New state attorney general opinion limits commission control

A question was sent to the state attorney general's office for an official opinion pertaining to the issue of whether or not the Common Interest Communities and Hotel Condominiums (note the new name for the CIC Commission is now CICHC Commission) or a hearing panel (administrative law judges) appointed by the commission have jurisdiction over issues and or disputes concerning or arising out of an association's governing documents that are not alleged violations of NRS 116.

This is an important and major opinion as it limits the powers of the commission and its appointed hearing panels. If there is a dispute between a homeowner and the board of directors as to the interpretation of a particular section of the covenants, and if that dispute does not involve a violation of any of the provisions of NRS 116, then neither the commission nor its appointed hearing panel have the authority to intervene in the matter and or make a decision as to how the section is to be interpreted.

The opinion letter first defines what constitutes an association's governing documents, to include the covenants, articles of incorporation, bylaws, rules and any other documents that govern the association.

In the letter, various sections of NRS 116 are reviewed. NRS 116.665 (1) requires the commission to conduct hearings and proceedings that are required by the provisions of NRS Chapter 116.

NRS 116.675 allows the commission to delegate its power to conduct hearings, determine violations and impose fines, penalties or other discipline to a hearing panel.

The hearing panel would have the same jurisdiction as the commission to the extent that the commission had delegated those powers. The procedure for hearing complaints can be found in NRS 116.770.

The opinion letter continues with a review of NRS 116.750, which allows the commission to take appropriate action against a person who has committed a violation.

Violation is defined, specifically in NRS 116.745, as a violation of any provision of Chapter 116 and any regulation adopted or any order of the commission or a hearing panel.

The process through which a matter proceeds through the Real Estate Division to a hearing before the commission is specifically limited at each level to include only violations as defined in NRS 116.745.

Governing document disputes arise from differences of opinion concerning the interpretation, application or enforcement of an association's governing documents.

Chapter 116 does not give the commission or its administrative law judges jurisdiction to consider or render decisions concerning such disputes.

The opinion letter from the state attorney general's office concludes by stating that neither the commission nor its administrative judges have the jurisdiction to consider or take any action concerning the interpretation, application or enforcement of an association's governing documents where there is not a violation of the provisions of NRS 116 or an order of the commission.

For a copy of the opinion letter, contact the Nevada Office of the Attorney General at 775-684-1100 or by fax at 775-684-1108 or by e-mail at aginfo@ag.state.nv.us.

Barbara Holland, certified property manager, broker and supervisory certified association manager, is president and owner of H&L Realty and Management Co. Questions may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759.