AB38 - Revises various provisions relating to housing. (BDR 43-521)

- 83rd Session (2025) Assembly Bill No. 38–Committee on Commerce and Labor CHAPTER.......... AN ACT relating to housing; revising provisions governing manufactured homes, mobile homes, manufactured buildings, commercial coaches and factory-built housing; revising provisions relating to certain investigations by the Administrator; revising provisions governing the payment of certain claims from the Account for Housing Inspection and Compliance; revising provisions governing certain disclosures required to be made to a tenant by a landlord of a manufactured home park; revising requirements relating to the maintenance of lots by tenants in a manufactured home park; requiring a purchaser or transferee of a mobile home park to notify the Housing Division of the Department of Business and Industry of the sale or transfer; eliminating certain provisions relating to travel trailers; providing penalties; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law regulates various activities relating to manufactured homes, mobile homes, manufactured buildings, commercial coaches and factory-built housing. (Chapter 489 of NRS) Sections 1.3 and 24-28 of this bill make the requirements and prohibitions in existing law relating to trip permits applicable to manufactured buildings. (NRS 489.122, 489.611-489.661) Section 2 of this bill makes certain provisions in existing law relating to the issuance of certificates and labels of compliance applicable to manufactured buildings. (NRS 489.241, 489.461) Sections 3 and 14-18 of this bill make the requirements in existing law relating to regulations governing certain sales and the issuance of certificates of title by the Housing Division of the Department of Business and Industry applicable to manufactured buildings. (NRS 489.272, 489.531-489.581) Sections 4- 6 of this bill make the enforcement authority of the Division in existing law relating to notice of violations, orders to vacate and orders to stop work applicable to manufactured buildings. (NRS 489.291, 489.295, 489.297) Section 8 of this bill makes the provisions relating to advance fees in existing law applicable to sales of manufactured buildings and factory-built housing. (NRS 489.426) Existing law authorizes, in certain circumstances, and requires, upon receiving a complaint, the Administrator of the Division to investigate certain actions of a licensee or other person suspected to violate any provision of existing law regulating various activities relating to manufactured homes, mobile homes, manufactured buildings, commercial coaches and factory-built housing and take certain disciplinary action. (NRS 489.431) Section 8.5 of this bill: (1) provides, with certain exceptions, that the documents, files and communications made or received relating to such an investigation are confidential and not a public record; and (2) requires the Administrator, to the extent feasible, to communicate or cooperate with a licensing board or any other agency conducting an investigation relating to such acts. Section 39.7 of this bill makes a conforming change to indicate that such records are not public records. – 2 – - 83rd Session (2025) Existing law creates the Account for Housing Inspection and Compliance in the State General Fund and requires that this Account be administered by the Division. (NRS 319.169) Under existing law, a person is required to obtain a license from the Division to engage in the business of a dealer, distributor, manufacturer, general serviceperson, specialty serviceperson, salesperson or certain managing employee in connection with the sale, lease, distribution, alteration, repair, remodeling or manufacture of a manufactured home, mobile home, manufactured building or commercial coach or factory-built housing. (NRS 489.311, 489.341) Existing law provides a procedure pursuant to which certain persons who obtain judgments against such licensees for acts of fraud, misrepresentation or deceit made in connection with their licenses are authorized to make a claim for payment from the Account of any unpaid damages, subject to certain monetary limitations. (NRS 489.4971-489.4989) Sections 10 and 11 of this bill clarify that an eligible claimant for such a payment is not only a purchaser of a manufactured home, mobile home, manufactured building or commercial coach or factory-built housing but any person who entered into an agreement for the sale, purchase, lease, distribution, alteration, repair, remodeling or manufacture of such housing. Sections 10 and 11 also expand the actions regarding which such claims are authorized to be made to include any action against a licensee in which damages are recovered for an act or omission of the licensee that violates the laws governing manufactured homes, mobile homes, manufactured buildings, commercial coaches and factory-built housing. Additionally, sections 10 and 11 reorganize the existing procedure for making a claim for payment from the Account. Section 7 of this bill makes a conforming change to refer to a provision that has been renumbered by section 10. (NRS 489.325) Existing law sets forth certain requirements concerning the sale of a new, used or rebuilt manufactured home, mobile home, manufactured building or commercial coach or new, used or rebuilt factory-built housing. (NRS 489.501, 489.511, 489.521) If such a sale is conducted by a dealer, existing law requires the dealer to complete a report of sale in a form prescribed by the Division and submit the report of sale and certain other documents to the Division within certain time periods after the sale. (NRS 489.501, 489.511) Sections 12 and 13 of this bill require that the report of sale submitted to the Division be completed. Sections 19-23 of this bill make the provisions in existing law relating to the issuance of labels and certificates of installation applicable to manufactured buildings and commercial coaches. (NRS 489.591-489.5965) Section 29 of this bill makes the exemption of a dealer from property taxes for inventory in existing law applicable to the dealer’s inventory of manufactured buildings and factory-built housing. (NRS 489.711) Section 30 of this bill makes the requirements for offers to sell, buy or lease used manufactured homes, mobile homes and commercial coaches applicable to such offers for used manufactured buildings and factory-built housing. (NRS 489.715) Section 31 of this bill expands the forms of contracts in existing law that the Administrator is required to prescribe for use by a dealer to include contracts for the sale or listing for sale of a manufactured building or factory-built housing. (NRS 489.7152) Existing law: (1) authorizes the Division to investigate and audit any financial account related to the business of a dealer or distributor of a manufactured home, mobile home, manufactured building or commercial coach or factory-built housing to investigate potential insolvency or to administer or enforce any law; and (2) requires the Administrator to adopt regulations prescribing the scope of such an audit. (NRS 489.7235) Instead of investigating for potential insolvency, section 32 of this bill authorizes the Division to investigate whether the dealer or distributor violated laws governing manufactured homes, mobile homes, manufactured – 3 – - 83rd Session (2025) buildings, commercial coaches and factory-built housing. Section 32 also broadens the authority of the Division for adoption of the regulations to include the investigation and other related matters. Sections 33 and 35 of this bill expand the prohibition in existing law against a dealer commingling his or her money with money or other property of a seller or purchaser of a manufactured home or mobile home to apply to sales or purchases of manufactured buildings, commercial coaches and factory-built housing. (NRS 489.727, 489.821) Section 34 of this bill expands the prohibition against manufacturing a manufactured home, mobile home or commercial coach unless the components and system are constructed or assembled according to certain standards to include manufactured buildings and factory-built housing. (NRS 489.801) Existing law requires a landlord of a manufactured home lot or manufactured home park to: (1) provide certain written disclosures to each tenant, including certain contact information for the manufactured home park owner, manager, assistant manager and person authorized to receive service of process for the landlord; and (2) post or provide to each tenant the office hours or the landlord’s availability at the park. (NRS 118B.080) Section 37 of this bill revises such disclosure requirements to mandate certain contact information for the representative of the manufactured home park instead of the manager or assistant manager and adds to such disclosure requirements an electronic mail address, if available, for the manufactured home park and the person authorized to receive service of process for the landlord. Section 37 requires that the office hours be during regular business hours. Section 37 also requires that the manager or assistant manager of a manufactured home park consisting of 75 or more lots: (1) be available at the park location for a minimum of 8 hours each week during regular business hours; and (2) post such hours. Existing law authorizes a landlord or his or her agent or employee to require a tenant to landscape and maintain the tenant’s lot if the landlord advises the tenant in writing of reasonable requirements for landscaping. (NRS 118B.120) Section 38 of this bill changes the authority of the landlord regarding landscaping to only allow the landlord, with certain exceptions, to require the tenant to reasonably maintain the tenant’s lot to control weeds and any grass or other vegetation and only if the landlord had provided the tenant with 30 days’ advance written notice of the requirement. Existing law sets forth various requirements and restrictions relating to a mobile home park. (NRS 461A.215-461A.237) Section 40 of this bill requires a purchaser or transferee of a mobile home park to notify the Division of the sale or transfer of the park, in a form prescribed by the Division, within 10 business days after the sale or transfer. Section 40.5 of this bill repeals the definition of the term “travel trailer,” which has the effect of eliminating the applicability to travel trailers of the provisions of law regulating various activities relating to manufactured homes, mobile homes, manufactured buildings, commercial coaches and factory-built housing. Sections 1- 1.2, 1.4-2, 9, 28.5, 34-35 and 39.3 of this bill make conforming changes as a result of the elimination of the term. – 4 – - 83rd Session (2025) EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 489.021 is hereby amended to read as follows: 489.021 1. The Legislature finds that the construction, assembly and use of manufactured homes, mobile homes, [travel trailers,] manufactured buildings, commercial coaches and factory- built housing and their systems, components and appliances, and the alteration, transportation and installation of manufactured homes, mobile homes, manufactured buildings, commercial coaches and factory-built housing, like other products having concealed vital parts, may present hazards to the health, life and safety of persons and the safety of property unless they are properly manufactured, altered, transported and installed. 2. In the sale of manufactured homes, mobile homes, [travel trailers,] manufactured buildings, commercial coaches and factory- built housing, there is also the possibility of unascertained defects in them even though they are inspected by purchasers. 3. It is the policy and purpose of this State to protect the public against these hazards and to prohibit the manufacture, sale, distribution, alteration, transportation and installation in this State of manufactured homes, mobile homes, [travel trailers,] manufactured buildings, commercial coaches and factory-built housing which are not constructed in a manner which provides reasonable safety and protection to owners and users. 4. The Legislature further intends to provide a procedure to ensure that this State assumes the fullest responsibility for the administration and enforcement of federal safety and construction standards for manufactured homes in Nevada in accordance with the National Manufactured Housing Construction and Safety Standards Act of 1974, 42 U.S.C. §§ 5401 et seq. Sec. 1.1. NRS 489.115 is hereby amended to read as follows: 489.115 “Manufacturer” means every person, including, without limitation, a partnership, limited partnership, limited- liability partnership, limited-liability limited partnership or limited- liability company, or a corporation, engaged in the business of manufacturing manufactured homes, mobile homes, [travel trailers,] manufactured buildings, commercial coaches or factory-built housing. Sec. 1.2. NRS 489.120 is hereby amended to read as follows: 489.120 1. “Mobile home” means a structure which is: – 5 – - 83rd Session (2025) (a) Built on a permanent chassis; (b) Designed to be used with or without a permanent foundation as a dwelling when connected to utilities; and (c) Transportable in one or more sections. 2. The term includes the design of the body and frame and the plumbing, heating, air-conditioning and electrical systems of the mobile home. 3. The term does not include a recreational park trailer, [travel trailer,] commercial coach or manufactured home or any structure built in compliance with the requirements of chapter 461 of NRS. Sec. 1.3. NRS 489.122 is hereby amended to read as follows: 489.122 “Movement” means the act of towing, pushing or otherwise propelling a manufactured home, mobile home , manufactured building or commercial coach upon a highway or road. Sec. 1.4. NRS 489.125 is hereby amended to read as follows: 489.125 “New manufactured home,” “new mobile home,” [“new travel trailer,”] “new manufactured building,” “new commercial coach” or “new factory-built housing” means a manufactured home, mobile home, [travel trailer,] manufactured building or commercial coach or factory-built housing, respectively, which has never been sold at retail or occupied either before or after sale for the purpose intended by the manufacturer and has never been registered with or been the subject of a certificate of title issued by the appropria [Text truncated for display. Full text available on LegiScan.]