NRS 116: Nevada HOA Assessments, Elections, and Resale Packages

Nevada Revised Statutes Chapter 116 is the law that governs every common-interest community in the state, from a Las Vegas master-planned subdivision to a small Reno condominium. It defines what a homeowners association can and cannot do, sets the process for meetings, elections, assessments, fines, and foreclosure, and gives owners specific rights around records, landscaping, flags, and dispute resolution. If you own a unit, sit on a board, or are about to buy into an HOA, this is the framework that controls the relationship.

What NRS 116 Covers

Under NRS 116.021, a common-interest community is any real estate development where owning a unit obligates you to pay a share of costs related to common areas, including taxes, insurance, maintenance, and services.¹ Shared landscaping, private streets, pools, and clubhouses managed by a central association all fit. A recorded declaration filed with the county recorder creates the obligation and binds every purchaser.

Not every property is covered. Very small communities and developments used only for non-residential purposes can fall outside the chapter. When in doubt, the recorded declaration for your development is the definitive document; if one exists and names an association, you are almost certainly under NRS 116.

Meetings, Records, and Voting

Attending and Speaking at Board Meetings

Unit owners have the right to attend meetings of the executive board and to speak on any topic affecting the community. Every owners’ meeting agenda must include a period for owner comments, and the association must hold at least one meeting of unit owners each year. Notice, with the agenda, must go out no fewer than 15 days and no more than 60 days before the meeting.²

The board may close a meeting for executive session only in narrow circumstances: consulting with the association’s attorney on privileged matters, discussing employee misconduct or competence, or hearing an alleged violation of the governing documents. It cannot use executive session to open bids or to enter into, renew, or terminate contracts. Anything discussed behind closed doors must still be noted in the minutes.³

Inspecting Association Records

Every unit owner has the right to inspect, copy, and audit the association’s financial records. When you submit a written request, the board must provide the financial statements, budgets, and reserve studies within 21 days. Miss that deadline, and the association owes a $25 penalty for each day the records remain undelivered. Electronic copies must be free. If the association cannot deliver electronically, it may charge up to 25 cents per page for the first 10 pages and 10 cents per page after that.⁴

Minutes have their own timeline. Within 30 days after a board meeting, the association must make available either an audio recording and approved minutes or a draft summary to any owner who requests them.⁵

Voting by Secret Ballot

All votes by unit owners must be cast by secret ballot, and owners must be given at least 15 days after the ballot is mailed or made available to return it, physically or electronically.² No quorum is required when ballots are opened and counted. Incumbent board members and candidates cannot possess or participate in the opening or counting of ballots.

Board Elections and Fiduciary Duties

A candidate for the executive board may campaign for up to 90 days before ballots are due, and the association cannot adopt rules that prohibit or unreasonably interfere with campaigning.² Candidates may request that the association distribute a one-page informational statement to every unit at the association’s expense, or request a list of unit mailing addresses so they can distribute their own material. The list cannot include owner or tenant names.

Once elected or appointed, each board member must certify in writing within 90 days that they have read and understand the governing documents and the relevant provisions of NRS 116, using a form prescribed by the state administrator.²

Board members and officers are fiduciaries. NRS 116.3103 requires them to act on an informed basis, in good faith, and in the honest belief that their actions serve the association’s best interest. A board member who rubber-stamps a contract without reading it, or steers business to a personal associate, is breaching that duty. The board also cannot amend the declaration on its own; that requires broader owner approval, which prevents insiders from making sweeping changes to the community’s structure or use restrictions.⁶

Reserve Studies

Every association must conduct a reserve study at least once every five years.⁷ The study looks at the major components the association maintains, such as roofs, parking structures, pools, and elevators, estimates their remaining useful life and replacement cost, and includes a funding plan showing the annual assessments needed to cover future expenses.

The board must review the study at least annually and adjust the funding plan as needed.⁷ Underfunded reserves are one of the most common financial problems in common-interest communities. The study sits in a drawer, the board doesn’t adjust assessments, and owners later face a painful special assessment when a major component fails.

Assessments, Liens, and Foreclosure

How Assessments Work

The executive board adopts an annual budget and collects assessments to cover operating expenses and fund reserves. Nevada does not impose a statutory cap on annual assessment increases. The board can raise assessments for reserves without owner approval if the increase is necessary and reasonable to maintain adequate reserve funding.⁸ Your CC&Rs may contain their own caps, so check them if you are worried about rising costs.

The Super-Priority Lien

When an owner falls behind on assessments, the association holds a lien against the unit. A portion of that lien is what Nevada law calls the “super-priority” lien, and it takes precedence over even a first mortgage. The super-priority portion covers up to nine months of unpaid assessments based on the periodic budget, calculated from the date the notice of default is recorded. It also includes certain capped enforcement costs: up to $325 for a notice of delinquent assessment, up to $400 for a notice of default, and up to $400 for a trustee’s sale guarantee.⁹ Attorney’s fees cannot be added to the super-priority portion.

If federal regulations from Fannie Mae or Freddie Mac require a shorter priority period, the lien adjusts accordingly, but it can never drop below six months of assessments.⁹

Foreclosure Timeline

HOA foreclosure in Nevada follows a multi-step process with built-in waiting periods:

Delinquency notice. The association mails a notice of delinquent assessment to the owner.
Notice of default. At least 30 days after the delinquency notice, the association may record a notice of default and election to sell.¹⁰
90-day cure period. The owner has 90 days after the notice of default is recorded to pay the full lien amount, including costs and fees.
Notice of sale. If the owner does not pay within 90 days, the association may schedule a sale, posting notice publicly for 20 consecutive days and publishing it in a local newspaper once a week for three consecutive weeks.
Post-sale redemption. Even after the sale, the former owner has 60 days to redeem the property. If no redemption occurs, the person conducting the sale delivers a deed to the purchaser.

The full process from delinquency notice through the redemption window spans well over six months. Fees accumulate at each step, so catching up early is much cheaper than catching up late.

Fines and the Hearing Process

Before an association can fine you for a rule violation, you must have received written notice of the rule at least 30 days before the alleged violation. After discovering a violation, the board must send you written notice identifying the specific violation, the proposed corrective action, the fine amount, and the date, time, and location of a hearing. If the violation concerns the physical condition of your property, the notice must include a photograph.¹¹

You must be given a reasonable opportunity to fix the violation or contest it. The board cannot impose a fine without holding the hearing first, unless you pay the fine beforehand, sign a written waiver of the hearing, or fail to appear after proper notice.¹¹

For violations that do not threaten health or safety, fines are capped at $100 per violation and $1,000 total per hearing.¹¹ Violations that pose an imminent threat to health, safety, or welfare can lead to more immediate enforcement. If you receive a violation notice, respond to it. Ignoring it does not make the fine go away, and the board can proceed to a hearing without you.

Resale Packages

What the Package Must Include

When you sell a unit in a common-interest community, you must furnish the buyer with a resale package at your expense. It must contain a statement from the association showing the current monthly assessment and any unpaid obligations tied to the unit, including management fees, transfer fees, fines, interest, and collection costs. It must also include a copy of the current operating budget, a year-to-date financial statement, and a summary of the reserve study.¹²

Fees

The association may charge to prepare the resale certificate, but the amount is capped. The base cap is $185 for standard preparation. Certificates delivered within three business days can carry an additional $100 expedite fee. The association may also charge up to $165 for a separate statement of demand, plus $100 more to rush it. These caps rise annually with the Consumer Price Index, but by no more than 3 percent per year.¹²

Buyer Cancellation Rights

After receiving the resale package, the buyer may cancel the purchase contract in writing until midnight of the fifth calendar day after receipt, and the contract itself must inform the buyer of this right. Once the buyer accepts the deed, the cancellation right expires. If the association fails to furnish the required documents within 10 calendar days, the buyer is not liable for any delinquent assessments on the unit.¹²

Rules the HOA Cannot Override

Drought-Tolerant Landscaping

An association cannot ban drought-tolerant landscaping, including decorative rock and artificial turf, in areas you have the exclusive right to use, such as front and back yards. You must submit plans through the architectural review process, and the design should be compatible with the community’s style to the extent practicable.¹³ The board cannot unreasonably deny approval. Converting common-element landscaping from traditional turf to drought-tolerant varieties is generally not considered a change in use, with limited exceptions for areas designated as parks, play spaces, or golf courses on the recorded plat.

Displaying the U.S. and Nevada Flags

Your association cannot prohibit you from displaying the U.S. flag or the Nevada state flag in areas you occupy exclusively, so long as the display uses a pole, staff, or window and the flag is made of cloth, fabric, or paper. Reasonable rules on placement and manner are allowed; an outright ban is not. A prevailing party in a lawsuit to enforce this right can recover attorney’s fees and costs. Federal law reinforces the protection: the Freedom to Display the American Flag Act of 2005 bars condominium associations, cooperatives, and residential management associations from enforcing a policy that prevents members from displaying the U.S. flag on property they own or exclusively use, subject to reasonable time, place, and manner restrictions and the U.S. Flag Code.¹⁴

Solar Energy Systems

NRS 116.345 prohibits associations in planned communities from taking certain actions against owners who install solar panels. The statute contains conditions on placement and design review, but a blanket prohibition on rooftop solar is not enforceable. Review your governing documents and submit plans through architectural review, and expect the board to work within the statute rather than around it.

Satellite Dishes and Antennas

The FCC’s Over-the-Air Reception Devices rule protects your right to install certain antennas and satellite dishes on property you own or exclusively control, including balconies, patios, and yards. Covered devices include satellite dishes one meter or smaller, antennas for local TV broadcasts, and antennas that receive or transmit fixed wireless signals. AM/FM radio and amateur radio antennas are not covered.¹⁵

Your HOA usually cannot require pre-approval for a covered device, and any restriction that prevents or delays installation is presumed invalid. The association carries the burden of showing a restriction is justified, and permitted restrictions must relate to safety or historic preservation and be no more burdensome than necessary. An association that provides a central antenna system delivering equal signal quality at equal or lower cost may prohibit individual dishes, though that is a high bar.¹⁵

Fair Housing and Reasonable Accommodations

The federal Fair Housing Act applies to every HOA in Nevada. If you have a disability, you can request a reasonable accommodation, meaning a change to the association’s rules, policies, or practices that gives you equal opportunity to use and enjoy your home. Common examples include a reserved accessible parking space, permission to install a ramp or grab bars, and an exemption from a pet policy for an assistance animal. Assistance animals are not pets under the Fair Housing Act, so associations cannot charge pet fees or deposits for them or apply breed, size, or weight restrictions.

The association cannot require a specific form. If the disability and need are obvious, it cannot demand documentation. When the need is not apparent, it may ask for verification of a disability-related need, but it cannot request medical records, a specific diagnosis, or details about severity. If it considers a request unreasonable, it must engage in a dialogue to explore alternatives rather than simply denying the request.

Filing a Complaint With the Ombudsman

Nevada’s Office of the Ombudsman for Owners in Common-Interest Communities, housed within the Real Estate Division, is the state’s designated resource for HOA disputes. The Ombudsman investigates disputes involving NRS 116 or an association’s governing documents, assists with mediation and arbitration referrals, and helps owners and board members understand their obligations.

Before the state will step in, you must first try to resolve the dispute yourself. The process:

Send a certified letter. Mail a written notice to the person or entity you are disputing with, sent by certified mail with return receipt requested. Describe the alleged violation, any damages, and your proposed resolution. No other delivery method counts.¹⁶
Wait 14 calendar days. Give the respondent time to address the issue before escalating.¹⁷
File an Intervention Affidavit. If the dispute is not resolved, complete Form 530. Attach a copy of your certified letter and the return receipt card. Your signature must be notarized; the Ombudsman’s office offers free notary services if you call ahead.
Submit to the Ombudsman. Mail or hand-deliver the completed, notarized package to the Office of the Ombudsman at the Real Estate Division in Las Vegas.

You must file within one year of discovering the alleged violation.¹⁶ Any issue you did not include in your original certified letter and do not list on the affidavit cannot be raised during the Ombudsman conference, investigated by the compliance section, or used in a disciplinary proceeding. The Division cannot act on complaints made by phone, email, or walk-in; the affidavit process is the only way to trigger formal state involvement. Getting the initial certified letter right is the step most people rush, and it is the one that matters most.

1
Nevada Legislature. Nevada Code 116.021 – Common-Interest Community Defined
2
Nevada Legislature. Nevada Code 116.3108 – Meetings of Units’ Owners of Association
3
Nevada Legislature. Nevada Code 116.31085 – Right of Units’ Owners to Speak at Certain Meetings
4
Nevada Legislature. Nevada Code 116.31175 – Maintenance and Availability of Books, Records and Other Papers of Association
5
Nevada Real Estate Division. Understanding Association Records
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Nevada Legislature. Nevada Code 116.3103 – Power of Executive Board to Act on Behalf of Association
7
Nevada Legislature. Nevada Code 116.31152 – Study of Reserves; Duties of Executive Board Regarding Study
8
Nevada Legislature. Nevada Code 116.3115 – Assessments for Common Expenses
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Nevada Legislature. Nevada Code 116.3116 – Liens Against Units for Assessments
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Nevada Real Estate Division. Fast Reference – Collection of Past Due Obligations and Foreclosure
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Nevada Legislature. Nevada Code 116.31031 – Power of Executive Board; Limitations; Fines and Other Charges
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Nevada Legislature. Nevada Code 116.4109 – Resales of Units
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Nevada Legislature. Nevada Code 116.330 – Right of Units’ Owners to Install or Maintain Drought Tolerant Landscaping
14
GovInfo. Freedom to Display the American Flag Act of 2005
15
Federal Communications Commission. Installing Consumer-Owned Antennas and Satellite Dishes
16
Nevada Real Estate Division. How to File an Intervention Affidavit
17
State of Nevada Department of Business and Industry. Homeowners Association Complaints