Important

Board Misconduct &
Governance Issues

Nevada law under NRS 116.31083 imposes strict governance obligations on HOA boards. When boards act outside their authority, fail to follow proper procedures, or mismanage funds, homeowners have powerful remedies.

Governed by NRS 116.31083

Types of Board Misconduct

NRS 116.31083

Open Meeting Violations

Board meetings must be open to homeowners with proper advance notice. Secret meetings or decisions made outside of properly noticed meetings may be invalid.

NRS 116.3114

Financial Mismanagement

Board members have a fiduciary duty to manage HOA funds responsibly. Unauthorized expenditures, missing funds, or failure to maintain reserves may constitute misconduct.

NRS 116.31034

Election Irregularities

HOA elections must follow specific procedures. Improper candidate disqualification, ballot manipulation, or failure to hold required elections are violations.

NRS 116.3102

Failure to Follow Governing Documents

Board members must act within the authority granted by the CC&Rs and bylaws. Actions taken outside this authority may be void and unenforceable.

NRS 116.31175

Lack of Transparency

Homeowners have the right to be informed about HOA decisions, finances, and operations. Deliberate concealment of information may be a violation.

NRS 116.31183

Conflict of Interest

Board members must disclose conflicts of interest and recuse themselves from related votes. Undisclosed conflicts can invalidate board decisions.

What Nevada Law Requires of HOA Boards

Hold open meetings with proper advance notice to homeowners
Maintain accurate financial records and make them available
Follow the CC&Rs, bylaws, and Nevada law in all decisions
Conduct elections according to established procedures
Disclose and recuse from conflicts of interest
Maintain adequate reserve funds for future repairs
Respond to homeowner complaints and records requests
Act in the best interests of the entire community

How to Address Board Misconduct

Nevada Real Estate Division (NRED)

NRED investigates complaints against HOAs and board members. They can impose civil penalties and require corrective action.

File an NRED Complaint

Homeowner Petition

Nevada law allows homeowners to petition for a special meeting or to remove board members through a recall election.

Organize Homeowners

Mediation

Nevada offers mediation through NRED as an alternative to litigation for resolving HOA disputes.

Request Mediation

Legal Action

Courts can invalidate improper board decisions, remove board members, and award damages in cases of serious misconduct.

Consult an Attorney

Report board misconduct

Document the violations and understand your options for holding your board accountable.