In Nevada, homeowners associations (HOAs) are primarily governed by the Nevada Revised Statutes (NRS) Chapter 116, which outlines the laws and regulations for common-interest communities. This framework includes provisions for the formation, operation, and governance of HOAs.
While many rumors suggest that HOAs have ultimate power and that no governing body regulates them, this is not true. HOAs in Nevada are subject to oversight from the Nevada Real Estate Division (NRED), which ensures compliance with state laws and protects homeowners' rights. This oversight includes enforcing regulations related to the management of common-interest communities and addressing complaints from homeowners. The Nevada Real Estate Division should be contacted as a last resort if communication or other issues cannot be resolved on your own and after significant efforts have been made to resolve the matter.
Each HOA operates under its own declaration of covenants, conditions, and restrictions (CC&Rs), which are specific rules set forth by each association to govern the community. These documents are created by the developer who built the community and provide guidelines for homeowners regarding property use, architectural standards, and community responsibilities.
Homeowners within the association elect a board of directors, who are also homeowners inside that community. The board typically hires a management firm to handle day-to-day operations, enforce rules, and provide resources to the board. Ultimately, the board makes decisions regarding community maintenance and finances. Both the board and the management company must act in accordance with state laws and the HOA's governing documents. The CC&Rs may designate the board to enforce HOA rules, and the board relies on the management company to ensure compliance with all regulations as outlined in the CC&Rs and NRS Chapter 116.