My Soap Box: Legislative Update

Nevada State Legislature Building

By: Rana Goodman

For too many years when owners of homes in a common interest community, otherwise known as a home owner’s association (HOA) were accused by their board of directors or management company of a violation of their CC&R’s (covenants conditions and restrictions) they had nowhere to go to fight the complaint.

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I know, it boggles the mind and over the years I have argued the point that virtually EVERY issue one might have within an HOA concerned the CC&Rs and a violation of them in one way or another. If this passes things might finally make more sense.

Now, glory be! A light shined down amid all of our complaining and dragging this virtual soap box everywhere because tucked into assembly bill 34 on page 29 in this year’s legislative session this matter is FINALLY addressed. In my legislative watch column I will be bringing our readers up dates of all of the bills we are watching and you can be sure that this will be amongst them. In the meantime if any of you have an interest and would like to read it for yourself, here is the text as well as a link to the legislative web site:

http://www.leg.state.nv.us

Sec. 19. NRS 116.745 is hereby amended to read as follows:

7 116.745 As used in NRS 116.745 to 116.795, inclusive, unless

8 the context otherwise requires [ , “violation” ] :

9 1. “Breach” means a breach of the governing documents.

10 2. “Violation” means a violation of any provision of this

11 chapter, any regulation adopted pursuant thereto or any order of the

12 Commission or a hearing panel.

13 Sec. 20. NRS 116.760 is hereby amended to read as follows:

14 116.760 1. Except as otherwise provided in this section, a

15 person who is aggrieved by an alleged violation or breach may, not

16 later than 1 year after the person discovers or reasonably should

17 have discovered the alleged violation [ , ] or breach, file with the

18 Division a written affidavit that sets forth the facts constituting the

19 alleged violation [ . ] or breach. The affidavit may allege any actual

20 damages suffered by the aggrieved person as a result of the alleged

21 violation [ . ] or breach.

22 2. An aggrieved person may not file such an affidavit unless

23 the aggrieved person has provided the respondent by certified mail,

24 return receipt requested, with written notice of the alleged violation

25 or breach set forth in the affidavit. The notice must:

26 (a) Be mailed to the respondent’s last known address.

27 (b) Specify, in reasonable detail, the alleged violation [ , ] or

28 breach, any actual damages suffered by the aggrieved person as a

29 result of the alleged violation [ , ] or breach, and any corrective

30 action proposed by the aggrieved person.

31 3. A written affidavit filed with the Division pursuant to this

32 section must be:

33 (a) On a form prescribed by the Division.

34 (b) Be accompanied by evidence that:

35 (1) The respondent has been given a reasonable opportunity

36 after receiving the written notice to [ correct ] resolve the alleged

37 violation [ ; ] or breach; and

38 (2) Reasonable efforts to resolve the alleged violation or

39 breach have failed.

40 4. The Commission or a hearing panel may impose an

41 administrative fine of not more than $1,000 against any person who

42 knowingly files a false or fraudulent affidavit with the Division.


Sec. 21. NRS 116.765 is hereby amended to read as follows:

2 116.765 1. Upon receipt of an affidavit that complies with

3 the provisions of NRS 116.760, the Division shall refer the affidavit

4 to the Ombudsman.

5 2. The Ombudsman shall give such guidance to the parties as

6 the Ombudsman deems necessary to assist the parties to resolve the

7 alleged violation [ . ] or breach.

8 3. If the parties are unable to resolve the alleged violation or

9 breach with the assistance of the Ombudsman, the Ombudsman

10 [ shall ] :

11 (a) May refer the parties to a referee appointed pursuant to

12 section 5 of this act. The aggrieved person who filed the affidavit

13 must file with the Ombudsman a written claim which includes the

14 information requested by the Ombudsman and the fee prescribed

15 pursuant to subsection 2 of NRS 38.320. The claimant must serve

16 a copy of the claim in accordance with subsection 3 of NRS 38.320

17 and the person upon whom a copy of the claim is served must

18 comply with subsection 4 of NRS 38.320. All fees collected by the

19 Ombudsman pursuant to the provisions of this paragraph must be

20 accounted for separately and may only be used by the Division to

21 administer the provisions of NRS 38.300 to 38.360, inclusive, and

22 section 5 of this act.

23 (b) Shall, for an alleged violation, provide to the Division a

24 report concerning the alleged violation and any information

(b) Shall, for an alleged violation, provide to the Division a

25 collected by the Ombudsman during his or her efforts to assist the

26 parties to resolve the alleged violation.

27 [ 4. ] Upon receipt of the report from the Ombudsman, the

28 Division shall conduct an investigation to determine whether good

29 cause exists to proceed with a hearing on the alleged violation.