SB 426 — Revises provisions governing rent increases. (BDR 10-15)

(3) if the increase exceeds the cost-of-living increase, the reasonon which the landlordincrease isbecomes exempteffective.equirements from the requirements of section 4;

and (4) the date onTHE whichPEOPLE theOF increaseTHE becomesSTATE effective.OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

- *SB426* – 3 – THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Chapter 118A of NRS is hereby amended by adding thereto the provisions set forth as sections 21.5 to 6,6.5, inclusive, of this act.

1.5.

As used in sections 1.5 to 6.5, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 2 to 2.9, inclusive, of this act have the meanings ascribed to them in those sections.

Sec.

2.1.

“Dwelling unit” means any unit of real property, including the land appurtenant to such a unit that is rented or made available to rent for residential use or occupancy, including, without limitation, any housing services, common areas and recreational facilities held out by the landlord for use by the tenant.

Sec.

2.3.

“Housing services” means services connected with the use or occupancy of a dwelling unit, including, without limitation:

1.

Utilities, such as light, heat, water and telephone services;

2.

Ordinary repairs, replacements and maintenance, including, without limitation, painting;

Elevator services;

4.

Laundry facilities and privileges;

5.

Recreational facilities;

6.

Janitorial services;

7.

The provision of a resident manager;

8.

Refuse removal;

9 Furnishings;

10.

Food services;

11.

Parking;

and 12.

Any other benefits, privileges or facilities.

Sec.

2.4.

“Landlord” means a person who provides a dwelling unit for occupancy by another person pursuant to a rental agreement.

The term includes, without limitation:

TheAn Housingowner Division of therecord; Department of Business and Industry shall determine a maximum cost-of-living increase for each calendar year which must, except as otherwise provided in this subsection, be equal to the percentage increase from September 30 of the current year to September 30 of the immediately preceding year using the Consumer Price Index for All Urban Consumers, U.S.

2.

A lessor;

3.

A sublessor;

- *SB426_R1* – 4 – 4.

Any other person entitled to receive rent for the use or occupancy of any dwelling unit;

5.

An agent of the landlord;

6.

A representative of the landlord;

or 7.

Any successor of the foregoing.

Sec.

2.6.

“Rent” means the consideration demanded or received for or in connection with the use or occupancy of a dwelling unit and housing services, including, without limitation, any fee, deposit, bonus, benefit, gratuity, money or the fair market value of goods and services provided to the landlord under the rental agreement.

Sec.

2.8.

“Rental agreement” means a lease or contract, oral, written or implied, between the landlord and a tenant for the use and occupancy of a dwelling unit.

Sec.

2.9.

“Tenant” means a person entitled under a rental agreement to occupy a dwelling unit including, without limitation:

1.

A renter;

2.

A tenant;

3.

A subtenant;

4.

A lessee or sublessees;

5.

A successor to the interest of a tenant;

6.

A group of tenants, subtenants, lessees, or sublessees of a dwelling unit;

or 7.

Any other person entitled to the use or occupancy of a dwelling unit.

Sec.

3.

1.

The Housing Division of the Department of Business and Industry shall determine a maximum cost-of-living increase for each calendar year which must, except as otherwise provided in this subsection, be equal to the percentage increase from September 30 of the immediately preceding year to September 30 of the current year using the Consumer Price Index for All Urban Consumers, U.S.

The Legislature hereby finds and declares that the State of Nevada is experiencing a housing crisis because of the - *SB426_R1* – 5 – lack of affordable housing and excessive increases in the rent charged for rental housing in this State.

of2. this act, and in addition to the requirements of NRS 118A.300, a landlord shall not:

Except as otherwise provided in subsection 3 and section 5 of this act, and in addition to the requirements of NRS 118A.300, a landlord shall not:

(1) If there was an existing tenant in the dwelling unit, charge a rent that exceeds the maximum amount the landlord was - *SB426* – 4 – authorized to charge to an existing tenant in accordance with paragraph (a);

A landlord may apply to the Housing Division of the Department of Business and Industry for an exemption from the requirements of subsection 2 of section 4 of this act if an exemption is necessary for the landlord to obtain a fair and reasonable rate of return on his or her property,property. under the following circumstances:

(a)A The operating costs of the landlord exceedmay thenot amountincrease therent landlordabove would earn with the cost-of-living increase establishedwithout pursuantobtaining toan subsectionexemption 2from ofHousing sectionDivision 3to ofincrease thisrent. act;

(b)A The- *SB426_R1* – 6 – landlord makesmay capitalapply improvementsfor exemption pursuant to athis dwellingsubsection unit;under one or more of the following circumstances:

(c)(a) TheAn landlordadditional changesoccupant theis amountresiding andin quality of services offered by the landlord;dwelling unit;

(b) The landlord makes capital improvements to a dwelling unit that primarily benefit the tenant;

(c) The landlord changes the amount and quality of housing services attributable to the dwelling unit and included in the rental agreement;

(e) The landlord repairsor damagetenant tomakes auninsured dwellingrepairs; unit that was not caused by ordinary wear and tear;

or (f) Any other circumstanceincrease establishednecessary byto provide the Divisionlandlord inwith accordancea withjust theand regulationsreasonable adoptedreturn pursuant to subsectionthe 2.United States Constitution.

TheAn Divisionincrease shallin adoptrent regulationsgranted pursuant to carryparagraph out(a) the provisions of subsection 1.1 must not exceed 5 percent for each additional occupant.

-An *SB426*increase –in 5rent –for Sec.an additional occupant is applicable only for the period of time the additional occupant resides in the dwelling unit.

3.

An increase in rent granted pursuant to paragraph (b) of subsection 1 must not exceed 70 percent of the actual costs of the capital improvements attributable to the dwelling unit, plus imputed financing.

The cost of a capital improvement must be amortized over the useful life of the capital improvement as set forth by the Housing Division on an amortization schedule.

4.

The landlord shall serve the tenant with a written notice if the landlord applies to the Housing Division for an exemption pursuant to subsection 1.

The tenant may present evidence in support of or in opposition to the application of the landlord.

5.

The Housing Division shall adopt regulations to carry out the provisions of this section.

The regulations must include an amortization schedule for capital improvements pursuant to subsection 3.

As used in this section:

(a) “Additional occupant” means an occupant of a dwelling unit whose occupancy of the dwelling unit increases the total number of occupants above the number of occupants of which the landlord has knowledge.

The term does not include a spouse, registered domestic partner, parent, grandparent, child, adopted child, foster child, grandchild, caretaker or attendant that is required for a reasonable accommodation for an occupant with a disability.

(b) “Capital improvement” means an improvement to a dwelling unit or a common area accessible to a tenant that materially adds to the value of the property and appreciably - *SB426_R1* – 7 – prolongs the useful life of the dwelling unit.

The term does not include:

(1) The correction of serious code violations that were not created by the tenant;

(2) Improvements that bring the dwelling unit up to current building or housing codes;

(3) Improvements or repairs required because of deferred maintenance;

(4) Improvements that are substantially greater in character or quality than existing improvements, unless approved in writing by the tenant after disclosure of any related increase in rent;

and (5) Costs for which a landlord is reimbursed by a third party that is not the tenant, including, without limitation, insurance, court awarded damages, subsidies, tax credits and grants.

(c) “Uninsured repair” means a repair performed by a landlord or tenant to a dwelling unit or to the common area of the property or structure containing a dwelling unit:

(1) Which is performed for compliance with any federal, state or local law;

(2) To repair damage that is not the result of normal wear and tear;

or (3) To repair damage resulting from a fire, earthquake or other casualty or natural disaster, to the extent such repair is not reimbursed by insurance proceeds or other third-party reimbursement, including, without limitation, court awarded damages, subsidies, tax credits and grants.

Sec.

6.

7.6.5.

NRS1. 118A.020 is hereby amended to read as follows:

118A.020If Asa usedtenant inexerts thisany chapter,right unlessunder thesection context4, otherwise5 requires,or the6 terms defined in NRS 118A.030 to 118A.175, inclusive, and section 2 of this actact, have the meaningslandlord ascribedmay tonot, them in thoseretaliation: sections.

(a) Threaten to bring or bring an action to recover possession of the dwelling unit;

(b) Cause the tenant to quit the dwelling unit involuntarily;

- *SB426_R1* – 8 – (c) Serve the tenant with notice to quit the dwelling unit;

(d) Serve the tenant with notice of a termination of the tenancy;

(e) Decrease any housing services;

or (f) Increase rent.

2.

A showing by the tenant that the tenant complained in good faith to the landlord or a law enforcement agency of a violation of this section in the 6 months immediately preceding the alleged retaliatory act creates a rebuttable presumption that the action was retaliatory.

3.

Regardless of the applicability of the presumption created in subsection 2, evidence that the landlord acted in retaliation:

(a) Is a defense in any retaliatory action by a landlord for possession;

or (b) Is a basis for an action by the tenant to recover actual damages, any punitive damages that the facts may warrant or obtain injunctive relief.

7.

(Deleted by amendment.) Sec.

and - *SB426**SB426_R1* – 69 – (b) On July 1, 2024, for all other purposes.

H - *SB426**SB426_R1*