This checklist is informational only and does not constitute legal advice. NRS Chapter 116, NRS Chapter 116A, and NRED regulations are updated regularly — information here reflects our understanding as of June 2026. Verify all requirements against current Nevada statutes and NRED guidance. Consult qualified Nevada HOA counsel before making compliance decisions.
In Nevada, maintaining “adequate” reserves to repair and replace major community assets is a strict statutory mandate. Under NRS § 116.31152, homeowners' associations must conduct professional reserve studies and actively manage their reserve funding.
Failing to perform a timely study, hiring an unlicensed preparer, or failing to file the required summary with the Nevada Real Estate Division (NRED) can lead to Ombudsman investigations, invalidation of reserve assessments, and claims of fiduciary breach against board members.
Section 01Timing, Frequency & NRED Form 609 Filing
Nevada law establishes exact deadlines for conducting reserve studies and notifying the state. All three requirements below are independently enforceable.
A full reserve study, including an on-site visual inspection of all major common elements, must be conducted at least once every 5 years.
Simply updating financial figures or inflation metrics in a spreadsheet does not reset the 5-year statutory clock. A physical on-site inspection is legally required.
The executive board must review the reserve study results at least annually to determine whether the funding plan remains adequate or requires assessment adjustments. Document the review and its conclusions in board meeting minutes.
The board must file a completed Reserve Study Summary (NRED Form 609) with NRED no later than 45 days after the board formally adopts the study results.
File Form 609 and the study summary directly with NRED. Verify the current submission address or email at red.nv.gov before filing — NRED contact details are updated periodically.
Section 02Reserve Specialist Qualifications
To ensure reserve studies are conducted objectively, Nevada requires associations to hire licensed professionals under NRS Chapter 116A.
Confirm that the individual conducting the reserve study holds a valid Reserve Study Specialist (RSS) permit issued by NRED under NRS Chapter 116A.
Verification step: Request the preparer's license number and verify its active status on the NRED license database at red.nv.gov before engaging the vendor.
Associations with 20 or fewer units located in a county with a population of 50,000 or fewer may be exempt from the RSS permit requirement — the study may be conducted by any person the board deems qualified.
The unit-count and population thresholds for this exception should be confirmed against the current text of NRS Chapter 116A and current NRED guidance before relying on the exemption. Thresholds can change with legislative updates.
Maintaining component lists, warranty dates, vendor contracts, and Form 609 filings is a major administrative burden for volunteer boards. Zorex keeps your asset records and reserve documents organized in one place — audit-ready year-round.
Try Zorex free for 14 daysSection 03Mandatory Annual Budget Disclosures
Nevada associations must disclose the financial health of their reserve accounts to homeowners every year as part of the annual budget distribution. These disclosures must be sent to all owners as part of the annual budget ratification package — typically 30 to 60 days before the start of the fiscal year. Verify the exact delivery deadline in your governing documents and current NRS 116 requirements.
The current amount of cash reserves actually held in the association's reserve accounts as of the disclosure date.
The estimated amount of reserves necessary to fund future repairs, calculated based on the useful lives and remaining useful lives of the common elements as determined by the reserve study.
The ratio of actual reserve cash to the recommended level, expressed as a percentage:
If the funding level is less than 100%, the board must disclose a detailed plan to resolve the deficiency — such as increasing regular dues, scheduling reserve assessments, or securing a loan. Vague or absent remediation plans are a common NRED audit finding.
An itemized list of all major common elements with:
- Estimated useful life
- Estimated remaining useful life
- Estimated current cost of repair or replacement
Section 04The Board's Unilateral Funding Powers
One of the most powerful provisions in Nevada HOA law protects boards from having to put essential reserve funding to a community-wide vote under NRS 116.3115.
If the board determines that the reserve fund is inadequate based on the reserve study, the board may levy necessary and reasonable reserve assessments without a vote of the unit owners.
Homeowners cannot vote down assessments deemed necessary to fund reserves in accordance with a professional reserve study. This provision is designed to prevent boards from deferring critical maintenance to appease voters.
When levying a unilateral reserve assessment, the board must document in meeting minutes:
- The specific reserve study findings that support the need
- The amount of the assessment and the funding gap being addressed
- The board vote authorizing the levy
Proper documentation protects individual board members from fiduciary breach claims if the assessment is later challenged by an owner.
While owners cannot block a reserve assessment outright, Nevada law provides petition mechanisms through which owners can challenge board actions. Consult Nevada HOA counsel on the current petition thresholds and procedures before levying a significant unilateral assessment to ensure the process is bulletproof.
Don't wait for your next 5-year inspection to get your records in order.
Zorex HOA helps Nevada boards maintain an audit-ready asset and document registry year-round — so the board is always prepared for the reserve study specialist and always able to respond to an NRED records request on the same day it arrives.
- Vendor & asset registry — track purchase dates, warranties, repair logs, and costs
- Document vault — archive reserve study reports and Form 609 filings in a searchable system of record
- Owner portal — share reserve summaries inside the secure homeowner portal, satisfying Nevada's 150+ unit website mandate
Not legal advice. Reviewed for accuracy June 2026. NRS Chapter 116, NRS Chapter 116A, and NRED regulations are updated regularly — verify all requirements against current Nevada statutes and NRED guidance before making compliance decisions.