Nevada NRS 116: Everything you need to know about the Uniform Common-Interest Ownership Act

What is Nevada NRS 116?

Nevada NRS 116, called the “Uniform Common-Interest Ownership Act,” is the chapter of the Nevada Revised Statutes that governs many common interest communities, including HOAs, condo associations, and other community associations.

It sets rules for association governance, board meetings, assessments, reserve studies, records, enforcement, fines, liens, homeowner rights, and resolving community conflicts.
 

Key provisions HOAs should know

HOAs should understand a few key requirements under Nevada NRS 116:

• Board powers: Nevada NRS 116 gives associations authority to adopt budgets, collect assessments, hire management, regulate common elements, and carry out other association functions (NRS 116.3102).
   
• Fines and enforcement: Boards may impose fines or other sanctions for governing document violations only if the governing documents allow it and the association follows Nevada’s required notice, hearing, and due process rules (NRS 116.31031; NRS 116.31085).
   
• Fine limits: Nevada’s Real Estate Division explains that many fines are limited to $100 per violation or $1,000 total for violations cited at one hearing when the violation does not pose an imminent threat of causing a substantial adverse effect on health, safety, or welfare. There are different treatments for continuing violations after the cure period (NRS 116.31031).
   
• Board meetings: Executive board meetings must be held at least once each quarter and not less than once every 100 days, and at least two meetings each year must be held outside standard business hours (NRS 116.31083).
   
• Owner meetings: A meeting of the unit owners must be held at least once each year, with timing set by the bylaws or the statute when the governing documents do not set a date (NRS 116.3108).
   
• Financial review: At least once each quarter, the board must review certain financial information at a board meeting, including year-to-date financial statements and operating and reserve account information (NRS 116.31083).
   
• Reserve studies: Nevada associations must conduct reserve studies at least once every five years, review them at least annually, and make any necessary funding plan adjustments (NRS 116.31152).
   
• Assessments and reserves: Nevada associations may collect assessments for common expenses, and reserve-related assessments must be based on the reserve study (NRS 116.3115).
   
• Records access: Owners have rights to access certain association books and records, including financial statements, budgets, reserve studies, contracts, and certain court-filed records, subject to statutory exceptions (NRS 116.31175).
   
• Liens for assessments: An association has a lien for assessments and certain other charges, including fines and penalties, which may be enforceable as assessments under Nevada law. In some cases, portions of the lien may have priority over a first mortgage under Nevada’s ‘super-priority lien’ framework. (NRS 116.3116).
   
• Political signs: Nevada associations generally cannot prohibit an owner or occupant from displaying political signs in areas they have the right to occupy and use exclusively, subject to conditions in the statute (NRS 116.325).

Who must follow Nevada NRS 116?

Nevada NRS 116 generally applies to common interest communities created within Nevada, a category that can include planned communities, condominiums, and cooperatives.
 

Compliance tips

1. Keep board meetings on a clear schedule

   Nevada board meetings are not something to handle casually. Set an annual meeting calendar that accounts for quarterly meeting requirements, required financial review, agenda preparation, owner notice, minutes, and follow-up. A predictable schedule helps the board stay compliant and gives owners a better understanding of when association business will be discussed.
    

2. Use a standard enforcement process

   Violation enforcement should follow the same process every time. Boards should confirm the rule, send clear notice, allow the required response or cure period, hold the hearing when required, and document the outcome. A consistent process can help minimize claims of selective enforcement or unenforceable HOA rules and makes the board’s decision easier to explain later.
    

3. Review fine limits before imposing penalties

   Before imposing a fine, confirm that the governing documents allow fines and that the amount fits Nevada’s limits. Do not assume a larger fine is allowed just because the violation is frustrating. Boards should pay special attention to continuing violations, health and safety issues, and the required hearing process before approving penalties.
    

4. Keep records easy to find

   Records requests become much easier when documents are already organized. Keep financial statements, budgets, reserve studies, contracts, meeting minutes, violation records, governing documents, and owner communications in a consistent system. Our FirstService Residential Connect™ platform gives residents and board members access to important documents, payments, updates, and service requests, all in one place.
    

5. Treat the reserve study as a working tool

   A reserve study should guide preventive maintenance and funding decisions. Review it during budget season, before major capital improvement projects, and when building conditions change. If the board delays reserve-funded work, document the reason and the plan.
    

6. Work with qualified professionals

   Nevada NRS 116 is detailed, and boards should not try to handle every legal or technical issue alone. Association counsel, community managers, reserve specialists, accountants, insurance professionals, and qualified vendors can help the board make better decisions and avoid preventable compliance problems.

How FirstService Residential can help

Nevada NRS 116 can feel complex, but a clear process makes it easier to manage. FirstService Residential supports Nevada communities with local expertise backed by national resources. Our teams help boards stay organized with governance support, recordkeeping systems, financial management, vendor coordination, resident communication, and 24/7 customer care.

We help boards apply consistent processes that align with their governing documents and Nevada law, so board members can stay focused on long-term community goals instead of day-to-day administration.

Contact a member of our team today to learn more.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.