Rules and deadlines for HOA boards to follow

Note: A federal shutdown makes it illegal for a homeowner association to send pre-collection notices. intent to lien notices or any other collection notices to federal, tribal or state workers or related household members under Nevada Revised Statutes 116.311627. Associations need to make a good faith effort to verify whether a unit owner is entitled to the protections under this statute.

This is the final column in a four-part series that will present various topics and deadlines that are required by the Nevada Real Estate Division. As managers and board members, please check your operating procedures to ensure that your policies and procedures are compliant. The following information is provided from the Nevada Real Estate Division with its permission.

Abatement — single-family dwelling: NRS 116.310312

After discovery of the alleged violation, the association must provide a unit’s owner with written notice and an opportunity for a hearing in the manner provided under NRS 116.31031. After a hearing the association may, whether or not a unit is vacant, take any of the following actions if the unit’s owner refuses or fails to maintain the exterior of the unit in accordance with the standards set forth in the governing document to remove or abate a public nuisance on the exterior of the unit which is visible from any common area of the community or public streets and threatens the health and safety of the residents of the community, results in blighting or deterioration of the unit or surrounding areas and adversely affects the use and enjoyment of nearby units.

Abatement in a building that contains units divided by horizontal boundaries in the declaration or vertical boundaries that comprise common walls between the units (such as condominiums and townhouses): NRS 116.310312(4)

After discovery of an alleged violation, the association must provide the unit’s owner with notice and an opportunity to a hearing under NRS 116.31031. If the unit is vacant and the owner refuses or fails to abate a water or sewage leak, the association, including its employees, agents and community manger, may enter the grounds and interior of the unit to abate the water or sewage leak and remove any water or sewage from the unit that is causing the damage, or may cause damage to the common elements of another unit. The association may remove any furniture, fixtures, appliance and components of the unit, including without limitation, flooring, baseboards and drywalls that were damaged as a result of water or mold because such damage threatens the health or safety of the residents of the community, results in blighting or deterioration of the unit or the surrounding area and adversely affects the use and enjoyment of nearby units

Notice of default and election to sell (recorded) — NRS 116.31162(1)(B)

This notice must contain the same information as the notice of delinquent assessment and also describe the total amount of the deficiency in payment, with a separate statement of the amount of the association’s lien that is prior to the first security interest on the unit as of the date of the notice, the amount of the lien that is attributable to assessments as of the date of notice, the amount of the lien that is attributable to abatement, cost of enforcing the association’s lien as of the date of the notice (look to the law for additional inclusions). The notice of default and the election to sell must be signed by the person designated in the declaration or by the association for that purpose. If no one is designated, then by the president.

Notice of sale (recorded)- NRS 116.311635

The association shall give notice of the time and place of the sale by recording the notice of sale and posting a similar notice particularly describing the unit for 20 days consecutively in a public place in the county where the unit is situated, publishing a copy of the notice three times, once each week for three consecutive weeks in a newspaper of general circulation in the county where the unit is situated. The association must mail a copy of the notice of sale, on or before the date of first publication or posting by certified or registered return mail, return receipt requested to the unit’s owner or her or his successor in interest at his or her address, if known and to the address of the unit. A copy of the notice of sale must be served by a person who is 18 years of age and who is not a party to or interested in the sale by personally delivering a copy of the notice of sale to an occupant of the unit who is of suitable age or by posting a copy of the notice of sale in a conspicuous place on the unit. A copy of the notice of sale must include the necessary amount to satisfy the lien as of the date of the proposed sale and a warning is included in NRS 116.311635(3)(b).

Barbara Holland, CPM, CMCA, AMS, is an author, educator and expert witness on real estate issues pertaining to management and brokerage. Questions may be sent to holland744o@gmail.com.