When Does an HOA Need a Lawyer?

Homeowners Associations (HOAs) play a crucial role in maintaining the quality, value, and harmony of residential communities. But managing a neighborhood isn’t just about landscaping and pool rules. It also comes with significant legal responsibilities and risks.

In Nevada, all HOAs are governed by NRS Chapter 116, which lays out strict requirements for how associations are structured, managed, and held accountable. HOA boards that operate without competent legal guidance often unknowingly expose themselves and the homeowners they serve to costly liabilities and legal trouble.

Whether you're a board member, community manager, or resident, knowing when your HOA should hire a lawyer can help protect the association, preserve property values, and prevent devastating financial consequences.

1. Drafting or Updating Governing Documents

Your HOA’s CC&Rs (Covenants, Conditions & Restrictions), bylaws, and rules form the legal framework of your community. These documents must be clear, enforceable, and compliant with state and federal law—including NRS 116, Fair Housing, and ADA requirements.

It’s especially important to review and update your CC&Rs when new issues arise, such as:

• Short-term rentals (e.g., Airbnb or VRBO) and their regulation

• Remote work impacts on residential use

• Electric vehicle charging stations

• Solar panel restrictions

• Security camera usage

• Noise ordinances and nuisance definitions

  
  

Outdated CC&Rs leave your HOA vulnerable to disputes, selective enforcement claims, and unenforceable rules.

You need a lawyer when:

• Creating or amending bylaws or CC&Rs

• Adopting new rules or policies

• Clarifying vague or outdated language

• Addressing recent legislative changes or court decisions

Legal review ensures your documents hold up in court and reflect the current needs of your community.

2. Enforcing Rules and Fines

From parking violations to noise complaints, HOAs must enforce community rules fairly, consistently, and within the law. Failing to do so can result in allegations of selective enforcement, harassment, or even discrimination.

An attorney helps:

• Draft enforcement policies and legal notices

• Ensure fines comply with governing documents and NRS 116

• Avoid violations of Fair Housing or ADA laws

3. Handling Disputes with Homeowners

Disputes are inevitable. Whether it’s a disagreement over assessments or allegations of discrimination, a qualified HOA lawyer is essential.

Legal support is needed when:

• A homeowner threatens legal action

• The HOA receives a fair housing or ADA complaint

• Disputes escalate into formal grievances

A lawyer can mediate disputes and prevent them from spiraling into lawsuits that can devastate the HOA’s finances.

4. Understanding Liability: What Happens If the HOA Gets Sued?

Many board members are unaware that a judgment against the HOA is ultimately paid by the homeowners, especially if the association lacks proper insurance or reserve funds.

In a 2024 case out of Clark County, Nevada, a homeowners association was hit with a $20 million jury verdict after a faulty swing set led to a devastating injury. The court held the HOA liable for failing to maintain the equipment and for acting without adequate oversight or legal risk management. Read more about the case here.

If your HOA doesn't have competent legal counsel, something as seemingly small as a playground hazard can bankrupt a community—or worse.

5. Federal, State & Local Compliance: More Than Just NRS 116

Beyond Nevada's NRS 116, HOAs must comply with:

• The Fair Housing Act

• The Americans with Disabilities Act (ADA)

• Municipal zoning and maintenance codes

• Employment and labor laws (if staff are hired)

Failure to comply can result in steep fines, federal investigations, or lawsuits.

6. Board Member Liability

Board members may be volunteers—but they are fiduciaries under the law. If they act negligently or outside the scope of their duties, they can be held personally liable for financial losses, injuries, or civil rights violations.

A good lawyer can:

• Train the board on their legal duties

• Prevent conflicts of interest

• Establish policies that protect both the HOA and its directors

Final Thoughts: Proactive Legal Support Protects Everyone

Waiting until a legal problem explodes can cost your HOA and its members millions. Proactive legal counsel is not just a safeguard; it’s an investment in the financial health and legal integrity of your community.

If your HOA is facing legal questions or compliance concerns, don’t wait until it's too late. The law doesn’t make exceptions for ignorance or inexperience.

Need help navigating HOA legal matters?

Our experienced legal team is here to support you every step of the way. Contact us today to schedule a consultation: 725-239-8413.