Under existing law, a unit-owners' association has a lien on a unit for certain amounts due to the association and may foreclose its lien through a nonjudicial foreclosure sale. (NRS 116.3116-116.31168) Section 2 of this bill prohibits an association from foreclosing a lien through a nonjudicial foreclosure sale if the unit's owner or his or her successor in interest, or a household member of such person, is a veteran, senior citizen or person with a disability. If an association wishes to foreclose a lien against such a person, section 2 requires the association to foreclose the lien through the judicial foreclosure process. Section 2 also requires an association to take certain actions to: (1) inform a unit's owner or his or her successor in interest of the protections set forth in section 2; and (2) verify whether a unit's owner or his or her successor in interest is entitled to those protections. Under section 2, any person who knowingly initiates the foreclosure of a lien through a nonjudicial foreclosure sale in violation of the provisions of section 2 is guilty of a misdemeanor and is liable for actual damages, reasonable attorney's fees and costs incurred by the injured party. Finally, section 2 requires an association to file with the Real Estate Division of the Department of Business and Industry an annual report containing the number of judicial foreclosure actions in the immediately preceding year that the association commenced against a unit's owner or his or her successor in interest who is a veteran, senior citizen or person with a disability or who has a household member who is such a person. Section 7 of this bill makes a conforming change to indicate the proper placement of section 2 in the Nevada Revised Statutes. Section 8 of this bill adds to the information statement required to be provided as part of a purchase of a unit in a common-interest community a statement regarding the protections set forth in section 2. (NRS 116.41095) With one exception, a person is prohibited from conducting a collection agency or engaging in certain related activities in this State unless the person has been issued a license by the Commissioner of Financial Institutions. (NRS 649.075) Section 11 of this bill requires a licensed collection agency to: (1) when collecting a debt on behalf of an association, ask the debtor to voluntarily disclose whether the debtor or any household member of the debtor is a veteran, senior citizen or person with a disability; and (2) submit to the Real Estate Division an annual report containing the number of cases in the immediately preceding year in which the collection agency collected a debt for an association and the debtor disclosed that the debtor or a household member of the debtor is a veteran, senior citizen or person with a disability. Section 12 of this bill makes a conforming change to indicate the proper placement of section 11 in the Nevada Revised Statutes. Existing law requires the Commission for Common-Interest Communities and Condominium Hotels to adopt regulations establishing the grounds for suspension or revocation of the certificate of a community manager. (NRS 116A.410) Section 10 of this bill requires the regulations to provide that knowingly participating in the foreclosure of a lien that does not comply with the provisions of section 2 constitutes grounds for the suspension or revocation of a certificate. With certain exceptions, existing law assigns the responsibility for the repair of common elements or any security wall in a common-interest community to the association. (NRS 116.3107, 116.31073) Existing law requires any repair to a security wall to be made within a reasonable length of time. (NRS 116.31073) Sections 3 and 6 of this bill require an association to make all repairs to common elements and security walls as soon as possible after the association becomes aware that the repair is necessary. Section 3 authorizes the Attorney General to seek an injunction or other relief necessary to compel compliance against an association who fails to comply with that requirement. Section 4 of this bill makes a conforming change to indicate the proper placement of section 3 in the Nevada Revised Statutes. Section 5 of this bill reduces the percentage of votes required to terminate a common-interest community from 80 percent to 60 percent. Existing law authorizes certain persons to bring an action against an association or certain other persons for a failure or refusal to comply with the provisions of existing law governing common-interest ownership or the governing documents of an association. However, existing law prohibits punitive damages from being awarded against an association in such an action. (NRS 116.4117) Section 9 of this bill creates an exception from this prohibition to allow a unit's owner who suffered a personal injury, death or damage to his or her property caused by the failure or refusal of an association to comply with the provisions of existing law governing common-interest ownership or the governing documents of an association to recover: (1) treble damages; (2) special damages; and (3) punitive damages.

Statutes affected:
As Introduced: 116.1203, 116.2118, 116.31073, 116.31162, 116.41095, 116.4117, 116A.410, 649.171
BDR: 116.1203, 116.2118, 116.31073, 116.31162, 116.41095, 116.4117, 116A.410, 649.171