Nevada isn't just the home of Las Vegas—it's also home to one of the most heavily regulated HOA environments in the country. After high-profile HOA scandals in the 2000s, the state overhauled NRS 116 and created a dedicated state agency to oversee community associations.
The result is a legal framework that's both protective and demanding. Nevada HOAs must register with the state, follow strict procedural requirements, and offer dispute resolution options before taking many enforcement actions. For homeowners, this means real protections—and a state agency that can actually investigate complaints.
This guide covers Nevada's unique HOA landscape, from the role of the Real Estate Division to fine limits, foreclosure rules, and your rights as a homeowner.
Nevada HOA Key Facts
- Primary Law: NRS Chapter 116 (Nevada Uniform Common-Interest Ownership Act)
- Regulator: Nevada Real Estate Division (NRED), Department of Business & Industry
- Ombudsman: Office of the Ombudsman for Owners in Common-Interest Communities
- Registration: All HOAs must register with NRED
- ADR Requirement: Mandatory mediation/arbitration before most lawsuits (NRS 38)
Nevada's Unique State Oversight
Unlike most states where HOAs operate with minimal government oversight, Nevada created a "regulator-first" model. The Nevada Real Estate Division (NRED) actively oversees community associations and can investigate complaints, conduct audits, and impose penalties.
The Ombudsman: Your First Point of Contact
Nevada established the Office of the Ombudsman for Owners in Common-Interest Communities—a state agency specifically designed to help homeowners navigate HOA disputes.
The Ombudsman can:
- • Receive complaints from homeowners (NRS 116.760)
- • Attempt informal resolution
- • Refer matters to NRED for investigation
- • Provide education and resources
Why this matters: In most states, your only recourse against a misbehaving HOA is to sue. In Nevada, you can file a complaint with an actual government agency that has enforcement authority.
Mandatory Alternative Dispute Resolution
Before you can sue your Nevada HOA (or before they can sue you), both parties must attempt to resolve the dispute through Alternative Dispute Resolution (ADR). This isn't optional—it's required under NRS 38.
ADR Options Under Nevada Law
Both parties present their case to an independent referee who makes a non-binding decision. Requires mutual agreement to participate.
A neutral mediator helps parties negotiate. Default option if both parties don't agree to referee program.
More formal process with a binding decision. Can be required by governing documents.
Important: If your HOA has its own dispute resolution procedure, you must exhaust that process first before filing with NRED's ADR program. Check your governing documents.
Fines & Enforcement: Know the Limits
Nevada places strict limits on what HOAs can fine homeowners and how they can enforce rules. Under NRS 116.31031, fines must be "proportionate to the gravity of the offense."
Nevada Fine Limits
- Maximum per offense: $100
- Maximum total: $1,000 (aggregate cap)
- Late payment penalties: Not subject to these limits
- Due process: Homeowner must receive notice and opportunity to be heard
Procedural Requirements for Fines
Nevada law requires HOAs to follow due process before imposing fines. This includes:
- Written notice of the alleged violation
- Opportunity to be heard before fines are imposed
- Right to present evidence and dispute the violation
- Independent review—fining committees with non-board members provide additional protection
If an HOA violates these procedural requirements, the fine may be unenforceable. Document everything and exercise your right to a hearing.
Meeting Notice Requirements
Nevada requires 10 days' notice for regular board meetings—one of the longest notice requirements in the country.
NRS 116.31083 Meeting Requirements
- ✓ All board meetings must be open to owners (with limited executive session exceptions)
- ✓ 10-day notice for regular meetings
- ✓ Emergency meetings have reduced notice requirements but must be truly emergent
- ✓ Notice must include date, time, location, and agenda
Comparison: Many states only require 48-72 hours notice for board meetings. Nevada's 10-day requirement gives homeowners much more opportunity to attend and participate.
Reserve Study Requirements
Nevada requires all HOAs to conduct reserve studies on a regular basis. Under NRS 116.31034, a reserve study must include:
- Inventory of all common elements requiring maintenance or replacement
- Condition assessment of each component
- Estimated remaining useful life
- Estimated replacement cost
- Funding analysis showing how reserves will be funded
Reserve Study Timeline
Nevada requires a reserve study at least every 5 years. The study must include a funding plan showing how the association will meet projected expenses. Many financial advisors recommend more frequent updates.
Financial Audit Requirements
Nevada requires annual financial audits or reviews based on association size and budget. Under NRS 116.31152:
- Larger associations must have annual audits by a CPA
- Smaller associations may qualify for less rigorous financial reviews
- Financial statements must be made available to members
The specific thresholds depend on association size and annual assessments. Check with NRED or your management company for the requirements applicable to your community.
HOA Foreclosure in Nevada
Nevada HOAs have the power to foreclose on homes for unpaid assessments under NRS 116.31162. However, the process includes important protections for homeowners.
Foreclosure Protections
Before foreclosure, Nevada HOAs must:
- ✓ Provide proper notice to the homeowner
- ✓ Offer opportunity to cure the delinquency
- ✓ Follow all procedural requirements under NRS 116
- ✓ Mediation or arbitration options should be offered as part of the dispute process
Super Lien Status: Nevada gives HOA liens "super priority" status over first mortgages for up to 9 months of assessments. This means the HOA can potentially foreclose even if there's an existing mortgage—a controversial provision that has generated significant litigation.
Solar & Energy Efficiency Rights
Nevada protects homeowners' rights to install solar panels and energy efficiency devices under NRS 116.350.
Your Solar Rights
- ✓ HOAs cannot prohibit solar energy devices
- ✓ HOAs cannot prohibit energy efficiency devices
- ✓ Reasonable aesthetic restrictions may apply, but cannot effectively prohibit installation
- ✓ Restrictions cannot increase cost by more than 10% or decrease efficiency by more than 10%
How to File a Complaint
If your HOA violates Nevada law, you have options:
Step 1: Internal Resolution
Exhaust any dispute resolution procedures in your governing documents first. Document all communications.
Step 2: Contact the Ombudsman
File an affidavit with NRED's Office of the Ombudsman (NRS 116.760). They can help mediate and may investigate.
Step 3: ADR Process
Complete the mandatory ADR process before filing a lawsuit. Choose mediation, arbitration, or the referee program.
Step 4: Legal Action
If ADR fails, you can pursue civil litigation. Consider consulting an attorney experienced in Nevada HOA law.
What You Need to Know
For Nevada Homeowners
- 1.Know your Ombudsman: The state Office of the Ombudsman is there to help you. Contact them at red.nv.gov for assistance.
- 2.Exercise your hearing rights: If facing fines, demand a hearing. The HOA must provide due process.
- 3.Attend meetings: With 10-day notice, you have ample time to plan. Open meetings are your window into HOA decisions.
- 4.Document everything: Keep copies of all notices, letters, and communications. This is essential for disputes.
For Nevada HOA Board Members
- 1.Ensure NRED registration: Your association must be registered with the Real Estate Division.
- 2.Provide 10-day meeting notice: This is longer than most states—build it into your calendar.
- 3.Conduct reserve study every 5 years: Include funding analysis and update as needed.
- 4.Follow fine procedures strictly: $100/offense cap, $1,000 aggregate, and due process required.
- 5.Use independent hearing panels: Fining committees with non-board members provide better protection for all parties.
The Bottom Line
Nevada's HOA law is comprehensive and homeowner-protective—if you know how to use it. The state created real oversight with NRED and the Ombudsman, mandatory ADR before lawsuits, strict procedural requirements, and meaningful limits on fines and enforcement.
For homeowners, this means you have tools beyond just hiring a lawyer. The Ombudsman exists specifically to help you navigate disputes. The mandatory ADR process can resolve issues without expensive litigation.
For board members, Nevada's requirements demand attention to procedure. The state will investigate complaints and can impose penalties for violations. But associations that follow the rules have a framework that supports effective, fair governance.