New laws cover limiting rental units, towing regulations, conflict of interest

Q: Regarding Homeowners Associations trying to limit the number of rental units, is it possible that the association could adopt restrictions, and grandfather all units in until there is a change of ownership? I have not (heard) that discussed.

Also, where can I find the rules that towing companies operate under? I am trying to see if the rules are different on public streets versus association common area land.

A: To answer your first question, SB253 made major changes to the renting of units within an association. If you did not already have rental restrictions, your association is now prohibited from passing any restrictions, regardless if it tries to circumvent the new law by grandfathering all of the existing units.

To answer your second question, towing regulations can be found in NRS 116 subsection 1s (the association laws) and in NRS 478 (the state's towing laws). The NRS 116 statute states that an association can direct the removal of vehicles improperly parked on property that is owned or leased by the association as authorized under NRS 487.038. This includes vehicles improperly parked on any road, street, alley or other thoroughfare within the association in violation of governing documents.

If a vehicle is improperly parked, the association must comply with the requirements of NRS 487.038 and any other requirements of the governing documents. If a vehicle is improperly parked, the association must post written notice in a conspicuous place on the vehicle, or provide oral or written notice to the owner, or to the operator of the vehicle at least 48 hours before the association may direct its removal. There are a few exceptions. A vehicle can be towed if it is blocking a fire hydrant or handicapped parking space or poses an imminent threat of causing substantial adverse effect on the health, safety or welfare of the unit owners.

When you review the two laws, there are similarities of that apply to the association's private streets and to the public streets, respectively.

Q: I have been reading about the changes and I have a question about what is considered a conflict of interest for HOA board members and community managers. I believe the article said gifts more than $100 from vendors or other contracting businesses could not be accepted.

If this is true, would not an employee of the management company be in conflict given this criterion? If accepting compensation over $100 is a conflict, how can an employee receiving wages be okay?

A: As you read, the Legislature has made a number of changes to the law pertaining to conflicts of interest that affect both board members and community managers. Conflicts of interest can be more than one receiving monetary or some form of compensation. Conflict of interests can pertain to relationships by which a board member or community manager makes a favorable decision because of that relationship. For example, a family member is not fined for a violation that would normally be a fine if the violation pertained to another homeowner. A vendor/contractor receives information from a board member or community manager as to the terms presented to the board from other competing vendor/contractors that enables the vendor/contractor to submit a more favorable bid. These are just some of the examples of conflicts of interest, separate and distinct from monetary of gifts given to a board member or community manager.

An employee receiving wages is not a conflict of interest. The wages compensate the specific work performed by the employee on behalf of the association. It is an agreed amount of money for performance of the employee between the board and the employee.

Barbara Holland, certified property manager, is president and owner of H&L Realty and Management Co. To ask her a question, e-mail