Revises provisions relating to housing. (BDR 22-232)

- 83rd Session (2025)
Assembly Bill No. 396–Assemblymember Backus

CHAPTER..........

AN ACT relating to housing; requiring the governing body of
certain counties and cities to adopt an ordinance to authorize
the development and use of accessory dwelling units on
residential property; setting forth certain requirements for the
ordinance; providing that if the governing body of certain
counties and cities does not adopt such an ordinance by
July 1, 2026, accessory dwelling units are authorized on any
parcel zoned for residential use without restriction; revising
provisions relating to the amendment of a declaration or the
termination of a common -interest community; requiring
proof of certain insurance p olicies be furnished in a resale
package to a purchaser of a unit in a common -interest
community; increasing the fine that may be imposed by the
Commission for Common -Interest Communities and
Condominium Hotels for certain violations; making various
other changes relating to common -interest communities; and
providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Section 10.5 of this bill declares that access to affordable housing is essential
for the residents of this State and tha t accessory dwelling units are vital to
increasing the supply of affordable housing.
Section 1 of this bill requires each governing body of a county whose
population is 100,000 or more (currently Clark and Washoe Counties) and each
governing body of a ci ty whose population is 60,000 or more (currently the Cities
of Las Vegas, Henderson, North Las Vegas, Reno and Sparks) to adopt an
ordinance that authorizes the development and use of an accessory dwelling unit on
residential property. Section 1 provides that any such ordinance does not apply in a
region in a county or city for which there has been created by interstate compact a
regional planning agency and the regional plan adopted by the regional planning
agency calls for the regulation of housing. Section 1 further limits provisions of the
ordinance, including by prohibiting the ordinance from placing certain conditions
on the approval of the accessory dwelling unit.
Section 11 of this bill provides that : (1) if, before July 1, 2026, the gove rning
body of a county whose population is 100,000 or more or the governing body of a
city whose population is 60,000 or more has adopted an ordinance that is consistent
with section 1 , the governing body is not required to adopt another ordinance
relating to accessory dwelling units pursuant to section 1; and (2) if the governing
body of a county whose population is 100,000 or more or the governing body of a
city whose population is 60,000 or more does not adopt an ordinance that is
consistent with section 1 before July 1, 2026, accessory dwelling units are
authorized on any parcel zoned for residential use without restriction.
Existing law authorizes the governing body of a county or city to divide the
county, city or region into zoning districts of such number, shape and area as are
best suited to carry out certain purposes. Within a zoning district, the governing
body is authorized to regulate and restrict the erection, reconstruction, alteration,
repair or use of buildings, structures or land. (NRS 278. 250) Section 4 of this bill

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creates an exception to account for the requirement that the governing body of
certain counties and cities adopt an ordinance to allow the addition of an accessory
dwelling unit pursuant to section 1.
Existing law requires that an action or proceeding seeking judicial relief or
review from or with respect to any final action, decision or order of any governing
body of a county or city be commenced within 25 days after the date of filing of
notice of the final action, decision or order with the clerk or secretary of the
governing body. (NRS 278.0235) Section 3 of this bill applies these provisions to
section 1.
Section 2 of this bill makes a conforming change to apply the definitions of
certain terms relating to planning and zoning to section 1.
Existing law sets forth certain requirements for the amendment of a declaration
of a common -interest community, including that every amendment to the
declaration must, with certain exceptions, be indexed in the grantee’s index in the
name of the common -interest community and the association and in the grantor’s
index in the name of the parties executing the amendment. (NRS 116.2117) Section
5 of this bill eliminates the exception for an amendment for the relocation of
boundaries between adjoining units. (NRS 116.2112)
Section 5 also authorizes an association to amend a declaration to restrict the
leasing of residential units to the extent that the restriction is reasonably designed to
meet certain underwriting requirements.
Existing law sets forth the requirements for terminating a common -interest
community. (NRS 116.2118) Section 6 of this bill amends the voting requirements
for terminating a common-interest community.
Sections 7 and 8 of this bill revise provisions relating to prohibiting or
restricting a unit owner from renting or leasing his or her unit.
Existing law requires a unit’s owner or his or her authorized agent, at the
expense of the unit’s owner, to furnish to a purchaser a resale package containing
certain information. (NRS 116.4109) Section 9 of this bill requires that a resale
package also contain proof of the insurance policies that an association is required
to carry.
Existing law authorizes, under certain circumstan ces, the Commission for
Common-Interest Communities and Condominium Hotels to impose an
administrative fine of not more than $1,000 for certain violations. (NRS 116.785)
Section 10 of this bill increases the administrative fine to not more than $5,000.

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 278 of NRS is hereby amended by adding
thereto a new section to read as follows:
1. Except as otherwise provided in this section , each
governing body of a county whose population is 100,000 or more
and each governing body of a city whose population is 60,000 or
more shall adopt an ordinance that authorizes the development
and use of an accessory dwelling unit on residential property.

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2. The ordinance adopted pursuant to subsection 1 must not
as a condition of approval of an accessory dwelling unit:
(a) Prohibit separate kitchen facilities for the accessory
dwelling unit.
(b) Require more than one addition al parking space for the
accessory dwelling unit provided that the existing parking for the
primary residence and street parking satisfy the anticipated
parking needs for the accessory dwelling unit.
(c) Require any side or rear setback for the accessory dwelling
unit that is more restrictive than the requirements for the primary
residence.
(d) Require any improvement or repair to a public street unless
such improvement or repair is necessary:
(1) To reconstruct or repair a public street that is distur bed
during the construction of the accessory dwelling unit; or
(2) For public health and safety.
(e) Except as otherwise provided in this paragraph, prohibit
the owner of the residential property from using the accessory
dwelling unit as rental housing . The ordinance may prohibit the
owner of the residential property from using the accessory
dwelling unit as transient lodging.
3. Any accessory dwelling unit approved pursuant to an
ordinance adopted pursuant to subsection 1:
(a) Must meet all applicable building codes, housing codes and
any other codes regulating the health and safety of residential
property.
(b) Is not required to meet any building code or other code
regulating the health and safety of commercial buildings,
including, without limitation, any code that requires a fire
sprinkler system in a commercial building.
4. Nothing in this section shall be construed to:
(a) Prohibit the governing body of a county or a city from
implementing a process that sets forth more favorable cond itions
for adding an accessory dwelling unit to residential property ,
including, without limitation, providing for the approval of the
construction of an additional dwelling unit by building permit in
lieu of approval by the planning department of the county or city;
or
(b) Authorize more than two accessory dwelling units on any
residential property.
5. Any ordinance adopted pursuant to this section does not
apply in a region in a county or city in this State for which there
has been created by interstate compact a regional planning agency

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and the regional plan adopted by the regional planning agency
calls for the regulation of housing.
6. As used in this section:
(a) “Accessory dwelling unit” means an independent living
space that is built on the same lot as the primary residence on a
residential property, regardless of whether the independent living
space is attached, detached or built within the primary residence.
(b) “Kitchen facilities” includes, without limitation, a sink,
refrigerator and a significant cooking appliance such as a range,
stove or oven.
(c) “Residential property” means a property that is located in
an area of the county or city, as applicable, zoned for single-family
residential use.
Sec. 2. NRS 278.010 is hereby amended to read as follows:
278.010 As used in NRS 278.010 to 278.630, inclusive, and
section 1 of this act, unless the context otherwise requires, the
words and terms defined in NRS 278.0103 to 278.0195, inclusive,
have the meanings ascribed to them in those sections.
Sec. 3. NRS 278.0235 is hereby amended to read as follows:
278.0235 1. No action or proceeding may be commenced for
the purpose of seeking judicial relief or review from or with respect
to any final action, decision or order of any governing body ,
commission or board authorized by NRS 278.010 to 278.630,
inclusive, and section 1 of this act, unless the action or proceeding
is commenced within 25 days after the date of filing of notice of the
final action, decision or order with the clerk or secretary of the
governing body, commission or board.
2. A petitioner or cross -petitioner who is seeking judicial
review must serve and file a memorandum of points and authorities
within 40 days after an action is commenced.
3. The respondent or cross -petitioners shall serve and file a
reply memorandum of points and authorities within 30 days after the
service of the memorandum of points and authorities.
4. The petition or cross -petitioner may serve and file a reply
memorandum of points and authoritie s within 30 days after service
of the reply memorandum.
5. Within 7 days after the expiration of the time within which
the petitioner is required to reply, any party may request a hearing.
Unless a request for hearing has been filed, the matter shall be
deemed submitted.
6. All memoranda of points and authorities filed in proceedings
involving petitions for judicial review must be in the form provided

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for appellate briefs in Rule 28 of the Nevada Rules of Appellate
Procedure.
7. The court, for good ca use, may extend the times allowed in
this section for filing memoranda.
Sec. 4. NRS 278.250 is hereby amended to read as follows:
278.250 1. For the purposes of NRS 278.010 to 278.630,
inclusive, and section 1 of this act, the governing body may divid e
the city, county or region into zoning districts of such number, shape
and area as are best suited to carry out the purposes of NRS 278.010
to 278.630, inclusive [. Within] , and section 1 of this act. Within
the zoning district, it may regulate and rest rict the erection,
construction, reconstruction, alteration, repair or use of buildings,
structures or land.
2. The zoning regulations must be adopted in accordance with
the master plan for land use and be designed:
(a) To preserve the quality of air and water resources.
(b) To promote the conservation of open space and the
protection of other natural and scenic resources from unreasonable
impairment.
(c) To consider existing views and access to solar resources by
studying the height of new buildings which will cast shadows on
surrounding residential and commercial developments.
(d) To reduce the consumption of energy by encouraging the use
of products and materials which maximize energy efficiency in the
construction of buildings.
(e) To provide for recreational needs.
(f) To protect life and property in areas subject to floods,
landslides and other natural disasters.
(g) To conform to the adopted population plan, if required by
NRS 278.170.
(h) To develop a timely, orderly and efficient arrangeme nt of
transportation and public facilities and services, including public
access and sidewalks for pedestrians, and facilities and services for
bicycles.
(i) To ensure that the development on land is commensurate
with the character and the physical limitations of the land.
(j) To take into account the immediate and long -range financial
impact of the application of particular land to particular kinds of
development, and the relative suitability of the land for
development.
(k) To promote health and the general welfare.

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(l) To ensure the development of an adequate supply of housing
for the community, including the development of affordable
housing.
(m) To ensure the protection of existing neighborhoods and
communities, including the protection of rural pr eservation
neighborhoods and, in counties whose population is 700,000 or
more, the protection of historic neighborhoods.
(n) To promote systems which use solar or wind energy.
(o) To foster the coordination and compatibility of land uses
with any militar y installation in the city, county or region, taking
into account the location, purpose and stated mission of the military
installation.
3. The zoning regulations must be adopted with reasonable
consideration, among other things, to the character of the area and
its peculiar suitability for particular uses, and with a view to
conserving the value of buildings and encouraging the most
appropriate use of land throughout the city, county or region.
4. In exercising the powers granted in this section, the
governing body may use any controls relating to land use or
principles of zoning that the governing body determines to be
appropriate, including, without limitation, density bonuses,
inclusionary zoning and minimum density zoning.
5. As used in this section:
(a) “Density bonus” means an incentive granted by a governing
body to a developer of real property that authorizes the developer to
build at a greater density than would otherwise be allowed under the
master plan, in exchange for an agreement by the d eveloper to
perform certain functions that the governing body determines to be
socially desirable, including, without limitation, developing an area
to include a certain proportion of affordable housing.
(b) “Inclusionary zoning” means a type of zoning pu rsuant to
which a governing body requires or provides incentives to a
developer who builds residential dwellings to build a certain
percentage of those dwellings as affordable housing.
(c) “Minimum density zoning” means a type of zoning pursuant
to which development must be carried out at or above a certain
density to maintain conformance with the master plan.
Sec. 5. NRS 116.2117 is hereby amended to read as follows:
116.2117 1. Except as otherwise provided in NRS
116.21175, and except in cases of amendments that may be
executed by a declarant under subsection 5 of NRS 116.2109 or
NRS 116.211, or by the association under NRS 116.1107, 116.2106,
subsection 3 of NRS 116.2108, subsection 1 of NRS 116.2112 or

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NRS 116.2113, or by certain units’ owners un der subsection 2 of
NRS 116.2108, subsection 1 of NRS 116.2112, subsection 2 of NRS
116.2113 or subsection 2 of NRS 116.2118, and except as otherwise
limited by subsections 4, 6, 7 and 8, the declaration, including any
plats, may be amended only by vote or agreement of units’ owners
of units to which at least a majority of the votes in the association
are allocated, unless the declaration specifies a different percentage
for all amendments or for specified subjects of amendment. If the
declaration requires the approval of another person as a condition of
its effectiveness, the amendment is not valid without that approval.
2. No action to challenge the validity of an amendment adopted
by the association pursuant to this section may be brought more than
1 year after the amendment is recorded.
3. Every amendment to the declaration must be recorded in
every county in which any portion of the common -interest
community is located and is effective only upon recordation. An
amendment [, except an amendment pursua nt to NRS 116.2112, ]
must be indexed in the grantee’s index in the name of the common -
interest community and the association and in the grantor’s index in
the name of the parties executing the amendment.
4. Except to the extent expressly permitted or required by other
provisions of this chapter, no amendment may change the
boundaries of any unit or change the allocated interests of a unit in
the absence of unanimous consent of only those units’ owners
whose units are affected and the consent of a majority of the owners
of the remaining units [.] , including a majority of the votes
allocated to units not owned by the declarant.
5. Amendments to the declaration required by this chapter to
be recorded by the association must be prepared, executed, recorded
and certified on behalf of the association by any officer of the
association designated for that purpose or, in the absence of
designation, by the president of the association.
6. [An] Except as otherwise provided in subsection 9, an
amendment to the declaration which prohibits or materially restricts
the permitted uses of a unit or the number or other qualifications of
persons who may occupy units may not be enforced against a unit’s
owner who was the owner of the unit on the date of the recordation
of the amendment as long as the unit’s owner remains the owner of
that unit.
7. A provision in the declaration creating special declarant’s
rights that have not expired may not be amended without the
consent of the declarant.

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8. If any provision of this chapter or of the declaration requires
the consent of a holder of a security interest in a unit, or an insurer
or guarantor of such interest, as a condition to the effectiveness of
an amendment to the declaration, that consent is deemed granted if:
(a) The holder, insurer or guarantor has not requested, in
writing, notice of any proposed amendment; or
(b) Notice of any proposed amendment is required or has been
requested and a written refusal to consent is not received by the
association within 60 days after the association delivers notice of the
proposed amendment to the holder, insurer or guarantor, by certified
mail, return receipt requested, to the address for notice provided by
the holder, insurer or guarantor in a prior written request for notice.
9. An association may amend a declaration to restrict the
leasing of residential units to the extent that the restriction is
reasonably designed to meet underwriting requirements of:
(a) Institutional lenders that regularly make loans secured by
first mo rtgages on units in common -interest communities or
regularly purchase such mortgages; or
(b) Insurance companies that issue insurance policies to
associations or units in a common-interest community.
Sec. 6. NRS 116.2118 is hereby amended to read as follows:
116.2118 1. Except in the case of a taking of all the units by
eminent domain, in the case of foreclosure against an entire
cooperative of a security interest that has priority over the
declaration, or in the circumstances described in NRS 116.212 4, a
common-interest community may be terminated only by agreement
of units’ owners to whom at least 80 percent of the votes in the
association are allocated, [or any larger percentage the declaration
specifies,] including at least 80 percent of the votes allocated to
units that are not owned by the declarant, and with any other
approvals required by the declaration. The declaration may require
a larger percentage of the total votes in the association for
approval, but termination requires approval by at le ast 80 percent
of the votes allocated to units not owned by the declarant. The
declaration may specify a smaller percentage only if all of the units
are restricted exclusively to nonresidential uses.
2. An agreement to terminate must be evidenced by the
execution of an agreement to terminate, or ratifications thereof, in
the same manner as a deed, by the requisite number of units’
owners. The agreement must specify a date after which the
agreement will be void unless it is recorded before that date. An
agreement to terminate and all ratifications thereof must be recorded

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in every county in which a portion of the common -interest
community is situated and is effective only upon recordation.
3. In the case of a condominium or planned community
containing only units having horizontal boundaries described in the
declaration, an agreement to terminate may provide that all of the
common elements and units of the common -interest community
must be sold following termination. If, pursuant to the agreement,
any rea l estate in the common -interest community is to be sold
following termination, the agreement must set forth the minimum
terms of the sale.
4. In the case of a condominium or planned community
containing any units not having horizontal boundaries describe d in
the declaration, an agreement to terminate may provide for sale of
the common elements, but it may not require that the units be sold
following termination, unless the declaration as originally recorded
provided otherwise or all the units’ owners consent to the sale.
5. The association, on behalf of the units’ owners, may contract
for the sale of real estate in a common -interest community, but the
contract is not binding on the units’ owners until approved pursuant
to subsections 1 and 2. If any real estate is to be sold following
termination, title to that real estate, upon termination, vests in the
association as trustee for the holders of all interests in the units.
Thereafter, the association has all powers necessary and appropriate
to effect the sale. Until the sale has been concluded and the proceeds
thereof distributed, the association continues in existence with all
powers it had before termination. Proceeds of the sale must be
distributed to units’ owners and lienholders as their interests may
appear, in accordance with NRS 116.21183 and 116.21185. Unless
otherwise specified in the agreement to terminate, as long as the
association holds title to the real estate, each unit’s owner and his or
her successors in interest have an exclusive right to occupancy of
the portion of the real estate that formerly constituted the unit.
During the period of that occupancy, each unit’s owner and his or
her successors in interest remain liable for all assessments and other
obligations imposed on units’ owners b y this chapter or the
declaration.
6. In a condominium or planned community, if the real estate
constituting the common -interest community is not to be sold
following termination, title to the common elements and, in a
common-interest community containin g only units having
horizontal boundaries described in the declaration, title to all the real
estate in the common-interest community, vests in the units’ owners
upon termination as tenants in common in proportion to their

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respective interests as provided in NRS 116.21185, and liens on the
units shift accordingly. While the tenancy in common exists, each
unit’s owner and his or her successors in interest have an exclusive
right to occupancy of the portion of the real estate that formerly
constituted the unit.
7. Following termination of the common -interest community,
the proceeds of a sale of real estate, together with the assets of the
association, are held by the association as trustee for units’ owners
and holders of liens on the units as their interests may appear.
Sec. 7. NRS 116.31065 is hereby amended to read as follows:
116.31065 The rules adopted by an association:
1. Must be reasonably related to the purpose for which they are
adopted.
2. Must be sufficiently explicit in their prohibition, direction or
limitation to inform a person of any action or omission required for
compliance.
3. Must not be adopted to evade any obligation of the
association.
4. [Must] Except as otherwise provided in subsection 1 of
NRS 116.335, must be consistent with the governing documents of
the association and must not arbitrarily restrict conduct or require
the construction of any capital improvement by a unit’s owner that
is not required by the governing documents of the association.
5. Must be uniformly en forced under the same or similar
circumstances against all units’ owners. Any rule that is not so
uniformly enforced may not be enforced against any unit’s owner.
6. May be enforced by the association through the imposition
of a fine only if the associat ion complies with the requirements set
forth in NRS 116.31031.
Sec. 8. NRS 116.335 is hereby amended to read as follows:
116.335 1. [Unless, at the time a unit’s owner purchased his
or her unit, ] If the declaration [prohibited the unit’s owner from
renting or leasing his or her unit, ] authorizes the association [may
not] to prohibit or restrict the unit’s owner from renting or leasing
his or her unit [.] , or contains a provision establishing a maximum
number or percentage of units in the common -interest community
which may be rented or leased, the association may adopt rules
and regulations to prohibit or restrict the renting or leasing of
residential units to the extent that the restriction is reasonably
related to meet underwriting requirements of:
(a) Institutional lenders that regularly make loans secured by
first mortgages on units in common -interest communities or
regularly purchase such mortgages; or

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(b) Insurance companies that issue insurance policies to
associations or units in a common-interest community.
2. [Unless, at the time a unit’s owner purchased his or her unit,
the declaration required the unit’s owner to secure or obtain any
approval from the association in order to rent or lease his or her unit,
an association may not require the unit’s owner to secure or obtain
any approval from the association in order to rent or lease his or her
unit.
3. If a declaration contains a provision establishing a maximum
number or percentage of units in the common -interest community
which may be rented or leased, that provision of the declaration may
not be amended to decrease that maximum number or percentage of
units in the common -interest community which may be rented or
leased.
4. If the governing documents of an association require a unit’s
owner who leases or rents his or her unit, or the tenant of a unit’s
owner, to register with the association or its agent or otherwise
submit to the association or its agent information concerning the
lease or rental agreement or the tenant, the association or its agent:
(a) Must conduct such activities in accordance with the
governing documents;
(b) May not require the unit’s owner or tenant of the unit’s
owner to provide information which the association or its agent does
not require to be provided to the association or its agent by a unit’s
owner who occupies his or her unit, except that the association or its
agent may require the unit’s owner to provide a copy of the lease or
rental agreement; and
(c) May not charge a fee to the unit’s owner for the registration
or submission of information.
5.] The provisions of this section do not prohibit an association
from enforcing any provisions which govern the renting or leasing
of units and which are contained in this chapter or in any other
applicable federal, state or local laws or regulations [.
6.] , including, without limitation, any restriction on the rental
of units as transient lodging pursuant to NRS 244.35351 to
244.35359, inclusive, or 268.09791 to 268.09799, inclusive.
3. Notwithstanding an y other provision of law or the
declaration to the contrary:
(a) If a unit’s owner is prohibited from renting or leasing a unit
because the maximum number or percentage of units which may be
rented or leased in the common -interest community have already
been rented or leased, the unit’s owner may seek a waiver of the
prohibition from the executive board based upon a showing of

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economic hardship, and the executive board may grant such a
waiver and approve the renting or leasing of the unit.
(b) If the decl aration contains a provision establishing a
maximum number or percentage of units in the common -interest
community which may be rented or leased, in determining the
maximum number or percentage of units in the common -interest
community which may be rented or leased, the number of units
owned by the declarant must not be counted or considered.
Sec. 9. NRS 116.4109 is hereby amended to read as follows:
116.4109 1. Except in the case of a sale in which delivery of
a public offering statement is required, or unless exempt under
subsection 2 of NRS 116.4101, a unit’s owner or his or her
authorized agent shall, at the expense of the unit’s owner, furnish to
a purchaser a resale package containing all of the following:
(a) A copy of the declaration, other tha n any plats, the bylaws,
the rules or regulations of the association and the information
statement required by NRS 116.41095.
(b) A statement from the association setting forth the amount of
the monthly assessment for common expenses and any unpaid
obligation of any kind, including, without limitation, management
fees, transfer fees, fines, penalties, interest, collection costs,
foreclosure fees and attorney’s fees currently due from the selling
unit’s owner.
(c) A copy of the current operating budget of the association and
current year -to-date financial statement for the association, which
must include a summary of the reserves of the association required
by NRS 116.31152 and which must include, without limitation, a
summary of the information described i n paragraphs (a) to (e),
inclusive, of subsection 3 of NRS 116.31152.
(d) A statement of any unsatisfied judgments or pending legal
actions against the association and the status of any pending legal
actions relating to the common -interest community of wh ich the
unit’s owner has actual knowledge.
(e) A statement of any transfer fees, transaction fees or any other
fees associated with the resale of a unit.
(f) In addition to any other document, a statement describing all
current and expected fees or charg es for each unit, including,
without limitation, association fees, fines, assessments, late charges
or penalties, interest rates on delinquent assessments, additional
costs for collecting past due fines and charges for opening or closing
any file for each unit.
(g) Proof of the insurance policies that an association is
required to carry pursuant to NRS 116.3113.

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2. The purchaser may, by written notice, cancel the contract of
purchase until midnight of the fifth calendar day following the date
of receipt of the resale package described in subsection 1, and the
contract for purchase must contain a provision to that effect. If the
purchaser elects to cancel a contract pursuant to this subsection,
the purchaser must hand deliver the notice of cancellation to the
unit’s owner or his or her authorized agent, mail the notice of
cancellation by prepaid United States mail to the unit’s owner or his
or her authorized agent or deliver the notice of cancellation by
electronic transmission to the unit’s owner or his o r her authorized
agent. Cancellation is without penalty, and all payments made by
the purchaser before cancellation must be refunded promptly. If the
purchaser has accepted a conveyance of the unit, the purchaser is
not entitled to:
(a) Cancel the contract pursuant to this subsection; or
(b) Damages, rescission or other relief based solely on the
ground that the unit’s owner or his or her authorized agent failed to
furnish the resale package, or any portion thereof, as required by this
section.
3. Within 10 calendar days after receipt of a written request by
a unit’s owner or his or her authorized agent, the association shall
furnish all of the following to the unit’s owner or his or her
authorized agent for inclusion in the resale package:
(a) Copies of the documents required pursuant to paragraphs (a)
and (c) of subsection 1; and
(b) A certificate containing the information necessary to enable
the unit’s owner to comply with paragraphs (b), (d), (e) , [and] (f)
and (g) of subsection 1.
4. If the association furnishes the documents and certificate
pursuant to subsection 3:
(a) The unit’s owner or his or her authorized agent shall include
the documents and certificate in the resale package provided to the
purchaser, and neither the unit’s owner nor his or her authorized
agent is liable to the purchaser for any erroneous information
provided by the association and included in the documents and
certificate.
(b) The association may charge the unit’s owner a reasonable
fee to cover the cost of preparin g the certificate furnished pursuant
to subsection 3. Such a fee must be based on the actual cost the
association incurs to fulfill the requirements of this section in
preparing the certificate and must not exceed $185, except that if a
unit’s owner or an authorized agent thereof requests that the
certificate be furnished sooner than 3 business days after the date of

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the request, the association may charge a fee, which must not exceed
$100, to expedite the preparation of the certificate. The amount of
the fee may increase, on an annual basis, by a percentage equal to
the percentage of increase in the Consumer Price Index (All Items)
published by the United States Department of Labor for the
preceding calendar year, but must not increase by more than 3
percent each year.
(c) The other documents furnished pursuant to subsection 3
must be provided in electronic format to the unit’s owner. If the
association is unable to provide such documents in electronic
format, the association may charge the unit’s owner a r easonable
fee, not to exceed 25 cents per page for the first 10 pages, and 10
cents per page thereafter, to cover the cost of copying.
(d) Except for the fees allowed pursuant to paragraphs (b) and
(c), the association may not charge the unit’s owner any other fees
for preparing or furnishing the documents and certificate pursuant to
subsection 3.
5. Neither a purchaser nor the purchaser’s interest in a unit is
liable for any unpaid assessment or fee greater than the amount set
forth in the documents and certificate prepared by the association. If
the association fails to furnish the documents and certificate within
the 10 calendar days allowed by this section, the purchaser is not
liable for the delinquent assessment. A resale package provided to a
unit’s owner or his or her authorized agent pursuant to this section
remains effective for 90 calendar days.
6. Upon the request of a unit’s owner or his or her authorized
agent, or upon the request of a purchaser to whom the unit’s owner
has provided a resale package pursuant to this section or his or her
authorized agent, the association shall make the entire study of the
reserves of the association which is required by NRS 116.31152
reasonably available for the unit’s owner, purchaser or authorized
agent to inspect, examine, photocopy and audit. The study must be
made available at the business office of the association or some
other suitable location within the county where the common-interest
community is situated or, if it is situated in more than one county,
within one of those counties.
7. A unit’s owner, the authorized agent of the unit’s owner or
the holder of a security interest on the unit may request a statement
of demand from the association. Not later than 10 calendar days
after receipt of a written request from the unit’s owner, the
authorized agent of the unit’s owner or the holder of a security
interest on the unit for a statement of demand, the association shall
furnish a statement of demand to the person who requested the

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statement and provide a copy of the statement to any other interested
party. The association may charge a fee of not more than $165 to
prepare and furnish a statement of demand pursuant to this
subsection and an additional fee of not more than $100 to furnish a
statement of demand within 3 business days after receipt of a written
request for a statement of demand. The amount of the fees for
preparing and furnishing a statement of demand and the additional
fee for furnishing a statement of demand within 3 business days may
increase, on an annual basis, by a percentage equal to the percentage
of increase in the Consumer Price Index (All Items) published by
the United States Department of Labor for the preceding calendar
year, but must not increase by more than 3 percent each year. The
statement of demand:
(a) Must set forth the amount of the monthly assessment for
common expenses and any unpaid obligation of any kind, including,
without limitation, management fees, transfer fees, fines, penalties,
interest, collection costs, foreclosure fees and attorney’s fees
currently due from the selling unit’s owner; and
(b) Remains effective for the period specified in the statement of
demand, which must not be less than 15 business days after the date
of delivery by the association to the unit’s owner, the authorized
agent of the unit’s owner or the holder of a security interest on the
unit, whichever is applicable.
 As used in this subsection, “interested party” includes the unit’s
owner selling the unit and the prospective purchaser of the unit.
8. In preparing, copying, furnishing or expediting or otherwise
providing any document or other item pursuant to this section, an
association, or entity related to or acting on behalf of an association,
shall not charge a unit’s owner, the authorized agent of a unit’s
owner, a purchaser or, pursuant to subsection 7, the holder of a
security interest on a unit, any fee:
(a) Not authorized in this section; or
(b) In an amount which exceeds any limit set forth in this
section.
9. If the ass ociation becomes aware of an error in a statement
of demand furnished pursuant to subsection 7 during the period in
which the statement of demand is effective but before the
consummation of a resale for which a resale package was furnished
pursuant to subsection 1, the association must deliver a replacement
statement of demand to the person who requested the statement of
demand. Unless the person who requested the statement of demand
receives a replacement statement of demand, the person may rely
upon the a ccuracy of the information set forth in the statement of

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demand provided by the association for the resale. Payment of the
amount set forth in the statement of demand constitutes full payment
of the amount due from the selling unit’s owner.
Sec. 10. NRS 116.785 is hereby amended to read as follows:
116.785 1. If the Commission or the hearing panel, after
notice and hearing, finds that the respondent has committed a
violation, the Commission or the hearing panel may take any or all
of the following actions:
(a) Issue an order directing the respondent to cease and desist
from continuing to engage in the unlawful conduct that resulted in
the violation.
(b) Issue an order directing the respondent to take affirmative
action to correct any conditions resulting from the violation.
(c) Impose an administrative fine of not more than [$1,000]
$5,000 for each violation.
2. If the respondent is a member of an executive board or an
officer of an association, the Commission or the hearing panel may
order the resp ondent removed from his or her office or position if
the Commission or the hearing panel, after notice and hearing, finds
that:
(a) The respondent has knowingly and willfully committed a
violation; and
(b) The removal is in the best interest of the association.
3. If the respondent violates any order issued by the
Commission or the hearing panel pursuant to this section, the
Commission or the hearing panel, after notice and hearing, may
impose an administrative fine of not more than [$1,000] $5,000 for
each violation.
4. If the Commission or the hearing panel takes any
disciplinary action pursuant to this section, the Commission or the
hearing panel may order the respondent to pay the costs of the
proceedings incurred by the Division, including, withou t limitation,
the cost of the investigation and reasonable attorney’s fees.
5. Notwithstanding any other provision of this section, unless
the respondent has knowingly and willfully committed a violation, if
the respondent is a member of an executive board or an officer of an
association:
(a) The association is liable for all fines and costs imposed
against the respondent pursuant to this section; and
(b) The respondent may not be held personally liable for those
fines and costs.
Sec. 10.5. The Legislature hereby finds and declares:

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1. That access to affordable housing is essential to the health,
safety and economic and social well -being of the residents of this
State; and
2. Accessory dwelling units are vital to increasing the supply
of affordable housing throughout this State.
Sec. 11. 1. If, before July 1, 2026, the governing body of a
county whose population is 100,000 or more or the governing body
of a city whose population is 60,000 or more has adopted an
ordinance that is consistent with the provisions of section 1 of this
act, the governing body is not required to adopt another ordinance
relating to accessory dwelling units pursuant to section 1 of this act.
2. If the governing body of a county whose population is
100,000 or more or the governing body of a city whose population
is 60,000 or more does not adopt an ordinance that is consistent with
the provisions of section 1 of this act before July 1, 2026, accessory
dwelling units are authorized on any parcel zoned for residential use
without restriction.
Sec. 12. (Deleted by amendment.)
Sec. 13. The provisions of NRS 354.599 do not apply to any
additional expenses of a local government that are related to the
provisions of this act.
Sec. 14. 1. This section and section 13 of this act become
effective upon passage and approval.
2. The provisions of sections 1 to 12, inclusive, of this act
become effective:
(a) Upon passage and approval for the purpose of adopting any
regulations and perform ing any other preparatory administrative
tasks that are necessary to carry out the provisions of this act; and
(b) On July 1, 2026, for all other purposes.

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