Senator Neal proposes HOA reform bill to ease restrictions on landscaping and advertising

A proposed bill aimed at reforming homeowners' association (HOA) regulations sparked significant discussion during the Nevada Senate Committee on Judiciary meeting on April 9, 2025. The bill, introduced by Senator Neal, seeks to address various issues faced by homeowners living under HOA governance, particularly focusing on the rights of residents and the limitations imposed by these associations.

One of the most notable provisions of the bill allows small businesses to display advertisements on their personal vehicles parked in front of their homes. Senator Neal highlighted a troubling scenario where homeowners could be fined or forced to cover up vehicle signage, raising concerns about the intrusion of HOAs into personal property rights. "Are small businesses now not able to park their car in front of their house that they're paying the mortgage for because an HOA is dictating what's going on?" Neal questioned, emphasizing the need for reform.

The bill also proposes changes to landscaping requirements, allowing homeowners more flexibility in meeting HOA standards. Currently, new residents are often pressured to landscape their backyards within six months of moving in, which can be financially burdensome. Senator Neal aims to alleviate this pressure, stating, "I wanted to be able to flex that provision... to give some economic relief to the families."

Another key aspect of the bill addresses the inconsistency in HOA practices regarding late payment notices. Senator Neal proposed standardizing the notification period to 30 days, aligning it with common debt collection practices. This change aims to provide homeowners with a fairer chance to address financial obligations without immediate penalties.

However, the bill faced opposition from various stakeholders, including representatives from the Community Associations Institute, who argued that the proposed changes could undermine the effectiveness of HOAs in maintaining property values and community standards. They expressed concerns that allowing exceptions for oil stains and commercial vehicle signage could lead to aesthetic degradation in neighborhoods.

Supporters of the bill, including homeowners who have experienced the challenges of living in an HOA, praised its common-sense approach. Testimonies highlighted the need for balance between community standards and individual rights, with many advocating for a more reasonable and fair treatment of homeowners.

As the committee continues to deliberate on SB 121, the discussions reflect a growing recognition of the need to reform HOA regulations to better serve the interests of homeowners while maintaining community integrity. The outcome of this bill could significantly impact the relationship between residents and their HOAs across Nevada.