HOA stands for homeowners' association. It is a private organization that consists of members of...
In the latest legislative session, Nevada lawmakers passed several laws that impact Homeowner Associations. The laws range from what cars can be towed to clarifications on the imposition of fines for continuing violations. The full implications of these laws for HOAs can be difficult to determine at first glance.
Which New Laws Affect HOAs?
Although the legislature passed several new laws impacting HOAs, the most urgent ones relate to:
- Construction Hours
- Towing Regulations
- Account Set-Up Fees
- Electronic Access and Payment Options
- Continuing Violations
State and City construction hours now supersede HOA restrictions. Even if the HOA would like to limit construction hours in their communities, contractors may work longer hours if allowed by State and City ordinances. However, this law only applies from May 1st through September 30th each year.
HOAs of apartment buildings and townhome communities with common parking areas may no longer tow vehicles based on an expired registration. However, associations will no longer be held liable for excess unregistered vehicles in their community.
Account Set-Up Fees
As of January 1, 2022, laws regulating fees for account set-up will change. Associations may charge a reasonable fee, up to $350, for the opening or closing of any file for a unit. The fee must be based on the actual costs incurred by the association. The association may automatically increase the fee each year based on the Consumer Price Index. However, the increase may not exceed 3%. If an association fails to respond to a complaint about fees within 30 days, it may be fined $250.
Electronic Access and Payment Options
According to Nevada legislation, as of January 1, 2022, some associations, depending on size, will need to establish electronic access to paperwork for clients. Further, as of January 1, 2023, some associations will need to establish an electronic payment system. Although many associations may already have such digital systems in place, those that do not may incur a significant cost establishing such a system.
New legislation has established that no one involved in the foreclosure of a property may purchase the foreclosed property. Based on this law, HOAs are prohibited from purchasing homes in foreclosure in their communities.
Continuing violations are no longer capped. The fines charged by the association for a violation may accrue for as long as the violation continues. However, the association must allow the homeowner a reasonable time to cure the violation after receiving written notice before imposing fines.