NevadaAB39683rd Regular Session (2025)HouseWALLET

AN ACT relating to housing; requiring the governing body of certain counties and cities to adopt an ordinance to authorize the development and use of accessory dwelling units on residential property; setting forth certain requirements for the ordinance; providing that if the governing body of certain counties and cities does not adopt such an ordinance by July 1, 2026, accessory dwelling units are authorized on any parcel zoned for residential use without restriction; revising provisions relating to the amendment of a declaration or the termination of a common-interest community; requiring proof of certain insurance policies be furnished in a resale package to a purchaser of a unit in a common-interest community; increasing the fine that may be imposed by the Commission for Common-Interest Communities and Condominium Hotels for certain violations; making various other changes relating to common-interest communities; and providing other matters properly relating thereto.

Sponsored By: Shea M. Backus (Democratic)

Signed by Governor

BDR 22-232

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 2 costs, 2 mixed.

Much higher fines in HOA cases

Starting July 1, 2026, the state commission can fine up to $5,000 per violation in HOA cases. The same $5,000 cap applies to violations of commission or panel orders. You must receive notice and a hearing before any fine.

Stronger HOA rule and community safeguards

Starting July 1, 2026, HOA rules must match the governing documents and be reasonable, clear, and enforced the same for everyone. Any amendment to a community’s declaration takes effect only when it is recorded in every county where the community lies. Ending a community now needs at least 80% of all votes plus 80% of votes from non‑developer owners; a declaration may require more.

ADUs easier to add on homes

Local governments in counties (100,000+ people) and cities (60,000+ people) must allow accessory dwelling units (ADUs) on residential lots. If they do not act by July 1, 2026, ADUs are allowed by default on any residential parcel there. No more than two ADUs per lot are allowed. Local rules cannot ban separate kitchens, require more than one extra parking space, or set tighter side or rear setbacks than the main house. They also cannot require street work except to fix damage or protect health and safety, and they cannot ban long‑term renting of an ADU (short‑term stays may still be banned). ADUs must meet residential building and safety codes, not commercial codes like business‑grade sprinklers. Local governments may choose even simpler approval, like by building permit. Early, compliant local ordinances remain in place, and regions run by an interstate‑compact planning agency are exempt.

HOA rental limits tied to lenders

Starting July 1, 2026, if the community declaration allows rental limits, an HOA may restrict renting only as needed to meet mortgage‑lender or insurer underwriting. Developer‑owned units do not count toward any rental cap. Owners blocked by a full cap may ask the board for a waiver based on economic hardship. The law also lets HOAs amend their declarations to add leasing limits that match lender or insurer standards.

Buyers get HOA insurance details

Starting July 1, 2026, sellers must give buyers proof of the association’s required insurance in the resale packet. This does not apply if the sale requires a public offering statement or is exempt under NRS 116.4101(2). Buyers get clearer information about coverage before closing.

Faster court deadlines on zoning cases

A person who wants to challenge a final zoning or ADU decision must file in court within 25 days. The law also confirms ADU rules are part of local zoning powers. Local governments cannot use the state reimbursement law to get paid back for extra costs from this act.

Sponsors & Cosponsors

Sponsor

  • Shea M. Backus

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 41 • No: 22

Senate vote • 5/23/2025

Final Passage - Senate (2nd Reprint)

Yes: 14 • No: 7

House vote • 4/22/2025

Final Passage - Assembly (1st Reprint)

Yes: 27 • No: 15

Actions Timeline

  1. Chapter 365.

    6/6/2025legislature
  2. Approved by the Governor.

    6/6/2025legislature
  3. Enrolled and delivered to Governor.

    5/29/2025legislature
  4. Senate Amendment No. 697 concurred in. To enrollment.

    5/27/2025House
  5. In Assembly.

    5/26/2025House
  6. Read third time. Passed, as amended. Title approved, as amended. (Yeas: 14, Nays: 7.) To Assembly.

    5/23/2025Senate
  7. Taken from General File. Placed on General File for next legislative day.

    5/22/2025Senate
  8. Taken from General File. Placed on General File for next legislative day.

    5/21/2025Senate
  9. Taken from General File. Placed on General File for next legislative day.

    5/20/2025Senate
  10. From printer. To re-engrossment. Re-engrossed. Second reprint.

    5/20/2025Senate
  11. Read second time. Amended. (Amend. No. 697.) To printer.

    5/19/2025Senate
  12. Placed on Second Reading File.

    5/19/2025Senate
  13. From committee: Amend, and do pass as amended.

    5/19/2025Senate
  14. Read first time. Referred to Committee on Government Affairs. To committee.

    4/29/2025Senate
  15. In Senate.

    4/28/2025Senate
  16. To Senate.

    4/25/2025House
  17. From printer. To engrossment. Engrossed. First reprint.

    4/25/2025House
  18. To printer.

    4/22/2025House
  19. Read third time. Passed, as amended. Title approved. (Yeas: 27, Nays: 15.)

    4/22/2025House
  20. Dispensed with reprinting.

    4/21/2025House
  21. Read second time. Amended. (Amend. No. 250.)

    4/21/2025House
  22. Placed on Second Reading File.

    4/21/2025House
  23. From committee: Amend, and do pass as amended.

    4/21/2025House
  24. From printer. To committee.

    3/12/2025House
  25. Read first time. Referred to Committee on Commerce and Labor. To printer.

    3/11/2025House

Bill Text

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