AB211 - Revises provisions relating to substandard properties. (BDR 20-811)

- 83rd Session (2025) Assembly Bill No. 211–Assemblymember Considine CHAPTER.......... AN ACT relating to property; requiring a county or city to require a property owner to repair or rehabilitate or abate certain conditions on a residential multifamily rental property under certain circumstances; establishing procedures relating to a property owner’s failure to repair or rehabilitate or abate certain conditions on the residential multifamily rental property; authorizing certain local governments and persons to bring an action to require the repair or rehabilitation or abatement or appoint a receiver for substandard property in certain circumstances; establishing the powers and duties of a receiver appointed for substandard property; making various other changes relating to substandard properties; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law: (1) requires a landlord to maintain a dwelling unit in a habitable condition at all times during the tenancy; and (2) provides that a dwelling unit is not habitable if it violates provisions of housing or health codes concerning the health, safety, sanitation or fitness for habitation. (NRS 118A.290) Sections 8 and 27 of this bill provide that: (1) if a residential multifamily rental property is maintained in a way that violates any applicable habitability standard, housing code or building code, or any statute or ordinance relating to habitability, building safety or fire safety; and (2) as a result of the violation or violations, the condition of the residential multifamily rental property is of such a nature that the health and safety of residents or the public are substantially endangered, the appropriate department of the county or city, as applicable, is required to notify the owner and order that the owner repair or rehabilitate the property or abate the condition. Sections 8 and 27 also set forth certain requirements for the notice. Sections 9 and 28 of this bill provide that if the owner of the residential multifamily rental property fails to comply with the terms of the notice and summary order issued by the county or city, as applicable, certain actions may be brought to have the residential multifamily rental property declared to be a substandard property, including an action to have a receiver appointed to manage the repair or rehabilitation of the substandard property. Sections 10 and 29 of this bill: (1) set forth certain findings and considerations that must be made by the district court in order to declare a residential multifamily rental property to be a substandard property; and (2) require an order issued by the district court declaring a residential multifamily rental property to be a substandard property to set forth the conditions that make the residential multifamily rental property a substandard property and the repairs, rehabilitations and abatements that are necessary to correct each violation of a habitability standard, housing code or building code, or any statute or ordinance relating to habitability, building safety or fire safety. Sections 11 and 30 of this bill provide that if the district court finds that there is a condition of the substandard property which substantially endangers the health and safety of the residents, the district court must: (1) order the owner of the substandard property to pay all reasonable and actual costs of the board of county commissioners or governing body of the city, as applicable; (2) order that the board – 2 – - 83rd Session (2025) of county commissioners or governing body of the city provide each tenant with notice of the judgment and court order; (3) under certain circumstances, order the owner to provide or pay certain relocation benefits and compensation to the tenants; (4) determine the date when a tenant has to relocate; and (5) make certain other orders. Sections 12 and 31 of this bill set forth certain duties for a receiver appointed for a substandard property. Sections 13 and 32 of this bill provide that a receiver appointed for a substandard property is entitled to the same fees, commissions and necessary expenses as a receiver in an action to foreclose a mortgage. Sections 14 and 33 of this bill require a receiver appointed for a substandard property to prepare and submit monthly reports to the board of county commissioners or governing body of a city and the board of county commissioners or governing body of a city to submit the reports annually to the Director of the Legislative Counsel Bureau for transmittal to the Legislature or Legislative Commission. Sections 15 and 34 of this bill: (1) require the district court to discharge the receiver for a substandard property under certain circumstances; and (2) authorize the district court to retain jurisdiction over the substandard property for a period of time not to exceed 18 consecutive months. Sections 16 and 35 of this bill authorize the district court to require the owner of a substandard property to pay all unrecovered costs associated with the receivership. Sections 17 and 36 of this bill provide that the remedies and penalties set forth in sections 2-18 and 21-37 of this bill are cumulative, may not be abrogated and are in addition to any other remedies or penalties that may exist in law or equity. Sections 18 and 37 provide that nothing in sections 2-18 and 21-37 is intended to deprive any owner of a residential multifamily rental property or substandard property any right guaranteed by the United States Constitution or Nevada Constitution, including, without limitation, the right to due process. Existing law authorizes a receiver to be appointed in certain actions and the Uniform Commercial Real Estate Receivership Act establishes provisions governing the appointment and powers of a receiver for real property. (NRS 32.010, 32.100-32.370) Section 19 of this bill authorizes a receiver to be appointed in an action to have a residential multifamily rental property declared to be a substandard property that is brought pursuant to section 10 or 29 to manage the repair or rehabilitation of the substandard property. Sections 10 and 29 also clarify that the Uniform Commercial Real Estate Receivership Act and any rules adopted pursuant thereto by the Nevada Supreme Court apply to a receiver appointed pursuant to section 10 or 29, as applicable. Sections 2-7 and 21-26 define certain terms used in the provisions of sections 2-18 and 21-37, respectively. – 3 – - 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. Chapter 244 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 18, inclusive, of this act. Sec. 2. As used in sections 2 to 18, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 to 7, inclusive, of this act have the meanings ascribed to them in those sections. Sec. 3. “Dwelling unit” means a structure or the part of the structure that is occupied as, or designed or intended for occupancy as, a residence or sleeping place by one person who maintains a household or by two or more persons who maintain a common household. Sec. 4. “Habitability standard” includes, without limitation: 1. Any provision of an applicable housing or health code concerning the health, safety, sanitation or fitness for habitation of a dwelling unit; or 2. The requirements of chapter 118A of NRS relating to the habitability of a dwelling unit, including, without limitation, the provisions of subsection 1 of NRS 118A.290. Sec. 5. “Receiver” means a receiver appointed by a district court as the court’s agent, and subject to the court’s direction, to take possession of, manage and, if authorized by court order, transfer, sell, lease, license, exchange, collect or otherwise dispose of receivership property in an action to declare a residential multifamily rental property to be a substandard property pursuant to section 10 of this act. Sec. 6. “Residential multifamily rental property” means a parcel of land in the unincorporated area of the county which is primarily used for personal, family or household purposes to which is affixed two or more dwelling units for occupancy by tenants on a rental basis. Sec. 7. “Substandard property” means a residential multifamily rental property that has been declared to be a substandard property by a district court pursuant to section 10 of this act. Sec. 8. 1. If the appropriate department of a county finds that: – 4 – - 83rd Session (2025) (a) A residential multifamily rental property is maintained in a way that violates any applicable habitability standard, housing code or building code, or any statute or ordinance relating to habitability, building safety or fire safety; and (b) As a result of the violation or violations described in paragraph (a), the condition of the residential multifamily rental property is of such a nature that the health and safety of residents or the public is substantially endangered,  the county shall notify the owner of the residential multifamily rental property and order that the owner repair or rehabilitate the residential multifamily rental property or otherwise abate the condition. 2. Any notice and order issued pursuant to subsection 1: (a) Must include, without limitation: (1) The name, address and telephone number of the county department that issued the notice and summary order; (2) The date, time and location of any public hearing or proceeding concerning the notice and summary order; (3) A description of each violation of a habitability standard, housing code or building code, or any statute or ordinance relating to habitability, building safety or fire safety, as applicable; (4) Any deadline by which the owner must repair or rehabilitate the residential multifamily rental property or otherwise abate the condition; (5) A description of: (I) The remedies authorized pursuant to section 9 of this act if the owner fails to comply with the terms of the notice and summary order; (II) The judicial relief required and authorized to be granted pursuant to section 11 of this act; and (III) The powers and duties of any appointed receiver pursuant to sections 12 to 16, inclusive, of this act; and (6) A statement that the owner or lessor, if applicable, is prohibited from retaliating against any tenant pursuant to NRS 118A.510; and (b) Must be posted in a conspicuous place on the residential multifamily rental property and mailed by certified mail to the owner and each affected resident of a dwelling unit on the residential multifamily rental property. Sec. 9. 1. If the owner of a residential multifamily rental property fails to comply with the terms of the notice and summary order issued pursuant to section 8 of this act: – 5 – - 83rd Session (2025) (a) The county may bring an action to: (1) Have the residential multifamily rental property declared by the district court to be a substandard property; (2) Obtain a court order requiring the owner to repair or rehabilitate the residential multifamily rental property or otherwise abate the condition; and (3) Have the district court impose a civil penalty against the owner of the residential multifamily rental property, as provided by ordinance; or (b) The county or a nonprofit organization representing any tenant or tenant association may bring an action to: (1) Have the residential multifamily rental property declared to be a substandard property; and (2) Have a receiver appointed pursuant to NRS 32.010. 2. A party who intends to bring an action for the appointment of a receiver pursuant to paragraph (b) of subsection 1 shall: (a) Not later than 30 days before filing such an action, provide notice of intent to bring the action by: (1) Posting a notice in a conspicuous place on the residential multifamily rental property; and (2) Mailing the notice to each person with a recorded interest in the residential multifamily rental property; and (b) Provide with the court filing: (1) Proof that the party provided the notice of intent to bring the action as required pursuant to paragraph (a); and (2) If the party is a nonprofit organization representing a tenant or tenant association, an affidavit provided by the department of the county that issued the notice and summary order pursuant to section 8 of this act in support of the court filing which must include, without limitation, a history of communications and any documentation relating to the provisions of section 8 of this act. The department of the county shall cooperate and timely provide the affidavit upon request of a nonprofit organization representing a tenant or tenant association. 3. A party who brings an action pursuant to subsection 1 must serve each owner of the residential multifamily rental property in the manner provided by Rule 4 of the Nevada Rules of Civil Procedure. 4. The district court may award reasonable attorney’s fees and costs to the prevailing party in an action brought pursuant to this section. Sec. 10. 1. To declare a residential multifamily rental property to be a substandard property, the district court must find: – 6 – - 83rd Session (2025) (a) The residential multifamily rental property is maintained in a way that violates one or more applicable habitability standards, housing codes or building codes, or any statute or ordinance relating to habitability, building safety or fire safety; and (b) The condition of the residential multifamily rental property that is caused by the violation or violations described in paragraph (a) is so extensive and of such a nature that the health and safety of the residents of the building or the public is substantially endangered. 2. In determining whether to appoint a receiver for a substandard property, the district court shall consider whether the owner of the substandard property has been afforded a reasonable opportunity to repair or rehabilitate the property or otherwise abate the condition. 3. The district court: (a) Except as otherwise provided in paragraph (b), may appoint a nonprofit organization, community development corporation or other person as a receiver. (b) Shall not appoint any nonprofit organization, community development corporation or person as a receiver unless the nonprofit organi [Text truncated for display. Full text available on LegiScan.]