Lawmakers on Thursday discussed a bill limiting the amount Nevada community associations can penalize members and creating a new state panel to resolve their disputes.
SB100 is designed to reduce lawsuits and lien foreclosures that result when associations fine homeowners for violations of code or failure to pay back dues.
It would create a five-member commission to resolve disputes as well as limit fines and the number of potential restrictions by associations.
"We want somebody with a really big hammer to deal with these issues," said Sen. Randolph Townsend, R-Reno.
Over 250,000 Nevada homes belong to community associations, Eldon Hardy, the state common-interest communities ombudsman, told members of the Senate Commerce and Labor Committee.
The associations have a board of directors, elected by residents. The boards use homeowner dues -- ranging from $10 to a few hundred dollars a month -- to maintain community streets, parks, clubhouses, pools and other common property shared by the homeowners.
There are now 1,400 associations registered with the state, said Hardy, adding that another 1,400 may exist but are not formally registered. The measure would require such registration.
The bill's primary sponsor, Sen. Mike Schneider, D-Las Vegas, wants to prohibit any associations from restricting from homes solar panels, ramps or elevators for the disabled, or shutters and locks.
The bill would also allow for a maximum fine of $1,000 per year if a homeowner repeatedly violates an association's code.
