What Is NRS 116? Nevada HOA Assessments, Fines, and Liens

NRS 116 is the chapter of the Nevada Revised Statutes that governs every condominium, cooperative, and planned community in the state where owners share financial responsibility for common property. It sets the rules your homeowners association has to follow on meetings, elections, budgets, assessments, fines, liens, records requests, and resale disclosures, and it defines the rights you keep as an owner. If your deed or CC&Rs require you to pay a central entity for shared property, NRS 116 applies to you.

Who NRS 116 Applies To

Under NRS 116.021, a common-interest community exists whenever owning a unit obligates you to pay a share of expenses tied to property you do not personally own, such as real estate taxes, insurance, maintenance, or improvements for shared spaces.¹ Pools, parks, private roads, and clubhouses are the obvious examples, but the statute reaches any recorded declaration that creates this kind of shared financial obligation.

Size does not matter. A four-unit townhome project with a shared parking lot and a 3,000-unit master-planned community both fall under the same framework. In layered developments, a master association handles shared infrastructure while sub-associations handle neighborhood matters, each with its own board and its own assessments. You can end up owing dues to more than one entity.

Budgets, Assessments, and Reserves

The board must adopt an annual budget covering daily operations and reserves for major repairs. Assessments based on that budget are legally binding on every owner. The board can raise assessments to fund reserves without owner approval if the increase is grounded in a reserve study, but any assessment exceeding 5% of the annual budget requires prior owner approval.² Capital improvement assessments require written notice to owners at least 21 days before the meeting where they will be considered.

At least every five years, the board must commission a reserve study of the major components it maintains, such as roofs, roads, and sidewalks.² The study identifies every major component with a remaining useful life under 30 years, projects when it will need replacement, and estimates cost. Reserves must be funded on an actuarially sound basis. An underfunded reserve is where surprise special assessments come from, so this is one of the first things to check if you want a read on an association’s financial health.

Liens and Foreclosure for Unpaid Assessments

When an owner falls behind, the association holds a lien against the unit that can outrank even the first mortgage. This super-priority lien under NRS 116.3116 covers up to nine months of regular assessments based on the association’s periodic budget, plus certain maintenance and abatement charges under NRS 116.310312.³ The super-priority portion does not include penalties, late charges, fines, interest, or general collection costs. Those remain part of the broader lien but sit behind the first mortgage.

Enforcement costs that can be rolled into the super-priority amount are capped at specific dollar figures for each step:

Demand or intent-to-lien letter: up to $165
Notice of delinquent assessment: up to $325
Intent to record a notice of default: up to $90
Notice of default: up to $400
Trustee’s sale guaranty: up to $400

No attorney’s fees or other enforcement costs beyond these categories can be added to the super-priority amount.³ If Fannie Mae or Freddie Mac regulations require a shorter priority period, the lien drops to six months of assessments rather than nine.

If the debt stays unpaid, the association can start a nonjudicial foreclosure. The holder of the first mortgage can stop the sale by satisfying the super-priority amount at least five days before it occurs.² A lien expires if the association does not record a notice of default or file a lawsuit within three years of the full amount becoming due.

What the Board Must Do Before Fining You

A fine is not valid unless the board has cleared several procedural hurdles. You must have received written notice of the specific governing document provision at least 30 days before the alleged violation. If you were never told about the rule, the fine cannot stand.⁴ After discovering a violation, the board must send a written notice to cure that identifies the specific rule, describes the violation in detail, includes a photograph if the violation involves physical conditions, and gives you a reasonable chance to fix it.

If the problem continues or cannot be cured, the board must send a second written notice stating the proposed fine amount and scheduling a hearing. You have the right to attend, present evidence, and contest the charges. The hearing is in executive session unless you request in writing that it be open.² You cannot sit in on the board’s deliberations, but you must receive a written decision within a reasonable time.

For violations that do not threaten health or safety, fines are capped at $100 per violation or $1,000 total per hearing.⁴ If the violation does pose an imminent threat to health, safety, or welfare, the cap does not apply, though the fine must still be proportional. Boards sometimes classify minor aesthetic issues as health-and-safety threats to justify larger fines, which is exactly the kind of overreach the procedural requirements are designed to check.

Meetings, Elections, and Your Voice in Governance

Associations must hold at least one meeting of all unit owners every year. If the governing documents do not set a date, the meeting must take place within one year of the last one, and if a full year passes with no meeting, the default date is March 1. Notice of annual or special owners’ meetings must go out at least 15 days but no more than 60 days in advance and must include the agenda.⁵

The executive board must meet at least once every quarter and no less than once every 100 days, with at least two of those quarterly meetings held outside standard business hours. Owners must get notice of board meetings at least 10 days in advance, along with the agenda or directions for obtaining it.⁶

Board member terms cannot exceed three years. At least 30 days before ballots are prepared, the association must notify every owner that they are eligible to run.⁷ Candidates must disclose in writing any financial, business, or personal relationship that could create a conflict of interest, and must disclose whether they are a member in good standing, meaning no unpaid or past-due assessments or construction penalties. Elections use a secret ballot, paper or electronic, and owners get at least 15 days after receiving the ballot to return it. No quorum is required for board elections.

Records You Can Demand

You have the right to inspect association books, records, and papers at the association’s business office or at a designated location within 60 miles of the community during regular working hours. The records that must be available include financial statements, operating budgets, reserve studies, contracts the association has entered, and court filings in any litigation involving the association.⁸

When you submit a written request for copies of financial statements, budgets, or reserve studies, the association must deliver them within 21 days. Electronic copies are free. If the association cannot furnish them electronically, it can charge up to 25 cents per page for the first 10 pages and 10 cents per page after that, and no more than $25 per hour for in-person review.⁸

If the board misses the 21-day deadline, it owes a penalty of $25 for every day it stays late.⁸ If the board refuses outright, the Ombudsman can review the records on your behalf and, if also denied, request a Commission subpoena to force production.²

Buying or Selling: The Resale Package

Selling a unit in a common-interest community triggers a disclosure obligation that catches many sellers off guard. NRS 116.4109 requires the seller to furnish the buyer with a resale package containing the community’s declaration, bylaws, rules, the current operating budget and year-to-date financial statement, a reserve study summary, a statement of any pending litigation against the association, and a detailed breakdown of all fees and charges tied to the unit.⁹

The association has 10 calendar days to deliver its portion after receiving a written request. The fee for preparing the certificate cannot exceed $185, and the rush fee for expedited delivery within three business days tops out at an additional $100.⁹ The package must also disclose any unpaid obligations on the unit, including management fees, transfer fees, fines, collection costs, and attorney’s fees still owed by the seller. If you are buying, this document is the single best snapshot of the association’s finances and operational baggage before you commit.

Federal Rules That Override HOA Restrictions

Two federal rules regularly override NRS 116 associations, and many boards either do not know about them or test the limits until challenged.

Satellite Dishes and Antennas

The FCC’s Over-the-Air Reception Devices rule prohibits any restriction, including HOA rules, that impairs the installation or use of certain antennas on property within an owner’s exclusive use or control.¹⁰ Covered devices include satellite dishes one meter or smaller, antennas for broadband radio service one meter or smaller, and antennas for local television broadcasts.¹¹ The rule reaches balconies, patios, yards, and other areas under your exclusive control, but not shared rooftops or exterior walls.

Associations can restrict only to address legitimate safety concerns or historic preservation, and no more than necessary. Prior-approval requirements are generally prohibited because they delay installation. If an association challenges your antenna and loses, it cannot fine you as long as you comply within a 21-day grace period.¹¹

Assistance Animals

The Fair Housing Act requires housing providers, including HOAs, to make reasonable accommodations in rules when necessary to give a person with a disability equal opportunity to use and enjoy their home.¹² No-pet policies, breed restrictions, weight limits, and pet deposits do not apply to service animals or emotional support animals. The association can request documentation of the disability-related need if the disability is not obvious, but cannot demand specific certifications, training records, or details about the diagnosis.¹⁰ An association may deny an assistance animal only if that specific animal poses a direct, documented threat to safety or would cause substantial property damage, based on an individualized assessment rather than generalizations about breeds or species.

Where to Turn When the HOA Breaks the Rules

Nevada created the Office of the Ombudsman for Owners in Common-Interest Communities to help homeowners and board members navigate Chapter 116. The Ombudsman processes mediation and arbitration claims, helps owners understand their rights, helps board members carry out their duties, and investigates disputes.² The office also maintains a statewide registration of every association, including board member and manager contact information, total annual assessments, and completed assessment-lien foreclosures.

When an internal dispute cannot be resolved, NRS 116.745 through 116.795 provide a formal complaint process through the Nevada Real Estate Division.¹³ A violation under these sections means a breach of any provision of Chapter 116, any regulation adopted under it, or any order from the Commission or a hearing panel. Parties are generally expected to try mediation or alternative dispute resolution before heading to civil court. If that fails, findings from the process can support further legal action.

1
Nevada Legislature. Nevada Code 116.021 – Common-Interest Community Defined
2
Nevada Legislature. Nevada Revised Statutes Chapter 116 – Common-Interest Ownership
3
Nevada Legislature. Nevada Code 116.3116 – Liens Against Units for Assessments
4
Nevada Legislature. Nevada Code 116.31031 – Power of Executive Board to Impose Fines and Other Sanctions
5
Nevada Legislature. Nevada Code 116.3108 – Meetings of Units Owners of Association
6
Nevada Legislature. Nevada Code 116.31083 – Meetings of Executive Board
7
Nevada Legislature. Nevada Code 116.31034 – Election of Members of Executive Board
8
Nevada Legislature. Nevada Code 116.31175 – Maintenance and Availability of Books, Records and Other Papers of Association
9
Nevada Legislature. Nevada Code 116.4109 – Resales of Units
10
Federal Communications Commission. Installing Consumer-Owned Antennas and Satellite Dishes
11
eCFR. 47 CFR 1.4000 – Restrictions Impairing Reception of Television Broadcast Signals
12
Office of the Law Revision Counsel. 42 USC 3604 – Discrimination in the Sale or Rental of Housing
13
Nevada Public Law. Nevada Code 116.745 – Violation Defined