NAC116A.350. Allegations of misconduct; submission of complaint; investigation and report; action by Administrator; appeal.

     1. If a person who alleges that a community manager is guilty of misconduct sends the allegations of misconduct in writing to the community manager in an attempt to resolve the issue without filing a complaint with the Division, the community manager shall, in good faith, acknowledge and respond in writing to the person making the allegations within 12 working days after he or she receives the allegations.

     2. A complaint about a community manager must:

     (a) Be submitted to the Division on a form provided by the Division;

     (b) Be signed by the person submitting the complaint; and

     (c) Include, without limitation:

          (1) The identity of the community manager who is alleged to have violated a provision of this chapter or chapter 116 of NRS, and the nature of the alleged violation;

          (2) All evidence supporting the allegations, including, without limitation, as appropriate, corroborating statements by other persons or specific information as to persons who may be contacted to provide such corroboration;

          (3) The name, address and telephone number of the person submitting the complaint;

          (4) Documents that evidence an attempt by the person submitting the complaint to resolve the issue with the executive board or the community manager, including, without limitation, any written response of the executive board or the community manager to the allegations of the person submitting the complaint; and

          (5) If filed by a tenant of a unit’s owner, ratification of the complaint by the unit’s owner without the use of a power of attorney by the tenant.

     3. Upon receipt of a complaint that complies with subsection 2, the Division shall forward the complaint to an investigator. The investigator:

     (a) Shall send a copy of the complaint to the community manager and the executive board of any association which relates to the subject of the complaint;

     (b) Within 12 working days after the receipt of the allegations, shall attempt to obtain a response in writing from the person who is the subject of the complaint;

     (c) May make such inquiries and investigation into matters relating to the allegations in the complaint as the investigator deems appropriate; and

     (d) Shall submit to the Administrator a written report that summarizes the findings and conclusions of the investigator.

     4. Upon review of the written report of the investigator, if the Administrator determines that grounds for disciplinary action against the community manager exist, the Administrator may take one or more of the following actions as he or she deems appropriate:

     (a) Issue a letter of censure to the community manager who is the subject of the complaint;

     (b) Levy an administrative fine of:

          (1) For the first offense, not more than $1,000; and

          (2) For the second offense, not more than $5,000;

     (c) Require the community manager to obtain additional education relating to the management of a common-interest community;

     (d) Refer the matter to the Commission;

     (e) Refer the matter to the Real Estate Commission; or

     (f) Refer the matter to the Attorney General of this State.

     5. The Administrator may initiate an investigation, audit or inspection of the records of any community manager or any person who performs the duties of a community manager in this State.

     6. Any action taken by the Administrator pursuant to subsection 4 may be appealed by the community manager upon written request to the Commission within 30 days after the Administrator takes such action.

     7. As used in this section, “investigator” means a person whom the Division deems to be impartial and qualified with respect to the matter in a complaint and who is designated by the Division to investigate a complaint pursuant to this section.

     (Added to NAC by Real Estate Comm’n by R136-99, eff. 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005; R108-08, 4-20-2010)—(Substituted in revision for NAC 116.351)