New state laws affect HOA fees and water use

This week, I person invited section attorneys Gregory P. Kerr and Michael T. Schulman of Wolf, Rifkin, Shapiro, Schulman &Rabkin to explicate caller laws that volition impact Las Vegas communities and the state’s homeowners associations. This the past file successful a three-part bid that takes an in-depth look astatine the caller laws.

Assembly Bill 237 deals with automatic increases for relationship set-up fees, resale certificate fees and different akin fees.

This measure makes a fig of changes to the amounts that associations tin complaint portion owners for services specified arsenic relationship setup fees, resale certificate fees and connection of request fees. AB 237 besides provides for yearly inflationary increases to the relationship setup fee. AB 237 besides prohibits immoderate different fees to beryllium charged for services akin to mounting up caller accounts and providing resale certificates and related information. AB 237 expressly authorizes the Nevada Real Estate Division to analyse and enforce definite administrative penalties for violations of the interest provisions relating to these services.

■ Provides for the statutory headdress of $350 for an relationship setup interest to beryllium accrued annually for ostentation but not much than 3 percent each year.

Existing instrumentality nether Nevada Revised Statutes 116.3102(1)(o) states that an relation tin enforce a tenable interest for opening oregon closing of immoderate record (a.k.a. relationship setup fee) for each unit. That interest tin lone beryllium charged to either the purchaser oregon seller of a portion and the interest indispensable not beryllium much than the existent outgo the relation incurs and cannot transcend $350. The relationship setup interest is often a complaint that an relation is obligated to wage to its managing cause pursuant to a absorption contract. Whatever the declaration magnitude is, that is the magnitude that tin beryllium charged arsenic an relationship setup interest to either the purchaser oregon the seller of a unit, but not to transcend $350. Subparagraph 4 of NRS 116.3102(1)(o) provides an inflationary summation but is arguably inactive taxable to the $350 headdress nether subparagraph 2.

Under AB 237, subparagraph 2, which sets the headdress of $350, is amended to see an yearly ostentation increase, which is calculated by multiplying the existent magnitude of the interest by the CPI percent summation arsenic published by the United States Department of Labor for the preceding year, but not to transcend a 3 percent summation from twelvemonth to year. The ostentation summation connection allows the existent magnitude charged to beryllium greater than $350 but, successful nary lawsuit tin the relation complaint much than what the relation incurs nether its absorption (which whitethorn beryllium little than $350), positive the inflationary increases arsenic provided for nether AB 237.

■ Sets a statutory headdress connected the resale certificate interest arsenic provided for successful NRS 116.4109.

Under existing instrumentality astatine NRS 116.4109(4)(b), the committee was delegated the authorization to acceptable the magnitude that an relation could complaint a portion proprietor for the resale certificate described successful NRS 116.4109(3) and acceptable the magnitude that could beryllium charged to expedite a petition for the resale certificate, but that the magnitude could not transcend $185 for the resale certificate and not transcend $100 for immoderate expediting fee. Currently, nether NAC 116.465, the committee acceptable the resale certificate interest astatine $160 and the expediting interest astatine $125. AB 237 amends NRS 116.4109(4)(b) to destruct the commission’s authorization to acceptable those fees and alternatively sets the resale certificate interest astatine $185 and the expediting interest astatine $100.

■ Increases definite superpriority lien amounts for the request oregon intent to lien.

Existing instrumentality nether NRS 116.3116(5) provides that definite costs of postulation incurred successful the postulation of delinquent assessments are included successful an association’s superpriority lien information of its statutory appraisal lien. One of those costs of postulation included successful the superpriority lien information is the outgo of the request oregon intent to lien. The magnitude of that outgo that is included successful the superpriority lien is $150. Also NAC 116.470(2)(a) provides the maximum that tin beryllium charged a delinquent proprietor for the request oregon intent to lien is $150.

Under AB 237, NRS 116.3116(5) is amended to summation the magnitude that tin beryllium secured arsenic a portion of the superpriority lien from $150 to $165. This does rise an contented astir what tin beryllium charged arsenic a outgo of postulation for the mentation of the request oregon intent to lien notice. While AB 237 amends NRS 116.3116(5) to summation the magnitude secured by the superpriority lien to $165, the regularisation nether NAC 116.470(2)(a) inactive needs to beryllium adjusted to bespeak that change. As it stands now, that regularisation inactive limits the interest for that announcement to $150. It whitethorn beryllium argued that the regularisation inactive applies unless and until the regularisation is amended to bespeak the alteration made successful AB 237.

■ Prohibits the imposition of immoderate different fees not expressly provided for relating to services akin to the resale certificate mentation and the relationship setup activity.

AB 237 adds a caller subsection to NRS 116.3102 and a caller subsection to NRS 116.4109, some of which authorities that an relation whitethorn not complaint a purchaser oregon seller oregon agents thereof immoderate different interest not different provided for successful those statutes and whitethorn not complaint amounts successful excess of the amounts arsenic acceptable distant successful those statutes. In different words, for immoderate services related to the relationship setup, the lone interest that tin beryllium charged is the relationship setup interest arsenic provided for successful NRS 116.3102(1)(o) and lone successful the amounts arsenic authorized thereunder. Also, for immoderate services related to the mentation of the resale certificate nether NRS 116.4109(3), the lone interest that tin beryllium charged is the resale certificate interest arsenic provided for successful NRS 116.4109(4)(b) and lone successful the amounts arsenic authorized thereunder. The intent of this information of AB 237 was to bounds the amounts that tin beryllium charged for those services and to preclude the instauration of different bases upon which to complaint further fees successful transportation with the merchantability of a unit.

■ Complaint process done the Nevada Real Estate Division for violations of relationship setup limitations and resale certificate limitations.

AB 237 establishes a ailment process that allows a idiosyncratic who believes helium oregon she is aggrieved by a usurpation of NRS 116.3102(1)(o) oregon NRS 116.4109(4)(b) to record a ailment with the Division. Under AB 237, a idiosyncratic whitethorn record a ailment with the part if the idiosyncratic believes that helium oregon she has been improperly charged fees that transcend oregon different interruption the limitations for relationship setup fees oregon resale certificate fees. Upon receipt of that complaint, and if circumstances warrant, the part volition petition of the idiosyncratic alleged to person committed the usurpation to respond successful penning with immoderate corrective enactment taken, including immoderate reimbursement of immoderate excessive fees. If the idiosyncratic alleged to person committed the usurpation does not respond wrong 30 days of receipt of the written notice, the nonaccomplishment to respond volition beryllium deemed an admittance of wrongdoing and an administrative good of up to $250 volition beryllium imposed. While the part already had the jurisdiction to analyse and prosecute violations of NRS 116, AB 237 provides for a circumstantial process to remedy alleged violations of excessive charges for relationship setup fees oregon resale certificate fees.

Assembly Bill 356

As of Jan. 1, 2027, the Southern Nevada Water Authority and its subordinate agencies volition beryllium prohibited from distributing Colorado River h2o to irrigate non-functional turf connected spot that is not zoned exclusively for residential purposes. AB 356 volition astir surely interaction substantially common-interest communities that person earthy turf connected immoderate communal areas. AB 356 compels SNWA committee of directors to found a program for the removal of non-functional turf wrong its jurisdiction. The program volition request to place and facilitate the removal of existing non-functional turf wrong SNWA’s work country connected spot that is not zoned exclusively for a single-family residence. The program is required to astatine slightest found phases for the removal of non-functional turf based connected categories of h2o users, and found deadlines wrong the work country of the SNWA work country for existing customers to region nonfunctional turf connected spot that is not zoned exclusively for a single-family residence earlier Dec. 31, 2026.

Also, AB 356 does not specify the word “non-functional.” As such, nether AB 356, the SNWA committee of directors is charged with the work of defining the word “non-functional” by regulation.

AB 356 besides establishes the Nonfunctional Turf Removal Advisory Committee (“Advisory Committee”). The Advisory Committee:

1. Shall sermon issues related to the usage and removal of nonfunctional turf by each water-use sector, including, without limitation, issues relating to the program developed pursuant to conception 39 of this enactment to place and region nonfunctional turf.

2. May supply written recommendations to the committee of directors regarding the program developed pursuant to AB 356, including, without limitation, immoderate recommendations for waivers oregon exemptions to the provisions of AB 356. Any proposal made by the Advisory Committee indispensable beryllium approved by a bulk ballot of each of its voting members. Any dissenting sentiment of a subordinate of the Advisory Committee indispensable beryllium afloat documented and included with the proposal to the committee of directors.

The positions connected the Advisory Committee are acceptable distant successful AB 356. It volition dwell of 9 voting members and volition beryllium constituted arsenic follows:

■ One subordinate who represents an bureau parkland with existing nonfunctional turf astatine the clip the subordinate is appointed.

■ One subordinate who represents an enactment representing businesses.

■ One subordinate who represents an concern oregon commercialized concern with existing nonfunctional turf astatine the clip the subordinate is appointed.

■ Two members who correspond a common-interest assemblage with existing nonfunctional turf astatine the clip the subordinate is appointed.

■ One subordinate who represents multifamily lodging with existing nonfunctional turf astatine the clip the subordinate is appointed.

■ One subordinate who represents an biology organization.

■ One subordinate who represents a section authorities with existing nonfunctional turf astatine the clip the subordinate is appointed.

■ One subordinate who represents a play people with existing nonfunctional turf astatine the clip the subordinate is appointed.

Two of the 9 seats connected the Advisory Committee are reserved for members representing common-interest communities that person existing non-functional turf. The qualifications of the 2 common-interest assemblage representatives arsenic provided for connected the Advisory Committee arsenic acceptable distant successful AB 356 assumes that the SNWA committee of directors has established by regularisation a explanation of the word “non-functional turf.” That means that a regularisation defining the word “non-functional turf” volition precede the assignment of the members of Advisory Committee.

Barbara Holland is simply a certified spot manager and holds the supervisory assemblage manager certificate with the authorities of Nevada. She is an writer and pedagogue connected existent property management. Questions whitethorn beryllium sent to holland744o@gmail.com.