Nevada HOA Governing Statute

Overview — How HOAs are governed in Nevada

Nevada pairs UCIOA-based statute with the most substantial HOA regulatory framework of any U.S. state — combining a detailed common-interest ownership code with a dedicated state regulator, mandatory manager licensing, and a compulsory pre-litigation dispute process.¹

That framework covers a large share of the state's housing stock. Nevada has 3,711 common-interest communities comprising roughly 624,000 homes — about half of the state's approximately 1.3 million homes.²

The Nevada Common-Interest Ownership Act, codified at NRS Chapter 116, governs condominiums, planned communities, and cooperatives created on or after January 1, 1992.³ Community managers must hold a state-issued certificate under NRS Chapter 116A, making Nevada one of the few states with mandatory manager licensing.⁴

Oversight runs through three entities: the Real Estate Division within the Department of Business and Industry, the Commission for Common-Interest Communities and Condominium Hotels created by NRS 116.600, and the Office of the Ombudsman for Owners in Common-Interest Communities and Condominium Hotels created by NRS 116.625.⁵

Before filing a civil action over governing document disputes, most parties must submit their claims to mediation or arbitration under NRS 38.300 to 38.360.⁶ NRS 116.3116 grants an HOA a lien for unpaid assessments — a portion of which holds super-priority status over a first deed of trust — a feature that has generated more than a decade of federal and state court litigation.⁷ The result is a regulatory environment where compliance failures carry direct exposure to state disciplinary action in addition to private litigation.

The statutory framework

The Nevada Common-Interest Ownership Act

The governing statute is NRS Chapter 116, the Nevada Common-Interest Ownership Act.³ Nevada adopted the Uniform Common Interest Ownership Act of 1982 in 1991, with the chapter applying to communities created within the state on or after January 1, 1992.⁸ The Legislature has amended the statute in nearly every session since, so its current text departs substantially from the 1982 uniform model on many specific points. NRS 116.1201 provides that the chapter applies to all common-interest communities created within the state except as otherwise provided.⁹

The chapter covers three forms of common-interest community: condominiums, planned communities, and cooperatives — each separately defined in the definitions article (NRS 116.027, NRS 116.075, and NRS 116.031 respectively).¹⁰ The chapter organizes into articles addressing general provisions and definitions (NRS 116.001 to 116.1209), creation, alteration, and termination of communities (the NRS 116.2101 series), management of the community (the NRS 116.3101 series, covering the executive board, meetings, assessments, and records), protection of purchasers (the NRS 116.4101 series, covering public offering statements and resales), and administration and enforcement (the NRS 116.600 series, creating the Commission and Ombudsman).¹¹ Key defined terms include “declaration” (NRS 116.037), “executive board” (NRS 116.045), “common-interest community” (NRS 116.021), “community manager” (NRS 116.023), and “governing documents” (NRS 116.049).¹⁰

Owner budget ratification operates under NRS 116.31151. After the executive board adopts a proposed budget, it distributes a summary to each owner and sets a ratification meeting not less than 14 days or more than 30 days after mailing. The budget is ratified unless a majority of all units’ owners — or any larger vote specified in the declaration — vote to reject it, and ratification occurs whether or not a quorum is present. If owners reject the budget, the last ratified budget continues.¹² For boards, this sets a low bar: owner inaction results in ratification.

NRS 116.3116 is the most consequential single section. It grants the association a lien on each unit for unpaid assessments and splits that lien into a subpriority piece and a super-priority piece. The super-priority piece — senior even to a recorded first deed of trust — consists of charges for maintenance and nuisance abatement plus common-expense assessments that would have become due during the nine months immediately preceding an action to enforce the lien.⁷ In practice, an HOA’s nonjudicial foreclosure of the super-priority piece can extinguish a first mortgage — a result the Nevada Supreme Court confirmed in SFR Investments Pool 1, LLC v. U.S. Bank, N.A., 130 Nev. 742, 334 P.3d 408 (Sept. 18, 2014), holding that the NRS 116.3116(2) lien is a true priority lien whose foreclosure extinguishes a first deed of trust and may be conducted nonjudicially.¹³

NRS 116.1104 makes the chapter’s provisions non-waivable except where the statute expressly allows variation.¹⁴ Many defaults can be altered by the declaration, but core consumer-protection and governance provisions are mandatory — and any governing-document provision that violates the chapter is superseded by operation of law under NRS 116.1206.¹⁵

Pre-1992 communities and predecessor framework

Communities created before January 1, 1992 do not fall fully under NRS Chapter 116. The predecessor condominium statute, NRS Chapter 117, applies to property divided into condominiums only where a qualifying plan was recorded before January 1, 1992 under NRS 117.020.¹⁶ NRS 116.1201 subjects pre-1992 communities to only specified portions of Chapter 116 and preserves certain pre-existing arrangements, such as separate classes of voting and representative forms of government.⁹

The practical implication is that managers and counsel handling older Nevada communities must determine the creation date and recorded instruments before assuming Chapter 116 applies in full. A pre-1992 community may operate under a mix of Chapter 117, its original recorded declaration, and only those parts of Chapter 116 made applicable by NRS 116.1201.

The continuing role of CC&Rs and corporate law under NRS 116

NRS 116 permits the declaration to vary statutory defaults on a wide range of points, so recorded covenants, conditions, and restrictions remain the operative document for most day-to-day questions. Statute and Real Estate Division guidance establish the order of precedence: NRS 116 (and its administrative code, NAC 116) controls over conflicting governing documents, the declaration controls over the bylaws under NRS 116.2103, and bylaws control over board rules and resolutions.¹⁷ Any provision in a declaration, bylaw, or other governing document that violates the chapter is superseded under NRS 116.1206 — regardless of whether the provision predated the conflicting statute.¹⁵

Corporate governance adds a separate layer. Most Nevada HOAs organize as nonprofit corporations under NRS Chapter 82, the Nevada Nonprofit Corporation Act, which supplies the rules for entity formation, board authority, officer roles, and meeting and record mechanics not addressed by NRS 116.¹⁸ Where NRS 116 is silent, NRS 82 and common-law contract and property doctrine fill the gaps. Courts interpret the declaration as a contract that runs with the land, and assessment liens and use restrictions are enforced under property-law principles. The practical result is that a Nevada board faces a four-layer hierarchy on most questions: mandatory NRS 116 provisions at the top, then the declaration, then bylaws and corporate law under NRS 82, then rules — and the answer to a given question may sit at any level.

Compliance obligations created by the statutory framework

Governance obligations

Boards must hold meetings, conduct elections, and maintain records on statutory schedules. The executive board must meet at least once each quarter under NRS 116.31083, owners are entitled to an annual meeting under NRS 116.3108, and elections of board members proceed by secret written ballot under NRS 116.31034.¹⁹ Board members owe fiduciary duties under NRS 116.3103.²⁰ NRS 116.31175 requires associations to maintain and make records available to owners, caps owner review charges, and imposes a penalty for late production.²¹ Community managers who manage a Nevada community for compensation must hold a certificate under NRS 116A.400; acting without one is prohibited, with statutory exceptions for attorneys, trustees, receivers, and board members acting within their own duties.²² These governance obligations are mandatory and generally may not be varied by declaration, though the declaration may add more stringent requirements.

Financial obligations

Associations must levy assessments based on an annually adopted budget under NRS 116.3115 and must establish adequate reserves — funded on a reasonable basis — for repair and replacement of major components.²³ Budget ratification follows NRS 116.31151 as described above.¹² NRS 116.31152 requires reserve studies conducted by a reserve study specialist registered under NRS 116A.420 and updated on the statutory cycle.²⁴ Past-due assessments bear interest under NRS 116.3115(3) at the prime rate at the largest Nevada bank plus two percent.²³ The reserve-funding obligation is mandatory and cannot be waived, though the declaration may impose more stringent standards. Precise assessment amounts are generally set by the declaration and board rather than capped by NRS 116.²⁴

Disclosure obligations

Sellers and associations face layered disclosure duties. A developer offering units must provide a public offering statement under NRS 116.4102 to 116.4108.²⁵ On resale, the seller must furnish a resale package — including the certificate and financial information under NRS 116.4109 — and the buyer generally holds a five-day cancellation right.²⁶ The required information statement form is prescribed by NRS 116.41095.²⁶ Associations must register with the Ombudsman under NRS 116.31158 and pay annual fees under NRS 116.31155 that fund the Ombudsman and Commission.²⁷ Financial statements must be prepared and, for larger associations, audited or reviewed under NRS 116.31142 to 116.31144.²⁸ These disclosure obligations are mandatory.

Dispute resolution obligations

Nevada imposes a mandatory pre-litigation dispute process — a defining feature of the regime. Under NRS 38.310, no civil action based on a claim relating to the interpretation, application, or enforcement of governing documents, or relating to certain damage and alteration claims, may commence in any Nevada court unless it has first been submitted to mediation or, by agreement, referred to a program under NRS 38.300 to 38.360. A court must dismiss any action filed in violation of this requirement.⁶ Parties file claims with the Real Estate Division, and the Ombudsman assists in processing them under NRS 116.625.⁵

The Ombudsman investigates owner complaints, and the Commission for Common-Interest Communities and Condominium Hotels holds disciplinary jurisdiction over associations, board members, and certified managers. Hearing panels can find violations and impose fines and penalties.²⁹ The mandatory ADR requirement applies to covered categories of claims and is mandatory in scope, though the Nevada Supreme Court has held it is a waivable claim-processing rule rather than a jurisdictional bar.³⁰

Nevada's recent legislative and judicial activity

Nevada amends NRS 116 in nearly every regular session. The Legislature meets biennially in odd years, so recent activity comes from the 2023 (82nd) and 2025 (83rd) regular sessions.

Recent bills

Nevada’s legislature has been active on HOA issues, with significant new laws and amendments affecting community governance across the state.

Recent court rulings

Nevada’s courts continue to shape how super-priority lien foreclosures and the mandatory ADR requirement work in practice.

Active legislative debates

Several bills stalled or were vetoed during the latest session, and the Commission continues its work implementing recent statutory changes through rulemaking.

National positioning and related coverage

Nevada is one of a small group of UCIOA-adopting states — a group that also includes Alaska, Colorado, Connecticut, Delaware, Minnesota, Vermont, Washington, and West Virginia. Among them, Nevada stands apart for the depth of its regulatory overlay rather than the statutory text alone. The state operates the most substantial HOA regulatory framework of any U.S. state: a dedicated Real Estate Division program, mandatory community-manager certification under NRS 116A, a mandatory pre-litigation ADR process under NRS 38.300 to 38.360, a super-priority lien under NRS 116.3116 that has produced extensive federal court litigation, and very high biennial legislative activity.

For multi-state operators, Nevada cannot be managed on a generic UCIOA template. It requires licensed managers, registration and fee compliance with the Ombudsman, and ADR-first dispute handling that several other UCIOA states do not impose.

Closing note

Federal frameworks apply alongside NRS 116, and Nevada’s super-priority lien has a particularly active interaction with federal foreclosure law — including the Federal Foreclosure Bar and Ninth Circuit due-process litigation. This page will be updated as new legislative sessions, court decisions, and regulatory guidance emerge.

Footnotes

1. Nev. Rev. Stat. ch. 116, Common-Interest Ownership (Uniform Act) ↩
2. Community Associations Institute, 2025 Nevada Legislative Session Report (citing testimony of Sen. Julie Pazina, S. Comm. on Judiciary, Mar. 6, 2025) (3,711 Nevada HOAs comprising approximately 624,000 homes, roughly half of the state’s approximately 1.3 million homes) ↩
3. Nev. Rev. Stat. § 116.001, Short title; Nev. Rev. Stat. ch. 116 ↩
4. Nev. Rev. Stat. § 116A.400, Person prohibited from acting as community manager without certificate ↩
5. Nev. Rev. Stat. §§ 116.600 (Commission for Common-Interest Communities and Condominium Hotels), 116.625 (Office of Ombudsman for Owners in Common-Interest Communities and Condominium Hotels) ↩
6. Nev. Rev. Stat. § 38.310, Limitations on commencement of certain civil actions ↩
7. Nev. Rev. Stat. § 116.3116, Liens against units for assessments ↩
8. Nev. Rev. Stat. § 116.1201 and chapter source notes (added to Nev. Rev. Stat. by 1991); Nev. Real Estate Div., Common-Interest Communities Educational Manual ↩
9. Nev. Rev. Stat. § 116.1201, Applicability; regulations ↩
10. Nev. Rev. Stat. §§ 116.021 (“common-interest community”), 116.023 (“community manager”), 116.027 (“condominium”), 116.031 (“cooperative”), 116.037 (“declaration”), 116.045 (“executive board”), 116.049 (“governing documents”), 116.075 (“planned community”) (definitions) ↩
11. Nev. Rev. Stat. ch. 116, Table of sections ↩
12. Nev. Rev. Stat. § 116.31151, Annual distribution of budgets; ratification of budget ↩
13. SFR Invs. Pool 1, LLC v. U.S. Bank, N.A., 130 Nev. 742, 334 P.3d 408 (2014) ↩
14. Nev. Rev. Stat. § 116.1104, Provisions of chapter may not be varied by agreement, waived or evaded; exceptions ↩
15. Nev. Rev. Stat. § 116.1206, Provisions of governing documents in violation of chapter deemed to conform by operation of law ↩
16. Nev. Rev. Stat. ch. 117, Condominiums; Nev. Rev. Stat. § 117.020, Applicability ↩
17. Nev. Rev. Stat. § 116.2103; Nev. Real Estate Div., Governing Documents and NRS 116 ↩
18. Nev. Rev. Stat. ch. 82, Nonprofit Corporations ↩
19. Nev. Rev. Stat. §§ 116.3108 (annual meetings), 116.31083 (regular meetings of executive board), 116.31034 (elections of members of executive board) ↩
20. Nev. Rev. Stat. § 116.3103, Power of executive board to act on behalf of association; members’ standard of care ↩
21. Nev. Rev. Stat. § 116.31175, Maintenance and availability of books, records and other papers ↩
22. Nev. Rev. Stat. § 116A.400, Person prohibited from acting as community manager without certificate ↩
23. Nev. Rev. Stat. § 116.3115, Assessments for common expenses; funding of adequate reserves; interest on past due assessments ↩
24. Nev. Rev. Stat. § 116.31152, Reserve study; Nev. Rev. Stat. § 116A.420, Registration of reserve study specialists ↩
25. Nev. Rev. Stat. §§ 116.4102–116.4108, Public offering statement; purchaser’s right to cancel ↩
26. Nev. Rev. Stat. § 116.4109, Resales of units; Nev. Rev. Stat. § 116.41095, Required form of information statement ↩
27. Nev. Rev. Stat. § 116.31158, Registration with Ombudsman; Nev. Rev. Stat. § 116.31155, Fees ↩
28. Nev. Rev. Stat. §§ 116.31142–116.31144, Financial statements; audit and review ↩
29. Nev. Rev. Stat. § 116.600 (Commission for Common-Interest Communities and Condominium Hotels); Nev. Rev. Stat. § 116.625 (Ombudsman); Nev. Rev. Stat. § 116.553 (hearing panels) ↩
30. Kosor v. S. Highlands Cmty. Ass’n, 141 Nev. Adv. Op. 34, No. 87942 (June 18, 2025) (holding Nev. Rev. Stat. § 38.310 is a waivable claim-processing rule, not a jurisdictional bar) ↩
31. S.B. 201, 83d Leg., Reg. Sess. (Nev. 2025) (enrolled; new section added to Nev. Rev. Stat. ch. 116; effective July 1, 2025) ↩
32. Community Associations Institute, 2025 Nevada Legislative Session Report (discussing S.B. 201 and Anti-Defamation League testimony) ↩
33. S.B. 417, 82d Leg., Reg. Sess. (Nev. 2023), ch. 234, 2023 Nev. Stat. (effective Oct. 1, 2023) ↩
34. Deutsche Bank Nat’l Tr. Co. v. Collegium Fund LLC Series 16, 142 Nev. Adv. Op. 1, No. 88184 (Jan. 8, 2026) ↩
35. Kosor v. S. Highlands Cmty. Ass’n, 141 Nev. Adv. Op. 34, No. 87942 (June 18, 2025) ↩
36. S.B. 121, 83d Leg., Reg. Sess. (Nev. 2025) (vetoed June 5, 2025); A.B. 185, 83d Leg., Reg. Sess. (Nev. 2025) (vetoed) ↩
37. Nev. Rev. Stat. § 116A.620 source note (A 2023, 967, 969); Nev. Admin. Code chs. 116, 116A ↩