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- 83rd Session (2025)
Assembly Bill No. 211–Assemblymember Considine
CHAPTER..........
AN ACT relating to property; requiring a county or city to require a
property owner to repair or rehabilitate or abate certain
conditions on a residential multifamily rental property under
certain circumstances; establishing procedures relating to a
property owner’s failu re to repair or rehabilitate or abate
certain conditions on the residential multifamily rental
property; authorizing certain local governments and persons
to bring an action to require the repair or rehabilitation or
abatement or appoint a receiver for sub standard property in
certain circumstances; establishing the powers and duties of a
receiver appointed for substandard property; making various
other changes relating to substandard properties; and
providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law: (1) requires a landlord to maintain a dwelling unit in a habitable
condition at all times during the tenancy; and (2) provides that a dwelling unit is not
habitable if it violates provisions of housing or health codes concerning the health,
safety, sanitation or fitness for habitation. (NRS 118A.290)
Sections 8 and 27 of this bill provide that: (1) if a residential multifamily rental
property is maintained in a way that violates any applicable habitability standard,
housing code or building code, or any statute or ordinance relating to habitability,
building safety or fire safety; and (2) as a result of the violation or violations, the
condition of the residential multifamily rental property is of such a nature that the
health and safety of residents or the public are substantially endangered,
the appropriate department of the county or city, as applicable, is required to notify
the owner and order that the owner repair or rehabilitate the property or abate the
condition. Sections 8 and 27 also set forth certain requirements for the notice.
Sections 9 and 28 of this bill provide that if the owner of the residential
multifamily rental property fails to comply with the terms of the notice and
summary order issued by the county or city, as applicable, certain actions may be
brought to have the residential multifamily rental property declared to be a
substandard property, including an actio n to have a receiver appointed to manage
the repair or rehabilitation of the substandard property.
Sections 10 and 29 of this bill: (1) set forth certain findings and considerations
that must be made by the district court in order to declare a residentia l multifamily
rental property to be a substandard property; and (2) require an order issued by the
district court declaring a residential multifamily rental property to be a substandard
property to set forth the conditions that make the residential multifamily rental
property a substandard property and the repairs, rehabilitations and abatements that
are necessary to correct each violation of a habitability standard, housing code or
building code, or any statute or ordinance relating to habitability, buildi ng safety or
fire safety.
Sections 11 and 30 of this bill provide that if the district court finds that there
is a condition of the substandard property which substantially endangers the health
and safety of the residents, the district court must: (1) ord er the owner of the
substandard property to pay all reasonable and actual costs of the board of county
commissioners or governing body of the city, as applicable; (2) order that the board
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of county commissioners or governing body of the city provide each t enant with
notice of the judgm ent and court order; (3) under certain circumstances, order the
owner to provide or pay certain relocation benefits and compensation to the tenants;
(4) determine the date when a tenant has to relocate; and (5) make certain ot her
orders.
Sections 12 and 31 of this bill set forth certain duties for a receiver appointed
for a substandard property.
Sections 13 and 32 of this bill provide that a receiver appointed for a
substandard property is entitled to the same fees, commissio ns and necessary
expenses as a receiver in an action to foreclose a mortgage.
Sections 14 and 33 of this bill require a receiver appointed for a substandard
property to prepare and submit monthly reports to the board of county
commissioners or governing b ody of a city and the board of county commissioners
or governing body of a city to submit the reports annually to the Director of the
Legislative Counsel Bureau for transmi ttal to the Legislature or Legislative
Commission.
Sections 15 and 34 of this bill: (1) require the district court to discharge the
receiver for a substandard property under certain circumstances; and (2) authorize
the district court to retain jurisdiction over the substandard property for a period of
time not to exceed 18 consecutive months.
Sections 16 and 35 of this bill authorize the district court to require the owner
of a substandard property to pay all unrecovered costs associated with the
receivership.
Sections 17 and 36 of this bill provide that the remedies and penalties set f orth
in sections 2-18 and 21-37 of this bill are cumulative, may not be abrogated and
are in addition to any other remedies or penalties that may exist in law or equity.
Sections 18 and 37 provide that nothing in sections 2-18 and 21-37 is intended
to dep rive any owner of a residential multifamily rental property or substandard
property any right guaranteed by the United States Constitution or Nevada
Constitution, including, without limitation, the right to due process.
Existing law authorizes a receiver to be appointed in certain actions and the
Uniform Commercial Real Estate Receivers hip Act establishes provisions
governing the appointment and powers of a receiver for real property. (NRS
32.010, 32.100-32.370) Section 19 of this bill authorizes a receiver to be appointed
in an action to have a residential multifamily rental property declared to be a
substandard property that is brought pursuant to section 10 or 29 to manage the
repair or rehabilitation of the substandard p roperty. Sections 10 and 29 also clarify
that the Uniform Commercial Real Estate Receivership Act and any rules adopted
pursuant thereto by the Nevada Supreme Court apply to a receiver appointed
pursuant to section 10 or 29, as applicable.
Sections 2-7 and 21-26 define certain terms used in the provisions of sections
2-18 and 21-37, respectively.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 244 of NRS is hereby amended by adding
thereto the provisions set forth as sections 2 to 18, inclusive, of this
act.
Sec. 2. As used in sections 2 to 18, inclusive, of this act,
unless the context otherwise requires, the words and terms defined
in sections 3 to 7, inclusive, of this act have the meanings ascribed
to them in those sections.
Sec. 3. “Dwelling unit” means a structure or the part of the
structure that is occupied as, or d esigned or intended for
occupancy as, a residence or sleeping place by one person who
maintains a household or by two or more persons who maintain a
common household.
Sec. 4. “Habitability standard” includes, without limitation:
1. Any provision of an applicable housing or health code
concerning the health, safety, sanitation or fitness for habitation
of a dwelling unit; or
2. The requirements of chapter 118A of NRS relating to the
habitability of a dwelling unit, includ ing, without limitation, the
provisions of subsection 1 of NRS 118A.290.
Sec. 5. “Receiver” means a receiver appointed by a district
court as the court’s agent, and subject to the court’s direction, to
take possession of, m anage and, if authorized by court order,
transfer, sell, lease, license, exchange, collect or otherwise dispose
of receivership property in an action to declare a residential
multifamily rental property to be a substandard property pursuant
to section 10 of this act.
Sec. 6. “Residential multifamily rental property” means a
parcel of land in the unincorporated area of the county which is
primarily used for personal, family or household purposes to
which is affixed two or m ore dwelling units for occupancy by
tenants on a rental basis.
Sec. 7. “Substandard property” means a residential
multifamily rental property that has been declared to be a
substandard property by a district court pursuant to section 10 of
this act.
Sec. 8. 1. If the appropriate department of a county finds
that:
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(a) A residential multifamily rental property is maintained in a
way that violates any applicable habitability standard, housing
code or building code, or any statute or ordinance relating to
habitability, building safety or fire safety; and
(b) As a result of the violation or violations described in
paragraph (a), the condition of the residential multifamily rental
property is of such a nature that the health and safety of residents
or the public is substantially endangered,
the county shall notify the owner of the residential multifamily
rental property and order that the owner repair or rehabilitate the
residential multifamily rental property or otherwise abate the
condition.
2. Any notice and order issued pursuant to subsection 1:
(a) Must include, without limitation:
(1) The name, address and telephone number of the county
department that issued the notice and summary order;
(2) The date, time and location of any public hearing or
proceeding concerning the notice and summary order;
(3) A description of each violation of a habitability
standard, housing code or building code, or any statute or
ordinance relating to ha bitability, building safety or fire safety, as
applicable;
(4) Any deadline by which the owner must repair or
rehabilitate the residential multifamily rental property or
otherwise abate the condition;
(5) A description of:
(I) The remedies authorized pursuant to section 9 of this
act if the owner fails to comply with the terms of the notice and
summary order;
(II) The j udicial relief required and authorized to be
granted pursuant to section 11 of this act; and
(III) The p owers and duties of any appointed receiver
pursuant to sections 12 to 16, inclusive, of this act; and
(6) A statement that the owner or lessor, if applicable, is
prohibited from retaliating against any tenant pursuant to NRS
118A.510; and
(b) Must be posted in a conspicuous place on the residential
multifamily rental property and mailed by certified mail to the
owner and each affected resident of a dwelling unit on the
residential multifamily rental property.
Sec. 9. 1. If the owner of a residential multifamily rental
property fails to comply with the terms of the notice and summary
order issued pursuant to section 8 of this act:
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(a) The county may bring an action to:
(1) Have the residential multifamily rental property
declared by the district court to be a substandard property;
(2) Obtain a court order requiring the owner to repair or
rehabilitate the residential multifamily rental property or
otherwise abate the condition; and
(3) Have the district court impose a civil penalty against the
owner of the residential multifamily rental property, as provided
by ordinance; or
(b) The county or a nonprofit organization representing any
tenant or tenant association may bring an action to:
(1) Have the residential multifamily rental property
declared to be a substandard property; and
(2) Have a receiver appointed pursuant to NRS 32.010.
2. A party who intends to bring an action for the appointment
of a receiver pursuant to paragraph (b) of subsection 1 shall:
(a) Not later than 30 days before filing such an action, provide
notice of intent to bring the action by:
(1) Posting a notice in a conspicuous place on the
residential multifamily rental property; and
(2) Mailing the notice to each person with a recorde d
interest in the residential multifamily rental property; and
(b) Provide with the court filing:
(1) Proof that the party provided the notice of intent to
bring the action as required pursuant to paragraph (a); and
(2) If the party is a nonprofit organization representing a
tenant or tenant association, an affidavit provided by the
department o f the county that issued the notice and summary
order pursuant to section 8 of this act in support of the court filing
which must include , without limitation, a history of
communications and any documentation relating to the provisions
of section 8 of this act. The department of the county shall
cooperate and timely provide the affidavit upon request of a
nonprofit organization representing a tenant or tenant association.
3. A party who brings an action pursuant to subsection 1
must serve each owner of the residential multifamily rental
property in the manner provided by Rule 4 of the Nevada Rules of
Civil Procedure.
4. The district court may award reasonable attorney’s fees
and costs to the prevailing party in an action brought pursuant to
this section.
Sec. 10. 1. To declare a residential multifamily rental
property to be a substandard property, the district court must find:
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(a) The residential multifamily rental property is maintained in
a way that violates one or more applicable habitability standards,
housing codes or building codes, or any statute or ordinance
relating to habitability, building safety or fire safety; and
(b) The condition of the residential multifamily rental property
that is caused by the violation or violations described in paragraph
(a) is so extensive and of such a nature that the health and safety
of the residents of the building or the public is substantially
endangered.
2. In determining whether to appoint a receiver for a
substandard property, the district court shall consider whether the
owner of the substandard property has been afforded a reasonable
opportunity to repair or rehabilitate the property or otherwise
abate the condition.
3. The district court:
(a) Except as otherwise provided in paragraph (b), may
appoint a nonprofit organization, community development
corporation or other person as a receiver.
(b) Shall not appoint any nonprofit organization, community
development corporation or person as a receiver unless the
nonprofit organization, community development corporation or
person has demonstrated to the district court the necessary
capacity and expertise to develop and supe rvise a viable financial
and construction plan for the satisfactory rehabilitation of the
substandard property.
4. An order issued by a district court declaring a residential
multifamily rental property to be a substandard property must,
without limitation, set forth:
(a) The conditions found by the district court that make the
residential multifamily rental property a substandard property;
and
(b) The repairs, rehabilitations and abatements that the district
court finds to be necessary in order to corr ect each violation of a
habitability standard, housing code or building code, or any
statute or ordinance relating to habitability, building safety or fire
safety.
5. The provisions of NRS 32.100 to 32.370, inclusive, and any
rules adopted by the Supreme Court pursuant to NRS 32.270 apply
to any receiver appointed pursuant to this section for a
substandard property.
Sec. 11. 1. If the district court finds that there is a
condition of the substandard property which substantially
endangers the health and safety of the residents of the
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substandard property, upon the entry of any order or judgment
pursuant to section 10 of this act, the district court shall:
(a) Order the owner of the substandard property to pay all
reasonable and actual costs of the board of county commissioners
or its designee, including, without limitation, inspection costs,
investigation costs, enforcement co sts, attorney’s fees and costs
and all costs of prosecution.
(b) Order that the board of county commissioners or its
designee shall provide each tenant of the substandard property
with the notice of the district court order or judgment.
(c) Except as oth erwise provided in subsection 4, if the
conditions of the substandard property or the repair, rehabilitation
or abatement thereof significantly affect the safe and sanitary use
of the substandard property by any lawful tenant, such that the
tenant cannot s afely reside in the premises, order the owner to
provide or pay relocation benefits to each lawful tenant. These
benefits must consist of actual reasonable moving and storage
costs and relocation compensation, including, without limitation,
the costs and compensation for the following:
(1) Transportation of the personal property of the tenant to
the new location. The new location must be in close proximity to
the substandard property, except where relocation to a new
location beyond a close proximity is d etermined by the district
court to be justified.
(2) Packing, crating, unpacking and uncrating all personal
property of the tenant.
(3) Insurance of the property of the tenant while in transit.
(4) The reasonable replacement value of any personal
property lost, stolen or damaged, other than any personal property
that was lost, stolen or damaged through the fault or negligence of
the displaced tenant, or his or her agent or employee, in the
process of moving, where insurance covering the loss, theft or
damage is not reasonably available.
(5) The cost of disconnecting, dismantling, removing,
reassembling, reconnecting and reinstalling machinery,
equipment or other personal property of the tenant, including
connection charges imposed by utility companie s for starting
utility service.
(6) Relocation compensation in an amount equal to the
differential between the contract rent and the fair market rental
value determined by the United States Department of Housing and
Urban Development for a unit of compar able size within the area
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for the period that the unit is being repaired or rehabilitated, for
not more than 120 days.
(d) Determine the date when the tenant is to relocate, and
order the tenant to notify the board of county commissioners or its
designee and the owner of the dwelling unit of the address to
which the tenant has relocated not more than 5 days after the
relocation.
(e) Order that the owner of the substandard property offer the
first right of occupancy of a dwelling unit to each tenant who
received benefits pursuant to this section, before letting the
dwelling unit for rent to a third party. Except as otherwise
provided in this paragraph, the offer for first right of occupancy to
the tenant must be in writing and sent by certified mail to the
address given by the tenant at the time of relocation. If the owner
has not been provided the address of the tenant by the tenant as
required by this section, the owner is not required to offer the
tenant the first right of occupancy. The tenant may accept the
offer by giving the owner notice in writing by certified mail not
later than 10 days after the owner mailed the offer.
(f) Order that if the owner fails to comply with any order
issued pursuant to sections 2 to 18, inclusive, of this act, the court
may:
(1) Sanction the person for civil contempt;
(2) Impose any penalty authorized pursuant to NRS
244.3603 as if the substandard property were a chronic nuisance;
or
(3) Any other penalty provided by law.
2. If the district court finds that a ten ant has been
substantially responsible for causing or substantially contributing
to the conditions found by the district court that make the
residential multifamily rental property a substandard property, the
court shall not grant to the tenant any relocat ion compensation or
benefits.
3. Any tenant of the substandard property who has been
ordered to relocate due to the conditions found by the district court
that make the residential multifamily rental property a
substandard property and who is not substa ntially responsible for
causing or contributing to the condition must be paid these
benefits and moving costs at the time that the tenant actually
relocates.
4. If the district court finds that it is not possible to provide a
tenant with the benefits described in paragraph (c) of subsection 1,
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the district court may award such other equitable or declaratory
relief as the court finds necessary.
Sec. 12. 1. If the district court appoints a receiver for a
substandard property pursuant to section 10 of this act, the owner
of the substandard property, and any agent or employee of the
owner, shall not collect rent from any tenant, interfere with the
receiver in the operation of the substandard property or encumber
or transfer any interest in the substandard property.
2. Unless otherwise ordered by the district court, a receiver
for a substandard property shall:
(a) Take full and complete control of the substandard property.
(b) Manage the substandard property and pay any exp enses of
the operation of the substandard property, including, without
limitation, paying the taxes, insurance, utilities, general
maintenance and debt secured by an interest in the substandard
property.
(c) Secure a cost estimate and construction plan from a
licensed contractor for the repairs, rehabilitation or abatement
necessary to correct the conditions cited in the order issued
pursuant to section 10 of this act.
(d) Upon securing a cost estimate an d construction plan
pursuant to paragraph (c) and submitting to and obtaining the
authorization of the district court, enter into contracts and employ
a licensed contractor as necessary to correct the conditions cited in
the order issued pursuant to section 10 of this act. The district
court may modify the cost estimate and construction plan as the
court finds necessary.
(e) Collect all rents and income generated by the substandard
property.
(f) Use all rents and income generated by the substandard
property to pay for the cost of the repairs, rehabilitation or
abatement determined by the district court to be necessary to
correct the conditions cited in the order issued pursuant to section
10 of this act.
(g) Borrow money to pay for the repairs, rehabilitation or
abatement necessary to correct the conditions cited in the order
issued pursuant to section 10 of this act, borrow money to pay for
any relocation benefits for tenants that are authorized pursuant to
section 11 of this act and, with district court approval, secure that
debt and any money owed to the receiver for services performed
pursuant to this section with a lien on the residential multifamily
rental property upon which the substandard property is situated.
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The lien shall be recorded in the county recorder’s office in the
county wherein the substandard property is situated.
(h) To exercise any other power granted to a receiver pursuant
to chapter 32 of NRS.
(i) Provide any relocation benefits to a tenant that are ordered
by the court pursuant to section 11 of this act.
3. If the district court appoints as a receiver a nonprofit
organization or community development corporation, in addition
to the powers and duties that are granted pursuant to subsection 2,
the nonprofit organization or community development corporation
may apply for grants to assist in the rehabilitation of the
substandard property.
Sec. 13. A receiver appointed pursuant to section 10 of this
act is entitled to the same fees, commissions and necessary
expenses as a receiver in an action to foreclose a mortgage.
Sec. 14. 1. In addition to any periodic reporting required by
the district court, the receiver shall prepare and submit monthly
reports relating to a substandard property to the board of county
commissioners or its designee. The report to the board of county
commissioners must include, without limitation:
(a) The total amount of rent payments received from tenants of
the substandard property;
(b) The nature and amount of any contract that is negotiated
or entered into by the receiver relating to the operation, repair or
rehabilitation of or the abatement of a condition at the
substandard property;
(c) A record of payments made by the receiver relating to the
operation, repair or rehabilitation of or the abatement of a
condition at the substandard property;
(d) Information rela ting to the progress of the repair or
rehabilitation of the substandard property or abatement of a
condition at the substandard property; and
(e) A record of any amount paid to a tenant pursuant to
section 12 of this act for relocation benefits.
2. On or before February 1 of each year, the board of county
commissioners shall submit any report required by subsection 1
and received during the immediately preceding calendar year to
the Director of the Legislative Counsel Bureau for transmittal to
the Legis lature or, if the Legislature is not in session, to the
Legislative Commission.
Sec. 15. 1. A district court must discharge the receiver
appointed pursuant to section 10 of this act when the district court
finds that:
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(a) The conditions set forth in the court order issued pursuant
to section 10 of this act that made the residential multifamily
rental property a substandard property have been properly
repaired or abated; and
(b) A complete accounting of all costs relating to the
operation, repair or rehabilitation of or abatement of a condition
at the substandard property has been delivered to the district court.
2. Upon correction of the conditions that made the residential
multifamily rental property a substandard property, the owner, the
mortgagee or any lienholder may apply for the discharge of all
money not used by the receiver for removal of the condition and
all other costs.
3. After discharging the receiver, the district court may:
(a) Retain jurisdiction over the substandard property for a
period of time not to exceed than 18 consecutive months; and
(b) Require the owner of the substandard property and the
board of county commissioners or its designee to report to the
district cou rt on the substandard property in accordance with a
schedule determined by the district court.
Sec. 16. Upon the request of a receiver, the district court may
require the owner of the substandard property to pay all
unrecovered costs associated with the receivership.
Sec. 17. 1. The remedies and penalties provided in sections
2 to 18, inclusive, of this act are cumulative, may not be abrogated
and are in addition to any other remedies or pe nalties that may
exist in law or equity, including, without limitation, any remedy or
penalty that may be available pursuant to NRS 244.360 to
244.3607, inclusive.
2. The provisions of sections 2 to 18, inclusive, of this act
shall not be construed to li mit those rights available to a landlord
or tenant pursuant to any other provision of law.
Sec. 18. Nothing in the provisions of sections 2 to 18,
inclusive, of this act is intended to deprive any owner of a
residential multifamily rental property or substandard property
any right guaranteed by the United States Constitution or the
Nevada Constitution, including, without limitation, the right to
due process.
Sec. 19. NRS 32.010 is hereby amended to read as follows:
32.010 A receiver may be appointed by the court in which an
action is pending, or by the judge thereof:
1. In an action by a vendor to vacate a fraudulent purchase of
property, or by a creditor to subject any property or fund to the
creditor’s claim, or between partners or others jointly owning or
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interested in any property or fund, on application of the plaintiff, or
of any party whose right to or interest in the property or fund, or the
proceeds thereof, is probable, and whe re it is shown that the
property or fund is in danger of being lost, removed or materially
injured.
2. In an action by a mortgagee for the foreclosure of the
mortgage and sale of the mortgaged property, where it appears that
the mortgaged property is in danger of being lost, removed or
materially injured, or that the condition of the mortgage has not
been performed, and that the property is probably insufficient to
discharge the mortgage debt.
3. In an action to have a residential multifamily rental
property declared to be a substandard property that is brought
pursuant to section 10 or 29 of this act to manage the repair or
rehabilitation of the substandard property.
4. After judgment, to carry the judgment into effect.
[4.] 5. After judgment, to dispose of the property according to
the judgment, or to preserve it during the pendency of an appeal, or
in proceedings in aid of execution, when an execution has been
returned unsatisfied, or when the judgment debtor refuses to apply
the judgment debtor’s property in satisfaction of the judgment.
[5.] 6. In the cases when a corporation has been dissolved, or
is insolvent, or in imminent danger of insolvency, or has forfeited its
corporate rights.
[6.] 7. In all other cases where receivers have hereto fore been
appointed by the usages of the courts of equity.
Sec. 20. Chapter 268 of NRS is hereby amended by adding
thereto the provisions set forth as sections 21 to 37, inclusive, of this
act.
Sec. 21. As used in sections 21 to 37, inclusive, of this act,
unless the context otherwise requires, the words and terms defined
in sections 22 to 26, inclusive, of this act have the meanings
ascribed to them in those sections.
Sec. 22. “Dwelling unit” means a structure or the part of the
structure that is occupied as, or designed or intended for
occupancy as, a residence or sleeping place by one person who
maintains a household or by two or more persons who maintain a
common household.
Sec. 23. “Habitability standard” includes, without limitation:
1. Any provision of an applicable housing or health code
concerning the health, safety, sanitation or fitness for hab itation
of a dwelling unit; or
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2. The requirements of chapter 118A of NRS relating to the
habitability of a dwelling unit, including, without limitation, the
provisions of subsection 1 of NRS 118A.290.
Sec. 24. “Receiver” means a receiver appointed by a district
court as the court’s agent, and subject to the court’s direction, to
take possession of, manage and, if authorized by court order,
transfer, sell, lease, license, exchange, collect or otherwise dispose
of receivership property in an action to declare a resident ial
multifamily rental property to be a substandard property pursuant
to section 29 of this act.
Sec. 25. “Residential multifamily rental property” means a
parcel of land in the incorporated area of the city which is
primarily used for personal, family or household purposes to
which is affixed two or more dwelling units for occupancy by
tenants on a rental basis.
Sec. 26. “Substandard property” means a residential
multifamily rental property that has been declared to be a
substandard property by a district court pursuant to section 29 of
this act.
Sec. 27. 1. If the appropriate department of a city finds
that:
(a) A residential multifamily rental property is maintained in a
way that violates any applicable habitability standard, housing
code or building code, or any statute or ordinance relating to
habitability, building safety or fire safety; and
(b) As a result of the violation or violations described in
paragraph (a), the condition of the residential multifamily rental
property is of such a nature that the health and safety of residents
or the public is substantially endangered,
the city shall notify the owner of the residential multifamily
rental property and order that the owner repair or rehabilitate the
residential multifamily rental property or otherwise abate the
condition.
2. Any notice and order issued pursuant to subsection 1:
(a) Must include, without limitation:
(1) The name, address and t elephone number of the city
department that issued the notice and summary order;
(2) The date, time and location of any public hearing or
proceeding concerning the notice and summary order;
(3) A description of each violation of a habitability
standard, housing code or building code, or any statute or
ordinance relating to habitability, building safety or fire safety, as
applicable;
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(4) Any deadline by which the owner must repair or
rehabilitate the residential multifamily rental property or
otherwise abate the condition;
(5) A description of:
(I) The remedies authorized pursuant to section 28 of
this act if the owner fails to comply with the terms of the notice
and summary order;
(II) The j udicial relief required and authorized to be
granted pursuant to section 30 of this act; and
(III) The p owers and duties of any appointed receiver
pursuant to sections 31 to 35, inclusive, of this act; and
(6) A statement that the owner or lessor, if applicable, is
prohibited from retaliating against any tenant pursuant to NRS
118A.510; and
(b) Must be posted in a conspicuous place on the residential
multifamily rental property and mailed by certified mail to the
owner and each affected resident of a dwelling unit on the
residential multifamily rental property.
Sec. 28. 1. If the owner of a residential multifamily rental
property fails to comply with the terms of the notice and summary
order issued pursuant to section 27 of this act:
(a) The city may bring an action to:
(1) Have the residential multifamily rental property
declared by the district court to be a substandard property;
(2) Obtain a court order requiring the owner to repair or
rehabilitate the residential multifamily rental property or
otherwise abate the condition; and
(3) Have the district court impose a civil penalty against the
owner of the residential multifamily rental property, as provided
by ordinance; or
(b) The city or a nonprofit organization representing any
tenant or tenant association may bring an action to:
(1) Have the residential multifamily rental property
declared to be a substandard property; and
(2) Have a receiver appointed pursuant to NRS 32.010.
2. A party who intends to bring an action for the appointment
of a receiver pursuant to paragraph (b) of subsection 1 shall:
(a) Not later than 30 days before filing such an action, provide
notice of intent to bring the action by:
(1) Posting a notice in a conspicuous place on the
residential multifamily rental property; and
(2) Mailing the notice to each person with a recorded
interest in the residential multifamily rental property; and
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(b) Provide with the court filing:
(1) Proof that the party provided the notice of intent to
bring the action as required pursuant to paragraph (a); and
(2) If the party is a nonprofit organization representing a
tenant or tenant association, an affidavit provided by the
department of the city that issued the notice and summary order
pursuant to section 27 of this act in support of the court filing
which must include , without limitation, a history of
communications and any documentation relating to the provisions
of section 27 of this act. The department of the city shall cooperate
and timely provide the affidavit upon request of a nonprofit
organization representing a tenant or tenant association.
3. A party who brings an action pursuant to subsection 1
must serve each owner of the residential multifamily ren tal
property in the manner provided by Rule 4 of the Nevada Rules of
Civil Procedure.
4. The district court may award reasonable attorney’s fees
and costs to the prevailing party in an action brought pursuant to
this section.
Sec. 29. 1. To declare a residential multifamily rental
property to be a substandard property, the district court must find:
(a) The residential multifamily rental property is maintained in
a way that violates one or more applicable habitability st andards,
housing codes or building codes, or any statute or ordinance
relating to habitability, building safety or fire safety; and
(b) The condition of the residential multifamily rental property
that is caused by the violation or violations described in paragraph
(a) is so extensive and of such a nature that the health and safety
of the residents of the building or the public is substantially
endangered.
2. In determining whether to appoint a receiver for a
substandard property, the district court shall consider whether the
owner of the substandard property has been afforded a reasonable
opportunity to repair or rehabilitate the property or otherwise
abate the condition.
3. The district court:
(a) Except as otherwise provided in paragraph (b), m ay
appoint a nonprofit organization, community development
corporation or other person as a receiver.
(b) Shall not appoint any nonprofit organization, community
development corporation or person as a receiver unless the
nonprofit organization, community development corporation or
person has demonstrated to the district court the necessary
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capacity and expertise to develop and supervise a viable financial
and construction plan for the satisfactory rehabilitation of the
substandard property.
4. An order i ssued by a district court declaring a residential
multifamily rental property to be a substandard property must,
without limitation, set forth:
(a) The conditions found by the district court that make the
residential multifamily rental property a substand ard property;
and
(b) The repairs, rehabilitations and abatements that the district
court finds to be necessary in order to correct each violation of a
habitability standard, housing code or building code, or any
statute or ordinance relating to habitabil ity, building safety or fire
safety.
5. The provisions of NRS 32.100 to 32.370, inclusive, and any
rules adopted by the Supreme Court pursuant to NRS 32.270 apply
to any receiver appointed pursuant to this section for a
substandard property.
Sec. 30. 1. If the district court finds that there is a
condition of the substandard property which substantially
endangers the health and safety of the residents of the
substandard property, upon the entry of any order or judgment
pursuant to section 29 of this act, the district court shall:
(a) Order the owner of the substandard property to pay all
reasonable and actual costs of the governing body of the city or its
designee, including, without limitation, inspection costs,
investigation costs, enforcement costs, attorney’s fees and costs
and all costs of prosecution.
(b) Order that the governing body of the city or its designee
shall provide each tenant of the substandard property with the
notice of the district court order or judgment.
(c) Except as otherwise provided in subsection 4, if the
conditions of the substandard property or the repair, rehabilitation
or abatement thereof significantly affect the safe and sanitary use
of the substandard property by any lawful tenant, such that the
tenant cannot safely reside in the premises, order the owner to
provide or pay relocation benefits to each lawful tenant. These
benefits must consist of actual reasonable moving and storage
costs and relocation compensation, including, without lim itation,
the costs and compensation for the following:
(1) Transportation of the personal property of the tenant to
the new location. The new location must be in close proximity to
the substandard property, except where relocation to a new
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location beyon d a close proximity is determined by the district
court to be justified.
(2) Packing, crating, unpacking and uncrating all personal
property of the tenant.
(3) Insurance of the property of the tenant while in transit.
(4) The reasonable replacement v alue of personal property
lost, stolen or damaged, other than any personal property that was
lost, stolen or damaged through the fault or negligence of the
displaced tenant, or his or her agent or employee, in the process of
moving, where insurance covering the loss, theft or damage is not
reasonably available.
(5) The cost of disconnecting, dismantling, removing,
reassembling, reconnecting and reinstalling machinery,
equipment or other personal property of the tenant, including
connection charges imposed by utility companies for starting
utility service.
(6) Relocation compensation in an amount equal to the
differential between the contract rent and the fair market rental
value determined by the United States Department of Housing and
Urban Development for a unit of comparable size within the area
for the period that the unit is being repaired or rehabilitated, for
not more than 120 days.
(d) Determine the date when the tenant is to relocate, and
order the tenant to notify the governing body of the city or its
designee and the owner of the dwelling unit of the address to
which the tenant has relocated not more than 5 days after the
relocation.
(e) Order that the owner of the substandard property offer the
first right of occupancy of a dwelling unit to e ach tenant who
received benefits pursuant to this section, before letting the
dwelling unit for rent to a third party. Except as otherwise
provided in this paragraph, the offer for first right of occupancy to
the tenant must be in writing and sent by certi fied mail to the
address given by the tenant at the time of relocation. If the owner
has not been provided the address of the tenant by the tenant as
required by this section, the owner is not required to offer the
tenant the first right of occupancy. The tenant may accept the
offer by giving the owner notice in writing by certified mail not
later than 10 days after the owner mailed the offer.
(f) Order that if the owner fails to comply with any order
issued pursuant to sections 21 to 37, inclusive, of this act, the
court may:
(1) Sanction the person for civil contempt;
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(2) Impose any penalty authorized pursuant to NRS
268.4124 as if the substandard property were a chronic nuisance;
or
(3) Any other penalty provided by law.
2. If the district court finds that a tenant has been
substantially responsible for causing or substantially contributing
to the conditions found by the district court that make the
residential multifamily rental property a substandard property, the
court shall not grant to the tenant any relocation compensation or
benefits.
3. Any tenant of the substandard property who has been
ordered to relocate due to the conditions found by the district court
that make the residential multifamily rental property a
substandard property and who is not substantially responsible for
causing or contributing to the condition must be paid these
benefits and moving costs at the time that the tenant actually
relocates.
4. If the district court finds that it is not possible to p rovide a
tenant with the benefits described in paragraph (c) of subsection 1,
the district court may award such other equitable or declaratory
relief as the court finds necessary.
Sec. 31. 1. If the district court appoints a receiver for a
substandard property pursuant to section 29 of this act, the owner
of the substandard property, and any agent or employee of the
owner, shall not collect rent from any tenant, interfere with the
receiver in the operation of the substandar d property or encumber
or transfer any interest in the substandard property.
2. Unless otherwise ordered by the district court, a receiver
for a substandard property shall:
(a) Take full and complete control of the substandard property.
(b) Manage the substandard property and pay any expenses of
the operation of the substandard property, including, without
limitation, paying the taxes, insurance, utilities, general
maintenance and debt secured by an interest in the substandard
property.
(c) Secure a co st estimate and construction plan from a
licensed contractor for the repairs, rehabilitation or abatement
necessary to correct the conditions cited in the order issued
pursuant to section 29 of this act.
(d) Upon securing a cost estimate and construction plan
pursuant to paragraph (c) and submitting to and obtaining the
authorization of the district court, enter into contracts and employ
a licensed contractor as necessary to correct the conditions cited in
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the order issued pursuant to section 29 of this act. The district
court may modify the cost estimate and construction plan as the
court finds necessary.
(e) Collect all rents and income generated by the substandard
property.
(f) Use all rents and income gen erated by the substandard
property to pay for the cost of the repairs, rehabilitation or
abatement determined by the district court to be necessary to
correct the conditions cited in the order issued pursuant to section
29 of this act.
(g) Borrow money to pay for the repairs, rehabilitation or
abatement necessary to correct the conditions cited in the order
issued pursuant to section 29 of this act, borrow money to pay for
any relocation benefits for tenants that are authorized pursuant to
section 30 of this act and, with district court approval, secure that
debt and any money owed to the receiver for services performed
pursuant to this section with a lien on the residential multifamily
rental property upon which the substandard property is s ituated.
The lien shall be recorded in the county recorder’s office in the
county wherein the substandard property is situated.
(h) To exercise any other power granted to a receiver pursuant
to chapter 32 of NRS.
(i) Provide any relocation benefits to a tenant that are ordered
by the court pursuant to section 30 of this act.
3. If the district court appoints as a receiver a nonprofit
organization or community development corporation, in addition
to the powers and duties that are granted pursuant to subsection 2,
the nonprofit organization or community development corporation
may apply for grants to assist in the rehabilitation of the
substandard property.
Sec. 32. A receiver appointed pursuant to section 29 of this
act is entitled to the same fees, commissions and necessary
expenses as a receiver in an action to foreclose a mortgage.
Sec. 33. 1. In addition to any periodic reporting required by
the district court, the receiver shall prepar e and submit monthly
reports relating to a substandard property to the governing body of
the city or its designee. The report to the governing body of the city
must include, without limitation:
(a) The total amount of rent payments received from tenants of
the substandard property;
(b) The nature and amount of any contract that is negotiated
or entered into by the receiver relating to the operation, repair or
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rehabilitation of or the abatement of a condition at the
substandard property;
(c) A record of payments made by the receiver relating to the
operation, repair or rehabilitation of or the abatement of a
condition at the substandard property;
(d) Information relating to the progress of the repair or
rehabilitation of the substandard property or abate ment of a
condition at the substandard property; and
(e) A record of any amount paid to a tenant pursuant to
section 31 of this act for relocation benefits.
2. On or before February 1 of each year, the governing body
of the city shall submit any report required by subsection 1 and
received during the immediately preceding calendar year to the
Director of the Legislative Counsel Bureau for transmittal to
the Legislature or, if the Legislature is not in session, to the
Legislative Commission.
Sec. 34. 1. A district court must discharge the receiver
appointed pursuant to section 29 of this act when the district court
finds that:
(a) The conditions set forth in the court order issued pursuant
to section 29 of this act that made the residential multifamily
rental property a substandard property have been properly
repaired or abated; and
(b) A complete accounting of all costs relating to the
operation, repair or rehabilitation of or abatement of a condition
at the substandard property has been delivered to the district court.
2. Upon correction of the conditions that made the residential
multifamily rental property a substandard property, the owner, the
mortgagee or any lienholder may apply for the discharge of all
money not used by the receiver for removal of the condition and
all other costs.
3. After discharging the receiver, the district court may:
(a) Retain jurisdiction over the substandard property for a
period of time not to exceed than 18 consecutive months; and
(b) Require the owner of the substandard property and the
governing body of the city or its designee to report to the district
court on the substandard property in accordance with a schedule
determined by the district court.
Sec. 35. Upon the request of a receiver, the district court may
require the owner of the substandard property to pa y all
unrecovered costs associated with the receivership.
Sec. 36. 1. The remedies and penalties provided in sections
21 to 37, inclusive, of this act are cumulative, may not be
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abrogated and are in addition to any other r emedies or penalties
that may exist in law or equity , including, without limitation, any
remedy or penalty that may be available pursuant to NRS
268.4122, 268.4124 and 268.4126.
2. The provisions of sections 21 to 37, inclusive, of this act
shall not be construed to limit those rights available to a landlord
or tenant pursuant to any other provision of law.
Sec. 37. Nothing in the provisions of sections 21 to 37,
inclusive, of this act is intended to deprive any owner of a
residential multifamily rental property or substandard property
any right guaranteed by the United States Constitution or the
Nevada Constitution, including, without limitation, the right to
due process.
Sec. 38. The provisions of NRS 218D.380 do not apply to any
provision of this act which adds or revises a requirement to submit a
report to the Legislature.
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