2023 Legislative Session Updates

Housing providers are facing serious changes to the legal processes that govern their policies and daily operations.  

As the leading landlord law firm in Nevada, active involvement in these proposals is our priority, and we are proud to fight on the front lines to protect our industry.  As legal counsel for the Nevada State Apartment Association, we are working diligently to navigate the bills presented in this legislative session.  Below are some of the most impactful bills that housing providers should be aware of this session.  

 

AB340 (Active)

Revises summary eviction process

Position: Oppose
Status of Bill:  This bill was passed out of committee as amended

 

Reorganizes and modifies the existing summary eviction process in effort to make it more closely resemble that of a formal civil lawsuit. Complicates service and filing procedures while creating additional obstacles for landlords to comply with. Has the potential to cause indefinite delays throughout the eviction process, and specifically with respect to the filing of a complaint, service of the complaint with court-generated summons, and the eventual setting of such matters for hearings. [See also: SB335]

Click here to read the bill

Current amendment unavailable at this time

 


SB335 (Active)

Revises summary eviction process, with the continuation of AB486

Position: Oppose
Status of Bill:  This bill was passed out of committee as amended
A hearing on this bill was held on May 18, 2023.  Read about our industry’s presence and watch the testimonies here.

 

As introduced, SB 335 closely mirrored that of AB 340 and sought to reorganize the existing summary eviction process in the same manner. The bill has since been amended so as to focus on two significant eviction law changes: (1) the reauthorization of AB 486, and (2) providing authority to all Courts statewide to create and implement their own eviction diversion programs.

As you may recall, AB 486 – the law providing tenants with affirmative defenses to eviction on the basis of pending rental assistance – is set to expire in early June. This bill seeks to permanently extend such defenses and tenant protections. AB 486 was passed by the Legislature in 2021 in the 11th hour as a pandemic measure with little to no public comment; as a result, the law was poorly conceived and written, which resulted in numerous interpretation and application issues that continue to plague the industry to the present. The bill seeking to reauthorize and extend AB 486 makes certain changes to AB 486 in effort to clarify ambiguities and fix many of the problems that the law has caused.

Unfortunately, these changes are immaterial in that the underlying concept of AB 486 remains flawed and objectionable. A tenant that cannot pay rent has no defense to a non-payment of rent eviction, yet AB 486 provides such a defense and allows the case to be delayed indefinitely. Further, whether a tenant is in default of rent should have no bearing on a no-cause, breach of contract, or other improper-conduct type of eviction because payment of rent is not material, yet AB 486 extends to those types of evictions and provides the same defense and delays.

SB 335 also authorizes the Courts to adopt and implement their own Eviction Diversion Programs. At present, only Las Vegas Justice Court has an existing diversion program, which serves to reroute certain cases to allow for tenant’s receipt of rental assistance or other services. Unfortunately, the key component of any diversion program is that of delay; cases that should be adjudicated in a timely manner are diverted along different tracks so as to receive additional attention, often resulting in delays.

[See also: AB340]

Click here to read the bill

Click here to read the current amendment

 


SB371 (Active)

Allows counties and cities to establish their own rent control and related laws

Position: Oppose
Status of Bill:  Do pass, placed on second reading file as of 4/18/2023

 

Seeks to authorize local governments to enact rent control and other housing-related ordinances. The provision of such authority effectively acts to bypass the state legislative process, opening the door for local governments to enact various ordinances across the state. Real estate laws should be well-vetted and consistent statewide.

Click here to read the bill

 


SB426 (Active)

Creates statewide rent control, with the ability for housing providers to apply for limited exemptions on case-by-case basis

Position: Oppose
Status of Bill:  This bill has received a notice of eligibility to the deadline. It was amended and do pass as amended, from Senate Commerce and Labor

 

This bill has the same concerns as the related rent control AB362. Although the bills allows for limited exemptions for a housing provider to charge more than the “cost-of-living” increase, it effectively shifts the burden to the housing provider to plead poverty to raise the rent above the state-mandated amount. The chilling effect on investment and the disincentive to renovate and maintain the premises will degrade our state’s housing supply. [See also: AB362]

Click here to read the bill

 


AB298 (Vetoed)

Creates statewide rent control for persons 62 or older; adds some fee disclosure requirements

Position: Oppose
Status of Bill:  VETOED

 

The rent control aspect has the same concerns as AB362 and SB426, and the limitation to seniors does not alleviate the concerns about degrading the housing supply and exacerbating the existing housing problems. Incentivizing and increasing the housing supply will alleviate our housing problems. The remaining fee disclosure proposals need to be consistent with other pending proposals.

Click here to read the bill

Click here to read the current amendment

 


SB78 (Active)

Omnibus bill seeking many changes to NRS 40 and 118A: Grace period before late fee; Disclosure for all fees; Actual costs for fees; Limiting collection actions; et al.

Position: Oppose
Status of Bill:  This bill was passed out of committee as amended

 

This bill is a substantial revision to landlord-tenant laws found in both NRS 40 and NRS 118A. It has been amended and continues to be the subject of negotiations. We are cautiously optimistic of reaching an amicable compromise.

Click here to read the bill

Click here to read the current amendment

 


SB381 (Active)

Prohibits a charges to tenants for habitability and other repairs performed by landlord

Position: Neutral, subject to addition of provisions
Status of Bill:  This bill was passed out of committee as amended

 

The bill appears well-intentioned in so far as it seeks to avoid preconditions for repair work being performed. However, the bill currently does not take into consideration those conditions which are caused by the tenants and should therefore be the financial obligation of the tenants.

The landlord should not punished for conditions caused by the tenant, should be able to receive payment for such repairs prior to completion, and should not be precluded from pursuing reimbursement for those items after the repairs are performed.

Click here to read the bill

 


SB143 (Active)

Limits criminal background screening

Position: Oppose
Status of Bill:  This bill was passed out of committee as amended

 

This bill seeks to impose stringent screening prohibitions on landlords which go above and beyond that which HUD’s 2016 guidelines on disparate impact detail. HUD guidelines already provide guidance on the proper use of criminal background screening.

Housing providers should be able to consider relevant crimes (i.e., safety, drugs, property damage, et al.) in protecting their communities, and this bill seeks to tie the hands of the landlord and limit what convictions they can screen for and ultimately whether they can deny applicants based on the existence of such convictions.

Click here to read the bill

Click here to read the current amendment

 


AB218 (Active)

Adds fee disclosure requirements; limits online payment fees to actual third party costs

Position: Neutral, subject to further review
Status of Bill:  This bill was passed out of committee as amended

 

The concepts in this bill are not objectionable, so long as the wording can be made consistent with other bills dealing with similar issues.

Click here to read the bill

Click here to read the current amendment

 


SB68 (Active)

Creates a Critical Needs Fund funded by increased real estates property transfer taxes

Position: Oppose
Status of Bill:  Amended but is exempt from deadline

 

Encouraging more affordable housing should be achieved by providing lower the costs for housing providers, not by increasing their taxes and costs.

Click here to read the bill

 


SB395 (Active)

Creates a registry of companies owning real estate

Position: Oppose
Status of Bill:  Passed out of committee but is exempt from deadline

 

The purpose of the data collecting here is unclear, and a rental registry appears to be a basis to tax and/or obligate real estate ownership.

Click here to read the bill

 


SB254 (Active, no movement)

Previously vetoed.  Limits criminal background screening

Position: Oppose 
Status of Bill:  This bill has had no movement (possibly due to it being from an old session and the new criminal screening bill is moving).

 

[See the similar bill: SB143]

Click here to read the bill

 


AB176 (Not passed)

Added source of income as a basis for discrimination

Position: Opposed    |    Status of Bill: Dead

 


AB123 (Not passed)

Mandated the acceptance of rental obligations insurance

Position: Opposed     |     Status of Bill: Dead

 


AB362 (Not passed)

Created statewide rent control

Position: Opposed     |     Status of Bill: Dead

 


AB327 (Not passed)

Required manager (fourplex or more) to have an NRED Property Management Permit

Position: Neutral     |     Status of Bill: Dead

 


AB447 (Not passed)

Mandates disclosures for the processing of collection payments

Position: Neutral     |     Status of Bill: Dead

 


AB87 (Not passed)

Mandated the removal of a service animal exhibiting aggressive behavior when requested; also allowed public transport operators to question the nature of the service animal

Position: Neutral     |     Status of Bill: Dead
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