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--- version:As Introduced+++ version:(document, no version)@@ -1,856 +1,26 @@- A.B. 211--- *AB211*--ASSEMBLY BILL NO. 211–ASSEMBLYMEMBER CONSIDINE--PREFILED FEBRUARY 3, 2025-____________--Referred to Committee on Government Affairs--SUMMARY—Revises provisions relating to substandard-properties. (BDR 20-811)--FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.- 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 a county or city to require-a property owner to repair or rehabilitate or abate certain-conditions on a residential property under certain-circumstances; establishing procedures relating to a-property owner’s failur e to repair or rehabilitate or abate-certain conditions on the residential 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 1-condition at all times during the tenancy; and (2) provides that a dwelling unit is not 2-habitable if it violates provisions of housing or health codes concerning the healt h, 3-safety, sanitation or fitness for habitation. (NRS 118A.290) 4- Sections 8 and 27 of this bill provide that: (1) if a residential property is 5-maintained in a way that violates any applicable habitability standard, housing code 6-or building code, or any statute or ordinance relating to habitability, building safety 7-or fire safety; and (2 ) as a result of the violation or violations, the condition of the 8-residential property is of such a nature that the health and safety of residents or the 9-public are substantially endangered, the appropriate department of the county or 10-city, as applicable, may notify the owner and order that the owner repair or 11-rehabilitate the property or abate the condition. Sections 8 and 27 also set forth 12-certain requirements for the notice. 13-- – 2 –--- *AB211*- Sections 9 and 28 of this bill provide that if the owner of the residential 14-property fails to comply with the terms of the notice and summary order, the county 15-or city, as applicable, certain actions may be brought to have the residential 16-property declared to be a substandard property, including an action to have a 17-receiver appointed to manage the repair or rehabilitation of the substandard 18-property. 19- Sections 10 and 29 of this bill: (1) set forth certain findings and considerations 20-that must be made by the district court in order to declare a residential property to 21-be a substandard property; and (2) require an order issued by the district court 22-declaring a residential property to be a substandard property to set forth the 23-conditions that make the residential property a substandard property and the repairs, 24-rehabilitations and abatements that are necessary to correct each violation of a 25-habitability standard, housing code or building code, or any statute or ordinance 26-relating to habitability, building safety or fire safety. 27- Sections 11 and 30 of this bill provide that if the district court finds that there 28-is a condition of the substandard property which substantially endangers the health 29-and safety of the residents, the district court must: (1) order the owner of the 30-substandard property to pay all reasonable and actual costs of the board of county 31-commissioners or governing body of the city, as applicable; (2) order that the board 32-of county commissioners or governing body of the city provide each tenant with 33-notice of the judgment and court order; (3) order, uncertain circumstances, the 34-owner to provide or pay certain relocation benefits and compensation to the tenants; 35-(4) determine the date when a tenant has to relocate; and (5) make certain other 36-orders. 37- Sections 12 and 31 of this bill set forth certain duties for a receiver appointed 38-for a substandard property. 39- Sections 13 and 32 of this bill provide that a receiver appointed for a 40-substandard property is entitled to the same fees, commissions and necessary 41-expenses as a receiver in an action to foreclose a mortgage. 42- Sections 14 and 33 of this bill require a receiver appointed for a substandard 43-property to prepare and submit monthly reports to the board of county 44-commissioners or governing body of a city. 45- Sections 15 and 34 of this bill: (1) require the district court to discharge the 46-receiver for a substandard property un der certain circumstances; and (2) authorize 47-the district court to retain jurisdiction over the substandard property for a period of 48-time not to exceed 18 consecutive months. 49- Sections 16 and 35 of this bill authorize the district court to require the owner 50-of a substandard property to pay all unrecovered costs associated with the 51-receivership. 52- Sections 17 and 36 of this bill provide that the remedies and penalties set forth 53-in sections 2-18 and 21-37 of this bill are cumulative, may not be abrogated and 54-are in addition to any other remedies or penalties that may exist in law or equity. 55- Sections 18 and 37 provide that nothing in sections 2-18 and 21-37 is intended 56-to deprive any owner of a residential property or substandard property any right 57-guaranteed by the United States Constitution or Nevada Constitution, including, the 58-right to due process. 59- Existing law authorizes a receiver to be appointed in certain actions. (NRS 60-32.010) Section 19 of this bill authorizes a receiver to be appointed in an action to 61-have a residential property declared to be a substandard property that is brought 62-pursuant to section 10 or 29 to manage the repair or rehabilitation of the 63-substandard property. 64- Sections 2-7 and 21-26 define certain terms used in the provisions of sections 65-2-18 and 21-37, respectively. 66-- – 3 –--- *AB211*-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 1-thereto the provisions set forth as sections 2 to 18, inclusive, of this 2-act. 3- Sec. 2. As used in sections 2 to 18, inclusive, of this act, 4-unless the context otherwise requires, the words and terms defined 5-in sections 3 to 7, inclusive, of this act have the meanings ascribed 6-to them in those sections. 7- Sec. 3. “Dwelling unit” means a s tructure or the part of the 8-structure that is occupied as, or designed or intended for 9-occupancy as, a residence or sleeping place by one person who 10-maintains a household or by two or more persons who maintain a 11-common household. 12- Sec. 4. “Habitability standard” includes, without limitation: 13- 1. Any provision of an applicable housing or health code 14-concerning the health, safety, sanitation or fitness for habitation 15-of a dwelling unit; or 16- 2. The requirements of chapter 118A of NRS relating to the 17-habitability of a dwelling unit, including, without limitation, the 18-provisions of subsection 1 of NRS 118A.290. 19- Sec. 5. “Receiver” means a receiver appointed by a district 20-court in an action to declare a residential property to be a 21-substandard property pursuant to section 10 of this act. 22- Sec. 6. “Residential property” means a parcel of land in the 23-unincorporated area of the county which is primarily used for 24-personal, family or household purposes to which is affixed one or 25-more dwelling units. 26- Sec. 7. “Substandard property” means residential property 27-that has been declared to be a substandard property by a district 28-court pursuant to section 10 of this act. 29- Sec. 8. 1. If the appropriate department of a county finds 30-that: 31- (a) A residential property is maintained in a way that violates 32-any applicable habitability standard, housing code or building 33-code, or any statute or ordinance relating to habitability, building 34-safety or fire safety; and 35- (b) As a result of the violation or violations described in 36-paragraph (a), the condition of the residential property is of such a 37-nature that the health and safety of residents or the public is 38-substantially endangered, 39- the county may notify the owner of the residential property and 40-order that the owner repair or rehabilitate the residential property 41-or otherwise abate the condition. 42-- – 4 –--- *AB211*- 2. Any notice and order issued pursuant to subsection 1: 1- (a) Must include, without limitation: 2- (1) The name, address and telephone number of the county 3-department that issued the notice and summary order; 4- (2) The date, time and location of any public heari ng or 5-proceeding concerning the notice and summary order; 6- (3) A description of each violation of a habitability 7-standard, housing code or building code, or any statute or 8-ordinance relating to habitability, building safety or fire safety , as 9-applicable; 10- (4) Any deadline by which the owner must repair or 11-rehabilitate the residential property or otherwise abate the 12-condition; and 13- (5) A statement that the owner or lessor, if applicable, is 14-prohibited from retaliating against any tenant pursuant to NRS 15-118A.510; and 16- (b) Must be either: 17- (1) Posted in a conspicuous place on the residential 18-property and mailed by first -class mail to the owner and each 19-affected resident of a dwelling unit on the residential property; or 20- (2) Posted in a conspicuous plac e on the residential 21-property and in a prominent place on each affected dwelling unit 22-on the residential property. 23- Sec. 9. 1. If the owner of a residential property fails to 24-comply within the terms of the notice and summar y order issued 25-pursuant to section 8 of this act: 26- (a) The county may bring an action to: 27- (1) Have the residential property declared by the district 28-court to be a substandard property; 29- (2) Obtain a court order requiring the owner to repair or 30-rehabilitate the residential property or otherwise abate the 31-condition; and 32- (3) Have the district court impose a civil penalty against the 33-owner of the residential property, as provided by ordinance; or 34- (b) The county or a tenant, a tenant association or a nonprofit 35-organization representing any tenant or tenant association may 36-bring an action to: 37- (1) Have the residential property declared to be a 38-substandard property; and 39- (2) Have a receiver appointed pursuant to NRS 32.010. 40- 2. A party who intends to bring an action for the appointment 41-of a receiver pursuant to paragraph (b) of subsection 1 shall: 42- (a) Not later than 3 days before filing such a n action, provide 43-notice of intent to bring the action by: 44-- – 5 –--- *AB211*- (1) Posting a notice in a conspicuous place on the 1-residential property; and 2- (2) Mailing the notice to each person with a recorded 3-interest in the residential property; and 4- (b) Provide with th e court filing proof that the party provided 5-the notice of intent to bring the action as required pursuant to 6-paragraph (a). 7- 3. A party who brings an action pursuant to subsection 1 8-must serve each owner of the residential property in the manner 9-provided by Rule 4 of the Nevada Rules of Civil Procedure. 10- 4. The prevailing party in an action brought pursuant to this 11-section is entitled to reasonable attorney’s fees and costs, as may 12-be fixed by the district court. 13- Sec. 10. 1. To declare a residential property to be a 14-substandard property, the district court must find: 15- (a) The residential property is maintained in a way that 16-violates one or more applicable habitability standards, housing 17-codes or building codes, or any sta tute or ordinance relating to 18-habitability, building safety or fire safety; 19- (b) The condition of the residential property that is caused by 20-the violation or violations described in paragraph (a) is so 21-extensive and of such a nature that the health and sa fety of 22-residents of the building or the public is substantially endangered; 23-and 24- (c) Any other factor that the district court finds relevant. 25- 2. In determining whether to appoint a receiver for a 26-substandard property, the district court shall consider: 27- (a) Whether the owner of the substandard property has been 28-afforded a reasonable opportunity to repair or rehabilitate the 29-property or otherwise abate the condition; and 30- (b) Any other factor that the district court finds relevant. 31- 3. The district court: 32- (a) Except as otherwise provided in paragraph (b), may 33-appoint a nonprofit organization , community development 34-corporation or other person as a receiver. 35- (b) Shall not appoint any nonprofit organization, community 36-development corporation or person as a receiver unless the 37-nonprofit organization, community development corporation or 38-person has demonstrated to the district court the necessary 39-capacity and expertise to develop and supervise a viable financial 40-and construction plan for the satisfactory reha bilitation of the 41-substandard property. 42- 4. An order issued by a district court declaring a residential 43-property to be a substandard property must, without limitation, set 44-forth: 45-- – 6 –--- *AB211*- (a) The conditions found by the district court that make the 1-residential property a substandard property; and 2- (b) The repairs, rehabilitations and abatements that the district 3-court finds to be necessary in order to correct each violation of a 4-habitability standard, housing code or building code, or any 5-statute or ordinance relating to habitability, building safety or fire 6-safety. 7- Sec. 11. 1. If the district court finds that there is a 8-condition of the substandard property which substantially 9-endangers the health and safety of the residents of t he 10-substandard property, upon the entry of any order or judgment 11-pursuant to section 10 of this act, the district court shall: 12- (a) Order the owner of the substandard property to pay all 13-reasonable and actual costs of the board of county commissioners 14-or its designee , including, without limitation, inspection costs, 15-investigation costs, enforcement costs, attorney’s fees and costs 16-and all costs of prosecution. 17- (b) Order that the board of county commissioners or its 18-designee shall provide each tenant of the substandard property 19-with the notice of the district court order or judgment. 20- (c) If the conditions of the substandard property or the repair, 21-rehabilitation or abatement thereof significantly affect the safe 22-and sanitary use of the substandard property by any lawful tenant, 23-such that the tenant cannot safely reside in the premises, order the 24-owner to provide or pay relocation benefits to each la wful tenant. 25-These benefits must consist of actual reasonable moving and 26-storage costs and relocation compensation, including, without 27-limitation, the costs and compensation for the following: 28- (1) Transportation of the personal property of the tenant to 29-the new location. The new location must be in close proximity to 30-the substandard property, except where relocation to a new 31-location beyond a close proximity is determined by the district 32-court to be justified. 33- (2) Packing, crating, unpacking and uncrati ng all personal 34-property of the tenant. 35- (3) Insurance of the property of the tenant while in transit. 36- (4) The reasonable replacement value of any personal 37-property lost, stolen or damaged, other than any personal property 38-that was lost, stolen or damaged through the fault or negligence of 39-the displaced tenant, or his or her agent or employee, in the 40-process of moving, where insurance covering the loss, theft or 41-damage is not reasonably available. 42- (5) The cost of disconnecting, dismantling, removing, 43-reassembling, reconnecting and reinstalling machinery, 44-equipment or other personal property of the tenant, including 45-- – 7 –--- *AB211*-connection charges imposed by utility companies for starting 1-utility service. 2- (6) Relocation compensation in an amount equal to the 3-differential between the contract rent and the fair market rental 4-value determined by the United States Department of Housing and 5-Urban Development for a unit of comparable size within the area 6-for the period that the unit is being repaired or rehabilitated, for 7-not more than 120 days. 8- (d) Determine the date when the tenant is to relocate, and 9-order the tenant to notify the board of county commissioners or its 10-designee and the owner of the dwelling unit of the address to 11-which the tenant has relocated no t more t han 5 days after the 12-relocation. 13- (e) Order that the owner of the substandard property offer the 14-first right of occupancy of a dwelling unit to each tenant who 15-received benefits pursuant to this section, before letting the 16-dwelling unit for rent to a third party. Except as otherwise 17-provided in this paragraph, the offer for first right of occupancy to 18-the tenant must be in writing and sent by certified mail to the 19-address given by the tenant at the time of relocation. If the owner 20-has not been provided the address of the tenant by the tenant as 21-required by this section, the owner is not required to offer the 22-tenant the first right of occupancy. The tenant may accept the 23-offer by giving the owner notice in writing by certified mail no t 24-later than 10 days after the owner mailed the offer. 25- (f) Order that if the owner fails to comply with any order 26-issued pursuant to sections 2 to 18, inclusive, of this act, the court 27-may: 28- (1) Sanction the person for civil contempt; 29- (2) Impose any penalty authorized pursuant to NRS 30-244.3603 as if the substandard property were a chronic nuisance; 31-or 32- (3) Any other penalty provided by law. 33- 2. If the district court finds that a tenant has been 34-substantially responsible for causing or substantially contributing 35-to the conditions found by the district court that make the 36-residential property a substandard property, the court shall not 37-grant to the tenant any relocation compensation or benefits. 38- 3. Any tenant of the substandard property who has been 39-ordered to relocate due to the conditions found by the district court 40-that make the residential property a substandard property and who 41-is not substantially responsible for causing or contributing to the 42-condition must be paid these benefits and moving costs at the time 43-that the tenant actually relocates. 44-- – 8 –--- *AB211*- Sec. 12. 1. If the district court appoints a receiver for a 1-substandard property pursuant to section 10 of this act, the owner 2-of the substandard property, and any agent or employee of the 3-owner, shall not collect rent from any tenant, interfere with the 4-receiver in the operation of the substandard property or encumber 5-or transfer any interest in the substandard property. 6- 2. Unless otherwise ordered by the district court, a receiver 7-for a substandard property shall: 8- (a) Take full and complete control of the substandard property. 9- (b) Manage the substandard property and pay any expenses of 10-the operation of the substandard proper ty, including, without 11-limitation, paying the taxes, insurance, utilities, general 12-maintenance and debt secured by an interest in the substandard 13-property. 14- (c) Secure a cost estimate and construction plan from a 15-licensed contractor for the repairs, rehabi litation or abatement 16-necessary to correct the conditions cited in the order issued 17-pursuant to section 10 of this act. 18- (d) Enter into contracts and emplo y a licensed contractor as 19-necessary to correct the conditions cited in the order issued 20-pursuant to section 10 of this act. 21- (e) Collect all rents and in come generated by the substandard 22-property. 23- (f) Use all rents and income generated by the substandard 24-property to pay for the cost of the repairs, rehabilitation or 25-abatement determined by the district court to be necessary to 26-correct the conditions cited in the order issued pursuant to section 27-10 of this act. 28- (g) Borrow money to pay for repairs, rehabilitation or 29-abatement necessary to correct the conditions cited in the order 30-issued pursuant to section 10 of this act and to borrow money to 31-pay for any relocation benefits for tenants that are authorized 32-pursuant to section 11 of this act and, with district court approv al, 33-secure that debt and any money owed to the receiver for services 34-performed pursuant to this section with a lien on the residential 35-property upon which the substandard property is situated. The lien 36-shall be recorded in the county recorder’s office in t he county 37-wherein the substandard property is situated. 38- (h) To exercise any other power granted to a receiver pursuant 39-to chapter 32 of NRS. 40- (i) Provide any relocation benefits to a tenant that are ordered 41-by the court pursuant to section 11 of this act. 42- 3. If the district court appoints as a receiver a nonprofit 43-organization or community development corporation, in addition 44-to the powers and duties that are granted pursuant to subsection 2, 45-- – 9 –--- *AB211*-the nonprofit organization or community development corporation 1-may apply for grants to assist in the rehabilitation of the 2-substandard property. 3- Sec. 13. A receiver appointed pursuant to section 10 of this 4-act is entitled to the same fees, commissions and necessary 5-expenses as a receiver in an action to foreclose a mortgage. 6- Sec. 14. In addition to any periodic reporting required by the 7-district court, the receiver shall prepare and submit monthly 8-reports relating to a substandard property to the board of county 9-commissioners or its designee. The report to the board of county 10-commissioners must include, without limitation: 11- 1. The total amount of rent payments received from tenants 12-of the substandard property; 13- 2. The nature and amount of any contract that is negotiated 14-or entered into by the receiver relating to the operation, repair or 15-rehabilitation of or the abatement of a condition at the 16-substandard property; 17- 3. A record of payments made by the receiver relating to the 18-operation, repair or rehabilitation of or the aba tement of a 19-condition at the substandard property; 20- 4. Information relating to the progress of the repair or 21-rehabilitation of the substandard property or abatement of a 22-condition at the substandard property; and 23- 5. A record of any amount paid to a tena nt pursuant to 24-section 12 of this act for relocation benefits. 25- Sec. 15. 1. A district court must discharge the receiver 26-appointed pursuant to section 10 of this act when the district court 27-finds that: 28- (a) The conditions set forth in the court order issued pursuant 29-to section 10 of this act that made the residential property a 30-substandard property have been properly repaired or abated; and 31- (b) A complete accounting of all costs relating to the 32-operation, repair or rehabilitation of or abatement of a condition 33-at the substandard property has been delivered to the district court. 34- 2. Upon correction of the conditions that made the residential 35-property a substandard property, the owner, the mortgagee or any 36-lienholder may apply for the discharge of all money not used by 37-the receiver for removal of the condition and all other costs. 38- 3. After discharging the receiver, the district court may: 39- (a) Retain jurisdiction over the substandard property for a 40-period of time not to exceed than 18 consecutive months; and 41- (b) Require the owner of the substandard property and the 42-board of county commissioners or its designee to report to the 43-district court on the substandard property in accordance with a 44-schedule determined by the district court. 45-- – 10 –--- *AB211*- Sec. 16. Upon the request of a receiver, the district court may 1-require the owner of the substandard property to pay all 2-unrecovered costs associated with the receivership. 3- Sec. 17. 1. The remedies and penalties provided in sections 4-2 to 18, inclusive, of this act are cumulative, may not be abrogated 5-and are in addition to any other remedies or penalties that may 6-exist in law or equity. 7- 2. The provisions of sections 2 to 18, inclusive, of this act 8-shall not be construed to limit those rights available to a landlord 9-or tenant pursuant to any other provision of law. 10- Sec. 18. Nothing in the provisions of sections 2 to 18, 11-inclusive, of this act is intended to deprive any owner of a 12-residential property or substandard property any right guaranteed 13-by the United States Constitution or Nevada Constitution, 14-including, without limitation, the right to due process. 15- Sec. 19. NRS 32.010 is hereby amended to read as follows: 16- 32.010 A receiver may be appointed by the court in which an 17-action is pending, or by the judge thereof: 18- 1. In an action by a vendor to vacate a fraudulent purchase of 19-property, or by a creditor to subject any property or fund to the 20-creditor’s claim, or between partners or others jointly owning or 21-interested in any property or fund, on application of the plaintiff, or 22-of any party whose right to or interest in the property or fund, or the 23-proceeds thereof, is probable, and where it is shown that the 24-property or fund is in danger of being lost, removed or materially 25-injured. 26- 2. In an action by a mortgagee for the foreclosure of the 27-mortgage and sale of the mortgaged property, where it appears that 28-the mortgaged property is in danger of being lost, remove d or 29-materially injured, or that the condition of the mortgage has not 30-been performed, and that the property is probably insufficient to 31-discharge the mortgage debt. 32- 3. In an action to have a residential property declared to be a 33-substandard property that is brought pursuant to section 10 or 29 34-of this ac t to manage the repair or rehabilitation of the 35-substandard property. 36- 4. After judgment, to carry the judgment into effect. 37- [4.] 5. After judgment, to dispose of the property according to 38-the judgment, or to preserve it during the pendency of an appeal, or 39-in proceedings in aid of execution, when an execution has been 40-returned unsatisfied, or when the judgment debtor refuses to apply 41-the judgment debtor’s property in satisfaction of the judgment. 42- [5.] 6. In the cases when a corporation has been dissolved, or 43-is insolvent, or in imminent danger of insolvency, or has forfeited its 44-corporate rights. 45-- – 11 –--- *AB211*- [6.] 7. In all other cases where receivers have heretofore been 1-appointed by the usages of the courts of equity. 2- Sec. 20. Chapter 268 of NRS is hereby amended by adding 3-thereto the provisions set forth as sections 21 to 37, inclusive, of this 4-act. 5- Sec. 21. As used in sections 21 to 37, inclusive, of this act, 6-unless the context otherwise requires, the words and terms defined 7-in sections 22 to 26, inclusive, of this act have the meanings 8-ascribed to them in those sections. 9- Sec. 22. “Dwelling unit” means a structure or the part of the 10-structure that is occ upied as, or designed or intended for 11-occupancy as, a residence or sleeping place by one person who 12-maintains a household or by two or more persons who maintain a 13-common household. 14- Sec. 23. “Habitability standard” includes, without limitation: 15- 1. Any provision of an applicable housing or health code 16-concerning the health, safety, sanitation or fitness for habitation 17-of a dwelling unit; or 18- 2. The requirements of chapter 118A of NRS relating to the 19-habitability of a dwelli ng unit, including, without limitation, the 20-provisions of subsection 1 of NRS 118A.290. 21- Sec. 24. “Receiver” means a receiver appointed by a district 22-court in an action to declare a residential property to be a 23-substandard property pursuant to section 29 of this act. 24- Sec. 25. “Residential property” means a parcel of land in the 25-incorporated area of the city which is primarily used for personal, 26-family or household purposes to which is affixed one or more 27-dwelling units. 28- Sec. 26. “Substandard property” means residential property 29-that has been decla red to be a substandard property by a district 30-court pursuant to section 29 of this act. 31- Sec. 27. 1. If the appropriate department of a city finds 32-that: 33- (a) A residential property is maintained in a way that violates 34-any applicable habitabil ity standard, housing code or building 35-code, or any statute or ordinance relating to habitability, building 36-safety or fire safety; and 37- (b) As a result of the violation or violations described in 38-paragraph (a), the condition of the residential property is of such a 39-nature that the health and safety of residents or the public is 40-substantially endangered, 41- the city may notify the owner of the residential property and 42-order that the owner repair or rehabilitate the residential property 43-or otherwise abate the condition. 44- 2. Any notice and order issued pursuant to subsection 1: 45-- – 12 –--- *AB211*- (a) Must include, without limitation: 1- (1) The name, address and telephone number of the city 2-department that issued the notice and summary order; 3- (2) The date, time and location of any public hearing or 4-proceeding concerning the notice and summary order; 5- (3) A description of each violation of a habitability 6-standard, housing code or building code, or any statute or 7-ordinance relating to habitability, building safety or fire safet y, as 8-applicable; 9- (4) Any deadline by which the owner must repair or 10-rehabilitate the residential property or otherwise abate the 11-condition; and 12- (5) A statement that the owner or lessor, if applicable, is 13-prohibited from retaliating against any tenant pursuant to NRS 14-118A.510; and 15- (b) Must be either: 16- (1) Posted in a conspicuous place on the residential 17-property and mailed by first -class mail to the owner and each 18-affected resident of a dwelling unit on the residential property; or 19- (2) Posted in a conspicuous place on the residential 20-property and in a prominent place on each affected dwelling unit 21-on the residential property. 22- Sec. 28. 1. If the owner of a residential property fails to 23-comply within the terms of the notice and summary order issued 24-pursuant to section 27 of this act: 25- (a) The city may bring an action to: 26- (1) Have the residential property declared by the district 27-court to be a substandard property; 28- (2) Obtain a court order requiring the owner to repair or 29-rehabilitate the residential property or otherwise abate the 30-condition; and 31- (3) Have the district court impose a civil penalty against the 32-owner of the residential property, as provided by ordinance; or 33- (b) The city or a tenant, a tenant association or a nonprofit 34-organization representing any tenant or tenant assoc iation may 35-bring an action to: 36- (1) Have the residential property declared to be a 37-substandard property; and 38- (2) Have a receiver appointed pursuant to NRS 32.010. 39- 2. A party who intends to bring an action for the appointment 40-of a receiver pursuant to paragraph (b) of subsection 1 shall: 41- (a) Not later than 3 days before filing such an action, provide 42-notice of intent to bring the action by: 43- (1) Posting a notice in a conspicuous place on the 44-residential property; and 45-- – 13 –--- *AB211*- (2) Mailing the notice to each p erson with a recorded 1-interest in the residential property; and 2- (b) Provide with the court filing proof that the party provided 3-the notice of intent to bring the action as required pursuant to 4-paragraph (a). 5- 3. A party who brings an action pursuant to s ubsection 1 6-must serve each owner of the residential property in the manner 7-provided by Rule 4 of the Nevada Rules of Civil Procedure. 8- 4. The prevailing party in an action brought pursuant to this 9-section is entitled to reasonable attorney’s fees and cos ts, as may 10-be fixed by the district court. 11- Sec. 29. 1. To declare a residential property to be a 12-substandard property, the district court must find: 13- (a) The residential property is maintained in a way that 14-violates one or more applicable habitability standards, housing 15-codes or building codes, or any statute or ordinance relating to 16-habitability, building safety or fire safety; 17- (b) The condition of the residential property that is caused by 18-the violation or violations de scribed in paragraph (a) is so 19-extensive and of such a nature that the health and safety of 20-residents of the building or the public is substantially endangered; 21-and 22- (c) Any other factor that the district court finds relevant. 23- 2. In determining whether t o appoint a receiver for a 24-substandard property, the district court shall consider: 25- (a) Whether the owner of the substandard property has been 26-afforded a reasonable opportunity to repair or rehabilitate the 27-property or otherwise abate the condition; and 28- (b) Any other factor that the district court finds relevant. 29- 3. The district court: 30- (a) Except as otherwise provided in paragraph (b), may 31-appoint a nonprofit organization , community development 32-corporation or other person as a receiver. 33- (b) Shall not appoint any nonprofit organization, community 34-development corporation or person as a receiver unless the 35-nonprofit organization, community development corporation or 36-person has demonstrated to the district court the necessary 37-capacity and expertise to develop and supervise a viable financial 38-and construction plan for the satisfactory rehabilitation of the 39-substandard property. 40- 4. An order issued by a district court declaring a residential 41-property to be a substandard property must, without limitation, set 42-forth: 43- (a) The conditions found by the district court that make the 44-residential property a substandard property; and 45-- – 14 –--- *AB211*- (b) The repairs, rehabilitations and abatements that the district 1-court finds to be necessary in order to correct each violation of a 2-habitability standard, housing code or building code, or any 3-statute or ordinance relating to habitability, building safety or fire 4-safety. 5- Sec. 30. 1. If the district court finds that there is a 6-condition of the substan dard property which substantially 7-endangers the health and safety of the residents of the 8-substandard property, upon the entry of any order or judgment 9-pursuant to section 29 of this act, the district court shall: 10- (a) Order the owner of the substandard property to pay all 11-reasonable and actual costs of the governing body of the city or its 12-designee, including, without limitation, inspection costs, 13-investigation costs, enforcement costs, attorney’s fees and costs 14-and all costs of prosecution. 15- (b) Order that the governing body of the city or its designee 16-shall provide each tenant of the substandard property with the 17-notice of the district court order or judgment. 18- (c) If the conditions of the substandard property or the repair, 19-rehabilitation or abatement thereof significantly affect the safe 20-and sanitary use of the substandard property by any lawful tenant, 21-such that the tenant cannot safely reside in the premises, order the 22-owner to provide or pay relocation benefits to each lawful tenant. 23-These benefits must consist of actual reasonable moving and 24-storage costs and relocation compensation, including , without 25-limitation, the costs and compensation for the following: 26- (1) Transportation of the personal property of the tenant to 27-the new location. The new location must be in close proximity to 28-the substandard property, except where relocation to a new 29-location beyond a close proximity is determined by the distri ct 30-court to be justified. 31- (2) Packing, crating, unpacking and uncrating all personal 32-property of the tenant. 33- (3) Insurance of the property of the tenant while in transit. 34- (4) The reasonable replacement value of personal property 35-lost, stolen or damaged, other than any personal property that was 36-lost, stolen or damaged through the fault or negligence of the 37-displaced tenant, or his or her agent or employee, in the process of 38-moving, where insurance covering the loss, theft or damage is not 39-reasonably available. 40- (5) The cost of disconnecting, dismantling, removing, 41-reassembling, reconnecting and reinstalling machinery, 42-equipment or other personal property of the tenant, including 43-connection charges imposed by utility companies for starting 44-utility service. 45-- – 15 –--- *AB211*- (6) Relocation compensation in an amount equal to the 1-differential between the contract rent and the fair market r ental 2-value determined by the United States Department of Housing and 3-Urban Development for a unit of comparable size within the area 4-for the period that the unit is being repaired or rehabilitated, for 5-not more than 120 days. 6- (d) Determine the date when the tenant is to relocate, and 7-order the tenant to notify the governing body of the city or its 8-designee and the owner of the dwelling unit of the address to 9-which the tenant has relocated no t more than 5 days after the 10-relocation. 11- (e) Order that the owne r of the substandard property offer the 12-first right of occupancy of a dwelling unit to each tenant who 13-received benefits pursuant to this section, before letting the 14-dwelling unit for rent to a third party. Except as otherwise 15-provided in this paragraph, the offer for first right of occupancy to 16-the tenant must be in writing and sent by certified mail to the 17-address given by the tenant at the time of relocation. If the owner 18-has not been provided the address of the tenant by the tenant as 19-required by this s ection, the owner is not required to offer the 20-tenant the first right of occupancy. The tenant may accept the 21-offer by giving the owner notice in writing by certified mail no t 22-later than 10 days after the owner mailed the offer. 23- (f) Order that if the own er fails to comply with any order 24-issued pursuant to sections 21 to 37, inclusive, of this act, the 25-court may: 26- (1) Sanction the person for civil contempt; 27- (2) Impose any penalty authorized pursuant to NRS 28-268.4124 as if the substandard property were a chronic nuisance; 29-or 30- (3) Any other penalty provided by law. 31- 2. If the district court finds that a tenant has been 32-substantially responsible for causing or substantially contributing 33-to the conditions found by the district court that make the 34-residential property a substandard property, the court shall not 35-grant to the tenant any relocation compensation or benefits. 36- 3. Any tenant of the substandard property who has been 37-ordered to relocate due to the conditions found by the district court 38-that make the residential property a substandard property and who 39-is not substantially responsible for causing or contributing to the 40-condition must be paid these benefits and moving costs at the time 41-that the tenant actually relocates. 42- Sec. 31. 1. If the district court appoints a receiver for a 43-substandard property pursuant to section 29 of this act, the owner 44-of the substandard property, and an y agent or employee of the 45-- – 16 –--- *AB211*-owner, shall not collect rent from any tenant, interfere with the 1-receiver in the operation of the substandard property or encumber 2-or transfer any interest in the substandard property. 3- 2. Unless otherwise ordered by the distri ct court, a receiver 4-for a substandard property shall: 5- (a) Take full and complete control of the substandard property. 6- (b) Manage the substandard property and pay any expenses of 7-the operation of the substandard property, including, without 8-limitation, p aying the taxes, insurance, utilities, general 9-maintenance and debt secured by an interest in the substandard 10-property. 11- (c) Secure a cost estimate and construction plan from a 12-licensed contractor for the repairs, rehabilitation or abatement 13-necessary to c orrect the conditions cited in the order issued 14-pursuant to section 29 of this act. 15- (d) Enter into contracts and employ a licensed contractor as 16-necessary to correct the conditions cited in the order issued 17-pursuant to section 29 of this act. 18- (e) Collect all rents and income generated by the substandard 19-property. 20- (f) Use all rents and income generated by the substandard 21-property to pay for the cost of the repairs, rehabilitation or 22-abatement determined by the district court to be necessary to 23-correct the conditions cited in the order issued pursuant to sec tion 24-29 of this act. 25- (g) Borrow money to pay for repairs, rehabilitation or 26-abatement necessary to correct the conditions cited in the order 27-issued pursuant to section 29 of this act and to borrow money to 28-pay for any relocation benefits for tenants that are authorized 29-pursuant to section 30 of this act and, with district court approval, 30-secure that debt and any money owed to the receiver for services 31-performed pursuant to this section with a lien on the residential 32-property upon which the substandard property is situated. The lien 33-shall be recorded in the county recorder’s office in the county 34-wherein the substandard property is situated. 35- (h) To exercise any other power granted to a receiver pursuant 36-to chapter 32 of NRS. 37- (i) Provide any relocation benefits to a tenant that are ordered 38-by the court pursuant to section 30 of this act. 39- 3. If the district court appoints as a receiver a nonprofit 40-organization or community development corporation, in addition 41-to the powers and duties that are granted pursuant to subsection 2, 42-the nonprofit organization or community development corporation 43-may apply for grants to assist in the rehabilitation of the 44-substandard property. 45-- – 17 –--- *AB211*- Sec. 32. A receiver appointed pursuant to section 29 of this 1-act is entitled to the same fees, commissions and necessary 2-expenses as a receiver in an action to foreclose a mortgage. 3- Sec. 33. In addition to any periodic reporting required by the 4-district court, the receiver s hall prepare and submit monthly 5-reports relating to a substandard property to the governing body of 6-the city or its designee. The report to the governing body of the city 7-must include, without limitation: 8- 1. The total amount of rent payments received fro m tenants 9-of the substandard property; 10- 2. The nature and amount of any contract that is negotiated 11-or entered into by the receiver relating to the operation, repair or 12-rehabilitation of or the abatement of a condition at the 13-substandard property; 14- 3. A record of payments made by the receiver relating to the 15-operation, repair or rehabilitation of or the abatement of a 16-condition at the substandard property; 17- 4. Information relating to the progress of the repair or 18-rehabilitation of the substandard propert y or abatement of a 19-condition at the substandard property; and 20- 5. A record of any amount paid to a tenant pursuant to 21-section 31 of this act for relocation benefits. 22- Sec. 34. 1. A district court must discharge the receiver 23-appointed pursuant to section 29 of this act when the district court 24-finds that: 25- (a) The conditions set forth in the court order issued pursuant 26-to section 29 of this act that made the residential property a 27-substandard property have been properly repaired or abated; and 28- (b) A complete accounting of all costs relating to the 29-operation, repair or rehabilitation of or abatement of a c ondition 30-at the substandard property has been delivered to the district court. 31- 2. Upon correction of the conditions that made the residential 32-property a substandard property, the owner, the mortgagee or any 33-lienholder may apply for the discharge of all money not used by 34-the receiver for removal of the condition and all other costs. 35- 3. After discharging the receiver, the district court may: 36- (a) Retain jurisdiction over the substandard property for a 37-period of time not to exceed than 18 consecutive months; and 38- (b) Require the owner of the substandard property and the 39-governing body of the city or its designee to report to the district 40-court on the substandard property in accordance with a schedule 41-determined by the district court. 42- Sec. 35. Upon the request of a receiver, the district court may 43-require the owner of the substandard property to pay all 44-unrecovered costs associated with the receivership. 45-- – 18 –--- *AB211*- Sec. 36. 1. The remedies and penalties provided in sections 1-21 to 37, inclusive, of this act are cumulative, may not be 2-abrogated and are in addition to any other remedies or penalties 3-that may exist in law or equity. 4- 2. The provisions of sections 21 to 37, inclusive, of this act 5-shall not be construed to limit those rights available to a landlord 6-or tenant pursuant to any other provision of law. 7- Sec. 37. Nothing in the provisions of sections 21 to 37, 8-inclusive, of this act is intended to deprive any owner of a 9-residential property or substa ndard property any right guaranteed 10-by the United States Constitution or Nevada Constitution, 11-including, without limitation, the right to due process. 12--H+From: Ron Aryel+To: Assembly Commerce and Labor Exhibits; Venicia Considine Assemblymember; Selena Larue Hatch; Elaine+Marzola Assemblymember; Sandra Jauregui Assemblymember; Natha Anderson Assemblymember; Angela Taylor+Senator; Max Carter Assemblymember; Lisa Krasner Senator; Lisa Cole Assemblymember; Melissa Hardy+Assemblymember; Heidi Kasama Assemblymember; Brittney Miller Assemblymember; Danielle Gallant+Assemblymember; Daniele Monroe-Moreno Assemblymember; PK O"Neill Assemblymember; Erica P. Roth+Assemblymember; Selena Torres-Fossett Assemblymember; Steve Yeager Assemblymember; Toby Yurek+Assemblymember+Cc: Hill, Alexis; Hillary Louise Schieve; martinezmi@reno.gov; Garcia, Mariluz C.; Devon Reese; George Shoenberger;+Galles, Ben @ Reno; director@nvsaa.org+Subject: Support for Assembly Bill 211+Date: Wednesday, February 12, 2025 11:40:50 PM+Greetings Legislators (including Assembly Committee on Commerce and Labor),+As you likely know from previous correspondence, I am a landlord who has expressed concern+and frustration over attempts in the legislature to micromanage my business and+micromanage leasing agents while providing no benefit at all to tenants.+However, I support AB211 because property owners who neglect their properties and their+tenants damage our community. We have a right to expect that tenants pay their rent on+time and take reasonable care of their homes; by the same token landlords must never shirk+their responsibility to maintain safe homes for tenants.+Any landlord who cannot respect this contract must be held to account.+Ron M. Aryel, M.D., M.B.A.+Duck Pond Investments L.L.C.+35 Livermore Drive+Reno NV 89519-2122+816-769-3583
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