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Tenant Service Charges

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  1. Each landlord reselling gas or electric utility services has the option of establishing a tenant service charge pursuant to NRS 704.940(5) and the following terms and conditions set forth in the regulations which have been adopted by the Commission. NAC 704.980 to 704.991. Those provisions include:
    1. Amounts deposited or collected in the tenant's service charge account may not be used to maintain, repair or replace utility lines or equipment serving the common area of the mobile home park.
    2. Any money collected by the landlord as the tenant service charge must be deposited in a separate interest bearing account in a federally insured financial institution. The interest must be retained in the account and used in the same manner as the principal. A separate account for each utility must be established and withdrawals for repairs, replacements, preventive maintenance or payment of associated federal income tax related to a particular utility service must be made from the respective account in the manner set forth in this section.
     
  2. No funds may be withdrawn from the tenant service charge account for tenant service charges without obtaining prior written approval from the Commission. NAC 704.984. To apply for the Commission's approval to utilize monies from the tenant's service charge account, the landlord shall file an application with the Commission which includes:
    1. An explanation of the manner in which he intends to utilize the funds that are being requested.
    2. A schedule showing the proposed or actual costs of repairs, replacements, preventive maintenance or federal income tax liability.
    3. An explanation of the actions the landlord took to ensure that any costs which it has or will incur are reasonable. This explanation should include any oral or written bids which were obtained.
    4. A copy of the most recent statement for the account received from the financial institution in which the funds are deposited showing the current amount in the fund and the projected balance in the fund, if the Commission authorizes the expenditures which are being requested.
    5. In the event the expenditure would substantially deplete the fund, a statement indicating that the landlord would be capable of funding any emergency repairs or replacements which might occur in the future.
    6. A statement describing how any costs for repairs or replacements in excess of the fund balance will be paid.
    7. A copy of the notice of withdrawal to be provided to the tenants.
    8. Copies of all invoices, cancelled checks and work orders relating to the repairs.
     
  3. The minimum amount of a request for use of tenant's service charge funds is $500.00. Expenditures of less than $500.00 shall be aggregated in a single filing.
  4. The landlord shall notify its customers in writing that it has requested authorization to use tenant service charge funds. This notification shall include a general explanation of the contemplated use for such funds and shall be provided to the customer with the first monthly billing for utility services after the request has been submitted to the Commission. The notice must include a general explanation of the manner in which the landlord is required to collect, deposit and disburse the money that the landlord assesses and collects from his tenants as a service charge, a statement that the money may be used only for federal income taxes which must be paid as a result of the collection of the service charge, for preventive maintenance or for repairing or replacing utility lines or equipment, state the balance in the account as it appears on the statement issued by the financial institution which is included in the application for permission to withdraw money, state the amount of money he has requested permission to withdraw; and include a statement that the notice is not an increase in rent or service charge.
  5. The Commission will review the application to determine whether the withdrawal of the requested amount or a portion thereof from the account is consistent with the provisions of NRS 704.940. Upon receipt of the Commission's approval, the landlord may withdraw funds up to the level of the amount authorized by the Commission.
  6. A landlord who sells a mobile home park or otherwise transfers ownership of a mobile home park shall transfer any balance in the service charge account to the new owner and shall, within forty- five (45) days after the transfer, file with the Commission documents which verify that the fund has been transferred.

    Sample Notices