Homeowner associations always spark strong reactions. People either love them or can’t stand them. Yet regardless of where you fall on that spectrum, HOAs represent the nation’s fastest-expanding type of residential governance. In Nevada alone, over 500,000 homeowners live within HOA communities, with 3,460 associations operating statewide. 

I have seen how these associations function as private nonprofit corporations under Nevada law, while simultaneously serving the broader public. This creates an interesting dynamic when we talk about transparency requirements, and it’s a conversation I have with board members regularly.

The common pushback I hear is: “HOAs are private entities. Why should we face the same scrutiny as government agencies or publicly traded companies?” While this argument might initially seem reasonable, it doesn’t hold up when you examine how legislation regulates other “private” organizations that interact with or impact the public. Let me walk you through what Nevada law actually requires from your board.

The legal framework governing Nevada HOAs

The Nevada Revised Statutes establish the legal groundwork for homeowners’ associations throughout the state. Specifically, Chapter 116 of the Nevada Revised Statutes, commonly referred to as the Common Interest Ownership Uniform Act, or simply UCIOA, forms the cornerstone of Nevada’s HOA legal framework. 

This chapter outlines extensive provisions covering everything from how common interest communities are created and managed to how they are eventually resolved. Chapter 116 tackles critical areas including board elections, meeting procedures, fee collection processes, and methods for resolving disputes. The legislation aims to safeguard homeowner rights while simultaneously ensuring HOA boards govern fairly. 

What makes Nevada’s approach distinctive? Unlike states such as Wisconsin that maintain separate legislative acts for HOAs and condominium associations, Nevada’s UCIOA takes a comprehensive approach, covering all types of community associations, whether they are traditional HOAs, condo associations, or planned communities. 

If you are serving on an HOA board or managing an association, understanding NRS 116 provisions is essential. Let me break down what Nevada law requires from you regarding transparency obligations.

How the UCIOA promotes transparency

Homeowners’ associations function using democratic principles at their core. That means certain decisions require input from all homeowners through voting, while other matters fall under the jurisdiction of the executive board or various committees created by the association or outlined in governing documents. 

The state guarantees residents specific rights related to ownership in common interest communities. Based on the provisions outlined in Chapter 116, here is what property owners are entitled to: 

Notifications for unit owner meetings 

Your association secretary or designated officer must notify unit owners of upcoming meetings within a specific time frame, not fewer than 15 days and no more than 60 days before the scheduled meeting. These notifications must follow the delivery methods specified in NRS 116.31068. 

Meeting notices need to clearly state when and where the meeting will occur and must include the meeting agenda. Additionally, notices must inform unit owners about their entitlement to receive meeting minutes or minute summaries upon request. These documents should be provided electronically at no cost, or if electronic delivery isn’t feasible, in paper format, with the charges capped at 25 cents/page for the initial 10 pages, then 10 cents for each subsequent page. 

Documentation of unit owner meetings 

At every meeting involving unit owners, the secretary or other designated officer must ensure minutes are recorded or documented. Within 30 days following each meeting, these officials must make the minutes or a summary available to unit owners. 

Unless specified otherwise, any unit owner who requests a copy should receive the minutes or a summary in electronic format free of charge. If your association cannot deliver electronically, paper copies must be provided at rates not exceeding 25 cents/page for the first 10 pages, followed by 10 cents per page for additional pages. 

What goes into meeting agendas 

Meeting agendas for unit owner gatherings must contain a transparent and thorough description of topics scheduled for discussion. This includes any proposed modifications to the declaration or bylaws, new fees or assessment increases the association plans to implement, budgetary adjustments, and any proposals to remove association officers or executive board members. 

Executive board meeting notifications 

Barring emergencies or unless your association’s bylaws mandate longer notice periods, secretaries or other designated officers must notify unit owners at least 10 days before executive board meetings. This notification can be delivered either through the methods outlined in NRS 116.31068 or by publishing the information in a newsletter or a similar publication distributed to every unit owner. 

Executive board meeting notice requirements and owner participation 

Notices for executive board meetings must specify the meeting’s time and location and include either a copy of the agenda or details about where and when unit owners can conveniently obtain agenda copies. 

These notices must also inform unit owners of their rights to obtain audio recordings, written minutes, or minute summaries upon request. Just like with unit owner meetings, these materials should be provided electronically at no charge, or in paper format at a maximum cost of 25 cents/page for the first 10 pages, then 10 cents per page thereafter. 

Access to association documentation 

When unit owners submit written requests, the executive board must make the association’s books, records, and other documents available for examination. These access includes, but aren’t limited to: 

• Financial statements of the association 
• Budgets that the association prepares according to NRS 116.31151 requirements 
• Reserve studies that the association conducts as mandated by NRS 116.31152 
• All contracts where the association is a party, plus any court-filed records related to civil or criminal proceedings involving the association 

Annual budget distribution requirements 

Between 30 and 60 days before your association’s fiscal year begins, the executive board must prepare and deliver to each unit owner copies of: 

• An operational budget that covers the association’s daily activities. This budget must detail estimated annual revenues and expenses, along with any planned contributions to the association’s reserve account. 
• A reserve funding budget that ensures adequate financial reserves as required by law.

Nevada’s website requirements for common-interest communities

Starting January 1, 2022, associations in common-interest communities with 150 units or more must establish and maintain a secure website or electronic portal accessible to any unit owner. These associations must post the following materials on their website or portal: 

• All governing documents 
• The association’s annual budget, along with any proposed budgets 
• Notices and agendas for all upcoming association meetings 

For associations with fewer than 150 units, establishing and maintaining a secure website or electronic portal is optional, though the law encourages it. 

Beginning January 1, 2023, the mandated website or portal must also provide unit owners with the capability to pay their assessments electronically.

Nevada’s recent cyber insurance requirements for HOAs

Nevada’s 2023 legislative session produced a significant new HOA mandating that community associations carry Cyber Liability insurance if they operate a website or electronic portal for collecting monthly assessment fees online. 

In my experience, this makes complete sense. These associations handle and store sensitive information like unit owners’ bank account details, credit card numbers, and other personal identifiers that cybercriminals could exploit. The required cyber insurance coverage amount scales with the association’s size: 

• Associations with 150 units or fewer will need to pay a minimum coverage of $250,000 
• Associations with 151 to 250 units will need to pay a minimum coverage of $500,000 
• Associations with 251 or more units will need to pay a minimum coverage of $1 million 

When your association works with a contracted payment processor to collect funds, that processor must carry Cyber insurance in Nevada with minimum coverage of $5 million. Nevada also mandates that HOA payment processors implement industry-standard data protection and encryption to safeguard information entrusted to them, including homeowners’ banking details, credit card information, names, addresses, usernames, and unique identifiers such as passwords paired with email addresses. 

The Cyber policy must provide protection against losses stemming from data breaches, unauthorized system intrusions, computer viruses, ransomware attacks, identity theft, and similar cybersecurity threats.

My recommendation

When I examine Nevada’s transparency mandates and compare them with what the law requires associations to publish on their websites, it becomes clear that websites have emerged as the new primary platform for meeting transparency obligations. Given that the law “encourages” even smaller associations to maintain websites, I anticipate that website requirements will eventually extend to all associations as legislatures continue pushing for enhanced transparency. 

But here is the reality I share with most boards I work with: even without universal website mandates, the existing transparency requirements are already extensive. Maintaining an association website represents the only practical approach to making required documents and notices accessible to homeowners without creating logistical headaches. 

For instance, would you rather spend hours printing and mailing notices, or make everything available in one secure, accessible location? Rather than wrestling with costly manual notification processes and eventually facing compliance issues, I strongly recommend establishing a website sooner rather than later. Specialized platforms like HOA Sites are designed to help associations establish and maintain compliant websites.