Division to Begin Enforcement of HOA Registration

Time is running out for homeowners associations that have failed to register with the state. The Real Estate Division announced it would begin to enforce penalties against common-interest communities that are in arrears on their annual fees.

Nevada requires all common-interest communities to register each year with the Office of the Ombudsman, submitting a $3 fee per door in accordance with Nevada Revised Statute 116.31155. Registration and payment is due in the Ombudsman's office by the last day of the month in which the association incorporated with the Secretary of State. 

NRS 116.31155(4) authorizes the Administrator of the Real Estate Division to impose an administrative penalty against an association or master association that fails to pay the fees it owes within the time period established by the division. The penalty for each violation is 10 percent of the total fees owed or $500, whichever is less.

In addition, the amount of the unpaid fees owed bears interest at a rate set forth in NRS 99.040 from the date the fees are due until the fees are paid in full.

The administrator intends to implement this provision on January 1, 2008. Associations will need to review their financial records to determine whether or not they are current in the required fees. The division will send out a letter to the last address listed for each association, providing a 30-day notice of the enforcement of this statute.