Bill > AB486

Introduced Session

Legislative Counsel's Digest: Existing law establishes provisions which govern landlords and tenants of 1 dwelling units and manufactured homes. (Chapters 118A and 118B of NRS) 2 Existing law establishes provisions relating to summary proceedings for the 3 eviction of such tenants. (NRS 40.215-40.425) Section 1.5 of this bill defines 4 certain terms for purposes of this bill, including the term designated eviction 5 proceeding, which refers to certain proceedings relating to the eviction of tenants 6 who have defaulted in the payment of rent. Section 1 of this bill provides that the 7 provisions of this bill do not apply to proceedings for evictions relating to: (1) 8 commercial provisions of this premises; or (2) the sale of a premises or a nuisance. 9 Section 2 of this bill authorizes a tenant to claim as an affirmative defense to a 10 designated eviction proceeding that: (1) the tenant has a pending application for 11 rental assistance; or (2) the landlord of the tenant refused to participate in the 12 application for rental assistance or accept rental assistance provided on behalf of 13 the tenant. 14 Section 2 requires the court to stay the proceedings upon the assertion of such 15 an affirmative defense unless the landlord receives an exemption. Section 2 also 16 authorizes the landlord to file a motion to rebut the affirmative defense. If such a 17 motion is filed by a landlord, section 2 authorizes the court to: (1) refer the 18 designated eviction proceedings to mediation; (2) hold a hearing; or (3) maintain 19 the stay of the proceedings. 20 If the claim relates to a pending application for rental assistance, section 2 21 requires the court to stay the proceedings until such time as a determination is made 22 on the application for rental assistance. Moreover, if the court stays such 23 proceedings, section 2 requires the court to dismiss the proceedings for eviction 24 upon the granting of the application for rental assistance and receipt of the rental 25 assistance by the landlord. 26 If a tenant proves the claim that the landlord refused to participate in the 27 application for rental assistance or accept rental assistance on behalf of the tenant, 28 section 2: (1) requires the court to deny the designated eviction proceeding; and (2) 29 authorizes the court to award damages to the tenant. Additionally, in determining 30 the award of such damages, section 2 requires the court to consider the degree of 31 harm caused to the tenant by the refusal of the landlord to participate in the 32 application for rental assistance or accept the rental assistance. 33 Section 3 of this bill provides that if a landlord accepted rental assistance on 34 behalf of a tenant who has defaulted in the payment of rent and the landlord 35 pursued, continued to pursue or evicted the tenant for any reason that existed or 36 arose during the period of default for which the rental assistance was received by 37 the landlord, the tenant or the governmental entity who administered the rental 38 assistance may file a claim of wrongful eviction against the landlord. Section 3 also 39 authorizes a court to: (1) impose certain civil penalties on a landlord who is found 40 to have wrongfully evicted a tenant; and (2) require the landlord to pay costs and 41 attorney s fees of the plaintiff. 42 Section 3.5 of this bill establishes similar provisions which provide that if a 43 governmental entity brings any other cause of action relating to a landlord who 44 accepted rental assistance on behalf of a tenant who has defaulted in the payment of 45 rent and the landlord pursued, continued to pursue or evicted a tenant for any 46 reason that existed or arose during the period of default for which the rental 47 assistance was received by the landlord, the governmental entity may be entitled to 48 damages in an amount not to exceed the amount of rental assistance obtained by the 49 landlord and is entitled to costs and attorney s fees. 50 Existing law authorizes a court to stay proceedings for eviction against a tenant 51 of any dwelling unit, apartment, mobile home, recreational vehicle or part of a low-52 rent housing program operated by a public housing authority for a period of not 53 more than 30 days to facilitate a program of alternative dispute resolution under 54 certain circumstances. (NRS 40.2544) Section 8.5 of this bill repeals those 55 provisions and instead section 4 of this bill establishes similar provisions with 56 expanded applicability to designated eviction proceedings. 57 Existing law requires a landlord to provide notice of proceedings for evictions 58 to tenants. (NRS 40.215-40.425) In addition to the existing requirements, section 5 59 of this bill requires the notice of a designated eviction proceeding to include 60 information relating to rental assistance and the provisions of sections 2, 3 and 4. 61 Section 6 of this bill requires: (1) Home Means Nevada, Inc., or its successor 62 organization, to create an electronic form which may be completed by a landlord 63 who wishes to obtain rental assistance on behalf of a tenant who has defaulted in 64 the payment of rent; and (2) the form to collect certain information relating to such 65 landlords and tenants. Upon submission of the form by the landlord, section 6 66 requires Home Means Nevada, Inc., or its successor organization, to determine 67 whether the landlord is an eligible landlord, meaning that the landlord: (1) owns a 68 single family residence; (2) is seeking rental assistance for least one dwelling unit 69 in the single family residence; (3) is domiciled in this State or employs a property 70 manager in this State; and (4) has an annual gross revenue from the rental of all 71 premises in this State of less than $4,000,000. If Home Means Nevada, Inc., or its 72 successor organization, determines that the landlord is an eligible landlord, section 73 6 requires Home Means Nevada, Inc., or its successor organization, to forward 74 relevant information relating to the landlord and tenant to an appropriate housing or 75 social service agency. Section 6 then requires the housing or social service agency 76 to attempt to contact the tenant to provide information relating to a program for 77 rental assistance. If the tenant is unresponsive or fails to apply to the program for 78 rental assistance, section 6 requires the housing or social service agency to inform 79 the eligible landlord of that fact and authorizes the eligible landlord to receive 80 rental assistance, without the application of the tenant, if the eligible landlord 81 agrees to certain conditions. 82 Section 7 of this bill requires the disbursement of certain federal money in the 83 amount of $5,000,000 for the purpose of providing rental assistance directly to 84 landlords. 85 Section 9 of this bill expires the provisions of sections 1-3.5, 5 and 6 on 86 June 5, 2023. Section 9 expires the provisions of section 4 on the earlier of: (1) the 87 date that the Nevada Supreme Court determines that there are insufficient funds for 88 the programs of alternative dispute resolution; or (2) June 5, 2023. 89 SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Sections 1.5 to 6, inclusive, of this act do not apply 1 to any proceeding for eviction relating to: 2 1. A commercial premises; or 3 2. An unlawful detainer pursuant to subsection 4 of NRS 4 40.2514 or NRS 40.255. 5 Sec. 1.5. As used in sections 1.5 to 6, inclusive, of this act, 6 unless the context otherwise requires: 7 1. Designated eviction proceeding means: 8 (a) A proceeding for summary eviction pursuant to NRS 40.253; 9 (b) A proceeding for summary eviction pursuant to NRS 40.254 10 where the tenant has defaulted in the payment of rent; 11 (c) A proceeding for eviction for an unlawful detainer pursuant 12 to NRS 40.2512; or 13 (d) A proceeding for eviction relating to paragraph (a) of 14 subsection 1 of NRS 118B.200. 15 2. Landlord means a landlord governed by chapter 118A or 16 118B of NRS. 17 3. Rent means all periodic payments to be made by a tenant 18 to a landlord for occupancy of a premises. 19 4. Rental assistance includes, without limitation, federal, 1 state or local funds: 2 (a) Provided by a governmental entity; and 3 (b) Administered for the purpose of paying any amount of 4 delinquent rent. 5 5. Tenant means a tenant governed by chapter 118A or 118B 6 of NRS. 7

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Approved by the Governor. Chapter 354. (on 06/04/2021)

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