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A Nevada county can now fix your HOA's water system and assess you for 20 years

A Nevada county can now fix your HOA's water system and assess you for 20 years
Nevada · Legislation

A Nevada county can now fix your HOA's water system and assess you for 20 years

What happened. Nevada gave local governments a way to rescue a common-interest community whose private water or sewer system is failing. It is a genuinely useful power, and it comes with the owner protections that normally accompany a special assessment district switched off.

Assembly Bill 10, Chapter 62, Statutes of Nevada 2025, was approved May 28, 2025 and took effect the same day.1

The change itself is one line

NRS 271.147 defines “neighborhood improvement project.” AB 10 added a third category:

“3. The improvement of a water or sewer system that is owned by a common-interest community.

Everything else the bill does flows from the fact that this is subsection 3 — because three other statutes in chapter 271 were amended to apply only to projects described in subsection 1 or 2.

The three protections that do not apply

Per the Nevada Real Estate Division's own summary of the bill for community associations:2

  • No dissolution. Improvement districts for these projects “cannot be dissolved even if a majority of property owners request dissolution” (NRS 271.296(1)).
  • No effective protest. The governing body “has the sole discretion to decide whether complaints, protests or objections are proper to stop the project” (NRS 271.306); residents' written objections “do not automatically halt these projects” (NRS 271.306(5)).
  • No annual assessment-roll process. The amendment, separate agenda item, 21-day mailed notice and confirmation notice in NRS 271.377 do not apply.
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The Legislative Counsel's Digest says it plainly

The remonstrance right — the written-protest mechanism that lets owners stop an improvement district — is the most significant of the three, and the bill's own digest describes its removal without euphemism:

“Section 3 of this bill provides that this prohibition does not apply to a neighborhood improvement project that improves a water or sewer system that is owned by a common-interest community. Instead, section 4 of this bill provides that a neighborhood improvement project that improves a water or sewer system that is owned by a common-interest community will not be stayed or defeated or prevented by written complaints, protests and objections, unless the governing body deems such written complaints, protests and objections proper to cause the neighborhood improvement project to be stayed or prevented.”

In an ordinary improvement district, a sufficient volume of written protest stops the project. Here, the governing body decides whether the protest counts.

What it costs, in the Division's own illustration

The Real Estate Division's training materials on the 2025 session set out the mechanics for owners:

“But private homeowners are still responsible for the cost — the county funds the project using municipal bonds, repaid through long-term assessments or liens on each property, possibly $300–$500 per year for 20 years. … Loss of community veto power to halt projects.

Those figures are the Division's illustration, not a statutory cap. The Division says so itself: the actual cost and duration depend on the project's total cost and the number of properties in the district. But the structure the illustration describes — a bonded project repaid by a lien on each individual parcel over two decades — is the structure.

Why the Legislature did it anyway

The case for AB 10 is not hard to see, and it has names attached.

In Somerset Park, Henderson, the city fronted the replacement of a failing private water system — contracted at $682,293.74, replacing more than 85 underground pipes — with residents repaying through individual tax liens over three years. The intervention happened because the alternative was residents without water.

In Renaissance Townhomes, also in Henderson, residents faced a quoted $1,367,168 to repair a failing water system, which worked out at roughly $16,879 per homeowner in four instalments. One 80-year-old resident told a local broadcaster she could not produce that amount “without really going into my retirement savings,” and noted that her association dues had gone from $86 a month when she moved in during 2005 to $450 twenty years later. AB 10 passed out of Assembly Government Affairs unanimously in the same period.3

Against $16,879 due in four payments, $300–$500 a year for twenty years is a rescue. That is the trade the Legislature made, and it is a defensible one. The catch for owners is that the trade also removed their ability to refuse it.

Which communities this actually reaches

The trigger is narrow and specific: a water or sewer system owned by the common-interest community. Most Nevada associations are served by a municipal utility and are nowhere near this statute. The communities exposed are the ones — typically older, often smaller, frequently outside the core municipal service areas — that own their own plant.

If your association is one of them, three things follow:

  • Find out whether your reserve study includes the plant. A water or sewer system is a major component of the common elements, and a reserve study that omits it is understating the community's obligations by the largest number on the list.
  • Know that the reserve question is now sharper. The pending regulation R091-25 would delete baseline funding from the permitted reserve objectives and redefine “adequately funded reserves” so the projected balance may never reach zero at any point in the 30-year schedule. An association that has been funding a plant replacement to baseline is the exact case that definition is aimed at.
  • Understand the sequence. AB 10 is what happens when the reserve fails. It is not a bad outcome — it is a far better outcome than a $16,879 special assessment — but it is decided by a governing body rather than by the community, and it lasts twenty years.

Where the objections were recorded

AB 10 was not unopposed. The Nevada HOA Reform Coalition opposed it, describing it as “[j]ust another example of lawmakers taking a path of least resistance.” It passed the Assembly 37–5 and the Senate 20–1.4

Vote counts are as published by that organisation's enrolled-legislation page rather than taken from the legislative journals.

Related Nevada HOA Topics

← All Nevada HOA Topics

  1. Chapter 62, Statutes of Nevada 2025 (Assembly Bill 10), approved May 28, 2025 — Statutes of Nevada 2025, pages 269–400
  2. 83rd Legislative Session Overview: Summary of Key CICCH/HOA Bills (Nevada Real Estate Division, CIC program training)
  3. Henderson residents facing possible $1.3M bill hope new HOA board will bring answers (KTNV 13 Action News)
  4. Enrolled 2025 HOA legislation (Nevada HOA Reform Coalition) — positions and reported vote counts
  5. NRS 271.147, 271.296, 271.306 and 271.377, Nevada Revised Statutes chapter 271 (local improvements)

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