AB396 - Revises provisions relating to housing. (BDR 22-232)

- 83rd Session (2025) Assembly Bill No. 396–Assemblymember Backus CHAPTER.......... 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. Legislative Counsel’s Digest: Section 10.5 of this bill declares that access to affordable housing is essential for the residents of this State and that accessory dwelling units are vital to increasing the supply of affordable housing. Section 1 of this bill requires each governing body of a county whose population is 100,000 or more (currently Clark and Washoe Counties) and each governing body of a city whose population is 60,000 or more (currently the Cities of Las Vegas, Henderson, North Las Vegas, Reno and Sparks) to adopt an ordinance that authorizes the development and use of an accessory dwelling unit on residential property. Section 1 provides that any such ordinance does not apply in a region in a county or city for which there has been created by interstate compact a regional planning agency and the regional plan adopted by the regional planning agency calls for the regulation of housing. Section 1 further limits provisions of the ordinance, including by prohibiting the ordinance from placing certain conditions on the approval of the accessory dwelling unit. Section 11 of this bill provides that: (1) if, before July 1, 2026, the governing body of a county whose population is 100,000 or more or the governing body of a city whose population is 60,000 or more has adopted an ordinance that is consistent with section 1, the governing body is not required to adopt another ordinance relating to accessory dwelling units pursuant to section 1; and (2) if the governing body of a county whose population is 100,000 or more or the governing body of a city whose population is 60,000 or more does not adopt an ordinance that is consistent with section 1 before July 1, 2026, accessory dwelling units are authorized on any parcel zoned for residential use without restriction. Existing law authorizes the governing body of a county or city to divide the county, city or region into zoning districts of such number, shape and area as are best suited to carry out certain purposes. Within a zoning district, the governing body is authorized to regulate and restrict the erection, reconstruction, alteration, repair or use of buildings, structures or land. (NRS 278.250) Section 4 of this bill – 2 – - 83rd Session (2025) creates an exception to account for the requirement that the governing body of certain counties and cities adopt an ordinance to allow the addition of an accessory dwelling unit pursuant to section 1. Existing law requires that an action or proceeding seeking judicial relief or review from or with respect to any final action, decision or order of any governing body of a county or city be commenced within 25 days after the date of filing of notice of the final action, decision or order with the clerk or secretary of the governing body. (NRS 278.0235) Section 3 of this bill applies these provisions to section 1. Section 2 of this bill makes a conforming change to apply the definitions of certain terms relating to planning and zoning to section 1. Existing law sets forth certain requirements for the amendment of a declaration of a common-interest community, including that every amendment to the declaration must, with certain exceptions, be indexed in the grantee’s index in the name of the common-interest community and the association and in the grantor’s index in the name of the parties executing the amendment. (NRS 116.2117) Section 5 of this bill eliminates the exception for an amendment for the relocation of boundaries between adjoining units. (NRS 116.2112) Section 5 also authorizes an association to amend a declaration to restrict the leasing of residential units to the extent that the restriction is reasonably designed to meet certain underwriting requirements. Existing law sets forth the requirements for terminating a common-interest community. (NRS 116.2118) Section 6 of this bill amends the voting requirements for terminating a common-interest community. Sections 7 and 8 of this bill revise provisions relating to prohibiting or restricting a unit owner from renting or leasing his or her unit. Existing law requires a unit’s owner or his or her authorized agent, at the expense of the unit’s owner, to furnish to a purchaser a resale package containing certain information. (NRS 116.4109) Section 9 of this bill requires that a resale package also contain proof of the insurance policies that an association is required to carry. Existing law authorizes, under certain circumstances, the Commission for Common-Interest Communities and Condominium Hotels to impose an administrative fine of not more than $1,000 for certain violations. (NRS 116.785) Section 10 of this bill increases the administrative fine to not more than $5,000. 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 278 of NRS is hereby amended by adding thereto a new section to read as follows: 1. Except as otherwise provided in this section, each governing body of a county whose population is 100,000 or more and each governing body of a city whose population is 60,000 or more shall adopt an ordinance that authorizes the development and use of an accessory dwelling unit on residential property. – 3 – - 83rd Session (2025) 2. The ordinance adopted pursuant to subsection 1 must not as a condition of approval of an accessory dwelling unit: (a) Prohibit separate kitchen facilities for the accessory dwelling unit. (b) Require more than one additional parking space for the accessory dwelling unit provided that the existing parking for the primary residence and street parking satisfy the anticipated parking needs for the accessory dwelling unit. (c) Require any side or rear setback for the accessory dwelling unit that is more restrictive than the requirements for the primary residence. (d) Require any improvement or repair to a public street unless such improvement or repair is necessary: (1) To reconstruct or repair a public street that is disturbed during the construction of the accessory dwelling unit; or (2) For public health and safety. (e) Except as otherwise provided in this paragraph, prohibit the owner of the residential property from using the accessory dwelling unit as rental housing. The ordinance may prohibit the owner of the residential property from using the accessory dwelling unit as transient lodging. 3. Any accessory dwelling unit approved pursuant to an ordinance adopted pursuant to subsection 1: (a) Must meet all applicable building codes, housing codes and any other codes regulating the health and safety of residential property. (b) Is not required to meet any building code or other code regulating the health and safety of commercial buildings, including, without limitation, any code that requires a fire sprinkler system in a commercial building. 4. Nothing in this section shall be construed to: (a) Prohibit the governing body of a county or a city from implementing a process that sets forth more favorable conditions for adding an accessory dwelling unit to residential property, including, without limitation, providing for the approval of the construction of an additional dwelling unit by building permit in lieu of approval by the planning department of the county or city; or (b) Authorize more than two accessory dwelling units on any residential property. 5. Any ordinance adopted pursuant to this section does not apply in a region in a county or city in this State for which there has been created by interstate compact a regional planning agency – 4 – - 83rd Session (2025) and the regional plan adopted by the regional planning agency calls for the regulation of housing. 6. As used in this section: (a) “Accessory dwelling unit” means an independent living space that is built on the same lot as the primary residence on a residential property, regardless of whether the independent living space is attached, detached or built within the primary residence. (b) “Kitchen facilities” includes, without limitation, a sink, refrigerator and a significant cooking appliance such as a range, stove or oven. (c) “Residential property” means a property that is located in an area of the county or city, as applicable, zoned for single-family residential use. Sec. 2. NRS 278.010 is hereby amended to read as follows: 278.010 As used in NRS 278.010 to 278.630, inclusive, and section 1 of this act, unless the context otherwise requires, the words and terms defined in NRS 278.0103 to 278.0195, inclusive, have the meanings ascribed to them in those sections. Sec. 3. NRS 278.0235 is hereby amended to read as follows: 278.0235 1. No action or proceeding may be commenced for the purpose of seeking judicial relief or review from or with respect to any final action, decision or order of any governing body, commission or board authorized by NRS 278.010 to 278.630, inclusive, and section 1 of this act, unless the action or proceeding is commenced within 25 days after the date of filing of notice of the final action, decision or order with the clerk or secretary of the governing body, commission or board. 2. A petitioner or cross-petitioner who is seeking judicial review must serve and file a memorandum of points and authorities within 40 days after an action is commenced. 3. The respondent or cross-petitioners shall serve and file a reply memorandum of points and authorities within 30 days after the service of the memorandum of points and authorities. 4. The petition or cross-petitioner may serve and file a reply memorandum of points and authorities within 30 days after service of the reply memorandum. 5. Within 7 days after the expiration of the time within which the petitioner is required to reply, any party may request a hearing. Unless a request for hearing has been filed, the matter shall be deemed submitted. 6. All memoranda of points and authorities filed in proceedings involving petitions for judicial review must be in the form provided – 5 – - 83rd Session (2025) for appellate briefs in Rule 28 of the Nevada Rules of Appellate Procedure. 7. The court, for good cause, may extend the times allowed in this section for filing memoranda. Sec. 4. NRS 278.250 is hereby amended to read as follows: 278.250 1. For the purposes of NRS 278.010 to 278.630, inclusive, and section 1 of this act, the governing body may divide the city, county or region into zoning districts of such number, shape and area as are best suited to carry out the purposes of NRS 278.010 to 278.630, inclusive [. Within] , and section 1 of this act. Within the zoning district, it may regulate and restrict the erection, construction, reconstruction, alteration, repair or use of buildings, structures or land. 2. The zoning regulations must be adopted in accordance with the master plan for land use and be designed: (a) To preserve the quality of air and water resources. (b) To promote the conservation of open space and the protection of other natural and scenic resources from unreasonable impairment. (c) To consider existing views and access to solar resources by studying the height of new buildings which will cast shadows on surrounding residential and commercial developments. (d) To reduce the consumption of energy by encouraging the use of products and materials which maximize energy efficiency in the construction of buildings. (e) To provide for recreational needs. (f) To protect life and property in areas subject to floods, landslides and other natural disasters. (g) To conform to the adopted population plan, if required by NRS 278.170. (h) To develop a timely, orderly and efficient arrangement of transportation and public facilities and services, including public access and sidewalks for pedestrians, and facilities and services for bicycles. (i) To ensure that the development on land is commensurate with the character and the physical limitations of the land. (j) To take into account the immediate and long-range financial impact of the application of particular land to particular kinds of development, and the relative suitability of the land for development. (k) To promote health and the general welfare. – 6 – - 83rd Session (2025) (l) To ensure the development of an adequate supply of housing for the community, including the development of affordable housing. (m) To ensure the protection of existing neighborhoods and communities, including the protection of rural preservation neighborhoods and, in counties whose population is 700,000 or more, the protection of historic neighborhoods. (n) To promote systems which use solar or wind energy. (o) To foster the coordination and compatibility of land uses with any military installation in the city, county or region, taking into account the location, purpose and stated mission of the military installation. 3. The zoning regulations must be adopted with reasonable consideration, among other things, to the character of the area and its peculiar suitability for particular uses, and with a view to conserving the value of buildings and encouraging the most appropriate use of land throughout the city, county or region. 4. In exercising the powers granted in this section, the governing body may use any controls relating to land use or principles of zoning that the governing body determines to be appropriate, including, without limitation, density bonuses, inclusionary zoning [Text truncated for display. Full text available on LegiScan.]