.  NRS 38.325 is hereby amended to read as follows: 27 
 38.325 [If the Division establishes a program:] 28 
 1.  Upon receipt of a written claim and answer filed pursuant to 29 
NRS 38.320 in which all the parties indicate that they wish to have 30 
the claim [referred to such a program,] submitted to mediation or 31 
arbitration, as applicable, the Division may [refer] so submit the 32 
[parties to the program.] claim. 33 
 2.  The person to whom the [parties are referred pursuant to the 34 
program] claim is submitted shall review the claim and answer filed 35 
pursuant to NRS 38.320 and, unless the parties agree to waive a 36 
hearing, conduct a hearing on the claim. After reviewing the claim 37 
and the answer and, if required, conducting a hearing on the claim, 38 
the person shall issue a written decision and award and provide a 39 
copy of the written decision and award to the parties. The person 40 
may not award to either party costs or attorney’s fees. 41 
 3.  Any party may, within 60 days after receiving the written 42 
decision and award pursuant to subsection 2, commence a civil 43 
action in the proper court concerning the claim. Any complaint filed 44 
in such an action must contain a sworn statement indicating that the 45   
 	– 40 – 
 
 
- 	*SB433* 
issues addressed in the complaint have been [referred to a program] 1 
submitted to mediation or arbitration, as applicable, pursuant to 2 
the provisions of NRS 38.300 to 38.360, inclusive. If such an action 3 
is not commenced within 60 days after receiving the written 4 
decision and award pursuant to subsection 2, any party may, within 5 
1 year after receiving the written decision and award, apply to the 6 
proper court for a confirmation of the written decision and award 7 
pursuant to NRS 38.239. 8 
 Sec. 52.  NRS 38.330 is hereby amended to read as follows: 9 
 38.330 1.  [Unless a program has been established and the] If 10 
all parties [have elected] named in a written claim filed pursuant to 11 
NRS 38.320 agree to have the claim [referred to a program,] 12 
submitted for mediation, the parties shall reduce the agreement to 13 
writing and select a mediator from the list of mediators maintained 14 
by the Division pursuant to NRS 38.340. Any mediator selected 15 
must be available within the geographic area. If the parties fail to 16 
agree upon a mediator, the Division shall appoint a mediator from 17 
the list of mediators maintained by the Division. Any mediator 18 
appointed must be available within the geographic area. Unless 19 
otherwise provided by an agreement of the parties, mediation must 20 
be completed within 60 days after [the filing of the written claim. 21 
Not later than 5 days before mediation is scheduled to be conducted, 22 
each party must submit to the mediator a written statement which 23 
sets forth the issues in dispute. Mediation must not exceed 3 hours, 24 
unless] the parties agree to [an extension of such time.] mediation. 25 
Any agreement obtained through mediation conducted pursuant to 26 
this section must, within 20 days after the conclusion of mediation, 27 
be reduced to writing by the mediator and a copy thereof provided 28 
to each party. The agreement may be enforced as any other written 29 
agreement. Except as otherwise provided in this section, the parties 30 
are responsible for [the cost] all costs of mediation conducted 31 
pursuant to this section . [, which must not exceed $500 for 3 hours 32 
of mediation. If the parties agree to extend mediation beyond 3 33 
hours pursuant to this subsection, the fee for the additional hours 34 
must not exceed $200 per hour.] If the parties participate in 35 
mediation and an agreement is not obtained, any party may 36 
commence a civil action in the proper court concerning the claim 37 
that was submitted to mediation. Any complaint filed in such an 38 
action must contain a sworn statement indicating that the issues 39 
addressed in the complaint have been mediated pursuant to the 40 
provisions of NRS 38.300 to 38.360, inclusive, but an agreement 41 
was not obtained. 42 
 2.  [Before commencing a civil action in the proper court, the] 43 
If all parties named in the claim [may] do not agree to [arbitration if 44 
the parties have participated in mediation in which an agreement 45   
 	– 41 – 
 
 
- 	*SB433* 
was not obtained or if a written decision and award have been issued 1 
pursuant to NRS 38.325. Unless the parties agree in writing to 2 
binding arbitration, the arbitration is nonbinding. The cost of 3 
arbitration conducted pursuant to this section must not exceed $300 4 
per hour. If] mediation, the parties [agree to arbitration, they] shall 5 
select an arbitrator from the list of arbitrators maintained by the 6 
Division pursuant to NRS 38.340. Any arbitrator selected must be 7 
available within the geographic area. If the parties fail to agree upon 8 
an arbitrator, the Division shall appoint an arbitrator from the list 9 
maintained by the Division. Any arbitrator appointed must be 10 
available within the geographic area. Upon appointing an arbitrator, 11 
the Division shall provide the name of the arbitrator to each party. 12 
An arbitrator shall, not later than 5 days after the arbitrator’s 13 
selection or appointment pursuant to this subsection, provide to the 14 
parties an informational statement relating to the arbitration of a 15 
claim pursuant to this section. The written informational statement: 16 
 (a) Must be written in plain English; 17 
 (b) Must explain the procedures and applicable law relating to 18 
the arbitration of a claim conducted pursuant to this section, 19 
including, without limitation, the procedures, timelines and 20 
applicable law relating to confirmation of an award pursuant to NRS 21 
38.239, vacation of an award pursuant to NRS 38.241, judgment on 22 
an award pursuant to NRS 38.243, and any applicable statute or 23 
court rule governing the award of attorney’s fees or costs to any 24 
party; and 25 
 (c) Must be accompanied by a separate form acknowledging that 26 
the party has received and read the informational statement, which 27 
must be returned to the arbitrator by the party not later than 10 days 28 
after receipt of the informational statement. 29 
 3.  The Division may provide for the payment of the fees for a 30 
mediator or an arbitrator selected or appointed pursuant to this 31 
section from the Account for Common-Interest Communities and 32 
Condominium Hotels created by NRS 116.630, to the extent that: 33 
 (a) The Commission for Common-Interest Communities and 34 
Condominium Hotels approves the payment; and 35 
 (b) There is money available in the Account for this purpose. 36 
 4.  Except as otherwise provided in this section and except 37 
where inconsistent with the provisions of NRS 38.300 to 38.360, 38 
inclusive, the arbitration of a claim pursuant to this section must be 39 
conducted in accordance with the provisions of NRS 38.231, 40 
38.232, 38.233, 38.236 to 38.239, inclusive, 38.242 and 38.243. At 41 
any time during the arbitration of a claim relating to the 42 
interpretation, application or enforcement of any covenants, 43 
conditions or restrictions applicable to residential property or any 44 
bylaws, rules or regulations adopted by an association, the arbitrator 45   
 	– 42 – 
 
 
- 	*SB433* 
may issue an order prohibiting the action upon which the claim is 1 
based. An award must be made within 30 days after the conclusion 2 
of arbitration, unless a shorter period is agreed upon by the parties to 3 
the arbitration. 4 
 5.  If all the parties [have agreed] do not agree to binding 5 
arbitration , [but have not agreed whether the arbitration will be 6 
binding or nonbinding,] the arbitration will be nonbinding [. If 7 
arbitration is nonbinding,] , and any party to the nonbinding 8 
arbitration may, within 30 days after a final decision and award 9 
which are dispositive of any and all issues of the claim which were 10 
submitted to nonbinding arbitration have been served upon the 11 
parties, commence a civil action in the proper court concerning the 12 
claim which was submitted for arbitration. Any complaint filed in 13 
such an action must contain a sworn statement indicating that the 14 
issues addressed in the complaint have been arbitrated pursuant to 15 
the provisions of NRS 38.300 to 38.360, inclusive. If such an action 16 
is not commenced within that period, any party to the arbitration 17 
may, within 1 year after the service of the award, apply to the proper 18 
court for a confirmation of the award pursuant to NRS 38.239. 19 
 6.  If all the parties agree in writing to binding arbitration, the 20 
arbitration must be conducted in accordance with the provisions of 21 
this chapter. An award procured pursuant to such binding arbitration 22 
may be vacated and a rehearing granted upon application of a party 23 
pursuant to the provisions of NRS 38.241. 24 
 7.  If, after the conclusion of binding arbitration, a party: 25 
 (a) Applies to have an award vacated and a rehearing granted 26 
pursuant to NRS 38.241; or 27 
 (b) Commences a civil action based upon any claim which was 28 
the subject of arbitration, 29 
 the party shall, if the party fails to obtain a more favorable award 30 
or judgment than that which was obtained in the initial binding 31 
arbitration, pay all costs and reasonable attorney’s fees incurred by 32 
the opposing party after the application for a rehearing was made or 33 
after the complaint in the civil action was filed. 34 
 8.  Upon request by a party, the Division shall provide a 35 
statement to the party indicating the amount of the fees for a 36 
mediator or an arbitrator selected or appointed pursuant to this 37 
section. 38 
 9.  As used in this section, “geographic area” means an area 39 
within 150 miles from any residential property or association which 40 
is the subject of a written claim submitted pursuant to NRS 38.320. 41 
 Sec. 53.  NRS 38.340 is hereby amended to read as follows: 42 
 38.340 For the purposes of NRS 38.300 to 38.360, inclusive, 43 
the Division shall establish and maintain: 44   
 	– 43 – 
 
 
- 	*SB433* 
 1.  A list of mediators and arbitrators who are available for 1 
mediation and arbitration of claims. The list must include mediators 2 
and arbitrators who, as determined by the Division, have received 3 
training and experience in mediation or arbitration and in the 4 
resolution of disputes concerning associations, including, without 5 
limitation, the interpretation, application and enforcement of 6 
covenants, conditions and restrictions pertaining to residential 7 
property and the articles of incorporation, bylaws, rules and 8 
regulations of an association. In establishing and maintaining the 9 
list, the Division may use lists of qualified persons maintained by 10 
any organization which provides mediation or arbitration services. 11 
Before including a mediator or arbitrator on a list established and 12 
maintained pursuant to this section, the Division may require the 13 
mediator or arbitrator to present proof satisfactory to the Division 14 
that the mediator or arbitrator has received the training and 15 
experience required for mediators or arbitrators pursuant to this 16 
section. 17 
 2.  A document which contains a written explanation of the 18 
procedures for mediating and arbitrating claims [and for a program] 19 
pursuant to NRS 38.300 to 38.360, inclusive. 20 
 Sec. 54.  NRS 38.350 is hereby amended to read as follows: 21 
 38.350 Any statute of limitations applicable to a claim 22 
described in NRS 38.310 is tolled from the time the claim is 23 
submitted to mediation or arbitration [or referred to a program] 24 
pursuant to NRS 38.300 to 38.360, inclusive, until the conclusion of 25 
mediation or arbitration of the claim and the period for vacating the 26 
award has expired . [, or until the issuance of a written decision and 27 
award pursuant to the program.] 28 
 Sec. 55.  NRS 40.615 is hereby amended to read as follows: 29 
 40.615 “Constructional defect” means a defect in the design, 30 
construction, manufacture, repair or landscaping of a new residence, 31 
of an alteration of or addition to an existing residence, or of an 32 
appurtenance and includes, without limitation, the design, 33 
construction, manufacture, repair or landscaping of a new residence, 34 
of an alteration of or addition to an existing residence, or of an 35 
appurtenance: 36 
 1.  Which presents an unreasonable risk of injury to a person or 37 
property; [or] 38 
 2.  Which is not completed in a good and workmanlike manner 39 
and proximately causes physical damage to the residence, an 40 
appurtenance or the real property to which the residence or 41 
appurtenance is affixed [.] ; or 42 
 3. Which is not constructed: 43 
 (a) In accordance with applicable law, including, without 44 
limitation, in violation of local codes or ordinances; 45   
 	– 44 – 
 
 
- 	*SB433* 
 (b) According to sound standards of engineering and 1 
construction; and 2 
 (c) In a workmanlike manner. 3 
 Sec. 56.  NRS 40.655 is hereby amended to read as follows: 4 
 40.655 1.  Except as otherwise provided in NRS 40.650, in a 5 
claim governed by NRS 40.600 to 40.695, inclusive, the claimant 6 
may recover only the following damages to the extent proximately 7 
caused by a constructional defect: 8 
 (a) The reasonable cost of any repairs already made that were 9 
necessary and of any repairs yet to be made that are necessary to 10 
cure any constructional defect that the contractor failed to cure and 11 
the reasonable expenses of temporary housing reasonably necessary 12 
during the repair; 13 
 (b) The reduction in market value of the residence or accessory 14 
structure, if any, to the extent the reduction is because of structural 15 
failure; 16 
 (c) The loss of the use of all or any part of the residence; 17 
 (d) The reasonable value of any other property damaged by the 18 
constructional defect; 19 
 (e) Any additional costs reasonably incurred by the claimant, 20 
including, but not limited to, any costs and fees incurred for the 21 
retention of experts to: 22 
  (1) Ascertain the nature and extent of the constructional 23 
defects; 24 
  (2) Evaluate appropriate corrective measures to estimate the 25 
value of loss of use; and 26 
  (3) Estimate the value of loss of use, the cost of temporary 27 
housing and the reduction of market value of the residence; [and] 28 
 (f) Any interest provided by statute [.] ; and 29 
 (g) Any reasonable attorney’s fees sufficient to place the 30 
claimant in as good a position as the claimant would have been if 31 
the constructional defect did not exist. 32 
 2.  If a contractor complies with the provisions of NRS 40.600 33 
to 40.695, inclusive, the claimant may not recover from the 34 
contractor, as a result of the constructional defect, any damages 35 
other than damages authorized pursuant to NRS 40.600 to 40.695, 36 
inclusive. 37 
 3.  This section must not be construed as impairing any 38 
contractual rights between a contractor and a subcontractor, supplier 39 
or design professional. 40 
 4.  As used in this section, “structural failure” means physical 41 
damage to the load-bearing portion of a residence or appurtenance 42 
caused by a failure of the load-bearing portion of the residence or 43 
appurtenance. 44   
 	– 45 – 
 
 
- 	*SB433* 
 Sec. 57.  1. A covered building owner shall, not later than 2 1 
years after the date on which sections 16 to 22, inclusive, of this act 2 
become effective, retain a structural inspector to perform a structural 3 
inspection of the building components of the primary load-bearing 4 
system of a covered building for which a certificate of occupancy 5 
was issued before the date on which sections 16 to 22, inclusive, of 6 
this act become effective. 7 
 2. A structural inspector who performs a structural inspection 8 
pursuant to subsection 1 shall: 9 
 (a) Review the construction plans submitted with the application 10 
for a building permit for the covered building; and 11 
 (b) Issue a written report describing the condition of the primary 12 
load-bearing system of the covered building. The written report 13 
must comply with the requirements of subsections 2 to 5, inclusive, 14 
of section 20 of this act and include a statement whether the primary 15 
load-bearing system of the covered building conforms to the 16 
construction plans. 17 
 3. If the structural inspector determines that the primary load-18 
bearing system of the covered building does not conform to the 19 
construction plans, the covered building owner must provide 20 
additional construction plans which conform to the modification of 21 
the primary load-bearing system. 22 
 4. As used in this section: 23 
 (a) “Covered building” has the meaning ascribed to it in section 24 
5 of this act. 25 
 (b) “Covered building owner” has the meaning ascribed to it in 26 
section 6 of this act. 27 
 (c) “Primary load-bearing system” has the meaning ascribed to it 28 
in section 10 of this act. 29 
 (d) “Structural inspection” has the meaning ascribed to it in 30 
section 11 of this act. 31 
 (e) “Structural inspector” has the meaning ascribed to it in 32 
section 12 of this act. 33 
 Sec. 58.  The amendatory provisions of sections 55 and 56 of 34 
this act apply to an action for a constructional defect filed pursuant 35 
to NRS 40.600 to 40.695, inclusive, commenced before, on or after 36 
the effective date of sections 55 and 56 of this act. 37 
 Sec. 59.  NRS 116.745 is hereby repealed. 38 
 Sec. 60.  1. This section and sections 1, 3 to 6, inclusive, 8 to 39 
13, inclusive, 15 to 27, inclusive, 31, 32 and 55 to 59, inclusive, of 40 
this act become effective upon passage and approval. 41 
 2. Sections 2, 7, 14, 28, 29, 30, 33 to 54, inclusive, and 60 of 42 
this act become effective on October 1, 2025. 43   
 	– 46 – 
 
 
- 	*SB433* 
 
 
TEXT OF REPEALED SECTION 
 
 
 116.745 “Violation” defined. As used in NRS 116.745 to 
116.795, inclusive, unless the context otherwise requires, 
“violation” means a violation of: 
 1. Any provision of this chapter except NRS 116.31184; 
 2. Any regulation adopted pursuant to this chapter; or 
 3. Any order of the Commission or a hearing panel. 
 
H