AB 486 — Establishes provisions relating to property. (BDR S-1041)

EXEMPTAssembly (ReprintedBill withNo. amendments adopted on May 27, 2021) FIRST REPRINT A.B.

486486–Committee Aon SSEMBLYWays Band ILLNMeans O.CHAPTER..........

486–C OMMITTEE ON W AYS AND M EANS M AY 20, 2021 ____________ Referred to Committee on Ways and Means SUMMARY—Establishes provisions relating to property.

(BDR S-1041) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

temporarily requiring notices for certaindesignated proceedings for eviction proceedings to contain certain information;

LegExistingLegislative lawCounsel’s establishesDigest: provisions which govern landlords and tenants of dwelling units and manufactured homes.

(Chapters 118A and 118B of NRS) Existing law establishes provisions relatingwhich togovern summarylandlords proceedingsand fortenants theof evictiondwelling ofunits suchand tenants.manufactured homes.

(NRS(Chapters 40.215-40.425)118A Sectionand 1118B of thisNRS) billExisting defineslaw establishes provisions relating to summary proceedings for the certain terms for purposes of this bill, including the term “designated eviction proceeding,” defaultedwhich inrefers theto paymentcertain ofproceedings rent.gs relating to the eviction of tenants who have Sectiondefaulted 2in ofthe thispayment billof authorizesrent. a tenant to claim as an affirmative defense to a designated eviction proceeding that:

(1)Section the1 tenantof hasthis abill pendingprovides applicationthat forthe -provisions *AB486_R1*of –this 2bill –do applicationnot forapply rentalto assistanceproceedings orfor acceptevictions rentalrelating assistanceto: provided on behalf of the tenant.

(1) commercial provisions of this premises;

or (2) the sale of a premises or a nuisance.

Section 2 of this bill authorizes a tenant to claim as an affirmative defense to a rental assistance;

or (2) the landlord of the tenant refused to participate in the application for rental assistance or accept rental assistance provided on behalf of the tenant.

InIf assessingsuch thea affirmativedesignated defense,eviction sectionproceedings 2to authorizesmediation; a court to:

(1) refer the designated eviction proceedings to mediation;

If the claim relates to a pending application for rental assistance, section 2 requires the court to stay the proceedings until such time as a determination is made on the application for rental assistance.

Moreover,uchMoreover, if the court stays such proceedings, section 2 requires the court to dismiss the proceedings for eviction uponassistance theby granting of the applicationlandlord.plication for rental assistance and receipt of the rental If a tenant proves the claim that the landlord refused to participate in the application for rental assistance byor accept rental assistance on behalf of the landlord.tenant, section 2:

If a tenant proves the claim that the landlord refused to participate in the application for rental assistance or accept rental assistance on behalf of the tenant, section 2:

and (2) - 81st Session (2021) – 2 – authorizes the court to award damages to the tenant.

Additionally, in determining the award of such damages, section 2 requires the court to consider the degree of applicationharm forcaused rentalto assistance or accept the rental assistance.ipate in the Section 3 of this bill provides that if a landlord accepted rental assistance on behalf of a tenant whoby has defaulted in the paymentrefusal of rent and the landlord pursued, continued to pursueparticipate orin evicted the tenantapplication for any reason that existed or arose during the period of default for which the rental assistance was received by the landlord, the tenant or theaccept governmental entity who administered the rental assistanceassistance. may file a claim of wrongful eviction against the landlord.

Section 3 of this bill provides that if a landlord accepted rental assistance on behalf of a tenant who has defaulted in the payment of rent and the landlord arose during the period of default for which the rental assistance was received by the landlord, the tenant or the governmental entity who administered the rental assistance may file a claim of wrongful eviction against the landlord.

and (2) require the landlord to pay costs and attSectionattorney’s 3.5fees of this bill establishes similar provisions which provide that if a governmental entity brings any other cause of action relating to a landlord who accepted rental assistance on behalf of a tenant who has defaulted in the paymentplaintiff. of rent and the landlord pursued, continued to pursue or evicted a tenant for any reason that existed or arose during the period of default for which the rental assistance was received by the landlord, the governmental entity may be entitled to damages in an amount not to exceed the amount of rental assistance obtained by the landlord and is entitled to costs and attorney’s fees.

ExistingSection law3.5 authorizesof this bill establishes similar provisions which provide that if a courtgovernmental entity brings any other cause of action relating to staya proceedingslandlord forwho evictionaccepted againstrental assistance on behalf of a tenant who has defaulted in the payment of rent housingand programthe operatedlandlord bypursued, acontinued publicto housingpursue authorityor forevicted a tenant for any reason that existed or arose during the period of notdefault low-for morewhich thanthe 30rental daysassistance was received by the landlord, the governmental entity may be entitled to facilitatedamages ain programan amount not to exceed the amount of alternativerental disputeassistance resolutionobtained underby certainthe circumstances.landlord and is entitled to costs and attorney’s fees.

Existing law authorizes a court to stay proceedings for eviction against a tenant of any dwelling unit, apartment, mobile home, recreational vehicle or part of a low- more than 30 days to facilitate a program of alternative dispute resolution under certain circumstances.

(NRS 40.215-40.425) In addition to the existing requirements, section 5 of this bill requires the notice of a designated eviction proceeding to include information relating to rental assistance and the provisions of sections 2, 3 and 4.

organization,Section to6 create an electronic form which may be completed by a landlordor who wishes to obtain rental assistance on behalf of athis tenantbill whorequires: has defaulted in the payment of rent;

(1) Home Means Nevada, Inc., or its successor organization, to create an electronic form which may be completed by a landlord who wishes to obtain rental assistance on behalf of a tenant who has defaulted in the payment of rent;

Upon submission of the form by the landlord, section 6 requires Home Means Nevada, Inc., or its successor organization, to determine - *AB486_R1* – 3 – whether the landlord is an eligible landlord, meaning that the landlord:

(3) is domiciled in this State or employs a property managerpremises in this State;State of less than $4,000,000.

andIf (4)Home hasMeans anNevada, annualInc., grossor revenueits from the rental of all successor organization, determines that the landlord is an eligible landlord, section 6 requires Home Means Nevada, Inc., or its successor organization, to forward relevant information relating to the landlord and tenant to an appropriate housing or social service agency.

If the tenant is unresponsive or fails to apply to the program for rental assistance, section 6 requires the housing or social service agency to inform the eligible landlord of that fact and authorizes the eligible landlord to receivermreceive rental assistance, without the application of the tenant, if the eligible landlord agrees to certain conditions.

- 81st Session (2021) – 3 – Section 7 of this bill requires the disbursement of certain federal money in the amountlandlords.$5,000,000 of $5,000,000 for the purpose of providing rental assistance directly to landlords.Section 9 of this bill expires the provisions of sections 1-3.5, 5 and 6 on June 5, 2023.

JuneSection 5,9 2023.expires the provisions of section 4 on the earlier of:

Section 8 expires the provisions of section 4 on the earlier of: