Education

Evidence continues to come to NVHOAReform from owners across Nevada showing that the Nevada Real Estate Division (NRED) is exercising authority lawmakers did not give it. It is my assessment, this not merely aggressive regulatory discretion. It is the exercise of authority outside the jurisdiction Nevada law established

Nevada’s HOA system gives private actors the first move. Developers write declarations, associations exercise powers those declarations confer, and government often comes later—after owners are already bound. The result is a legislative game of HOA Whack-a-Mole.

Nevada law says HOA owners have a right to exhibit political signs. But it does not expressly define important boundaries such as minimum size or display period. That seemingly simple gap points to a much larger question: who decides how much authority an HOA may exercise in the first place?

Nevada has spent decades managing particular exercises of HOA authority. But it has done comparatively little to define the outer boundaries of that authority—what an HOA may be empowered to own, operate, regulate, or require its owners to do and finance through the declaration. What limits the scope of an association’s authority and obligations in the first place? Whatever the developer puts into the declaration?

Many HOAs are well run. NVHOAReform focuses on what happens when they are not—and why criticism of HOA governance is not the same as opposition to HOAs.

Nevada specifically prohibits harassment in homeowners associations. But the way the law is enforced creates a striking imbalance: owners may have little regulatory recourse, while boards can pursue alleged owner misconduct through increasingly powerful enforcement avenues.

Nevada’s HOA Commission has already voted to adopt R091-25. Yet when FOX5 asked NRED to explain the controversial HSW language, state officials declined, saying comment would be “premature.” That raises a larger question about accountability in Nevada’s HOA regulatory system.

Buying into an HOA means accepting a system of governance. It does not mean surrendering the right to question whether the board had authority, followed the governing documents, or stayed within Nevada law.

Nevada may have some of the nation’s strongest HOA laws. But knowing what the law says is only the beginning. Fine limits, hearings, NRED complaints, mediation and even “you can sue” come with realities owners need to understand.

Can a board take speech that is harsh, persistent, even insulting or upsetting, characterize it as “harassment,” and then bootstrap it into a health, safety and welfare violation carrying fines with no statutory limit? If the owner disagrees, the only remaining response can become: Sue us. That Is a Powerful Disincentive. Moving the dispute into civil litigation gives an HOA board an enormous practical advantage.

If that theory holds, almost any unresolved dispute with an association — including one created by the board itself — can become a potential basis for exclusion. An owner challenges an assessment, enforcement action, architectural decision, records denial, maintenance failure, litigation position, or other board action. If the matter remains unresolved, counsel can argue that the owner might later influence it as a director and might benefit from the outcome.

Boards should seek legal advice. But advice of counsel does not create statutory authority—and it should not become a reason for Nevada’s HOA regulator to avoid deciding what Chapter 116 actually requires.

Nevada lawmakers directed regulators to establish criteria, severity standards and limits governing extraordinary HOA health, safety and welfare fines. After years of delay, the CIC Commission approved R091-25. The result gives HOA boards substantial discretion—and removes protections owners had every reason to expect.

Nevada HOA boards can avoid competitive bidding by never soliciting bids at all. NRED has acknowledged the loophole, the Commission has authority to address the fiduciary gap, and neither has solved a problem known for years.

Nevada has multiple institutions overseeing HOAs, yet significant statutory problems can still disappear without public Commission review or a path to lawmakers. Here is why the policy feedback loop needs fixing.

Nevada is moving to strengthen HOA reserve funding rules. But a stronger reserve standard is only useful if boards clearly show owners how they intend to meet it. The missing link may be a clearly identified annual Reserve Budget.

Nevada’s revised HOA HSW fine proposal still gives HOA boards too much discretion.

Nevada HOA boards may rely on legal counsel, but fiduciary duty remains with the directors. A recent NRED determination shows why that distinction matters.

NRED rejected a petition seeking timely access to HOA records tied to board agenda items, leaving Nevada owners with a critical records-access gap.

Nevada already recognizes that ordinary HOA fines should not generally support foreclosure. But the HSW exception undermines that principle. If a condition truly threatens health, safety, or welfare, the law should require direct cure, abatement, injunction, or code enforcement — not foreclosure over a fine.