Nevada § 116.31152 - Study of reserves; duties of executive board regarding study; qualifications of person who conducts study; contents of study; submission of summary of study to Division; use of money credited against residential construction tax for upkeep of park facilities and related improvements identified in study

§ 116.31152. Study of reserves; duties of executive board regarding study; qualifications of person who conducts study; contents of study; submission of summary of study to Division; use of money credited against residential construction tax for upkeep of park facilities and related improvements identified in study

1. The executive board shall: (a) At least once every 5 years, cause to be conducted a study of the reserves required

to repair, replace and restore 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; (b) At least annually, review the results of that study to determine whether those

reserves are sufficient; and (c) At least annually, make any adjustments to the association's funding plan which

the executive board deems necessary to provide adequate funding for the required reserves. 2. Except as otherwise provided in this subsection, the study of the reserves required

by subsection 1 must be conducted by a person who holds a permit issued pursuant to chapter 116A of NRS . If the common-interest community contains 20 or fewer units and is located in a

county whose population is less than 55,000, the study of the reserves required by

subsection 1 may be conducted by any person whom the executive board deems qualified

to conduct the study. 3. The study of the reserves must include, without limitation: (a) A summary of an inspection 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; (b) An identification 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 which have a remaining useful life of less than 30 years; (c) An estimate of the remaining useful life of each major component of the common

elements and any other portion of the common-interest community that the association

is obligated to maintain, repair, replace or restore identified pursuant to paragraph

(b); (d) An estimate of the cost of maintenance, repair, replacement or restoration of

each major component of the common elements and any other portion of the common-interest

community identified pursuant to paragraph (b) during and at the end of its useful

life; and (e) An estimate of the total annual assessment that may be necessary to cover the

cost of maintaining, repairing, replacement or restoration of the major components

of the common elements and any other portion of the common-interest community identified

pursuant to paragraph (b), after subtracting the reserves of the association as of

the date of the study, and an estimate of the funding plan that may be necessary to

provide adequate funding for the required reserves. 4. A summary of the study of the reserves required by subsection 1 must be submitted

to the Division not later than 45 days after the date that the executive board adopts

the results of the study. 5. If a common-interest community was developed as part of a planned unit development

pursuant to chapter 278A of NRS and is subject to an agreement with a city or county to receive credit against the

amount of the residential construction tax that is imposed pursuant to NRS 278.4983 and 278.4985 , the association that is organized for the common-interest community may use the

money from that credit for the repair, replacement or restoration of park facilities

and related improvements if: (a) The park facilities and related improvements are identified as major components

of the common elements of the association; and (b) The association is obligated to repair, replace or restore the park facilities

and related improvements in accordance with the study of the reserves required by

subsection 1.