AB 396 — Revises provisions relating to housing. (BDR 22-232)

(2)(e) RequireExcept separateas parkingotherwise forprovided thein accessorythis dwellingparagraph, unitprohibit or charge the owner an additional fee for approval of the accessoryresidential dwellingproperty unitfrom ifusing the accessory dwelling unit willas notrental havehousing. separate parking;

(3)The Requireordinance themay exteriorprohibit design,the roofowner pitchof orthe finishingresidential materialsproperty offrom using the accessory dwelling unit matchas thetransient primarylodging. residence;

- *AB396_R1* – 4 – (4) Require any side or rear setback for the accessory dwelling unit that is more than 5 feet from the property line;

(5) Require any regulations that are more restrictive than the regulations for the primary residence with regard to height, setback, lot size or lot coverage;

or (6) Require any improvement or repair to a public street unless such improvement or repair is necessary to reconstruct or repair a public street that is disturbed during the construction of the accessory dwelling unit;

(c) Must authorize the owner of the residential property to use the accessory dwelling unit as long-term rental housing;

(d) Must not prohibit the owner of the residential property from using or advertising the single-family residence or accessory dwelling unit as long-term rental housing;

and (e) Must not require that the owner of the residential property use the accessory dwelling unit for family members or other persons with whom the owner has a personal or employment relationship.

Except as otherwise provided in subsection 1, the governing body shall not require, as a condition for the approval of an accessory dwelling unit pursuant to the ordinance adopted pursuant to this section, any restrictive covenant.

4.

Any zoning regulation adopted by the governing body pursuant to NRS 278.250 must allow the addition of an accessory dwelling unit pursuant to the provisions of an ordinance adopted pursuant to this section.

5.

(b) Is not required to meet any building code or other code regulating the health and safety of commercial buildings, including, without limitation, any code that requires a fire sprinkler system in a commercial building.

6.4.

-5. *AB396_R1* – 5 – 7.

Any ordinance adopted pursuant to this section does not apply in a region in a county or city in this State for which there has been created by interstate compact a regional planning agency - 83rd Session (2025) – 4 – and the regional plan adopted by the regional planning agency calls for the regulation of housing.

8.6.

(a) “Accessory dwelling unit” means an independent living space that is built on the same lot as the primary residence on a residential property, regardless of whether the independent living space is attached, detached or built within the primary residence.

(b) “Affordability“Kitchen restriction”facilities” meansincludes, awithout limitlimitation, ona thesink, rentrefrigerator thatand ownera maysignificant chargecooking forappliance occupancysuch ofas the accessory dwelling unit or a limitrange, onstove the income for tenants for persons or familiesoven. seeking to qualify as tenants in the accessory dwelling unit.

(c) “Kitchen“Residential facilities”property” includes,means withouta limitation,property athat sink,is refrigeratorlocated andin aan significantarea cookingof appliancethe suchcounty or city, as aapplicable, range,zoned stove,for ovensingle-family orresidential microwave.use.

(d) “Long-term rental” means a rental period of 90 days or more.

(e) “Residential property” means a property that is located in an area of the county or city, as applicable, zoned for single-family residential use.

2.review must serve and file a memorandum of points and authorities within 40 days after an action is commenced.

A petitioner or cross-petitioner who is seeking judicial review must serve and file a memorandum of points and authorities within 40 days after an action is commenced.

- *AB396_R1* – 6 – 5.

All memoranda of points and authorities filed in proceedings involving petitions for judicial review must be in the form provided for- appellate83rd Session (2025) – 5 – Procedure.ate briefs in Rule 28 of the Nevada Rules of Appellate Procedure.7.

7.

ExceptWithin as otherwise provided in section 1 of this act, within the zoning district, it may regulate and restrict the erection, construction, reconstruction, alteration, repair or use of buildings, structures or land.

(b) To promote the conservation of open space and the protectionimpairment.of of other natural and scenic resources from unreasonable impairment.(c) To consider existing views and access to solar resources by studying the height of new buildings which will cast shadows on surrounding residential and commercial developments.

(c) To consider existing views and access to solar resources by studying the height of new buildings which will cast shadows on surrounding residential and commercial developments.

(h) To develop a timely, orderly and efficient arrangement of transportation and public facilities and services, including public access and sidewalks for pedestrians, and facilities and services for bicycles.bic(i) To ensure that the development on land is commensurate with the character and the physical limitations of the land.

(i)(j) To ensuretake thatinto account the developmentimmediate onand landlong-range isfinancial commensurateimpact withof the characterapplication of particular land to particular kinds of development, and the physicalrelative limitationssuitability of the land.land for development.

(j) To take into account the immediate and long-range financial impact of the application of particular land to particular kinds of - *AB396_R1* – 7 – development, and the relative suitability of the land for development.

- 83rd Session (2025) – 6 – (l) To ensure the development of an adequate supply of housing for the community, including the development of affordable housing.

(m) To ensure the protection of existing neighborhoods and communities, including the protection of rural preservation neighborhoods and, in counties whose population is 700,000 or more, the protection of historic neighborhoods.

(a) “Density bonus” means an incentive granted by a governing body to a developer of real property that authorizes the developer to build at a greater density than would otherwise be allowed under the master plan, in exchange for an agreement by the developer to perform certain functions that the governing body determines to be socially desirable, including, without limitation, developing an area to include a certain proportion of affordable housing.

Except as otherwise provided in NRS 116.21175, and except in cases of amendments that may be executed by a declarant under subsection 5 of NRS 116.2109 or NRS 116.211, or by the association under NRS 116.1107, 116.2106, - *AB396_R1* – 8 – subsection 3 of NRS 116.2108, subsection 1 of NRS 116.2112 or - 83rd Session (2025) – 7 – NRS 116.2113, or by certain units’ owners under subsection 2 of NRS 116.2108, subsection 1 of NRS 116.2112, subsection 2 of NRS 116.2113 or subsection 2 of NRS 116.2118, and except as otherwise limited by subsections 4, 6, 7 and 8, the declaration, including any plats, may be amended only by vote or agreement of units’ owners of units to which at least a majority of the votes in the association are allocated, unless the declaration specifies a different percentage for all amendments or for specified subjects of amendment.

No action to challenge the validity of an amendment adopted by the association pursuant to this section may be brought more than 1 year after the amendment is recorded.

5.be recorded by the association must be prepared, executed, recorded and certified on behalf of the association by any officer of the association designated for that purpose or, in the absence of designation, by the president of the association.

Amendments to the declaration required by this chapter to be recorded by the association must be prepared, executed, recorded and certified on behalf of the association by any officer of the association designated for that purpose or, in the absence of designation, by the president of the association.

8.- 83rd Session (2025) – 8 – the consent of a holder of a security interest in a unit, or an insurer or guarantor of such interest, as a condition to the effectiveness of an amendment to the declaration, that consent is deemed granted if:

If any provision of this chapter or of the declaration requires the consent of a holder of a security interest in a unit, or an insurer - *AB396_R1* – 9 – or guarantor of such interest, as a condition to the effectiveness of an amendment to the declaration, that consent is deemed granted if:

(a) Institutional lenders that regularly make loans secured by first mortgages on units in common-interest communities or regularlyreg(b) purchaseInsurance suchcompanies mortgages;that issue insurance policies to associations or units in a common-interest community.

or (b) Insurance companies that issue insurance policies to associations or units in a common-interest community.

The declaration may require a larger percentage of the total votes in the association for approval, but termination requires approval by at least 80 percent ofdeclaration themay votesspecify allocateda tosmaller unitspercentage notonly ownedif byall of the declarant.units are restricted exclusively to nonresidential uses.

The declaration may specify a smaller percentage only if all of the units are restricted exclusively to nonresidential uses.

An agreement to terminate and all ratifications thereof must be recorded - 83rd Session (2025) – 9 – in every county in which a portion of the common-interest community is situated and is effective only upon recordation.

In the case of a condominium or planned community containing only units having horizontal boundaries described in the declaration, an agreement to terminate may provide that all of the - *AB396_R1* – 10 – common elements and units of the common-interest communitycommunityl of the must be sold following termination.

Proceeds of the sale must be distributed to units’ owners and lienholders as their interests may appear,otherwise specified in accordancethe withagreement NRSto 116.21183terminate, as long as the association holds title to the real estate, each unit’s owner and 116.21185.his or her successors in interest have an exclusive right to occupancy of the portion of the real estate that formerly constituted the unit.

Unless otherwise specified in the agreement to terminate, as long as the association holds title to the real estate, each unit’s owner and his or her successors in interest have an exclusive right to occupancy of the portion of the real estate that formerly constituted the unit.

In a condominium or planned community, if the real estate constituting the common-interest community is not to be sold following termination, title to the common elements and, in a common-interest community containing only units having horizontal boundaries described in the declaration, title to all the real estate in the common-interest community, vests in the units’ owners upon termination as tenants in common in proportion to their - 83rd Session (2025) – 10 – respective interests as provided in NRS 116.21185, and liens on the units shift accordingly.

While the tenancy in common exists, each unit’s owner and his or her successors in interest have an exclusive right to occupancy of the portion of the real estate that formerly constitutedcon7.ituFollowing termination of the unit.common-interest community, the proceeds of a sale of real estate, together with the assets of the association, are held by the association as trustee for units’ owners and holders of liens on the units as their interests may appear.

7.

Following termination of the common-interest community, the proceeds of a sale of real estate, together with the assets of the - *AB396_R1* – 11 – association, are held by the association as trustee for units’ owners and holders of liens on the units as their interests may appear.

May be enforced by the association through the imposition offorth ain fineNRS only116.31031.ssociation if the association complies with the requirements set forthSec. in NRS 116.31031.

Sec.

or - 83rd Session (2025) – 11 – (b) Insurance companies that issue insurance policies to associations or units in a common-interest community.

[Unless, at the time a unit’s owner purchased his or her unit, the declaration required the unit’s owner to secure or obtain any approval from the association in order to rent or lease his or her unit, an association may not require the unit’s owner to secure or obtainobtainunit, any approval from the association in order to rent or lease his or her unit.

- *AB396_R1* – 12 – 3.

and (c)or Maysubmission notof chargeinformation.o a fee to the unit’s owner for the registration 5.] The provisions of this section do not prohibit an association from enforcing any provisions which govern the renting or submissionleasing of information.units and which are contained in this chapter or in any other applicable federal, state or local laws or regulations [.

5.] The provisions of this section do not prohibit an association from enforcing any provisions which govern the renting or leasing of units and which are contained in this chapter or in any other applicable federal, state or local laws or regulations [.

(a) If a unit’s owner is prohibited from renting or leasing a unit because the maximum number or percentage of units which may be rented or leased in the common-interest community have already been rented or leased, the unit’s owner may seek a waiver of the prohibition from the executive board based upon a showing of economic- hardship,83rd Session (2025) – 12 – waiver and approve the executiverenting boardor mayleasing grantof suchthe unit.uch a waiver(b) andIf approvethe declaration contains a provision establishing a maximum number or percentage of units in the rentingcommon-interest community which may be rented or leasingleased, in determining the maximum number or percentage of units in the unit.common-interest community which may be rented or leased, the number of units owned by the declarant must not be counted or considered.

(b)Sec. If the declaration contains a provision establishing a maximum number or percentage of units in the common-interest community which may be rented or leased, in determining the maximum number or percentage of units in the common-interest community which may be rented or leased, the number of units owned by the declarant must not be counted or considered.

- *AB396_R1* – 13 – Sec.

(b) A statement from the association setting forth the amount of the monthly assessment for common expenses and any unpaid amount of obligation of any kind, including, without limitation, management fees, transfer fees, fines, penalties, interest, collection costs, foreclosure fees and attorney’s fees currently due from the selling unit’s owner.

(e)fees Aassociated statementwith ofthe anyresale transferof fees,a transactionunit.ransaction fees or any other fees(f) associatedIn withaddition theto resaleany ofother document, a statement describing all current and expected fees or charges for each unit, including, without limitation, association fees, fines, assessments, late charges or penalties, interest rates on delinquent assessments, additional costs for collecting past due fines and charges for opening or closing any file for each unit.

(f) In addition to any other document, a statement describing all current and expected fees or charges for each unit, including, without limitation, association fees, fines, assessments, late charges or penalties, interest rates on delinquent assessments, additional costs for collecting past due fines and charges for opening or closing any file for each unit.

2.- 83rd Session (2025) – 13 – purchase until midnight of the fifth calendar day following the date of receipt of the resale package described in subsection 1, and the contract for purchase must contain a provision to that effect.

TheIf the purchaser may,elects byto writtencancel notice,a cancelcontract pursuant to this subsection, the contractpurchaser ofmust purchasehand untildeliver midnightthe notice of cancellation to the fifthunit’s calendarowner dayor followinghis or her authorized agent, mail the datenotice of receiptcancellation ofby prepaid United States mail to the resaleunit’s packageowner describedor inhis subsectionor 1,her andauthorized theagent contractor fordeliver purchasethe mustnotice containof acancellation provisionby electronic transmission to thatthe effect.unit’s owner or his or her authorized agent.

If the purchaser elects to cancel a contract pursuant to this subsection, the purchaser must hand deliver the notice of cancellation to the unit’s owner or his or her authorized agent, mail the notice of cancellation by prepaid United States mail to the unit’s owner or his or her authorized agent or deliver the notice of cancellation by electronic transmission to the unit’s owner or his or her authorized - *AB396_R1* – 14 – agent.

or (b) Damages, rescission or other relief based solely on the ground that the unit’s owner or his or her authorized agent failed to furnishsection.the the resale package, or any portion thereof, as required by this section.3.

3.

(a) The unit’s owner or his or her authorized agent shall include the documents and certificate in the resale package provided to the purchaser, and neither the unit’s owner nor his or her authorized agent is liable to the purchaser for any erroneous information provided by the association and included in the documents andandn certificate.

Such a fee must be based on the actual cost the association incurs to fulfill the requirements of this section in preparing the certificate and must not exceed $185, except that if a unit’s owner or an authorized agent thereof requests that the certificate be furnished sooner than 3 business days after the date of the- request,83rd theSession association(2025) may– charge14 a– fee, which must not exceed $100, to expedite the preparation of the certificate.

The amount ofofd the fee may increase, on an annual basis, by a percentage equal to the percentage of increase in the Consumer Price Index (All Items) published by the United States Department of Labor for the preceding calendar year, but must not increase by more than 3 percent each year.

If the association is unable to provide such documents in electronic format, the association may charge the unit’s owner a reasonable - *AB396_R1* – 15 – fee, not to exceed 25 cents per page for the first 10 pages, and 10 cents per page thereafter, to cover the cost of copying.

5.liable for any unpaid assessment or fee greater than the amount setis forth in the documents and certificate prepared by the association.

Neither a purchaser nor the purchaser’s interest in a unit is liable for any unpaid assessment or fee greater than the amount set forth in the documents and certificate prepared by the association.

The study must be made available at the business office of the association or some other suitable location within the county where the common-interest community is situated or, if it is situated in more than one county, within one of those counties.

Not later than 10 calendar days after receipt of a written request from the unit’s owner, the authorized agent of the unit’s owner or the holder of a security interest on the unit for a statement of demand, the association shall furnish a statement of demand to the person who requested the statement- and83rd provideSession a(2025) copy– of15 the– statement to any other interested party.

The association may charge a fee of not more than $165 totoested prepare and furnish a statement of demand pursuant to this subsection and an additional fee of not more than $100 to furnish a statement of demand within 3 business days after receipt of a written request for a statement of demand.

- *AB396_R1* – 16 – (a) Must set forth the amount of the monthly assessment for common expenses and any unpaid obligation of any kind, including, without limitation, management fees, transfer fees, fines, penalties, interest, collection costs, foreclosure fees and attorney’s fees currentlycur(b) dueRemains fromeffective for the sellingperiod specified in the statement of demand, which must not be less than 15 business days after the date of delivery by the association to the unit’s owner;owner, the authorized agent of the unit’s owner or the holder of a security interest on the unit, whichever is applicable.

and (b) Remains effective for the period specified in the statement of demand, which must not be less than 15 business days after the date of delivery by the association to the unit’s owner, the authorized agent of the unit’s owner or the holder of a security interest on the unit, whichever is applicable.

or (b) In an amount which exceeds any limit set forth in this section.sec9.on.If the association becomes aware of an error in a statement of demand furnished pursuant to subsection 7 during the period in which the statement of demand is effective but before the consummation of a resale for which a resale package was furnished pursuant to subsection 1, the association must deliver a replacement statement of demand to the person who requested the statement of demand.

9.Unless the person who requested the statement of demand receives a replacement statement of demand, the person may rely upon the accuracy of the information set forth in the statement of - 83rd Session (2025) – 16 – demand provided by the association for the resale.

If the association becomes aware of an error in a statement of demand furnished pursuant to subsection 7 during the period in which the statement of demand is effective but before the consummation of a resale for which a resale package was furnished pursuant to subsection 1, the association must deliver a replacement statement of demand to the person who requested the statement of demand.

Unless the person who requested the statement of demand receives a replacement statement of demand, the person may rely upon the accuracy of the information set forth in the statement of demand provided by the association for the resale.

116.785notice 1.and hearing, finds that the respondent has committed aer violation, the Commission or the hearing panel may take any or all of the following actions:

If the Commission or the hearing panel, after notice and hearing, finds that the respondent has committed a violation, the Commission or the hearing panel may take any or all of the following actions:

- *AB396_R1* – 17 – 2.

If the respondent violates any order issued by the Commission or the hearing panel pursuant to this section, the Commission or the hearing panel, after notice and hearing, may impose an administrative fine of not more than [$1,000] $5,000 for eacheac4.vioIf violation.the Commission or the hearing panel takes any disciplinary action pursuant to this section, the Commission or the hearing panel may order the respondent to pay the costs of the proceedings incurred by the Division, including, without limitation, the cost of the investigation and reasonable attorney’s fees.

4.

If the Commission or the hearing panel takes any disciplinary action pursuant to this section, the Commission or the hearing panel may order the respondent to pay the costs of the proceedings incurred by the Division, including, without limitation, the cost of the investigation and reasonable attorney’s fees.

10.5.

The Legislature hereby finds and declares:

- 83rd Session (2025) – 17 – 1.

That access to affordable housing is essential to the health, safety and economic and social well-being of the residents of this State;

and 2.

Accessory dwelling units are vital to increasing the supply of Sec.

1.1.housiIf, before July 1, 2026, the governing body of a county whose population is 100,000 or more or the governing body of a city whose population is 60,000 or more has adopted an ordinance that is consistent with the provisions of section 1 of this act, the governing body is not required to adopt another ordinance relating to accessory dwelling units pursuant to section 1 of this act.

If, before January 1, 2026, the governing body of a county whose population is 100,000 or more or the governing body of a city whose population is 60,000 or more has adopted an ordinance that is consistent with the provisions of section 1 of this act, the governing body is not required to adopt another ordinance relating to accessory dwelling units pursuant to section 1 of this act.

If the governing body of a county whose population is 100,000 or more or the governing body of a city whose population is 60,000 or more does not adopt an ordinance that is consistent with the provisions of section 1 of this act before JanuaryJuly 1, 2026, accessory dwelling units are authorized on any parcel zoned for residential use without restriction.

- *AB396_R1* – 18 – 2.

(a) Upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrativeyadministrative taskstas(b) thatOn areJuly necessary1, to2026, carryfor outall theother provisionspurposes.sions of this act;

and (b)~~~~~ On25 January- 1,83rd 2026,Session for(2025) all other purposes.

H - *AB396_R1*