AB223 - Revises provisions relating to the habitability of rental property. (BDR 10-684)

- 83rd Session (2025) Assembly Bill No. 223–Assemblymembers Considine; Anderson, Karris, Mosca, Roth and Watts CHAPTER.......... AN ACT relating to real property; authorizing a tenant whose landlord fails to remedy a failure to maintain a dwelling unit in a habitable condition to file a verified complaint for expedited relief; revising certain provisions relating to the content of written rental agreements; revising provisions relating to the payment of rent; revising provisions relating to requirements for habitability; revising provisions relating to the remedies a tenant is authorized to pursue if a landlord fails to remedy certain breaches or failures relating to habitability; providing that certain items and services constitute essential items and services for purposes of such provisions; revising the amounts which a tenant is authorized to recover from a landlord who takes certain unlawful actions or fails to make required disclosures; requiring a landlord to, under certain circumstances, provide a tenant who has terminated a rental agreement with a reasonable length of time to gather his or her belongings; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Section 3 of this bill defines the term “loss of value” for purposes of the provisions set forth in existing law governing the relationship between landlords and tenants. (Chapter 118A of NRS) Existing law requires a written rental agreement to contain provisions relating to certain subjects, including certain information concerning the contact information of the landlord or his or her authorized representative. (NRS 118A.200) Section 6 of this bill requires the electronic mail address of the landlord or his or her authorized representative to be included in such provisions. Existing law provides that the absence of a written agreement raises certain disputable presumptions, including a presumption that maintenance and waste removal services are provided without charge to the tenant. (NRS 118A.200) Section 6 additionally includes the provision of utility services at no charge to the tenant in such a presumption. Existing law sets forth certain provisions governing the payment of rent by a tenant and the delivery of certain signed written receipts to a tenant. (NRS 118A.210, 118A.250) Section 8 of this bill requires a landlord to provide a written receipt to a tenant upon the receipt of each payment of rent. Existing law requires a landlord, at all times during a tenancy, to maintain a dwelling unit in a habitable condition and provides that a dwelling unit is not habitable if it violates provisions of certain housing or health codes or if it substantially lacks certain things, including floors, walls, ceilings, stairways and railings which are maintained in good repair. (NRS 118A.290) Section 9 of this bill additionally provides that a dwelling unit is not habitable if it substantially lacks: (1) doors and windows which are maintained in good repair; (2) effective measures in place to control the presence of rodents, insects and vermin; (3) effective – 2 – - 83rd Session (2025) measures in place to prevent exposure to unsafe levels of radon, lead paint, asbestos, toxic mold and other hazardous substances; (4) in the dwelling unit and any other part of the areas on the premises under the landlord’s control, locks which are maintained in good repair on all exterior doors and all windows which are capable of being opened; and (5) safety equipment which is required by law to be included in the dwelling unit maintained in good working order. Existing law requires, if a landlord fails to comply with a rental agreement, a tenant to deliver a written notice to the landlord specifying the acts and omissions constituting the breach and stating that the rental agreement will be terminated. Existing law further authorizes, if the landlord fails to remedy the breach or make a reasonable effort to do so within 14 days after receipt of the notice, a tenant to: (1) terminate the rental agreement immediately; (2) recover actual damages; and (3) apply to the court for such relief as the court deems proper under the circumstances. (NRS 118A.350) Section 10 of this bill authorizes the tenant to terminate the rental agreement without incurring any fee which is assessed by the landlord for the early termination of a rental agreement and authorizes the tenant to additionally provide the landlord with written notice of the intent of the tenant to terminate the rental agreement on a date which is not later than 60 days after the date the notice is provided to the landlord. Sections 11 and 12 of this bill similarly authorize tenants whose landlords have failed to maintain a dwelling unit in a habitable condition or supply essential items and services to terminate a rental agreement in this manner. (NRS 118A.355, 118A.380) Existing law further prohibits a tenant from taking certain remedial actions if the breach is remediable and the landlord adequately remedies the breach or uses his or her best efforts to remedy the breach within 14 days after receipt of the notice. (NRS 118A.350) Section 10 instead provides that a tenant is prohibited from taking such remedial actions if the breach is remediable and the landlord remedies the breach within the prescribed time. Existing law additionally prohibits a tenant from taking such remedial actions unless the tenant has provided the landlord with certain notice but authorizes the tenant to recover actual damages without such notice if the landlord: (1) admits to the court that the landlord had knowledge of the condition constituting the breach; or (2) has received written notice of that condition from a governmental agency authorized to inspect for violations of building, housing or health codes. (NRS 118A.350) Section 10 instead authorizes the tenant to recover actual damages without providing such notice if the landlord: (1) received written notice of that condition from such a governmental agency; or (2) had actual knowledge of the condition constituting the breach. Sections 11 and 12 similarly, for tenants whose landlords have failed to maintain a dwelling unit in a habitable condition or supply essential items and services: (1) remove language which would prohibit such tenants from taking certain remedial actions if the landlord has failed to adequately remedy the failure or used his or her best efforts to remedy the concern; and (2) revise the circumstances under which a tenant is authorized to take certain remedial actions without providing notice. (NRS 118A.355, 118A.380) Existing law authorizes a tenant whose landlord has failed to maintain a dwelling unit in a habitable condition to take certain remedial actions if a landlord fails to adequately remedy the failure or use his or her best efforts to remedy the failure within a certain period of time. (NRS 118A.355) Section 4 of this bill authorizes a tenant, in addition to such remedial actions, to file a verified complaint for expedited relief with the court and sets forth procedures relating to the filing, hearing and disposition of such a verified complaint. Section 4 also: (1) authorizes a tenant who files such a verified complaint to withhold any rent that becomes due without incurring late fees, charges for notice or certain other charges until the – 3 – - 83rd Session (2025) landlord has remedied the failure; (2) authorizes the court to order that such rent be placed into an escrow account which is maintained or approved by the court; and (3) requires the payment of all costs and official fees for any tenant who files such a verified complaint to be deferred and later assessed against the party that does not prevail. Section 17 of this bill authorizes a tenant to provide a copy of the notice provided to a landlord to a district board of health for purposes of certain provisions relating to the inspection of and administrative proceedings concerning health hazards, in addition to any remedy provided in section 4. Existing law further requires justice courts to establish by local rule a mechanism by which tenants that withhold rent under such circumstances may deposit such rent into an escrow account maintained or approved by the court. (NRS 118A.355) Section 11: (1) requires such rules to additionally provide for the deposit of rent withheld pursuant to section 4; and (2) prohibits a court from releasing any money deposited into such accounts until the time period to file an appeal has run. Existing law authorizes, under certain circumstances, a tenant to withhold any rent that becomes due without incurring certain charges until the landlord has remedied, or has attempted in good faith to remedy, certain failures to maintain a dwelling in a habitable condition. Existing law further provides that a tenant who takes such actions does not have a defense to an eviction unless the tenant has deposited the withheld rent into an escrow account maintained or approved by the court. (NRS 118A.355) Section 11 instead provides that a tenant does not have such a defense unless: (1) he or she has deposited the withheld rent minus any applicable loss of value, into such an escrow account; or (2) the court determines, at the time of the hearing, that the tenant has otherwise retained or is capable of paying the withheld rent minus any applicable loss of value. Existing law additionally prohibits a tenant whose landlord has failed to maintain a dwelling unit in a habitable condition from taking certain remedial actions if the condition was caused by the tenant’s own deliberate or negligent act or omission or that of a member of his or her household or other person on the premises with his or her consent. (NRS 118A.355) Section 11 prohibits such a tenant from taking such remedial actions, including filing a verified complaint for expedited relief pursuant to section 4, if the condition was proven, by clear and convincing evidence, to have been caused by the tenant’s own deliberate or negligent act or omission or that of a member of his or her household or other person on the premises with his or her consent who is not another tenant, or guest thereof, on the premises pursuant to a separate rental agreement. Section 12 similarly prohibits a tenant whose landlord has willfully or negligently failed to supply essential items or services from taking certain remedial actions under such circumstances. (NRS 118A.380) Existing law authorizes a tenant to take certain remedial actions if his or her landlord willfully or negligently fails to supply essential items or services and by doing so, caused the premises to become unfit for habitation. Existing law further provides a nonexhaustive list of certain items and services which constitute essential items or services, including, heat, air-conditioning, running water, hot water, electricity, gas and a functioning door lock. (NRS 118A.380) Section 12 includes in such a list a functioning window lock and functional safety equipment. Existing law authorizes a tenant to take certain actions and recover actual damages or an amount not greater than $2,500 which is fixed by a court, or both, if a landlord: (1) unlawfully removes the tenant from the premises or excludes the tenant by blocking or attempting to block the tenant’s entry upon the premises; (2) willfully interrupts or causes or permits the interruption of any essential item or service required by the rental agreement or by law; or (3) recovers possession of the – 4 – - 83rd Session (2025) dwelling unit under certain other circumstances which are prohibited by existing law. (NRS 118A.390) Section 13 of this bill: (1) revises the monetary amount that a tenant is authorized to recover by instead providing that the tenant is authorized to recover an amount which is three times the periodic rent or the tenant’s actual damages, whichever is greater; and (2) additionally authorizes such remedial measures in circumstances where a landlord negligently interrupts or causes or permits the interruption of any essential item or service required by the rental agreement or by law. Section 15 of this bill makes a conforming change to make the revisions made by section 13 inapplicable to provisions governing liability of a landlord who unlawfully retains the household goods or personal property of a tenant. (NRS 118A.520) Section 16 of this bill makes a conforming change to require certain notices provided to a tenant to include notice of the ability of the tenant to seek relief if a landlord negligently interrupts or causes or permits the interruption of any essential item or service required by the rental agreement or by law. (NRS 40.253) Section 13: (1) requires a landlord to provide a tenant who terminates his or her rental agreement under certain circumstances to provide the tenant with a reasonable length of time to gather his or her belongings; (2) provides that a landlord who was provided notice by a tenant which specified the willful or negligent failure to supply essential items or services and failed to remedy the breach is presumed to have negligently caused the interruption of the essential items or services; and (3) provides that a landlord may overcome such a presumption by showing clear and convincing evidence that the restoration could not be accomplished within the notice period. Finally, section 13 removes the requirement for a tenant to file certain verified complaints for expedited relief with the court 5 judicial days after the last date of the unlawful act by the landlord. (NRS 118A.390) Existing law: (1) requires a landlord, or any person authorized to enter into a rental agreement on his or her behalf, to disclose certain information to a tenant in writing before the commencement of a tenancy or to post such information in certain areas; and (2) authorizes a tenant to recover actual damages or $25, whichever is greater, after a demand if the landlord fails to make such disclosures or postings. (NRS 118A.260, 118A.270, 118A.410) Section 14 of this bill instead provides that a tenant is authorized to recover actual damages or an amount equal to 5 percent of the periodic rent, whichever is greater, under such circumstances. Section 5 of this bill makes a conforming change to indicate the placement of section 3 in the Nevada Revised Statutes. 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 118A of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act. Sec. 2 [Text truncated for display. Full text available on LegiScan.]