Power of executive board to impose fines and other sanctions for violations of governing documents; procedural requirements; continuing violations; collection of past due fines.
1. Except as otherwise provided in this section, if a unit’s owner or a tenant or guest of a unit’s owner violates any provision of the governing documents of an association, the executive board of the association may, if the governing documents so provide:
(a) Prohibit, for a reasonable time, the unit’s owner or the tenant or guest of the unit’s owner from:
(1) Voting on matters related to the common-interest community.
(2) Using the common elements. The provisions of this subparagraph do not prohibit the unit’s owner or the tenant or guest of the unit’s owner from using any vehicular or pedestrian ingress or egress to go to or from the unit, including any area used for parking.
(b) Impose a fine against the unit’s owner or the tenant or guest of the unit’s owner for each violation, except that a fine may not be imposed for a violation that is the subject of a construction penalty pursuant to NRS 116.310305. The fine must be commensurate with the severity of the violation, but must not exceed $100 for each violation or a total amount of $500, whichever is less. The limitations on the amount of the fine do not apply to any interest, charges or costs that may be collected by the association pursuant to this section if the fine becomes past due.
2. The executive board may not impose a fine pursuant to subsection 1 unless:
(a) Not less than 30 days before the violation, the person against whom the fine will be imposed had been provided with written notice of the applicable provisions of the governing documents that form the basis of the violation; and
(b) Within a reasonable time after the discovery of the violation, the person against whom the fine will be imposed has been provided with:
(1) Written notice specifying the details of the violation, the amount of the fine, and the date, time and location for a hearing on the violation; and
(2) A reasonable opportunity to contest the violation at the hearing.
3. The executive board must schedule the date, time and location for the hearing on the violation so that the person against whom the fine will be imposed is provided with a reasonable opportunity to prepare for the hearing and to be present at the hearing.
4. The executive board must hold a hearing before it may impose the fine, unless the person against whom the fine will be imposed:
(a) Pays the fine;
(b) Executes a written waiver of the right to the hearing; or
(c) Fails to appear at the hearing after being provided with proper notice of the hearing.
5. If a fine is imposed pursuant to subsection 1 and the violation is not cured within 14 days, or within any longer period that may be established by the executive board, the violation shall be deemed a continuing violation. Thereafter, the executive board may impose an additional fine for the violation for each 7-day period or portion thereof that the violation is not cured. Any additional fine may be imposed without notice and an opportunity to be heard.
6. If the governing documents so provide, the executive board may appoint a committee, with not less than three members, to conduct hearings on violations and to impose fines pursuant to this section. While acting on behalf of the executive board for those limited purposes, the committee and its members are entitled to all privileges and immunities and are subject to all duties and requirements of the executive board and its members.
7. The provisions of this section establish the minimum procedural requirements that the executive board must follow before it may impose a fine. The provisions of this section do not preempt any provisions of the governing documents that provide greater procedural protections.
8. Any past due fine:
(a) Bears interest at the rate established by the association, not to exceed the legal rate per annum.
(b) May include any costs of collecting the past due fine at a rate established by the association. If the past due fine is for a violation that does not threaten the health, safety or welfare of the residents of the common-interest community, the rate established by the association for the costs of collecting the past due fine:
(1) May not exceed $20, if the outstanding balance is less than $200.
(2) May not exceed $50, if the outstanding balance is $200 or more, but is less than $500.
(3) May not exceed $100, if the outstanding balance is $500 or more, but is less than $1,000.
(4) May not exceed $250, if the outstanding balance is $1,000 or more, but is less than $5,000.
(5) May not exceed $500, if the outstanding balance is $5,000 or more.
(c) May include any costs incurred by the association during a civil action to enforce the payment of the past due fine.
9. As used in this section:
(a) “Costs of collecting” includes, without limitation, any collection fee, filing fee, recording fee, referral fee, fee for postage or delivery, and any other fee or cost that an association may reasonably charge to the unit’s owner for the collection of a past due fine. The term does not include any costs incurred by an association during a civil action to enforce the payment of a past due fine.
(b) “Outstanding balance” means the amount of a past due fine that remains unpaid before any interest, charges for late payment or costs of collecting the past due fine are added.
Last modified: February 27, 2006