Nevada Chapter §116 At least once every five years, the board of directors shall cause to be conducted a reasonably competent and diligent visual inspection of the accessible areas of the major components that the association is obligated to repair, replace, restore, or maintain as part of a study of the reserve account requirements of the common interest development.

NEW 2009 Ombudsman Legislative Summary

This highlights select changes to the Nevada Revised Statutes from the 2009 Legislative Session affecting homeowner associations, organized by subject. Most of these new statutes will be incorporated into NRS 116, NRS 116A, NAC 116 and related laws. It is not a complete listing of all HOA-related changes, but a summary of certain ones primarily affecting board members, homeowners and tenants. To see all of the bills directly relating to HOAs in their entirety, visit the Nevada Legislature Web site's Common-Interest Ownership (Uniform Act).
 

Budgets/Accounts
AB 311 (1) changes audit requirements. If the HOA budget is under $75,000, financial statements only have to be reviewed by a CPA during the year immediately preceding the year of the reserve study (Audits are no longer required). If budgets are $75,000 to $150,000, there just needs to be an annual review (again, no audit). For both of these types of associations, however, 15% of the voting members can submit a written request for an audit. Further, if budgets are above $150,000 there must be an annual audit by a CPA. (NRS 116.31144) (Eff. 10/1/09)
SB 182 (21) provides that even if the governing documents state otherwise, the executive board has authority to impose assessments to establish adequate reserves - without seeking or obtaining the approval of owners. These assessments, however, must be based on the reserve study. (NRS116.3115) (Eff. 10/1/09)
SB 183 (26) Money in operating accounts may not be withdrawn without 2 signatures: one must be of an executive board member or an officer and the second must be of another member of an executive board, an officer or the community manager. However, there can be a withdrawal with just 1 signature for 2 limited purposes: transferring money to the reserve account at regular intervals, or making automatic payments for utilities. (NRS 116.31153) (Eff. 10/1/09)
SB 351 (3) This section provides that associations, executive boards and community managers must deposit association funds in financial institutions which are 1) in Nevada, 2) are qualified to conduct business in Nevada or 3) have consented to jurisdiction of Nevada courts and the Division, if out-of-state. Further, except as otherwise provided by the governing documents, an association shall, in addition to the above requirements, deposit, maintain and invest funds in: 1) properly insured accounts (FDIC, National Credit Union Share Insurance Fund, or Securities
Investor Protection Corporation), 2) with a private insurer (approved under NRS 678.755) or 3) in United States government backed securities. (Eff. 10/1/09)
SB 351 (12) (12.3) and (12.7) require that the association establish reserves not only for major components of the common elements but also for any other portion of the CIC that the association is obligated to maintain, repair, replace or restore. (NRS 116.31151) (Eff. 10/1/09)

Credentialed Professionals
SB 182 (24) Managers are prohibited from taking retaliatory action against an owner who complained in good faith about violations of the law or governing documents, or recommended the selection or replacement of an attorney, community manager or vendor. These prohibitions also apply to executive board members and officers, employees and agents of the HOAs. (NRS116.31183) (Eff. 10/1/09)
SB 182 (29) A civil suit can now be filed against a manager for failing to comply with NRS 116 or the governing documents. These suits can be filed by the association or by a class of owners (at least 10% of the voting members). Further, managers are subject to punitive damages under certain conditions. (NRS 116.4117) (Eff. 10/1/09)
SB 182 (39) provides for the issuance of temporary certificates for community management for a period of one year under certain circumstances. (NRS 116A.410) (Eff. 1/1/10)
SB 183 (39) Reserve study specialists must be registered with the Division (changed from being required to have a permit). (NRS 116A.260) (Eff. 10/1/09)

This is not a legal document or legal advice. It is not a complete listing. For full details on all bills, visit http://leg.state.nv.us/75th2009/Reports