NAC116B.350. Reserve study: Determination of reduction in useful life of shared components and hotel unit.

     1. For purposes of NRS 116B.610, a reduction in the useful life of each major component of the shared components and each major component of the hotel unit may be determined based upon local or other applicable industry standards.

     2. In addition to the criteria set forth in subsection 1, a reserve study specialist may also consider reasonable business or operating concerns or objectives of the hotel unit owner in determining a reduction in the useful life of the shared components and each major component of the hotel unit. A reduction in the useful life based upon such concerns or objectives must be clearly noted in the reserve study or review of the reserve study by the hotel unit owner.

     3. A reserve study must clearly disclose the basis for or the factors used by the reserve study specialist in determining the useful life or remaining useful life of each major component of the shared components and each major component of the hotel unit.

     (Added to NAC by Comm’n for Common-Interest Communities & Condo. Hotels by R186-07, eff. 5-5-2011)