Nevada HOAs are allowed to regulate many things in their neighborhoods as long as they comply with their own governing documents as well as state and federal laws. People who plan to purchase homes located in neighborhoods controlled by HOAs should make sure that they know the rules before buying. HOA rules can help to preserve the value of homes in their neighborhoods, but they can also affect the quality of life and finances of the people who live within them. Here are 10 common examples of HOA regulations in Nevada.
An association shall not and the governing documents of that association must not prohibit a unit’s owner from keeping at least one pet within such physical portion of the common-interest community as that owner has a right to occupy and use exclusively but an HOA may be able to restrict the number of pets and/or enforce rules about picking up after pets.
Some homeowners might be dismayed when they learn that they cannot paint their homes in the desired color or add siding or shingles that fail to comply with the HOA’s regulations. Homeowners should make sure that they understand these restrictions before buying homes in the neighborhood.
HOAs often regulate the types of fences that can be installed by homeowners. This might include restrictions on fence heights and materials used in their construction.
Parents whose homes are regulated by HOAs need to check before erecting play structures. Some HOAs restrict swing sets, slides, jungle gyms, and basketball hoops.
Many HOAs have rules regarding homeowners’ landscaping choices. These might include things like the types of shrubbery, hedges, and flowers that are allowed to be planted.
HOAs place restrictions on the mailboxes that their residents install. This normally includes requirements that all of the mailboxes in the neighborhood are uniform in appearance and style.
Some HOAs restrict individual homeowners from running home-based businesses. This can be a problem when an entrepreneur decides to start a new business and wants to run it from home.
Noise restrictions are common in HOAs. These often include prohibitions on loud music, parties, and engine revving, and limits on the hours during which people can make noise.
While sheds are handy for storing garden tools, some HOAs restrict their construction and appearance.
Most HOAs have maintenance standards. Homeowners must maintain their properties in a good condition to preserve the value of the homes in the area.
When homeowners fail to pay homeowners’ association dues or assessments, HOAs have several options for enforcement. Dues are assessed to pay for the amenities and maintenance needs of the community. When an owner refuses to pay, it can cause dues for everyone else to go up or cause the HOA to fall into disrepair. People who own homes and fall behind on their assessments or dues may face collection efforts. If they still refuse to pay, the HOA can engage in other actions, including liens and foreclosures. Following the HOA’s rules and staying on top of assessments and dues can help prevent problems.
An HOA will normally begin with common collection actions when a homeowner falls behind on his or her dues and assessments. The HOA might try calling the homeowner and sending letters in an attempt to collect what it is owed. It might send a notice that includes the total amount that is owed, the number of days by which the payment is late, late fees and interest, and an offer of a hearing.
A payment plan might be offered to the homeowner by the HOA. The homeowner’s privileges may be suspended until the amount is paid. The Owner may no longer be in good standing if there are past due assessments and may be prevented from voting on HOA matters, including elections for the Board of Directors. If the owner proposes a payment plan, the HOA must accept it.
An HOA will have a perfected lien against a delinquent homeowner once the assessment becomes past due. The HOA can then pursue collection actions against the homeowner. If the homeowner still does not pay, a lien placed by an HOA on a home has a super-priority. If the HOA enforces its lien through a foreclosure action, the HOA’s lien will have priority over other liens, including those held by the homeowner’s mortgage lenders. Through a foreclosure action, the HOA can force the property owner’s home to sell and collect what it is owed before the other lienholders can recover anything. If this occurs, the homeowner may be on the hook to repay the difference between what the mortgage lender receives and the total amount owed. To avoid these types of enforcement actions, it is best for homeowners to stay current with their dues and assessments. This is an ever-evolving area of law and, more often than note, deed of trust holders are stepping in to pay past due assessments to the HOA to protect their interest in the property.
The COVID-19 pandemic has presented new issues for HOA boards and managers in Nevada to handle within their communities. They will need to consider what to do about common areas, gyms, facilities, board meetings, and other things during the pandemic. They might also want to think about having residents sign waivers of liability when they reopen their amenities. Taking preventative steps might reduce the spread of the virus within HOAs and protect the health of the residents.
When the number of positive cases in the area is increasing, HOAs can choose to close their shared facilities, including business centers and gyms. HOA boards are tasked with managing the community’s shared facilities, and a part of that duty is to decide when those facilities should be closed for the health and safety of its memers. Closing a facility to protect the safety and health of the residents is generally allowable under Nevada law but depends on the HOA’s governing documents. For other common areas, HOA boards should engage in enhanced cleaning to try to limit the spread of the virus.
HOAs may be able to limit nonessential guests from entering the property. However, they should make sure to allow visitors who are the immediate family members of residents and their caretakers to come to the property. If the HOA decides to restrict the ability of residents to rent out their properties as short-term rentals, they should limit the scope of the rule to what is necessary for the protection of public health and must make sure that they have the power to do so under the HOA’s governing documents.
During the pandemic, board meetings that are not essential may need to be postponed. If meetings are held, the attendees should try to participate by videoconferencing rather than in-person. If the local municipality has a masking mandate in place, the HOA should include signage throughout the facility that notifies the residents of the requirement.
When HOAs decide to reopen the communities’ amenities, it may be a good idea for them to ask the residents to sign liability waivers. These waivers should include an acknowledgment that the resident is assuming the risk by using the facility. Waivers should also include an express agreement that the resident will not sue the HOA if the resident contracts COVID-19.
When Nevada homeowners have disputes with their HOAs, they must go through the state’s alternative dispute resolution procedure before they can file claims, and the preferred ADR method is mediation. If an agreement is reached through mediation, it will serve as a document outlining the responsibilities of both parties. If the parties are unable to resolve the dispute through mediation, they can then either go through non-binding arbitration or binding arbitration, or the homeowner can file a claim against the HOA in court.
Alternative dispute resolution procedures are required before homeowners can sue their HOAs in court. There are three different alternative dispute resolution methods that are recognized for HOA disputes, including the referee program, mediation, and binding or non-binding arbitration. The referee program is available when both parties agree to participate. They present evidence to the referee, who makes a decision. If a party disagrees with the referee’s decision, a claim can be filed in civil court. Mediation is the default method used in Nevada to resolve disputes with HOAs. In mediation, the parties meet with a mediator, a third-party neutral, and present evidence. The mediator goes between the parties and tries to help them reach a resolution but does not make a decision or judgment about the evidence. If the parties reach an agreement, the dispute will be resolved. If they are unable to reach an agreement, they can choose to take their dispute to binding or non-binding arbitration, or a claim can be filed in civil court.
If the parties do not reach an agreement in mediation, they can choose to take the dispute to arbitration or to file a civil claim in court. Arbitration is an ADR method that is held outside of court. The parties present evidence to the arbitrator, and the arbitrator renders a decision. If the process is binding, the case will end. If the process is non-binding, a party that disagrees with the decision may file a civil claim in court. People who are unable to resolve their disputes through mediation can also choose to file civil claims in court without going through arbitration. Filing a civil claim may present some advantages when homeowners are on unequal footing with HOAs since the arbitrators may have heard cases for the HOAs in the past. Civil claims are also a matter of public record, and the decisions can be appealed. Binding arbitration decisions are not appealable and are not a matter of public record. Seeking guidance from an experienced HOA general counsel can provide valuable insight when deciding between arbitration and filing a civil claim.
Homeowners have the right to peacefully enjoy their property in Nevada and HOAs are often called upon to settle disputes. When a homeowner is harassed by a neighbor, the HOA is not obligated to get involved, nor do they have legal jurisdiction over these issues. When harassment occurs, the offended homeowner can file a lawsuit against the offending homeowner, but the HOA does not have a duty to involve itself.
Homeowners have the right to peacefully enjoy their homes. They have the right to do so without interference or harassment from their neighbors. In fact, most CC&Rs include language that specifically state that homeowners are required to respect the privacy and peace of their neighbors. These also include language that identify how neighbor disputes are to be handled and specifies any actions the HOA will take when issues arise.
HUD recognizes two types of harassment. The first is Quid Pro Quo Harassment. This occurs when a homeowner receives an uninvited request or improper demand from a neighbor. For instance, a neighbor repeatedly insists that another neighbor use a particular vendor or service in exchange for stopping the requests.
The second form of harassment is Hostile Environment Harassment. It is the most common type of harassment that the majority of HOAs have to contend with. This involves subjecting homeowners to conduct that interferes with their ability to peacefully enjoy their residence. This can include banging on the walls when a radio is perceived to be too loud, making harassing statements about a neighbor’s choice of landscaping design, or spreading rumors within the community.
The Federal Housing Administration also recognizes harassment based on the homeowner’s race, religion, sex, familial status, ethnic origin, and disability. These may also include racial slurs, insults, discriminatory behaviors, and outright threats. Many times, these types of harassment can lead to civil or criminal complaints filed by the offended homeowner. In these instances, the HOA’s records may be requested by investigators.
HOA’s are Not Required to Act HOAs do not have to get embroiled in disagreements between neighbors. The Attorney General’s office can prosecute these disputes if the homeowner wishes to pursue the matter. In Nevada, HOAs do not have jurisdiction, nor do they have a duty to get involved in harassment between homeowners in the community.
HOAs are required to uniformly enforce all covenants, conditions, and restrictions within a community. Failing to enforce these uniformly within the community can expose the HOA to selective enforcement lawsuits. Of course, an HOA can always counter such suits by bringing a lawsuit against the homeowner for violating the CC&Rs.
HOAs are charged with protecting the rights and property values of homeowners (the HOA’s members) in the common interest community. HOAs agree to enforce these rules uniformly and without favor to all who purchase property within the community. At the same time, homeowners agree to abide by these rules and expect that these rules will be obeyed by their neighbors.
When HOAs selectively enforce these rules, it creates an unfair burden on homeowners who adhere to the CC&Rs. It erodes trust in the HOA and creates a sense of “If neighbor X doesn’t have to abide by the rules, then why should I?”
Over time, this can significantly erode the effectiveness of the HOA, reduce revenue, and diminish home values within the community. It is a vicious, downward cycle that is easily prevented through equal enforcement.
There are many reasons that an HOA should not selectively or prejudicially enforce CC&Rs. In the eyes of the law, all homeowners within an HOA have the same rights and responsibilities. Further, the HOA has a duty to all homeowners to treat each member fairly, honestly, and without favoritism.
Homeowners who feel that they are victims of selective enforcement will often draft a letter to the HOA identifying the alleged violation and countering with evidence that either A) they are not a violation, B) the board is selectively enforcing CC&R’s by allowing other homeowners to commit the same violation, and/or C) requesting a hearing to discuss the alleged violation.
If this fails, plaintiffs can attempt to establish that the HOA has engaged in a pattern of selective enforcement. This often extends beyond the current board and involves investigating the actions of previous boards and their handling of CC&R violations. This can create a cascade of legal bills that are easily avoided through uniform enforcement of the CC&Rs.
However, HOAs are not left defenseless. Should a homeowner bring a lawsuit against the HOA for selective enforcement of a clear violation, such as making structural changes without approval, failure to paint a home, failure to pay for agreed-upon services, etc., then the HOA may be able to file a countersuit to compel the homeowner to comply with the CC&Rs and to compensate the HOA for their legal expenses.
In August 2020, lawmakers passed a COVID-19 liability bill that may shield businesses and non-profits in Nevada, including homeowners associations, from lawsuits if people contract the virus on the premises.
Nevada lawmakers recently voted to grant final approval to Senate Bill 4 (SB4). This legislation mandates a number of health and safety protections for hospitality workers in the state and establishes broad liability protections to most businesses, governmental bodies, and nonprofit groups including HOAs. SB4 shields many businesses from COVID-19-related lawsuits. The bill does not create an impenetrable shield for businesses and non-profits like HOAs, however. Businesses are only protected if they are following federal, state, and local health mandates when the exposure occurs. Those that ignore published health and safety protocols can still be held liable when their negligence causes injuries or death.
Although victims will still be able to file personal injury lawsuits against negligent businesses to recover compensation for their losses if they contract COVID-19 on the premises, they will need to meet a higher threshold for their cases to move forward in the courts.
The protections apply to claims that accrue before, on, or after the effective date of SB4 and before the Declaration of Emergency for COVID-19, which was issued on March 12, 2020, is terminated, or July 1, 2023, whichever is later.
To reduce the transmission of COVID-19, common-interest communities initially faced mandatory closures of amenities like swimming pools, spas, hot tubs, clubhouses, gyms, and other common-use facilities. Although some community gathering areas and amenities remain closed, many homeowners associations have begun to reopen common areas.
To be protected under the bill, HOAs must demonstrate substantial compliance with Nevada law and health mandates. They must have a plan that establishes policies and procedures that implement and enforce applicable health standards, and they must carry out that plan.
HOAs and homeowners should know their rights and look to state and federal laws for guidance during the COVID crisis. Laws and reopening guidance change regularly, however. Compliance today may not mean compliance next week.
Disrespectful neighbors playing loud music, enjoying home theaters, hosting summer parties, and performing late-night construction work can violate an HOA’s covenants, conditions, and restrictions. HOAs have a duty to resolve these violations quickly and, when they do not, they can be held liable for failing to act.
HOAs are not immune from lawsuits stemming from nuisances within the community. Common nuisances include:
Most covenants, conditions, and restrictions (CC&Rs) address these common causes of complaints. HOAs have a duty to their community to thoroughly investigate complaints and pursue an expedient resolution through the notice and hearing process.
The majority of noise complaints originate in apartment buildings and condos. Often, there is little to no insulation between units, which means that sound travels through them like a concert venue. One reason for this is that most projects set a low bar for the installation of insulation and other sound attenuating materials. The result is that even normal activities such as walking across the floor or cooking can resonate through the adjacent units.
HOAs have a duty to property owners to protect them against the behaviors and actions of their neighbors. While a singular event such as a loud TV or a midnight cooking session can be addressed with a brief conversation or formal warning, it’s quite something else to have a neighbor who is throwing parties every weekend, yelling at the news on TV every night or, worse, engaging in loud or physical altercations every week. These situations are habitual and require HOAs to take appropriate action and apply the specified penalties as spelled out within the CC&Rs.
HOA’s that fail to enforce noise-related rules and mediate disputes when they occur are negligent in their responsibility to property owners. Moreover, property owners who have rented their properties are not immune from liability stemming from their tenant’s actions. Indeed, since renters are not members of the HOA, the rowdy actions of a tenant are the responsibility of the property owner. As such, the HOA can pursue homeowners for the cost of enforcing the CC&R’s or evicting the nuisance tenant.
To help protect themselves, property owners in common-interest communities should understand their rights, as well as their legal obligations. Serving as governing bodies for single-family home and multi-unit building communities, close to 3,000 homeowner associations exist in the state of Nevada alone. Just as these organizations have certain responsibilities to community residents, the unit owners in such communities also have responsibilities.
When living in common-interest communities, property owners have certain rights. Those living in HOA-run communities may expect the following:
Should homeowners in HOA communities take issue with a decision from their neighborhood association and cannot resolve the issue between themselves and the organization, they may choose to file a complaint with the state’s office of the ombudsmen for owners in common-interest communities and condominium hotels.
The members who establish homeowner associations within a community take on the responsibility of creating the organization’s rules and regulations. Among other documents, HOAs may create and enforce founding bylaws and covenants, conditions, and restrictions, which spell out the rights of the association and property owners and the obligations of each. In some cases, associations may also put in place certain rules and regulations for the community, such as instituting quiet hours or specifying the color options for the exterior paint on units. When people purchase homes in communities with already-established homeowner associations, they should receive a copy of the HOA’s governing documents and, by buying, they essentially agree to abide by those governing documents.
In exchange for the benefits offered by the HOA, property owners in such communities have certain responsibilities. The HOA may require them to comply with the community rules and regulations, as well as maintain their individual properties in accordance with the HOA standards. Unit owners must also ensure any tenants or guests staying at their properties do the same. Violations of the association’s rules or standards may result in fines. Additionally, homeowner associations may require property owners to pay homeowner assessments and charges for unexpected expenses, such as weather-related repairs or damage caused by flooding. Property owners should review the HOA governing documents to make sure they are aware of their responsibilities and potential financial obligations.
Governing documents can typically be changed or otherwise amended as long as the correct procedures are followed. Homeowners’ associations may need to modify governing documents for many reasons. HOAs may consider amendments to their governing documents to get rid of obsolete provisions, those no longer enforced or observed, or those in conflict with current state or federal laws.
The types of documents HOAs may change to keep up with the evolving legal and real estate landscapes and the needs of their community members include the association bylaws; covenants, conditions, and restrictions; and the association rules and regulations.
Community associations must take certain steps to make changes to HOA Bylaws. Bylaws set out the procedural rules for the HOAs’ day-to-day operations, and they may include specifications for the number of board members, when and how new board members should get elected, and the duties and responsibilities of the board members. Bylaws may undergo modifications without filing any official documents with the state, but a membership vote in accordance with the bylaws’ specifications must approve all amendments.
Amending HOA covenants, conditions, and restrictions (“CC&Rs”) involve taking a membership vote and recording the amendment on all Lots or Units within the HOA if the membership votes to approve the amendment. CC&Rs create the community association and specify the organizations’ obligations to its members and the members’ obligations to the association. For instance, such documents may place restrictions on the use of the property, identify maintenance obligations for members and the association, and outline the mechanisms for enforcing the rules and handling disputes. Like bylaw amendments, modifications to the covenants, conditions, and restrictions require approval through a membership vote.
The rules and regulations in effect at the community level may also require modifications over time. Unlike the legal documents that establish the association and dictate the terms of its operation, community rules and regulations address issues more directly related to the day-to-day living and coexistence of members and residents. Rules and regulation cannot be in conflict with either the Bylaws or CC&Rs, and must be reasonable. For example, an HOA with a community pool may require anyone under the age of 18-years-old to have adult supervision after 8 p.m. Updates to community rules and regulations may take place with a board vote and community member review, as opposed to needing approval from a membership majority.
