107°F
weather icon Clear

Several new laws affect local HOA boards

Editor’s Note: This is the first in a three-part series that covers new laws affecting Southern Nevada homeowners associations.

It’s that time of year again to review the new Nevada Revised Statutes 116 laws that impact our associations. There will be a series of articles over the coming weeks. Many of these new laws will require associations to modify their rules and regulations.

Towing: Effective July

Senate Bill 320 pertains to the subject of the towing of unregistered vehicles. This law pertains to condominiums and townhouses that have a common parking area, regardless of whether there is assigned parking. The association may not tow a vehicle if the vehicle is owned or operated by a resident and where the registration has not expired passed 60 days or more. Please note, that the association may tow the unregistered vehicle if the vehicle is owned or operated by a non-resident upon verification of the non- resident status. For these associations, you may want to initiate a decal system to identify residents’ vehicles.

Stickers that are being applied to vehicles have a 48-hour window before being towed and the stickers must include the date and time after which the vehicle will be towed.

SB320 does not apply to single-family homes or condominiums and townhouses that have garage parking only.

Remember, you can still immediately tow vehicles for such violations as blocking fire hydrants, fire lanes, handicapped parking (the health, safety and welfare violations per NRS 116.3102(s)(1)-(2).

Vehicle owners have the right to sue for any unlawful tows.

Enforcing the parking restrictions on public streets: Effective Oct. 1

This law was way overdue! The new law amends NRS 116.350 (1) to explicitly state that the association has the right to impose fines on homeowners for parking or storing recreational vehicles, watercraft, trailers or commercial vehicles on the public streets within the association.

Vacant board positions and election by acclamation: Effective Oct. 1

NRS 116.3103 saw some changes in the language, but basically, the revised version will apply to all associations. It now states that “notwithstanding any provisions of the governing documents to the contrary” vacancies may be filled by the board until the term expires or until the next election, whichever occurs first. (SB 195).

Finally! SB 195 made a significant change in the process which will save associations money as there will be fewer notices asking for candidate nominations. Here is one of the key points in the law that associations must follow. Prior to the mailing out of the candidate application forms, the board must pass a motion that states that the association will implement the process per NRS 116.31034 (5). This decision must be disclosed in the request for nominations (candidate applications) that is being mailed to all of the homeowners.

The prior law stated that after the first 30-day notice, if the association received candidate applications that were either less than or equal to the number of vacant seats, the association was required to send another 30-day notice before the process could be implemented. Now, associations will only have to send one 30-day notice for candidate applications.

Annual meetings and elections: Effective Oct. 1

NRS 116.3108 was amended to read that ballots for the election of directors are to be opened and counted at the annual meeting. This provision consolidates the membership actions/meetings, which will limit the number of notices, mailings and meetings.

One major change was the notice to homeowners of the board’s executive sessions. The amended law, NRS 116.31083, requires the association to only notice those homeowners who are subject to a scheduled hearing at the executive session. Notices of executive sessions no longer must be mailed to all homeowners. This change allows for flexibility as the board can call for executive sessions when necessary rather than only in conjunction with regularly scheduled board meetings. What is required is that at the next scheduled board meeting, the board shall inform the homeowners that an executive session was held and that this acknowledgment is to be included in the board meeting minutes.

Please note, that the new law does not change which topics can and cannot be discussed at the executive sessions.

Pre-hearing violation notices: Effective Oct. 1

SB 258 amended the violation process and becomes effective as of Oct. 1. If an association sends a pre-hearing violation notice, the notice must include a photograph of the alleged violation to be specified in detail along with citing the provision of the governing documents and including the proposed cure and reasonable time to cure the violation. (Please note, this is the same requirement for sending hearing notices). This does not mandate photographs for courtesy notices or first violation notices, although, this is a good idea and probably will be required in some future legislation.

Directors and officers insurance: Effective Oct. 1

SB 195 amended NRS 116.3113 to require that all associations have directors and officers insurance of a minimum of $1 million, naming the association as the owner and named insured to the extent that the coverage is reasonably available and subject to reasonable deductibles. I would hope that all associations already have this coverage as it protects the individual board of directors who could be sued as a result of decisions made or not made by them as directors of the association board. In addition, the coverage should be extended to the community managers who are acting within the scope of the board’s activities.

As a result of all the continued and outstanding lawsuits by investors and by the banks pertaining to foreclosures, many associations did see some increases in their premiums and did see significant increases in the deductibles from $25,000 per incident to $ 35,000 or even more as they pertain to any foreclosure-type lawsuits. Other than the foreclosure deductibles, most policies included the “normal” deductible for claims from $2,500 to $ 5,000 per incident.

Assessing homeowners for taxes and utilities paid by the association on their behalf: Effective July 1

SB 281 amended NRS 116.3115 (4)(b). This law had always given the association the authority to assess common expenses that benefited fewer than all of the homeowners. For example, if there was a limited RV-designated parking space. Now, this law includes, without limitations, common expenses consisting of the payment of delinquent property taxes or utility charges owed by the homeowner. The association may now exclusively assess those homeowners who were benefited by the payments made by the association.

Barbara Holland is a certified property manager, broker and supervisory certified association manager. Questions may be sent to holland744o@gmail.com.

Don't miss the big stories. Like us on Facebook.
THE LATEST
Follow the rules on parking and pools

Community pools are still closed. Still, getting questions on parking. Here are some rules and guide lines.

Many HOA boards are holding virtual annual meetings because of COVID-19

Many readers are asking about how we conduct our board election meetings that require the written secret ballots to be opened and counted at the election meeting. My guest writers this week are Joyce Winward and Katherine Rader, who are community managers. I asked them to give us some information on this topic:

As we head into summer HOA pools remain closed

As of May 1, the restrictions set by Gov. Steve Sisolak to keep the pools closed have not been released. Your association as others are waiting for the green light from the governor. I suggest that you may want to contact his office.

The mortgage industry in the age of COVID-19

I don’t need to tell you that these are trying times. Times that almost none of us have ever experienced before. All of the things that we have taken for granted — going to a movie, eating at our favorite restaurant or even taking a walk in the neighborhood park — are now prized. If things as commonplace as these are now gone, how do you run a business during so much turmoil? Let’s take a look at the mortgage business.

Construction industry steps up for Southern Nevadans

First and foremost, we are making sure our workers are protected. We are working with the Nevada Construction Assembly — a group assembled by Gov. Steve Sisolak to ensure construction worker safety. As a participating member, NCA has helped develop policies and procedures to keep workers out of harm’s way. In order to do this, we are educating our workforce. T

Homeowner says builder has not provided guard-gated community as promised

Also, the gates to the community are left open during the day. HOA board said it is for convenience for potential buyers to access the community. With the current pandemic, the sales office is by appointment-only. Yet the gates are still left open during the day.

Designer launches virtual home staging program

Nicknamed the residential illusionist, Gayle Novak works her magic staging occupied and vacant residential homes going on the market. As the CEO/design director of Enhance Your Home LLC, Novak and her team help homeowners and listing agents present properties in the best possible fashion, or what Novak terms “showcase ready.” In response to the current COVID-19 crisis, Novak is helping her clients stage their homes via Virtual Home Staging Consultations, a program she launched April 1.

People want some of their HOA money back

I have seen a few letters to the editor, asking the same question or even where the writer was demanding a credit on their assessments. I would ask my readers to review their 2020 budget. Regardless of the amenities not being used, associations still have operating expenses.