SB 174 — Revises provisions governing common-interest communities. (BDR 10-610)

(Reprinted with amendments adopted on April 17, 2023) FIRST REPRINT S.B.

174–SENATORS HAMMOND , NEAL, GGOICOECHEA OICOECHEA; ;AND O HRENSCHALL FEBRUARY 16, 2023 ____________ JOINT SPONSOR :

OHRENSCHALL AND STONE FEBRUARY 16, 2023 ____________ JOINT SPONSOR :

revising provisions relatinggoverning to the exemption from licensure as a collection agencyof forcertain communityamounts managersdue ofto common-a interestunit-owner’s communities;association;

ExistingUnder lawexisting requires,law, witha certainunit-owner’s exceptions,association has a collectionlien agencyon toa beunit licensedfor bycertain foreclosure sale after the Commissionerassociation ofhas Financialsatisfied Institutions.certain conditions, including, without limitation:

(NRS(1) 649.075)mailing Aa collectionnotice agencyof isdelinquent definedassessment to includethe aunit’s communityowner manageror that,his whileor engagedher withsuccessor thein foreclosureinterest, ofwhich aincludes lien.certain information;

(NRSand 649.020)(2) However,executing existingand lawrecording furthered exempts a communitynotice managerof fromdefault theand requirementelection to besell licensednot asless athan collection30 agencydays ifafter themailing community manager collects debts, or contractsdelivering withthe anotice collectionof agencydelinquent toassessment. collect debts, included in the association’s lien.

(NRS 116.3116)116.3116- Thisexecutive billboard eliminatesor thisan exemptionofficer, toemployee, requireunit’s thatowner suchor community manager of an association, or any employee, agent or affiliate of a community managermanager, is not required to be a licensed asdebt collection agency or to contract with a licensed debt collection agency.agency to collect amounts due to the association before the association records a notice of default and election to sell.

-(NRS *SB174*116.3116) –This 2bill –provides THEinstead PEOPLEthat OFan THEassociation, STATEa OFmember NEVADA,of REPRESENTEDthe INexecutive SENATEboard ANDor ASSEMBLY,an DOofficer, ENACTagent ASor FOLLOWS:affiliate of a community manager, is not required to be a licensed debt collection agency or to contract with a licensed debt collection agency to collect amounts due to the association before the association mails a notice of delinquent assessment to the unit’s owner or his or her successor in interest.

- *SB174_R1* – 2 – THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

and - *SB174**SB174_R1* – 3 – (c) The costs incurred by the association to enforce the lien in an amount not to exceed the amounts set forth in subsection 5,  unless federal regulations adopted by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association require a shorter period of priority for the lien.

Notwithstanding any other provision of law, an association, [or]or a member of the executive board, or an officer, employee or unit’s owner of the associationassociation, [,] acting under the authority of this chapter or the governing documents of the associationassociation, [, or the community manager of the association, or any employee, agent or affiliate of the community manager, while engaged in the management of the common-interest community governed by the association,]association, is not required to be licensed as a collection agency pursuant to chapter 649 of NRS or hire or contract with a collection agency licensed pursuant to chapter 649 of NRS to collect amounts due to the association in accordance with subsection 1 before the -[recording] *SB174*mailing – 4 – recording of a notice of default[default and election to sellsell] delinquent - *SB174_R1* – 4 – assessment pursuant to paragraph (b)[(b)] (a) of subsection 1 of NRS 116.31162.

- *SB174**SB174_R1* – 5 – (b) In a cooperative where the owner’s interest in a unit is personal property under NRS 116.1105, the association’s lien:

H - *SB174**SB174_R1*