Handling HOA Surplus Funds in Nevada

NRS 116.3114 states: “Unless otherwise provided in the declaration, any surplus funds of the association remaining after payment of or provision for common expenses and any prepayment of reserves must be paid to the units’ owners in proportion to their liabilities for common expenses or credited to them to reduce their future assessments for common expenses.”

Surplus funds are funds left over from the budget after all common expenses and reserve contributions are paid. In other words, these are excess funds collected from homeowners in the form of dues that were not used by the association. NRS 116.3114 states that surplus funds shall be returned to homeowners according to their common expense interest allocation or credited to them to offset future dues payments unless your HOA’s governing documents say otherwise.