§ 116B.590 — Assessments for common expenses; funding of adequate reserves; collection of interest on past due assessments; calculation of assessments for particular types of common expenses; notice of meetings regarding assessments for capital improvements

Nevada § 116B.590

• Jurisdiction: Nevada
• Title 10: PROPERTY RIGHTS AND TRANSACTIONS
• Ch. 116B: Condominium

Text

1. Until the association makes an assessment for common expenses for the common elements, the declarant shall pay all common expenses. After an assessment has been made by the association, assessments must be made at least annually, based on a budget adopted at least annually by the association in accordance with the requirements set forth in this chapter. Unless the declaration imposes more stringent standards, the budget must include a budget for the daily operation of the association and a budget for the reserves required by paragraph (b) of subsection 2.
2. Except for assessments under subsections 4 to 7, inclusive, or as otherwise provided in this chapter:
(a) All common expenses, including the reserves, must be assessed against all the units in accordance with the allocations set forth in the declaration pursuant to NRS 116B.340 .
(b) The association shall establish adequate reserves, funded on a reasonable basis, for the repair, replacement and restoration of the major components of the common elements. The reserves may be used only for those purposes and must not be used for daily maintenance. The association may comply with the provisions of this paragraph through a funding plan that is designed to allocate the costs for the repair, replacement and restoration of the major components of the common elements over a period of years if the funding plan is designed in an actuarially sound manner which will ensure that sufficient money is available when the repair, replacement and restoration of the major components of the common elements are necessary.
3. Any past due assessment for common expenses or installment thereof bears interest at the rate established by the association not exceeding 18 percent per year.
4. To the extent required by the declaration:
(a) Any common expense benefiting fewer than all of the units or units’ owners may be assessed exclusively against the units or units’ owners benefited; and
(b) The costs of insurance must be assessed in proportion to risk and the costs of utilities must be assessed in proportion to usage.
5. Assessments to pay a judgment against the association may be made only against the units in the condominium hotel at the time the judgment was entered, in proportion to their liabilities for common expenses.
6. If damage to a unit or other part of the condominium hotel or if any other common expense is caused by the willful misconduct or gross negligence of any unit’s owner, tenant or invitee, the association may assess that expense exclusively against his or her unit, even if the association maintains insurance with respect to that damage or other common expense, unless the damage or other common expense is caused by a vehicle and is committed by a person who is delivering goods to, or performing services for, the unit’s owner, tenant or invitee of the unit’s owner or tenant.
7. If liabilities for common expenses are reallocated, assessments for common expenses and any installment thereof not yet due must be recalculated in accordance with the reallocated liabilities.
8. The association shall provide written notice to each unit’s owner of a meeting at which an assessment for a capital improvement is to be considered or action is to be taken on such an assessment at least 21 calendar days before the date of the meeting.

Legislative History

(Added to NRS by 2007, 2235 ; A 2015, 1237 )