SB335A - Revises provisions regarding real property. (BDR 3-883)

(Reprinted with amendments adopted on May 26, 2023) THIRD REPRINT S.B. 335 - *SB335_R3* SENATE BILL NO. 335–SENATOR OHRENSCHALL MARCH 20, 2023 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions regarding real property. (BDR 3-883) FISCAL NOTE: Effect on Local Government: No. Effect on the State: No. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to property; authorizing tenants subject to certain actions for summary eviction to request that the court stay the action until a decision concerning an application for rental assistance is made and establishing procedures relating thereto; requiring a landlord to accept payment of rent from a tenant and rental assistance on behalf of a tenant under certain circumstances; authorizing a justice court to establish a diversion program for certain tenants subject to an action for summary eviction; and providing other matters properly relating thereto. Legislative Counsel’s Digest: In general, existing law provides for a summary eviction procedure when a 1 tenant defaults in the payment of rent. (NRS 40.253) Section 9 of this bill 2 authorizes a tenant who has been served with a notice to pay rent or surrender the 3 premises to request that the court stay an action for summary eviction based on a 4 default in the payment of rent until a decision concerning an application for rental 5 assistance is made. Section 9 establishes the procedure for a tenant to request such 6 a stay and criteria for the issuance of a stay. If the court issues such a stay, section 7 9: (1) authorizes a landlord to file a motion to lift the stay under certain 8 circumstances; and (2) requires that the stay expire not later than 60 days after it is 9 issued. If an application for rental assistance is granted in an amount that will allow 10 the tenant in an action that has been stayed to cure the default, section 9 requires 11 the landlord to accept payment of rent from the tenant and rental assistance on 12 behalf of the tenant. If the application for rental assistance is denied or granted in 13 an amount that will not allow the tenant in an action that has been stayed to cure the 14 default, section 9 requires the court to proceed with the action for summary 15 eviction in accordance with the requirements prescribed by existing law. Section 16 21.2 of this bill makes a conforming change relating to the submission of an 17 affidavit pursuant to section 9. Section 9.1 of this bill creates a similar process that 18 – 2 – - *SB335_R3* becomes effective if and only if Assembly Bill No. 340 of this session is enacted by 19 the Legislature and approved by the Governor. 20 In general, existing law provides for a summary eviction procedure when a 21 tenant neglects or fails to perform a condition or covenant of a lease or agreement. 22 (NRS 40.254) Section 9.7 of this bill requires a court to dismiss an action for 23 summary eviction based on neglect or failure to perform a condition or covenant of 24 a lease or agreement if the court finds that the affidavit of complaint for summary 25 eviction was filed by the landlord in bad faith or as a pretext for evicting a tenant 26 who is in default in the payment of rent. Section 21.4 of this bill creates a similar 27 requirement that becomes effective if and only if Assembly Bill No. 340 of this 28 session is not enacted by the Legislature and approved by the Governor. 29 Section 9.5 of this bill authorizes a justice court to establish a diversion 30 program to which it may assign an eligible tenant subject to an action for summary 31 eviction. Section 9.5 sets forth factors the court may consider in determining 32 whether a tenant is eligible for assignment to such a diversion program. If the court 33 assigns a tenant to such a diversion program, section 9.5 requires the court to: (1) 34 stay the pending action for summary eviction for not more than 60 days; and (2) if 35 the tenant pays the landlord the rent that is in default or surrenders the premises 36 before the expiration of the stay, dismiss the action. 37 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 40 of NRS is hereby amended by adding 1 thereto the provisions set forth as sections 2 to 9.7, inclusive, of this 2 act. 3 Sec. 2. (Deleted by amendment.) 4 Sec. 3. (Deleted by amendment.) 5 Sec. 4. (Deleted by amendment.) 6 Sec. 5. (Deleted by amendment.) 7 Sec. 6. (Deleted by amendment.) 8 Sec. 7. (Deleted by amendment.) 9 Sec. 8. (Deleted by amendment.) 10 Sec. 9. 1. A tenant who has been served with a notice 11 pursuant to subsection 1 of NRS 40.253 may request that the court 12 stay any action for summary eviction initiated by the landlord 13 against the tenant pursuant to subsection 5 of NRS 40.253 until a 14 decision concerning an application for rental assistance is made. 15 2. To request a stay pursuant to subsection 1, a tenant must: 16 (a) File, within the time specified in subsection 1 of NRS 17 40.253 for the payment of rent or surrender of the premises, an 18 affidavit with the court that has jurisdiction over the matter stating 19 that the tenant has a pending application for rental assistance; 20 and 21 (b) Provide proof to the court of the date on which the 22 application for rental assistance was submitted. 23 3. If the court determines that an affidavit filed pursuant to 24 subsection 2 is accompanied by sufficient proof, the court shall 25 – 3 – - *SB335_R3* stay any action for summary eviction initiated by the landlord 1 against the tenant pursuant to subsection 5 of NRS 40.253 until 2 the applicable time described in subsection 4. 3 4. If the court grants a stay pursuant to subsection 3, the stay 4 must be maintained by the court until not later than the earliest of: 5 (a) The date on which the application for rental assistance is 6 no longer pending or a determination is made on the pending 7 application for rental assistance; 8 (b) The date on which the court grants a motion filed pursuant 9 to subsection 5; or 10 (c) Sixty days after the date on which the stay is granted. 11 5. A landlord may file a motion to lift a stay issued pursuant 12 to subsection 3. 13 6. The court may grant a motion filed pursuant to subsection 14 5 if, at a hearing conducted on the motion, the court finds that: 15 (a) Evidence exists that the landlord faces a realistic threat of 16 the foreclosure of the premises if the landlord is not able to evict 17 the tenant, including, without limitation, evidence that: 18 (1) The property is subject to a lien, including, without 19 limitation, a tax lien or lien for charges relating to utilities; or 20 (2) The landlord has missed three or more consecutive 21 mortgage payments; 22 (b) The application for rental assistance was submitted in bad 23 faith; or 24 (c) It is unlikely that: 25 (1) The application for rental assistance will be granted; or 26 (2) The tenant will be able to cure the default in the 27 payment of rent, regardless of whether the application for rental 28 assistance is granted. 29 7. If a tenant in bad faith submits an application for rental 30 assistance, the landlord may, in a separate cause of action, recover 31 damages from the tenant. 32 8. If a landlord in bad faith files a motion pursuant to 33 subsection 5, the tenant may, in a separate cause of action, recover 34 from the landlord an amount equal to damages, 1 month’s rent or 35 $1,000, whichever is greater, reasonable attorney’s fees and costs 36 of court. 37 9. If the application for rental assistance is: 38 (a) Granted in an amount that, together with any other 39 available funds, will allow the tenant to cure the default in the 40 payment of rent: 41 (1) The landlord must accept payment of rent from the 42 tenant and rental assistance on behalf of the tenant; and 43 – 4 – - *SB335_R3* (2) The court must dismiss any action for summary eviction 1 initiated by the landlord against the tenant pursuant to subsection 2 5 of NRS 40.253. 3 (b) Denied, or granted in amount that, together with any other 4 available funds, will not allow the tenant to cure the default in the 5 payment of rent, the court shall: 6 (1) Issue an order lifting the stay; and 7 (2) Hold a hearing in accordance with the requirements 8 prescribed by subsection 6 of NRS 40.253. 9 10. For purposes of subsection 4, an application for rental 10 assistance is no longer pending if the application is not actively 11 being pursued by the tenant, including, without limitation, by 12 providing in a timely manner any information or documentation 13 requested by the person or entity to whom the application was 14 submitted. 15 11. As used in this section: 16 (a) “Pending application for rental assistance” means an 17 application for rental assistance submitted in good faith by a 18 tenant. The term includes, without limitation, an application 19 which is inactive due to any technical difficulty on the part of the 20 tenant in the filing of the application for rental assistance that is 21 outside of the control of the tenant. The term does not include an 22 application for rental assistance that was started by the tenant but 23 is not actively being pursued by the tenant. 24 (b) “Rental assistance” includes, without limitation, federal, 25 state or local funds provided by a governmental entity and 26 administered for the purpose of paying any amount of delinquent 27 rent. The term does not include rental assistance provided 28 pursuant to the provisions of 42 U.S.C. § 1437f. 29 Sec. 9.1. 1. A tenant against whom a landlord files an 30 affidavit of complaint for summary eviction pursuant to subsection 31 3 of section 2 of Assembly Bill No. 340 of this session may request 32 that the court stay the pending action for summary eviction until a 33 decision concerning an application for rental assistance is made. 34 2. To request a stay pursuant to subsection 1, a tenant must: 35 (a) File the written answer required by subsection 6 of section 36 2 of Assembly Bill No. 340 of this session with the court that has 37 jurisdiction over the matter within the time specified by subsection 38 6 of section 2 of Assembly Bill No. 340 of this session and include 39 in the answer: 40 (1) A statement that the tenant has a pending application 41 for rental assistance; and 42 (2) A request that the court stay the pending action for 43 summary eviction; and 44 – 5 – - *SB335_R3* (b) Provide proof to the court of the date on which the 1 application for rental assistance was submitted. 2 3. If the court determines that a written answer filed pursuant 3 to subsection 6 of section 2 of Assembly Bill No. 340 of this 4 session is accompanied by sufficient proof, the court shall stay the 5 pending action for summary eviction until the applicable time 6 described in subsection 4. 7 4. If the court grants a stay pursuant to subsection 3, the stay 8 must be maintained by the court until not later than the earliest of: 9 (a) The date on which the application for rental assistance is 10 no longer pending or a determination is made on the pending 11 application for rental assistance; 12 (b) The date on which the court grants a motion filed pursuant 13 to subsection 5; or 14 (c) Sixty days after the date on which the stay is granted. 15 5. A landlord may file a motion to lift a stay issued pursuant 16 to subsection 3. 17 6. The court may grant a motion filed pursuant to subsection 18 5 if, at a hearing conducted on the motion, the court finds that: 19 (a) Evidence exists that the landlord faces a realistic threat of 20 the foreclosure of the premises if the landlord is not able to evict 21 the tenant, including, without limitation, evidence that: 22 (1) The property is subject to a lien, including, without 23 limitation, a tax lien or lien for charges relating to utilities; or 24 (2) The landlord has missed three or more consecutive 25 mortgage payments; 26 (b) The application for rental assistance was submitted in bad 27 faith; or 28 (c) It is unlikely that: 29 (1) The application for rental assistance will be granted; or 30 (2) The tenant will be able to cure the default in the 31 payment of rent, regardless of whether the application for rental 32 assistance is granted. 33 7. If a tenant in bad faith submits an application for rental 34 assistance, the landlord may, in a separate cause of action, recover 35 damages from the tenant. 36 8. If a landlord in bad faith files a motion pursuant to 37 subsection 5, the tenant may, in a separate cause of action, recover 38 from the landlord an amount equal to damages, 1 month’s rent or 39 $1,000, whichever is greater, reasonable attorney’s fees and costs 40 of court. 41 9. If the application for rental assistance is: 42 (a) Granted in an amount that, together with any other 43 available funds, will allow the tenant to cure the default in the 44 payment of rent: 45 – 6 – - *SB335_R3* (1) The landlord must accept payment of rent from the 1 tenant and rental assistance on behalf of the tenant; and 2 (2) The court must dismiss the pending action for summary 3 eviction. 4 (b) Denied, or granted in amount that, together with any other 5 available funds, will not allow the tenant to cure the default in the 6 payment of rent, the court shall: 7 (1) Issue an order lifting the stay; and 8 (2) Hold a hearing in accordance with the requirements 9 prescribed by subsection 7 of Assembly Bill No. 340 of this 10 session. 11 10. For the purposes of subsection 4, an application for 12 rental assistance is no longer pending if the application is not 13 actively being pursued by the tenant, including, without limitation, 14 by providing in a timely manner any information or 15 documentation requested by the person or entity to whom the 16 application was submitted. 17 11. As used in this section: 18 (a) “Pending application for rental assistance” means an 19 application for rental assistance submitted in good faith by a 20 tenant. The term includes, without limitation, an application 21 which is inactive due to any technical difficulty on the part of the 22 tenant in the filing of the application for ren [Text truncated for display. Full text available on LegiScan.]