Does Nevada require all condo associations to have reserve studies?

NRS 116.31152 applies to associations with more than 20 units in counties of 50,000 or more residents. Smaller communities and very small counties have lighter requirements. For qualifying associations, the 5-year cadence is mandatory.

Who can perform a Nevada reserve study?

A Certified Reserve Specialist licensed under NRS 116A.620–675. For very small qualifying communities, any qualified person may perform the study. The licensure requirement is stronger than in most states.

Can owners waive reserves in Nevada?

No. NRS 116.3115 overrides any declaration provision attempting to waive reserves. The board must levy assessments adequate to fund reserves; owners cannot vote to reduce funding below the study's recommendation.

What is a healthy funded ratio?

Industry guidance treats 70 percent funded as strong, 30–70 percent as fair, below 30 percent as weak. Nevada's statutory framework pushes toward higher funded ratios than unregulated states, but underfunding still occurs.

What happens if the association does not file the study summary with NRED?

The 45-day filing requirement is statutory — non-filing is a violation. Owners may file complaints through the Ombudsman's office. For a buyer, missed filings are a diligence flag suggesting management or board lapses worth investigating further.

Nevada guide

Nevada condo reserve study requirements

Nevada is one of the few states with a hard statutory reserve-study cadence. NRS 116.31152 requires associations with more than 20 units in counties of 50,000 or more residents to commission a professional reserve study at least every five years, performed by a Certified Reserve Specialist licensed under NRS 116A.

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The board must review and adjust the study annually, and must submit the study summary to the Real Estate Division within 45 days of adoption. Underfunding still occurs — but the legal floor is meaningfully higher than in most states.

What the statute requires

NRS 116.31152 requires the reserve study to identify all major common-element components (roofs, paving, mechanical systems, amenities, structural elements where applicable), estimate remaining useful life and replacement cost, and propose a funding plan that maintains adequate reserves. The study must be conducted by a Certified Reserve Specialist licensed under NRS 116A.620–675. Smaller associations (20 units or fewer, or larger communities in small counties) have lighter requirements.

Board's broad funding authority under NRS 116.3115

Unlike most states, NRS 116.3115 explicitly empowers the board to levy any 'necessary and reasonable' assessments to fund adequate reserves without owner approval — even when the governing documents say otherwise. Owners cannot waive reserve funding by declaration. The board must adjust assessments each year to keep reserves on track. This is one of the stronger statutory frameworks for reserve discipline in the country.

How to read a Nevada reserve study

Compare the recommended annual contribution to the actual budget line. Compare the current reserve balance to the recommended balance (funded ratio). Identify any major components excluded from the study — this is rare in Nevada because the statute requires comprehensive coverage, but exclusions sometimes occur. Read the study's narrative for any flagged deferred-maintenance items or operating-environment commentary.

Annual review and 45-day filing requirement

NRS 116.31152(3) requires the board to review and adjust the reserve study annually. NRS 116.31152(6) requires the association to submit a summary to NRED within 45 days of board adoption. If the most recent study was not filed on time, that is itself a statutory finding worth raising. The NRED Common-Interest Communities Compliance Section maintains the filing record.

Special assessments and the reserve gap

Even with strong statutory framework, Nevada associations sometimes underfund reserves relative to the study's recommendation. The gap typically closes through board-imposed special assessments — which under NRS 116.3115 do not require owner approval for reserve-funding purposes. The signal worth reading: a recent or pending special assessment combined with a study showing a meaningful funded-ratio gap is a clear future-assessment trajectory.

Nevada legal references

Informational only. Not legal advice. Always confirm against current statute and counsel.

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Reviewer's checklist

Request the most recent reserve study (NRS 116.31152 requires every 5 years)
Verify the study was conducted by a licensed Certified Reserve Specialist
Confirm the study has been adopted and filed with NRED within 45 days
Compare recommended annual contribution to budget actuals
Compare current reserve balance to recommended balance (funded ratio)
Identify any major components excluded from the study
Read the most recent annual board review of the study
Confirm no pending or recent reserve-related special assessments
For smaller communities: confirm whether the lighter <20-unit requirements apply
Request the 45-day NRED filing receipt or equivalent confirmation

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