Nevada HOA Laws and Regulations

Know your association’s laws

Nevada Community Association Law

Homeowners’ associations in Nevada must be registered as a corporation. Most choose to register as non-profits and therefore must adhere to State Nonprofit Corporate Law. Also, Chapter 116 of the state code is the Common Interest Ownership Act that provides more specific regulations regarding HOAs. Community associations are regulated by the Real Estate Division of the Department of Business and Industry; otherwise known as the Division in legal documents.


Homeowners Association’s Rights and Responsibilities

The primary purpose of HOAs is to protect property values and provide maintenance on common elements of the community. Associations have the power to collect assessments from homeowners to build funds and build reserves for maintenance purposes. They may also enforce restrictions on property use or alterations consistent with the community Declaration and Bylaws.



If a homeowner violates community regulations, the board of directors may implement a fine for each infraction up to $100 each totaling a maximum of $1,000. Fines may be higher for infractions that cause serious damage or pose a safety hazard.

If an account becomes delinquent, an HOA may place liens on the property. They may also place limitations on the use of common areas, and temporarily restrict a homeowner’s ability to vote at community meetings. In extreme cases, they may even foreclose on the property despite on-time mortgage payments.


Different Types Of Community Insurance

An HOA is required to maintain at least four different types of insurance on a community:

  • Property insurance not less than 80% of the actual cash value of the community.
  • Commercial General Liability Insurance including medical payouts.
  • Crime insurance covers dishonest acts from directors and employees equal to three months of assessments plus all reserves or $5,000,000; whichever is less.
  • Directors and Officers Insurance including a nonprofit errors and omissions policy worth at least $1,000,000.

It is the responsibility of the board of directors to maintain detailed records and make them reasonably available to all association members. This includes financial records, a list of all members and contact information, minutes for all meetings.


Budget Review

At the end of every fiscal year, the board must draft a new association budget and prepare a summary of association reserves. The budget must be sent to all homeowners for review and the reserve summary sent to the Division. The annual budget must be reviewed by a certified professional accountant. The frequency and depth of the review depend on community income:

  • Communities with annual assessment incomes between $45,000 and $75,000 need to have the budget reviewed every other year.
  • For communities between $75,000 and $150,000, the budget must be reviewed annually.
  • For communities above $150,000 in annual assessments, a CPA must perform an audit annually.

Budget changes will be discussed and adopted at the annual member meeting. Any changes formally adopted by the association must be summarized and sent out to homeowners. Any surplus at the end of the year must be returned to the homeowners unless otherwise stated in community bylaws.


Quarterly Finance Meeting

The board of directors must have at least one meeting per quarter to discuss association finances and account balances. Meetings must not be more than 100 days apart and at least two must take place outside of regular work hours to ensure that working association members can attend. Meetings can be recorded, and minutes and/or audio recordings must be available to association members upon request.

Three bids are required for any major work contracted by the association. Major work is defined as more than 3% of the annual budget for associations under 1,000 units and 1% of the annual budget for associations with more than 1,000 units. Any community manager hired by the board of directors must be certified by the Real Estate Division of the Department of Business and Industry.


Homeowner Rights

Any changes to the community governing documents must be voted on by homeowners during a member meeting; the board cannot make any changes without permission. A majority vote can make amendments to the declaration, bylaws, or land plats. Property boundaries may be changed with the consent of all parties involved. Changes made to governing documents must be recorded with the county to become valid.


Annual Member Meetings

Member meetings must be held annually if not more frequently. Board of director elections and amendment discussions take place at these meetings. Special meetings can be called by a majority of the board of directors or by a signed petition from at least 10% of the voting power. Association directors can also be removed at a member meeting with the same vote it would take to get them elected; usually, a majority unless otherwise specified in community documents.

Association members have the right to attend any meetings, including board meetings, and must be allowed a reasonable opportunity to speak. The board may hold executive closed sessions only when discussing sensitive matters such as legal litigation or specific account details.


Common Interest Communities

Common interest communities can be dissolved with an 80% vote from homeowners along with the agreement of the board of directors.

The formula for determining member votes must be included in the community declaration. It is not always one vote per property. Some communities prefer voting rights based on property value or property size. Each community is different.


Property Changes

An HOA cannot restrict a homeowners’ right to have at least one pet, fly the state or national flag, or make any reasonable changes to their property to increase privacy such as shutters or door locks. The association may regulate these rights such as the size of the flag, the breed of dog, or the color of the shutters, but may not restrict these rights completely.

When a new property is purchased, the homeowners’ association must provide a standardized Information Statement to the buyer giving them general information about their rights in the HOA. The buyer must also sign the statement to show their acknowledgment and understanding of their rights.


NV Common Interest Ownership Act

Please note that CSM is not a licensed attorney and cannot provide legal advice. If you have questions about interpreting your state’s legal requirements or the association’s governing documents, please contact an attorney that is licensed in your state.
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