Nevada has spent decades managing particular exercises of HOA authority. But it has done comparatively little to define the outer boundaries of that authority—what an HOA may be empowered to own, operate, regulate, or require its owners to do and finance through the declaration. What limits the scope of an association’s authority and obligations in the first place? Whatever the developer puts into the declaration?

Nevada is moving to strengthen HOA reserve funding rules. But a stronger reserve standard is only useful if boards clearly show owners how they intend to meet it. The missing link may be a clearly identified annual Reserve Budget.