Nevada HOA Laws: A Comprehensive Guide

If you want to run a Nevada homeowners association (HOA) like a well-oiled machine, then it's important to do your research to learn about the laws that govern these entities. However, navigating the intricacies of state law is no easy task, which is why we have created this guide.

Here, we will provide an overview of the applicable laws and answer important questions concerning the operation, rights, and responsibilities of these organizations.

Understanding Homeowners Associations

A homeowners association, otherwise known as a community or property owners association, is a kind of private organization that is formed by common interest communities. HOAs are designed for the betterment of the community and are responsible for the maintenance and upkeep of shared areas in the community.

Homeowners associations in Nevada are governed by the Nevada Common Interest Ownership Act, which we will get to in a minute. They are also regulated by their own internal documents, known as governing documents, that detail their rights, responsibilities, and bylaws.

An HOA's governing documents will typically include the following:

• Articles of Incorporation
• Bylaws
• Declaration of Covenants, Conditions, and Restrictions (CC&R)

Are Governing Documents Public Records in Nevada?

Governing documents in Nevada are not considered public records. In Nevada, HOA governing documents are not public records.

The state makes it optional for HOAs to file their community documents with the Nevada Secretary of State. If the homeowner's association does so, anybody may request these records for a charge via email, mail, or fax.

These documents can only be accessed by contacting the HOA if they have not been filed with the Secretary of State. However, the association must also document its declaration with the county in which it is located. It should detail the uses and descriptions of the property.

The Rights and Responsibilities of HOA Board Members

As a manager, executive, or board member, it is important to understand the rights and responsibilities that these organizations have. In the section below, we'll take a closer look at them to ensure that you understand how HOAs in Nevada should be run.

What Rights Do Nevada HOAs Have?

Homeowners' associations in Nevada have a variety of legal rights and obligations. They have the authority to enforce covenants, conditions, and restrictions in order to protect community standards and property values.

HOAs may collect assessments and fees to cover the cost of maintenance practices, take legal action against non-compliant property owners, and administer common spaces. They can also make and enforce rules and regulations, hold meetings, and elect boards.

However, they must follow state and federal anti-discrimination rules and provide homeowners with certain rights, such as due process in violation claims. HOAs have rights under Nevada law, but they must operate within legal limitations to safeguard residents' interests.

What Are Their Responsibilities?

In Nevada, homeowners' associations (HOAs) have numerous essential obligations to safeguard the community and maintain the value of properties.

Implementing bylaws, collecting fees for common area maintenance, administering shared amenities, and holding monthly board meetings are all part of the job. HOAs also create and enforce rules and regulations to foster a peaceful living environment.

They are in charge of budgeting and financial administration, dealing with common area maintenance and repair issues, and streamlining architectural review processes for the modification of properties in the neighborhood.

An Overview of Nevada HOA Laws

Now that we have a good understanding of what community associations are, let's delve into the most important state laws that regulate them.

It's worth noting here that it would be impossible for us to list all the statutes that pertain to HOAs in Nevada. There may be local laws enacted by the county your common interest community is in that could also influence the way your homeowners' association is run, so be sure to do further research.

Nevada Common Interest Ownership Act

The Nevada Common-Interest Ownership Act, which is located in Chapter 116 (Title 10) of the Nevada Revised Statutes, governs community associations in the state of Nevada. It oversees properties in which individual owners cover the cost of expenses associated with maintaining and repairing shared spaces and amenities.

This act covers important topics, such as the formation of HOAs, their functioning, and dissolution. It applies to planned communities, condominiums, and cooperatives.

Nevada Common Interest Communities: Regulations of Community Managers and Other Personnel Act

The responsibilities, requirements, and obligations of the managers of homeowners associations, in addition to other professionals affiliated with common interest communities, are outlined in this law.

It establishes the qualifications and the requirements in terms of licensing management and also covers their responsibilities.

If you hold a management position in a Nevada homeowners association, then you need to familiarize yourself with this law.

Nevada Nonprofit Corporation Act

In Nevada, an HOA must be established as a for-profit or nonprofit association, corporation, trust, association, partnership, limited liability company, or any other kind of legal entity.

If the organization is a nonprofit, it will be governed by the Nevada Nonprofit Corporation Act, which specifies the organizational structure and procedures it must follow. The Nevada Business Corporation Act, on the other hand, will control for-profit HOAs.

Nevada Fair Housing Law

Nevada's Fair Housing Law criminalizes housing discrimination due to certain characteristics. An HOA may not discriminate against a resident based on the following: 

• Sex
• Religion
• Race
• Disability
• Sexual orientation
• National origin
• Familial status
• Ancestry
• Gender identity

This legislation offers similar protections to the Federal Fair Housing Act but at a state level. 

Nevada Debt Collections Law

The Debt Collections Law is comparable to the federal Fair Debt Collection Practices Act. This statute prevents debt collectors from engaging in abusive, unjust, or misleading debt collection practices. Under this act, HOA fees qualify as debts, and residents are safeguarded as "consumers."

Fines and Foreclosures in Nevada

In Nevada, a community association can fine a homeowner for failing to pay assessments on time or violating its regulations. The fine must be proportionate to the gravity of the offense.

However, homeowner's associations cannot levy fines that are over $100 in value per offense, and the fine may not exceed $1,000. Such limitations do not apply to the imposition of late payment penalties. The governing documents of the association will typically include more details. 

Homeowners associations have the authority to foreclose on properties in Nevada. They can place a lien on the home, and if the owner fails to address the lien, the association may foreclose on the property to recover the unpaid amount. 

What HOAs May Not Penalize Homeowners for

Community associations in Nevada are not allowed to fine homeowners for any of these acts:

• Installing drought-tolerant landscaping
• Raising the US national or the Nevada state flag, provided it is done under federal law
• Putting up political signs
• Having a pet
• Leasing the owner's personal residence
• Collecting and storing solid waste
• Setting up satellite dishes and antennas
• Solar energy system installation

Keep in mind that an HOA is allowed to include guidelines in its governing documents on how these elements are to be placed.

Resolving Disputes

Chapter 38 of the Nevada Revised Statutes defines the conditions for Alternative Dispute Resolution (ADR) in Nevada's common interest organizations. It requires that any disagreement relating to the HOA governing documents be first brought through the ADR process.

In general, this procedure begins with a preliminary mediation session in which both sides try to resolve the problem by voluntary negotiation.

However, suppose they are unable to achieve an amicable arrangement during mediation. In that case, the disagreement may be resolved through arbitration. An impartial third-party arbitrator is selected and entrusted with judging the outcome of the disagreement.

If both parties are not happy with the arbitrator's judgment, they may file a private lawsuit in a state or federal district court.

You can find more information on how to handle complaints here.

About DoorLoop's HOA Tools

The truth is that being a community manager, executive, or board member is no easy task, which is why it's important to have access to the right tools. With DoorLoop, you can ensure that you meet the standards set out by state legislature.

It features important accounting and reporting tools and even has an intuitive communication portal that lets you communicate with ease. You can automate mundane tasks to free up some of your time and collect and track payments on one easy-to-use platform.

DoorLoop also offers world-class support, so you can rest assured that you can make good use of the tools our software provides. To learn more or request a free demo to try it out for yourself, get in touch with us today!

The Bottom Line

You should now have a fair understanding of the laws that regulate homeowners associations in Nevada. All that remains is to conduct additional research on the local laws that may apply and put these policies into effect as you run your HOA.

If you are seeking simple solutions to assist your neighborhood association in remaining compliant, please schedule a free demo with DoorLoop!

Frequently Asked Questions

1. Can a common interest community decide to dissolve a homeowners association in Nevada?

Yes, homeowners associations in Nevada can be dissolved. The procedure for dissolving the association may be outlined in the HOA's governing documents, or the board of directors has to approve a motion that will be presented to the members of the organization for a vote.

Suppose the majority of members vote in favor of the dissolution of the HOA. In that case, a certificate of approval must be submitted to the Nevada Secretary of State. Thereafter, the homeowners association will be considered dissolved.

2. Are Nevada HOAs allowed to prohibit pets?

No. Homeowners associations in Nevada may not restrict a homeowner from having a pet on his or her property.

3. Where can I learn more about consumer protections?

The Nevada Real Estate Division offers more information about community associations in the state. You can read more here.

4. Can a Nevada HOA foreclose on a home because of unpaid assessments?

Yes. Nevada HOAs have the authority to foreclose on a property if the owner has failed to pay their dues.