What Is NRS 116?

01The 30-second summary

NRS 116 (Nevada Revised Statutes Chapter 116), also known as the Common-Interest Communities Act, is Nevada's primary HOA law. It covers everything from how your board gets certified to how delinquent assessments get collected. If you own a home in a Nevada HOA or serve on its board, this is the law that shapes your daily experience — and it affects nearly every major HOA decision.

Why does NRS 116 exist?

Nevada's HOA industry grew rapidly in the 1990s and 2000s, especially in Las Vegas. Widespread abuses — mismanaged finances, unresponsive boards, aggressive collection practices — led to one of the most heavily regulated HOA frameworks in the country. Nevada is one of the few states with a dedicated government enforcement agency: the Nevada Real Estate Division (NRED) and its Ombudsman office, which can audit and investigate associations based on a single homeowner complaint.

02Why should homeowners care?

You might never read the full text of Nevada HOA law — and you don't need to. But there are specific moments when knowing your rights under Nevada HOA regulations makes a real difference. Here are the most common:

• You receive a collection letter with fees you don't recognize
• The board hasn't posted financial records online
• You want to file a complaint about your HOA
• You're asked to vote on a special assessment
• You need to inspect association records
• You receive a notice about board certification

In each of these situations, NRS Chapter 116 defines your rights and the HOA's obligations. Knowing the basics means you can ask the right questions before a situation escalates.

03Why should board members care?

If you're on a Nevada HOA board, NRS 116 determines how many of your routine decisions must be handled. Certification, filings, audits, records access, and collections all have rules attached to them.

The most common situations where the Act applies to board operations:

• Completing board certification within 90 days — it's not optional and NRED tracks it
• Filing Form 602 annually — this is how NRED knows your association exists
• Meeting the right financial audit tier — the threshold depends on your budget
• Maintaining a web portal — homeowners must have online access to records
• Following the collection process correctly — Nevada has some of the strictest fee caps in the country
• Keeping records audit-ready — NRED can investigate at any time based on a homeowner complaint (Form 530)

The key thing to understand: getting one of these wrong doesn't just create risk — it can trigger a formal NRED compliance investigation. Unlike most states, Nevada homeowners don't need to hire a lawyer to hold their board accountable — they can file a single form with the state.

04Common questions

Can my HOA charge unlimited collection fees?

No. Nevada has some of the strictest collection fee caps in the country under NAC 116.470. Total collection fees are capped, and the association must provide an itemized accounting. Many collection companies operating in Nevada charge fees that exceed these caps — boards should audit collection statements carefully.

Relevant law: NAC 116.470

Can my HOA foreclose using a super-priority lien?

Yes, and this is unique to Nevada. NRS 116.3116 creates a “super-priority lien” — a portion of delinquent assessments (typically 9 months of common assessments) that takes priority over even the first mortgage. This means the HOA's lien can survive a foreclosure of the bank's mortgage. It's one of the most powerful collection tools available to any HOA in any state.

Relevant law: NRS 116.3116

Can I file a complaint against my HOA with the state?

Yes. Nevada homeowners can file an Intervention Affidavit (Form 530) with NRED's Ombudsman office. This can trigger a formal compliance audit of the association. The process is free and doesn't require an attorney. It's one of the strongest homeowner protections in any state.

Relevant law: NRS 116.760

Does my HOA need a website?

Yes. NRS 116.31069 requires associations to maintain a website or web portal where homeowners can access governing documents, financial records, meeting minutes, and other required information. This isn't optional — it's a statutory requirement.

Relevant law: NRS 116.31069

Do board members need to be certified?

Yes. New board members must complete certification (training or a waiver process) within 90 days of taking office. The certification is filed with NRED via Form 602. Failure to certify doesn't automatically remove the board member, but it creates compliance exposure during an NRED audit.

Relevant law: NRS 116.31034

05Real-world scenarios

The surprise NRED audit

A homeowner in a 120-unit Las Vegas community is frustrated that the board won't share financial records. She files Form 530 with the Ombudsman's office. Three weeks later, the board receives a letter from NRED's Compliance Section requesting a complete set of records — meeting minutes, financial statements, Form 602 certifications, and the reserve study. Two board members never completed certification. The records are disorganized. The association faces compliance findings that take months to resolve.

What the homeowner did right: used the free state complaint process instead of hiring a lawyer.

What the board should have done: maintained audit-ready records and ensured all board members completed certification within 90 days.

The collection fee dispute

A homeowner falls behind on assessments by $1,200. The HOA's collection company sends a demand letter showing $3,400 owed — the original balance plus $2,200 in collection fees, attorney fees, and interest. The homeowner requests an itemized breakdown. Several of the fees exceed the caps set by NAC 116.470. The homeowner files a complaint, and the excess fees are reversed.

What the homeowner did right: requested an itemized statement and knew about fee caps.

What the board should have done: audited the collection company's fee schedule against NAC 116.470 before authorizing escalation.

06What homeowners should remember

• You can file a free complaint with the state Ombudsman (Form 530)
• Your HOA must provide online access to records and documents
• Collection fees are capped — request an itemized statement if fees seem excessive
• Board members are required to complete certification
• Open meeting requirements apply — you generally have a right to attend board meetings
• The super-priority lien gives your HOA significant collection power — don't ignore delinquency notices

07What board members should remember

• Complete board certification within 90 days of taking office
• File Form 602 with NRED annually
• Maintain a web portal with required documents accessible to homeowners
• Audit your collection company's fees against NAC 116.470 caps
• Keep records organized and audit-ready — NRED can investigate at any time
• Meet the correct financial audit tier based on your association's budget size

08Relevant laws

Here's a quick-reference table for the NRS 116 provisions covered in this article. All citations are to the Nevada Revised Statutes and Nevada Administrative Code.

FAQFrequently asked questions

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