The 82nd Legislative Session is fully underway! The Legislature has 120 days (until June 5, 2023) to meet and pass any bills for the Governor’s consideration, and as usual, the laws surrounding community associations are a target for possible change. You’ll want to keep on the lookout for how you will be impacted. Here is a summary of the bills that have been put forward thus far:

Assembly Bill 111

AB111 seeks to protect those who wish to display religious items within that portion of the Unit which they exclusively use and occupy. These protections would not apply in certain circumstances, such as where safety concerns exist, the size exceeds 36 x 12 square inches or the door frame to which it is affixed. Moreover, the statute would not affect an association’s ability to reasonably restrict the placement and manner of display. Accordingly, if it passes and is signed by the Governor, an association can, for example, put reasonable limitations on when holiday lights can be put up and must be taken down. An association would similarly be allowed to require the removal of religious displays when maintenance is being performed to common areas or limited common area components.

Assembly Bill 142

Generally, AB142 would allow foreclosure sales to occur via the Internet.  Among other provisions, if passed, AB142 would require that any sale planned to be conducted on an Internet website or other electronic medium provide notice, which includes:

1. The location of the website or other electronic media;
2. The manner by which electronic bids will be accepted; and
3. The period during which bids will be accepted.

The bill would further allow the website provider to collect payments, postpone the sale, or take other actions in connection with the transaction.

If it passes, AB142 would further preclude an appraiser involved in the sale or anyone affiliated with the Internet website provider from participating in purchasing the property. This would be in addition to those already precluded from participating in the purchase, which effectively includes anyone related to the foreclosure process.

Assembly Bill 189

This bill would alter a law that passed in 2021. In the 81st Legislative Session, AB249 was passed which created NRS 116.347. Under certain circumstances, the existing law prohibits a common interest community from restricting the hours in which construction work may begin. Under current law, an association is prohibited from placing greater restrictions on construction hours than those restrictions which may have been adopted by the local municipality.

If AB189 passes, in a county whose population is 700,000 or more, a governmental authority (city or county), would be precluded from requiring construction to commence after 5:00 a.m. from April 1st to September 30th. Additionally, a homeowners’ association would be required to allow the commencement of construction activities as provided for by the local ordinance. Therefore, if it passes, during the summer months, the Las Vegas Valley will be required to allow construction activity to commence no earlier than 5:00 a.m.

Senate Bill 174

SB174 seeks to remove the language that exempts a community association manager or its employees from being licensed as a collection agency as otherwise required by NRS Chapter 649. Therefore, if it passes, community association managers must either be licensed as a collection agency or ensure all collection activities are being performed by a licensed collection agency.

Senate Bill 175

SB175 seeks to provide additional protection from foreclosure for veterans, senior citizens, and individuals with disabilities. Among other items, where a veteran, senior citizen, or disabled person is involved, SB175 would require an association to utilize the same foreclosure procedures as banks. The bill would further require associations to inform their members that they may have greater protection from foreclosure and to verify that the person subject to foreclosure is not a veteran, senior citizen, or disabled person.

Should SB175 become law, it would make the knowing foreclosure in violation of the statute a misdemeanor and create possible liability for damages incurred, including attorney’s fees and costs. Where it is believed that an association has commenced a foreclosure in violation of the regulations, SB175 would allow the Attorney General’s Office to institute the appropriate legal proceedings.

Isaacson Law will continue to monitor the pending legislation and provide updates. In the meantime, please contact Troy Isaacson with any questions.