Nevada § 116.3115 - 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

§ 116.3115. 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

1. Until the association makes an assessment for common expenses, 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 NRS 116.31151 . 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

subsections 1 and 2 of NRS 116.2107 . (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 and any other portion of the common-interest community that the association

is obligated to maintain, repair, replace or restore. The reserves may be used only for those purposes, including, without limitation,

repairing, replacing and restoring roofs, roads and sidewalks, 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 and any other portion of the common-interest

community that the association is obligated to maintain, repair, replace or restore

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 or any other portion

of the common-interest community that the association is obligated to maintain, repair,

replace or restore are necessary. Notwithstanding any provision of the governing documents to the contrary, to establish

adequate reserves pursuant to this paragraph, including, without limitation, to establish

or carry out a funding plan, the executive board may, without seeking or obtaining

the approval of the units' owners, impose any necessary and reasonable assessments

against the units in the common-interest community. Any such assessments imposed by the executive board must be based on the study of

the reserves of the association conducted pursuant to NRS 116.31152 . 3. Any assessment for common expenses or installment thereof that is 60 days or more

past due bears interest at a rate equal to the prime rate at the largest bank in Nevada

as ascertained by the Commissioner of Financial Institutions on January 1 or July

1, as the case may be, immediately preceding the date the assessment becomes past

due, plus 2 percent. The rate must be adjusted accordingly on each January 1 and July 1 thereafter until

the balance is satisfied. 4. Except as otherwise provided in the governing documents: (a) Any common expense associated with the maintenance, repair, restoration or replacement

of a limited common element must be assessed against the units to which that limited

common element is assigned, equally, or in any other proportion the declaration provides; (b) Any common expense benefiting fewer than all of the units or their owners, including,

without limitation, common expenses consisting of the payment, on behalf of a unit's

owner, of delinquent property taxes or utility charges owed by the unit's owner, may

be assessed exclusively against the units or units' owners benefited; and (c) 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 common-interest community 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 common-interest community, or if any other

common expense is caused by the willful misconduct or gross negligence of any unit's

owner, tenant or invitee of a unit's owner or tenant, the association may assess that

expense exclusively against his or her unit, even if the association maintains insurance

with respect to that damage or 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. The association of a common-interest community created before January 1, 1992,

is not required to make an assessment against a vacant lot located within the community

that is owned by the declarant. 8. 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. 9. 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.