Nevada Senate advances homeowner association changes

CARSON CITY, Nev. (AP) -- The state Senate voted unanimously Monday to approve legislation creating a state commission to resolve Nevada homeowner association disputes.

SB100, now headed to the Assembly, is the product of compromise between southern Nevada homeowners, developers and some local governments. All agreed that changes should be made to current regulation of what are called common-interest communities, but clashed on what was needed.

The bill by Sen. Mike Schneider, D-Las Vegas, creates the Nevada Commission for Common-Interest Communities, whose five members are to be appointed by the governor.

The panel would collect data on fines and foreclosures by homeowner associations, and would mediate any disputes that arise from regulations or elections by the groups. It could impose discipline including administrative fines.

Under the bill, community managers would be certified by the state and limited by new conflict-of-interest restrictions on business contracts. Subletting units within an association would be allowed only under certain circumstances.

The bill also ensures that associations can't keep homeowners from flying an American flag and limits the amount associations can fine their members for recurring violations of rules covering everything from the color of porch lights to placement of trash cans. It prohibits groups from "unreasonably" restricting add-on improvements like wheelchair ramps or big security locks.

Associations would have to vote for their executive boards by secret ballot and take detailed notes on actions and testimony at board meetings.

The Senate previously approved SB136 by Sen. Warren Hardy, R-Las Vegas, requiring a hearing before any association fines a homeowner.

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On The Net:

Read the bill at: http://www.leg.state.nv.us/72nd/bills/SB/SB100--R1.html