NAC119A.470. Qualifications of person to conduct reserve study; consultants.

     1. A person is qualified by training and experience to conduct a reserve study if the person proves to the satisfaction of the board that he or she has:

     (a) A good reputation for honesty, trustworthiness and integrity;

     (b) The ability to evaluate components of the common area with regard to normal and accelerated deterioration, remaining useful life, by year, and current cost to repair, replace or restore;

     (c) The ability to perform financial analysis, cost estimates and 30-year projections, as applicable;

     (d) The ability to review documents of the association and to consult with the board to ascertain and confirm the component inventory from such a review;

     (e) The ability to gather and analyze financial data, including, without limitation, monthly assessment fees, current balance of reserves, interest rate anticipated on reserves, anticipated inflation and maximum fee increases allowable; and

     (f) The background and knowledge pertinent to all areas to be addressed by the reserve study and to all components of the common area to be addressed by the reserve study.

     2. A person who is selected to perform a reserve study for the board may use consultants and other persons with expertise in the areas and components of the reserve study to assist in preparing the reserve study.

     3. As used in this section:

     (a) “Component inventory” means a list of components of the common area identified in a reserve study that may require repair, replacement or restoration.

     (b) “Reserve study” means a study required pursuant to NRS 119A.542 that projects the expenses of an association for the repair, replacement and restoration of the major components of the common area and that establishes the reserves required to cover such expenses.

     (Added to NAC by Real Estate Div. by R135-01, eff. 12-13-2001)