AB34. Makes various changes relating to common-interest communities. (BDR 10-354)

Summary

Legislative Counsel's Digest: Existing law establishes various requirements for the conduct of meetings of the executive board of a homeowners association, including, without limitation, the provision of notice of a meeting to homeowners. (NRS 116.31083) Section 2 of this bill establishes a definition of the term meeting for the purposes of determining whether a congregation of the members of the executive board of a homeowners association must comply with the provisions of existing law governing meetings of the executive board. Section 4 of this bill authorizes the executive board to act without a meeting to perform a ministerial act or to implement an action taken by the executive board at a prior meeting. Section 3 of this bill: (1) authorizes the Real Estate Division of the Department of Business and Industry to certify a person to act as a voting monitor to administer and supervise a vote of the homeowners; and (2) requires the Administrator of the Division to establish by regulation the qualifications and standards of voting monitors. Sections 3 and 22 of this bill require a homeowners association to hire a voting monitor under certain circumstances. Sections 3, 10, 11 and 14 of this bill set forth certain actions which a voting monitor must take in administering and supervising a vote of the homeowners. Sections 5, 15, 17 and 21 of this bill authorize the Ombudsman for Owners in Common-Interest Communities and Condominium Hotels to appoint referees to render decisions in certain disputes involving common-interest communities. Under section 5: (1) the referee may not award to any party damages which exceed $7,500 or attorney s fees; and (2) within a certain period after the decision and award of the referee, any party may commence a civil action in court or apply to a court to confirm the decision and award of the referee. Existing law authorizes the Commission for Common-Interest Communities and Condominium Hotels or a member thereof to issue a subpoena under certain circumstances. (NRS 116.31175, 116.660, 116A.280, 116B.670, 116B.835) Sections 16, 18 and 23-25 of this bill authorize the Administrator to issue a subpoena under those circumstances. Section 7 of this bill requires a member of an executive board who has possession of any books, records or papers of a homeowners association to provide those books, records or papers to another member of the executive board or the community manager upon the expiration of his or her final term as a member of the executive board. Section 8 of this bill requires the imposition of a fine for a violation of the governing documents to be supported by evidence sufficient to support a reasonable belief that the unit s owner and, if different, the person against whom the fine will be imposed has committed the violation. Existing law authorizes a homeowners association to enter the grounds of a unit that is vacant or that is in the foreclosure process, whether vacant or not, to maintain the exterior of the unit or abate a public nuisance on the exterior of the unit if, after notice and a hearing, the unit s owner refuses or fails to do so. (NRS 116.310312) Section 9 of this bill authorizes such an entrance to mitigate the intrusion of water into a unit. Section 9 further requires a person who commences the foreclosure process on a unit to notify the homeowners association of certain information after the sale of the unit through the foreclosure process. Section 12 of this bill authorizes the executive board to meet by teleconference. Section 12 further requires the executive board to review at certain meetings a current reconciliation of any association account containing funds arising from a claim to recover damages resulting from a constructional defect. Existing law requires a homeowners association to open and consider bids for an association project at a meeting of the executive board. (NRS 116.31086) Section 13 of this bill requires the association to solicit at least three bids for an association project, if possible, and specifies that a contract renewal constitutes an association project.