The Legislature finds and declares that:
1. There exists a serious shortage of decent, safe and sanitary
housing in this state available to persons and families of low and
moderate income and that many other persons and families are unable to
secure or afford, without assistance, decent, safe and sanitary housing.
2. This condition is conducive to disease, crime, environmental
decline and poverty, impairs the economic value of large areas, which are
characterized by depreciated value, impaired investments, reduced
capacity to pay taxes, and lack of new development to meet the needs of
area residents, and is a menace to the health, safety, morals and welfare
of the residents of this state.
3. This condition results in a loss of population and further
deterioration accompanied by added costs to communities for creation of
new public facilities and services elsewhere.
4. It is difficult and uneconomic for individual owners
independently to remedy this condition.
5. One major cause of this condition has been recurrent shortages
of money from private sources, and such shortages have contributed to
reductions in construction of new residential housing and have made the
sale and purchase of existing residential housing a virtual impossibility
in certain parts of the State. Other causes of this condition include
increases in rental values and decreases in the availability of federal
funding for housing.
6. The ordinary operations of private enterprise have not in the
past corrected these conditions.
7. The reduction in housing construction has caused substantial
unemployment and underemployment in the construction industry which,
together with the shortage of affordable housing, results in hardships,
wastes human resources, increases the public assistance burdens of the
State, impairs the security of family life, impedes the economic and
physical development of the State and adversely affects the welfare,
health and prosperity of all the people of this state.
8. A stable supply of adequate money for the financing and
provision of other assistance to obtain housing is required to encourage
new housing in an orderly and sustained manner, to increase the
availability of affordable housing, and thereby to reduce these
detrimental results.
9. It is necessary to create a Housing Division in the Department
of Business and Industry to encourage the investment of private capital
and stimulate the financing of housing through the use of public
financing to provide mortgage loans and to make loans to and purchase
mortgage loans from mortgage lenders, and to perform any other function
authorized by this chapter.
10. It is appropriate for the Housing Division to issue
obligations regardless of their characterization for the purposes of
federal income taxation by the United States Department of the Treasury.
11. All of the purposes set forth in this chapter are public
purposes and uses for which public money may be borrowed, expended,
advanced, loaned or granted.
Ê This chapter must be liberally construed to accomplish the public
purposes and alleviate the detrimental conditions set forth in this
section.
(Added to NRS by 1975, 625; A 1987, 1353; 1989, 1213; 1993, 1554)
As used in this chapter, the words and
terms defined in NRS 319.040 to 319.135
, inclusive, have the meanings ascribed
to them in those sections.
(Added to NRS by 1975, 626; A 1979, 1186; 1987, 1354)
“Administrator” means the
Administrator of the Division.
(Added to NRS by 1975, 626; A 1993, 1555)
“Collateralized mortgage obligation” means an obligation which
represents an interest in a loan or a group of loans or which may be
issued by the owner of one or more loans and secured by an assignment of
or an interest in the principal or interest payable from such a loan or
loans or by an interest in the underlying loan.
(Added to NRS by 1987, 1350)
“Division” means the Housing
Division of the Department of Business and Industry.
(Added to NRS by 1975, 626; A 1993, 1555)
“Eligible family” means a
person or family, selected without regard to race, creed, national origin
or sex, determined by the Division to require such assistance as is made
available by this chapter on account of insufficient personal or family
income after taking into consideration, without limitation, such factors
as:
1. The amount of the total income of that person or family
available for housing needs;
2. The size of the family;
3. The cost and condition of housing facilities available;
4. The ability of the person or family to compete successfully in
the normal private housing market and to pay the amounts at which private
enterprise is providing decent, safe and sanitary housing;
5. If appropriate, standards established for various federal
programs determining eligibility based on income of those persons and
families; and
6. Service in the Armed Forces of the United States with a minimum
of 90 days on active duty at some time between:
(a) April 21, 1898, and June 15, 1903;
(b) April 6, 1917, and November 11, 1918;
(c) December 7, 1941, and December 31, 1946;
(d) June 25, 1950, and January 31, 1955; or
(e) January 1, 1961, and May 7, 1975,
Ê and at least 2 years’ continuous residence in Nevada immediately
preceding any application for assistance under this chapter.
(Added to NRS by 1975, 626; A 1979, 1186; 1989, 1214)
“Governmental agency”
means the United States of America, this state or any department,
division, public corporation, public agency, political subdivision or
other public instrumentality of either.
(Added to NRS by 1975, 626)
[Effective July 1, 2009.]
“Insured mortgage” means a mortgage loan for residential housing insured
or guaranteed by private mortgage insurance or by the United States or a
governmental agency or instrumentality thereof.
(Added to NRS by 1975, 626; A 1979, 1186; R temp. 2001, 2123 ; 2003, 2194 , expires by limitation on July 1, 2009)
“Lending institution”
means any bank or trust company, Federal National Mortgage Association
approved mortgage banker, national banking association, savings and loan
association or other financial institution or governmental agency of the
United States which customarily provides service or otherwise aids in the
financing of mortgages located in this state.
(Added to NRS by 1975, 626)
“Mortgage” means a mortgage deed,
deed of trust or other instrument which constitutes a lien on real
property in fee simple or on a leasehold under a lease whose remaining
term, at the time such mortgage is acquired, does not expire for at least
that number of years beyond the maturity date of the obligation secured
by such mortgage as is established by the Division as necessary to
protect its interest as mortgagee.
(Added to NRS by 1975, 627)
“Mortgage loan” means an
interest-bearing obligation secured by a mortgage on land and
improvements in this state.
(Added to NRS by 1975, 627)
“Real property” means all
lands, including rights to space above the lands, improvements and
fixtures on the lands and property of any nature appurtenant to or used
in connection with the lands, and every estate, interest and right, legal
or equitable, in the lands, including terms of years and liens by way of
judgment, mortgage or otherwise and the indebtedness secured by such
liens.
(Added to NRS by 1975, 627; A 1977, 50)
“Residential housing”
means one or more new or existing residential dwelling units financed
pursuant to the provisions of this chapter for the primary purpose of
providing decent, safe and sanitary dwelling accommodations for eligible
families in need of housing, including any buildings, manufactured homes,
mobile homes, mobile home parks, land, improvements, equipment,
facilities, other real or personal property, or other related nonhousing
facilities which are necessary, convenient or desirable in connection
therewith, and including but not limited to streets, sewers, utilities,
parks, site preparation, landscaping and other nonhousing facilities such
as administrative, community, transportation, health, recreational,
educational, commercial, retail, welfare and public facilities which the
Division determines improve the quality of the residential living for
eligible families.
(Added to NRS by 1975, 627; A 1981, 1664; 1983, 971)
“Sponsor” means any natural
person, association, corporation, joint venture, partnership, trust,
state agency, municipality or other legal entity, or any combination
thereof, which:
1. Has been approved by the Division to acquire, own, construct,
rehabilitate, operate, lease, manage or maintain a housing project; and
2. Except for a state agency or municipality, has agreed to
subject itself to regulation by the Division.
(Added to NRS by 1977, 195)
[Effective through June 30, 2009.]
1. The Division shall administer the provisions of this chapter.
The Administrator may adopt, amend or rescind regulations, consistent
with the provisions of this chapter, appropriate to carry out its
purposes.
2. The Administrator may make copies of all proceedings and other
records and documents of the Division and issue certificates under the
seal of the Division to the effect that the copies are true copies, and
all persons dealing with the Division may rely upon such certificates.
3. The Division has perpetual succession, subject to termination
in accordance with statute, and may:
(a) Sue and be sued in its own name, subject to chapter 41 of NRS;
(b) Adopt an official seal and alter the same at the pleasure of
the Division;
(c) Maintain such offices at any place or places within the State
as it determines necessary to carry out the provisions of this chapter;
(d) Maintain records, proceedings and documents of the Division,
subject to chapters 239 , 239A and 239B of NRS;
(e) Develop or purchase, lease or otherwise acquire one or more
information systems that the Division determines are necessary or
convenient for the exercise of its powers and duties pursuant to this
chapter and acquire any consulting, support or other service for such
information systems;
(f) Make and execute contracts and all other instruments necessary
or convenient for the exercise of its powers and functions pursuant to
this chapter with any governmental agency, private corporation or other
entity, or natural person;
(g) Enter into agreements or other transactions with, and accept
grants from and cooperate with, any governmental agency or other source
in furtherance of the purposes of this chapter;
(h) Acquire real or personal property or any interest therein, by
gift, purchase, foreclosure, deed in lieu of foreclosure, lease, option
or otherwise;
(i) Hold, sell, assign, lease, encumber, mortgage, release or
otherwise dispose of any real or personal property or any interest
therein, by public or private sale, with or without public bidding,
notwithstanding any other provision of law;
(j) Employ or contract for the services of attorneys, accountants,
financial experts and any other advisers, employees, consultants and
agents as the Administrator may determine to be necessary;
(k) Create or cause to be created legal entities, including
nonprofit corporations, grantor trusts and other legal entities, which
the Division determines are necessary or convenient for the exercise of
its powers and duties pursuant to this chapter, provided, however, that
the issuance of bonds, notes or other evidence of indebtedness by any
legal entity controlled by the Division is subject to the approval of the
State Board of Finance;
(l) Provide advice, technical information, training and educational
services related to the development of housing, building technologies and
related fields;
(m) Conduct research, make grants, and promote the development of
housing, building technologies and related fields; and
(n) Do any and all things necessary or appropriate to carry out its
purposes and exercise the powers expressly granted pursuant to this
chapter.
4. Before September 1 of each even-numbered year, the Division
shall submit a report of its activities for the biennium ending June 30
of that year to the Governor, State Treasurer and the Legislature. Each
such report must set forth a complete operating and financial statement
of the Division during such biennium. The Division shall cause an audit
of its books and accounts to be made at least once in each fiscal year by
a certified public accountant. The certified public accountant may audit
the Division’s books and accounts for consecutive audit periods as
requested by the Division.
5. The Division is exempt from the provisions of chapter 333
of NRS.
(Added to NRS by 1975, 627; A 1979, 1186; 2001, 2120 ; 2003, 2190 , 2194 )
[Effective July 1, 2009.]
1. The Division shall administer the provisions of this chapter.
The Administrator may adopt, amend or rescind regulations, consistent
with the provisions of this chapter, appropriate to carry out its
purposes.
2. The Administrator may make copies of all proceedings and other
records and documents of the Division and issue certificates under the
seal of the Division to the effect that the copies are true copies, and
all persons dealing with the Division may rely upon such certificates.
3. The Division may:
(a) Employ or contract for the services of attorneys, accountants,
financial experts and any other advisers, employees, consultants and
agents as the Administrator may determine to be necessary; and
(b) Develop or purchase, lease or otherwise acquire one or more
information systems that the Division determines are necessary or
convenient for the exercise of its powers and duties pursuant to this
chapter and acquire any consulting, support or other service for such
information systems.
4. Before September 1 of each even-numbered year, the Division
shall submit a report of its activities for the biennium ending June 30
of that year to the Governor, State Treasurer and the Legislature. Each
such report must set forth a complete operating and financial statement
of the Division during such biennium. The Division shall cause an audit
of its books and accounts to be made at least once in each fiscal year by
a certified public accountant. The certified public accountant may audit
the Division’s books and accounts for consecutive audit periods as
requested by the Division.
(Added to NRS by 1975, 627; A 1979, 1186; 2001, 2120 ; 2003, 2190 , 2192 , 2194 , effective July 1, 2009)
1. The Division is hereby designated as the housing credit agency
for the State of Nevada, as that term is defined in 26 U.S.C. §
42(h)(7)(A), for the purpose of allocating and distributing credits for
low-income housing pursuant to 26 U.S.C. § 42.
2. The Division:
(a) May adopt regulations establishing procedures necessary for the
proper allocation and distribution of credits for low-income housing
pursuant to 26 U.S.C. § 42; and
(b) Shall exercise all powers necessary to administer the
allocation and distribution of those credits.
3. The Division may act for the State of Nevada as the agency to
facilitate the state’s designation as a participating jurisdiction in the
HOME Investment Partnership Act (42 U.S.C. §§ 12701 et seq.). Upon
receiving such a designation, the Division may exercise all powers
necessary to administer the program.
4. The Division shall administer the program established to
increase the efficiency with which energy is used in dwellings owned or
occupied by persons of low income pursuant to 42 U.S.C. §§ 6861 et seq.
(Added to NRS by 1987, 1352; A 1991, 1639; 1997, 2612)
1. The Division shall certify an assisted living facility for the
purpose of providing services pursuant to the provisions of the home and
community-based services waiver which are amended pursuant to NRS
422.2708 if the facility:
(a) Provides assisted living supportive services to senior citizens
of low or moderate income;
(b) Provides or arranges for the provision of case management
services for its residents;
(c) Guarantees affordable housing for a period of at least 15 years
after the facility is certified;
(d) Is financed through tax credits relating to low-income housing
or other public funds; and
(e) Satisfies any other requirements set forth by the Division in
any regulations adopted by the Division.
2. The Division shall adopt regulations concerning the
certification of assisted living facilities pursuant to this section.
3. As used in this section:
(a) “Assisted living facility” has the meaning ascribed to it in
paragraph (a) of subsection 3 of NRS 422.2708 .
(b) “Assisted living supportive services” has the meaning ascribed
to it in paragraph (b) of subsection 3 of NRS 422.2708 .
(Added to NRS by 2005, 922 )
[Effective
July 1, 2009.] The Division may:
1. Make and execute contracts and all other instruments necessary
or convenient for the exercise of its powers and functions under this
chapter with any governmental agency, private corporation or other
entity, or natural person.
2. Enter into agreements or other transactions with, and accept
grants from and cooperate with any governmental agency or other source in
furtherance of the purposes of this chapter.
(Added to NRS by 1975, 627; R temp. 2001, 2123 ; 2003, 2194 , expires by limitation on July 1, 2009)
[Effective July
1, 2009.] The Division may provide advice, technical information,
training and educational services, conduct research and promote the
development of housing, building technology and related fields.
(Added to NRS by 1975, 628; R temp. 2001, 2123 ; 2003, 2194 , expires by limitation on July 1, 2009)
[Effective July 1, 2009.]
1. The Division may create or cause to be created:
(a) Nonprofit corporations, pursuant to chapter 82 of NRS;
(b) Grantor trusts; or
(c) Other instrumentalities,
Ê which the Division determines are necessary or convenient for the
exercise of its powers and duties pursuant to this chapter.
2. Any corporation created pursuant to subsection 1 must be
subject to the control of the Administrator. The purposes, powers and
operation of the corporation must be consistent with the purposes, powers
and duties of the Division.
3. Any notes, bonds or other obligations issued by a corporation,
trust or other instrumentality created pursuant to subsection 1 are
subject to the same requirements prescribed for notes, bonds and other
obligations of the Division in NRS 319.171 , 319.270 ,
319.280 , 319.323 and 319.327 .
(Added to NRS by 1987, 1350; A 1991, 1312; R temp. 2001, 2123
; 2003, 2194 , expires by limitation on July 1, 2009)
[Effective through June 30,
2009.]
1. Upon the approval of the State Board of Finance, the Division
may enter into instruments, agreements and other such transactions for
one or more of the following purposes:
(a) Reducing or modifying the amount or duration of any payment,
interest rate, spread or similar risk;
(b) Lowering the cost of borrowing when used in combination with
the issuance or carrying of bonds or investments; or
(c) Enhancing the relationship between risk and return with respect
to the programs of the Division for lending or investment or any portion
thereof.
2. In entering into such instruments, agreements or other such
transactions, the Division shall consider the creditworthiness of the
counterparties and other relevant criteria relating to the objectives of
the programs of the Division.
(Added to NRS by 2001, 2120 ; A 2003, 2194 )
Except
as otherwise provided in NRS 319.500 ,
the Division may:
1. Establish such funds or accounts as may be necessary or
desirable for furtherance of the purposes of this chapter.
2. Invest or deposit its money, subject to any agreement with
bondholders or noteholders, and is not required to keep any of its money
in the State Treasury. The provisions of chapters 355 and 356 of NRS do not apply to such investments or deposits.
(Added to NRS by 1975, 628; A 1989, 1214)
Except as otherwise provided in NRS 319.500 , the Division may invest its money in
collateralized mortgage obligations or in trusts created to finance,
acquire or invest in collateralized mortgage obligations if the
collateralized mortgage obligations or trusts so created are:
1. In furtherance of the purposes of the Division; and
2. Rated within one of the top three rating categories of a
national rating service at the time the investment is made.
(Added to NRS by 1987, 1351; A 1989, 1215)
1. The Division may lend any securities in which it invests
pursuant to NRS 319.170 if the Division
receives collateral from the borrower in the form of cash or marketable
securities that are:
(a) Acceptable to the Division; and
(b) At least 102 percent of the value of the securities borrowed.
2. The Division may enter into such contracts as are necessary to
extend and manage loans pursuant to this section.
(Added to NRS by 1999, 927 )
1. There is hereby created an Advisory Committee on Housing to
review and provide to the Director of the Department of Business and
Industry and the Administrator advice, recommendations and other
commentary regarding:
(a) The investment of money or issuance of obligations by the
Division.
(b) The development of new programs or the improvement of existing
programs of the Division.
(c) The improvement of policies and procedures of the Division,
including those relating to the dissemination of relevant information to
persons who participate in or are otherwise interested in programs of the
Division.
(d) The administration of the Account for Low-Income Housing.
(e) Any other matters referred to the Advisory Committee by the
Director or Administrator.
2. The Advisory Committee consists of the Director of the
Department of Business and Industry or his representative, and eight
members appointed by the Director. The Director shall appoint to the
Advisory Committee:
(a) One representative of an association of mortgage bankers in
this State, selected from a list of names submitted to the Director by
that association.
(b) One representative of persons engaged in residential
construction in this State.
(c) One representative of banks or savings and loan associations in
this State who is knowledgeable about making mortgage loans.
(d) One member who is knowledgeable about the sale and marketing or
the management of real property in this State.
(e) One member who is knowledgeable about the development or
management of nonprofit housing in this State.
(f) One member who is knowledgeable about housing programs
sponsored, administered or supported by local governments in this State.
(g) One member who is knowledgeable about federal housing programs
administered by the Division.
(h) One member who is an advocate of affordable housing.
Ê The members of the Advisory Committee are not entitled to any
additional compensation for their service in that capacity.
3. The Director of the Department of Business and Industry or his
representative shall serve as the Chairman of the Advisory Committee. The
Advisory Committee shall meet at least once each calendar quarter, and at
the call of the Chairman or upon the written request of the Administrator
or a majority of the members of the Committee.
4. The Administrator shall submit annually to the Advisory
Committee for its review, comment and recommendations a work plan for the
activities of the Division for the succeeding calendar year. The work
plan must include:
(a) The expected needs for financing and anticipated demand for tax
credits and sources of funding for each of the programs administered by
the Division.
(b) Strategies for meeting those needs and demands.
(c) A plan for resolving any anticipated problems in carrying out
those strategies.
(d) A plan for the allocation of the resources of the Division,
including the allotment of its employees’ time, to carry out the work
plan in such a manner as to serve the entire area of the State adequately.
(e) Any other matters which are critical to the success of any
programs administered by the Division.
5. Before the:
(a) Investment of money of the Division pursuant to NRS 319.171
; or
(b) Submission of findings to the State Board of Finance pursuant
to subsection 4 of NRS 319.323 ,
Ê the Administrator shall submit a plan of investment or a plan of
financing, together with any proposed findings relating to that plan, to
the Advisory Committee for its review and comment.
6. The Administrator shall report to the Advisory Committee at
least once each calendar quarter on the activities of the Division and
the implementation of the Division’s work plan for that year.
(Added to NRS by 1987, 1352; A 1995, 2707)
[Effective July 1,
2009.] The Division, with the approval of the State Board of Finance:
1. May acquire land from any governmental agency;
2. Shall sell the land for the purpose of development of housing
for persons of low or moderate income pursuant to this chapter; and
3. Shall charge a price for the land which is equal to its cost of
acquiring and transferring the land.
(Added to NRS by 1979, 1185; R temp. 2001, 2123 ; 2003, 2194 , expires by limitation on July 1, 2009)
[Effective July 1,
2009.] The Division may, in connection with any property of which it is
the mortgagee:
1. Acquire or contract to acquire real or personal property, or
any interest therein, on a temporary or permanent basis in its own name
by gift, purchase, transfer, foreclosure, lease or otherwise, including
rights or easements in property;
2. Hold, sell, assign, lease, encumber, mortgage or otherwise
dispose of any real or personal property or any interest therein;
3. Hold, sell, assign or otherwise dispose of any mortgage
interest owned by it or under its control, custody or in its possession;
4. Release or relinquish any right, title, claim, lien, interest,
easement or demand however acquired, including any equity or right of
redemption in property foreclosed by it; and
5. Make any such disposition by private sale, with or without
public bidding.
(Added to NRS by 1975, 628; A 1979, 1187; R temp. 2001, 2123 ; 2003, 2194 , expires by limitation on July 1, 2009)
[Effective through June 30, 2009.]
1. The Division may make, undertake commitments to make and
participate with lending institutions in the making of mortgage loans and
may make temporary loans and advances in anticipation of mortgage loans
to finance the acquisition, construction, development, renewal,
redevelopment, rehabilitation or refinancing of residential housing,
including, without limitation, multifamily housing, within this state.
2. The Division may issue letters of credit to finance the
acquisition, construction, development, renewal, redevelopment,
rehabilitation or refinancing of residential housing, including, without
limitation, multifamily housing, within this state if, at the time a
letter of credit is issued, the Division has a credit rating within one
of the three highest rating categories of a nationally recognized rating
agency.
(Added to NRS by 1975, 628; A 1977, 195; 1987, 1354; 1991, 214;
2001, 2121 ; 2003, 2192 , 2194 )
[Effective July 1, 2009.]
1. The Division may make, undertake commitments to make and
participate with lending institutions in the making of mortgage loans and
may make temporary loans and advances in anticipation of mortgage loans
to finance the acquisition, construction or rehabilitation of residential
housing, including, without limitation, multifamily housing. Any loan
made by the Division pursuant to this section must be insured or
guaranteed unless it is financed by an issue of obligations of the
Division that are insured or secured by surety bonds, letters of credit
not issued by the Division, guaranties or other means of assuring
repayment of those obligations. Such loans may be made only after a
determination by the Administrator that mortgage loans are not otherwise
available from private lenders upon reasonable equivalent terms and
conditions.
2. The Division may issue a letter of credit to finance the
acquisition, construction or rehabilitation of residential housing,
including, without limitation, multifamily housing, only if:
(a) At the time a letter of credit is issued, the Division has a
credit rating within one of the three highest rating categories of a
nationally recognized rating agency;
(b) Sufficient reserves in the funds established by the Division
are deposited in a separate account to be used to pay any liabilities
that may be incurred by issuing the letter of credit;
(c) The aggregate amount of outstanding letters of credit issued by
the Division and the proposed letter of credit does not exceed
$5,000,000; and
(d) The Administrator has determined that a letter of credit is not
otherwise available from a private lender upon reasonable equivalent
terms and conditions.
(Added to NRS by 1975, 628; A 1977, 195; 1987, 1354; 1991, 214;
2001, 2121 ; 2003, 2192 , 2194 , effective July 1, 2009)
[Effective
through June 30, 2009.] Any mortgage loan made by the Division must be
secured in such manner, be repaid in such period and bear interest at
such rate or rates as are determined by the Division.
(Added to NRS by 1975, 628; A 2001, 2122 ; 2003, 2194 )
[Effective July
1, 2009.] Any insured mortgage loan made by the Division shall:
1. Not exceed the amount permitted under the insurance program
under which the mortgage is insured.
2. Be secured in such manner, be repaid in such period and bear
interest at a rate determined by the Division and permitted under the
insurance program under which the mortgage is insured. In addition to
such interest charges, the Division may charge and collect such fees and
charges, including reimbursement of the Division’s operating expenses,
financing costs, service charges, insurance premiums and mortgage
insurance premiums as the Division determines to be reasonable.
(Added to NRS by 1975, 628; A 2001, 2122 ; 2003, 2194 , effective July 1, 2009)
[Effective through June 30,
2009.]
1. The Division may:
(a) Invest in, purchase or make commitments to purchase, and take
assignments from lending institutions of mortgage loans and promissory
notes accompanying such mortgage loans, including mortgage loans or
participations with lending institutions in such promissory notes and
mortgage loans, for the construction, rehabilitation, purchase, leasing
or refinancing of residential housing within this state.
(b) Sell, at public or private sale, with or without public
bidding, any mortgage or other obligation held by the Division.
2. At or before the time of purchase, the lending institution
shall certify to the Division with respect to all mortgage loans
transferred to the Division:
(a) That the mortgage loans transferred to the Division are for
residential housing for eligible families within this state; or
(b) That the proceeds of sale or its equivalent will be reinvested
in mortgage loans for residential housing for eligible families within
this state in an aggregate principal amount equal to the amount of such
sale proceeds.
(Added to NRS by 1975, 628; A 2001, 2122 ; 2003, 2194 )
[Effective July 1, 2009.]
1. The Division may:
(a) Invest in, purchase or make commitments to purchase, and take
assignments from lending institutions of mortgage loans and promissory
notes accompanying such mortgage loans, including federally insured
mortgage loans or participations with lending institutions in such
promissory notes and mortgage loans, for the construction,
rehabilitation, purchase, leasing or refinancing of residential housing
within this state.
(b) Sell, at public or private sale, with or without public
bidding, any mortgage or other obligation held by the Division.
2. At or before the time of purchase, the lending institution
shall certify to the Division with respect to all mortgage loans
transferred to the Division:
(a) That the mortgage loans transferred to the Division are for
residential housing for eligible families within this state; or
(b) That the proceeds of sale or its equivalent will be reinvested
in mortgage loans for residential housing for eligible families within
this state in an aggregate principal amount equal to the amount of such
sale proceeds.
(Added to NRS by 1975, 628; A 2001, 2122 ; 2003, 2194 , effective July 1, 2009)
The Division may:
1. Renegotiate, refinance or foreclose, or contract for the
foreclosure of, any mortgage in default;
2. Waive any default or consent to the modification of the terms
of any mortgage;
3. Commence any action to protect or enforce any right conferred
upon it by any law, mortgage, contract or other agreement;
4. Bid for and purchase property upon which it holds a mortgage at
any foreclosure or at any other sale, or acquire and take possession of
any such property;
5. Operate, manage, lease, dispose of and otherwise deal with such
property in such manner as may be necessary to protect the interest of
the Division and the holders of its bonds, notes and other obligations;
and
6. Consent to any modification with respect to rate of interest,
time and payment of any installment of principal or interest, security or
any other term of any contract, mortgage, mortgage loan, mortgage loan
commitment, contract or agreement of any kind to which the Division is a
party, subject to any agreement with bondholders or noteholders.
(Added to NRS by 1975, 629)
1. The Division may:
(a) Make loans to lending institutions under terms and conditions
requiring the proceeds of the loans to be used by the lending
institutions for the making of new mortgage loans for residential housing;
(b) Purchase securities from lending institutions under terms and
conditions requiring that the securities finance mortgage loans for
residential housing;
(c) Require that loans to or securities purchased from lending
institutions be additionally secured as to payment of both principal and
interest by a pledge of and lien upon collateral security in such amounts
and consisting of such obligations, securities, and mortgage loans as the
Administrator determines to be necessary to assure the payment of the
loans or securities purchased and the interest on them as they become due.
2. The Division may require in the case of any lending institution
that any required collateral be lodged with a bank or trust company,
located either within or outside the State, designated by the Division as
custodian therefor. In the absence of this requirement, a lending
institution shall, if collateral is to be provided for the loan or
securities purchased, upon receipt of the proceeds from the Division,
enter into an agreement with the Division containing any provisions the
Division deems necessary to identify adequately and maintain and service
the collateral and providing that the lending institution shall hold the
collateral as trustee for the benefit of the Division and shall be held
accountable as the trustee of an express trust for the application and
disposition thereof and the income therefrom solely to the uses and
purposes in accordance with the provisions of the agreement. A copy of
the agreement and any of its revisions or supplements, which revisions or
supplements may add to, delete from, or substitute items of collateral
pledged by the agreement, must be filed with the Secretary of State. The
filing shall be deemed to perfect the security interest of the Division
in the collateral and no filing, recording, possession or other action
required under any other law of this state is necessary, and the lien and
trust for the benefit of the Division so created is binding from the time
made against all parties having any prior unperfected claim or claims of
any kind in tort, contract or otherwise or any subsequent security
interests against the lending institution. The Division may also
establish any additional requirements the Administrator deems necessary
with respect to the pledging, assigning, setting aside or holding of the
collateral and the making of substitutions for it or additions to it and
the disposition of income and receipts from it.
3. The Division may collect, enforce the collection of and
foreclose on any collateral securing its loan to or purchase of
securities from lending institutions and acquire or take possession of
the collateral and sell the collateral at public or private sale, with or
without public bidding, and otherwise deal with the collateral as may be
necessary to protect the interest of the Division in it, all subject to
any agreement with bondholders or noteholders.
(Added to NRS by 1975, 629; A 1977, 195; 1979, 1187)
The Division
may finance, through the use of any power conferred on it by this chapter:
1. The acquisition and improvement of real property to be used for
rental sites for mobile homes, whether or not the mobile homes are to be
financed pursuant to this chapter; and
2. The purchase and installation of equipment and materials to be
used in residential dwelling units for conservation of energy or for use
of energy from alternative sources,
Ê and any related improvements appropriate to any of these purposes.
(Added to NRS by 1981, 1664)
The Division may charge and
collect such fees and charges as the Division may establish from time to
time for its lending and mortgage purchase programs.
(Added to NRS by 1975, 630)
The Division may procure insurance against
any loss in connection with its property and other assets, including
mortgages and mortgage loans, in such amounts and from such insurers as
it deems desirable.
(Added to NRS by 1975, 630)
The
Division shall not finance any residential housing unless, prior to such
financing, the Administrator finds that:
1. There exists a shortage of decent, safe and sanitary housing at
rentals or prices which eligible families can afford within the general
housing market area as determined by the Administrator.
2. Private enterprise and investment have been unable, without
assistance, to provide an adequate supply of decent, safe and sanitary
housing in such housing market area at rentals or prices which persons or
families of low and moderate income can afford or to provide sufficient
mortgage financing for residential housing for occupancy by such persons
or families.
3. The proposed residential housing will increase the supply or
improve the quality of decent, safe and sanitary housing for eligible
families.
4. The residential housing to be developed or assisted by the
Division pursuant to the provisions of this chapter will be of public use
and will provide a public benefit.
5. The Division’s estimates of its revenues from the financing of
the residential housing, together with all subsidies, grants or other
financial assistance from governmental agencies or other entities to be
received in connection with the residential housing, will be sufficient
to pay the amount estimated by the Division as necessary for debt service
on its notes and bonds to be issued for the financing of the residential
housing.
(Added to NRS by 1975, 630)
ISSUANCE OF NOTES, BONDS AND OTHER OBLIGATIONS
1. Subject to the limitation imposed by subsections 4 and 5, the
Division may issue its negotiable notes and bonds in such principal
amount as the Administrator determines to be necessary to provide
sufficient money for achieving any of its statutory purposes, including
the payment of interest on notes and bonds of the Division, establishment
of bond reserve funds and other reserves to secure the notes and bonds,
and all other expenditures of the Division necessary or convenient to
carry out its statutory purposes and powers.
2. Subject to any agreements with holders of notes or bonds, all
notes and bonds issued by the Division are special obligations of the
Division payable out of any revenues, money or other assets of the
Division pledged thereto.
3. In issuing the notes and bonds, the Division acts as an agency
or instrumentality of the State of Nevada.
4. Before any notes or bonds may be issued pursuant to this
section, except those issued for the purpose of refunding outstanding
notes or bonds, the Administrator must submit a copy of his finding of
the conditions prerequisite to the financing of residential housing under
this chapter to the State Board of Finance. If that Board approves, the
Division may proceed to issue its notes or bonds in the amount approved,
subject to the further limitation of subsection 5.
5. The aggregate principal amount of outstanding bonds, notes and
other obligations of the Division must not exceed $5,000,000,000, of
which $100,000,000 must be allocated to veterans who qualify for loans
under this chapter, exclusive of any bonds, notes or obligations which
have been refunded or which were issued at a time when the Division had a
credit rating within one of the highest rating categories of a nationally
recognized rating agency. The establishment of this debt limitation does
not prohibit the Division from issuing additional bonds, notes or other
obligations if the debt limitation is subsequently increased.
(Added to NRS by 1975, 631; A 1977, 196; 1979, 1188; 1981, 877;
1985, 46; 1999, 959 ; 2003, 2193 )
1. The notes and bonds must be signed by the Administrator, who
may use a facsimile signature for this purpose, must bear the date or
dates and must mature at such a time or times as the Administrator
determines. The bonds may be issued as serial bonds payable in annual
installments or as term bonds or as a combination thereof. The notes and
bonds must bear interest at such a rate or rates, be in such
denominations, have such registration privileges, be executed in such a
manner, be payable in such a medium of payment, at such a place or places
within or outside of the State, and be subject to such terms of
redemption as the Administrator determines. The notes and bonds of the
Division may be sold by the Division at public or private sale at such a
price or prices as the Administrator determines except that no note, bond
or other obligation issued by the Division may be initially distributed
to the public unless it has received a rating in one of the three highest
rating categories from a national rating service.
2. If the Administrator whose signature appears on any notes or
bonds or coupons ceases to act in that capacity before the delivery of
the notes or bonds, his signature is valid and sufficient for all
purposes as if he had remained in office until their delivery.
3. The provisions of chapter 349 of NRS do not apply to any bonds, notes or other obligations issued
by the Division under the provisions of this chapter.
(Added to NRS by 1975, 631; A 1979, 1189; 1987, 1354)
The Division in
issuing any notes or bonds may contract with the holders thereof as to:
1. Pledging all or any part of the revenues of the Division to
secure the payment of the notes or bonds subject to such agreements with
noteholders or bondholders as may then exist.
2. Pledging all or any part of the assets of the Division,
including mortgages and obligations securing such assets, to secure the
payment of the notes or bonds subject to such agreements with noteholders
or bondholders as may then exist.
3. The use and disposition of the gross income from mortgages
owned by the Division and the payment of principal of mortgages owned by
the Division.
4. The setting aside of reserves or sinking funds and the
regulation and disposition thereof.
5. Limitations on the purpose to which the proceeds of sale of
notes or bonds may be applied and pledging such proceeds to secure the
payment of the notes or bonds or of any issue thereof.
6. Limitations on the issuance of additional notes or bonds, the
terms upon which additional notes or bonds may be issued and secured, and
the refunding of outstanding or other notes or bonds.
7. The procedure, if any, by which the terms of any contract with
noteholders or bondholders may be amended or abrogated, the amount of
notes or bonds the holders of which must consent thereto, and the manner
in which such consent may be given.
8. Limitations on the amount of moneys to be expended by the
Division for operating expenses of the Division.
9. Vesting in a trustee or trustees such property, rights, powers
and duties in trust as the Administrator may determine, which may include
any or all of the rights, powers and duties of the trustee appointed by
the bondholders pursuant to this chapter and limiting or abrogating the
right of the bondholders to appoint a trustee under this act or limiting
the rights, powers and duties of such trustee.
10. Defining the acts or omissions which shall constitute a
default in the obligations and duties of the Division to the holders of
the notes or bonds and providing for the rights and remedies of the
holders of the notes or bonds in case of such default, including as a
matter of right the appointment of a receiver, but such rights and
remedies shall not be inconsistent with the general laws of this state
and the other provisions of this chapter.
11. Any other matters, of like or different character, which in
any way affect the security or protection of the holders of the notes or
bonds.
Ê Any pledge made by the Division is valid and binding from the time when
the pledge is made. The revenues, moneys or property so pledged and
thereafter received by the Division are immediately subject to the lien
of such pledge without any physical delivery thereof or further act, and
the lien of any such pledge is valid and binding as against all persons
having claims of any kind in tort, contract or otherwise against the
Division, whether or not such persons have notice thereof. Neither the
proceedings of the Division relating to the bonds or notes nor any other
instrument by which a pledge is created need be recorded.
(Added to NRS by 1975, 631)
In the
discretion of the Administrator, bonds issued by the Division may be
secured by a trust indenture or trust indentures by and between the
Division and a corporate trustee, which may be any trust company or bank
having the power of a trust company within or outside this state. Such
trust indenture may contain such provisions for protecting and enforcing
the rights and remedies of the bondholders as may be reasonable and
proper and not in violation of law, including covenants setting forth the
duties of the Division in relation to the exercise of its statutory
powers and the custody, safeguarding and application of all moneys. The
Division may provide by such trust indenture for the payment of the
proceeds of the bonds and the revenues to the trustee under such trust
indenture or other depository, and for the method of disbursement
thereof, with such safeguards and restrictions as the Administrator may
determine. All expenses incurred in carrying out such trust indenture may
be treated as part of the operating expenses of the Division. Such trust
indenture may limit or abrogate the right of the holders of any bonds,
notes or other obligations of the Division to appoint a trustee under
this chapter or limit the rights, powers and duties of such trustee.
(Added to NRS by 1975, 632)
The Division
may procure or agree to the procurement of insurance or guarantees from
any governmental agency or from any private insurance company, of the
payment of any bonds or notes or any other evidences of indebtedness
thereof issued by the Division or by any lending institution, and may pay
premiums on such insurance.
(Added to NRS by 1975, 633)
1. The Division, subject to such agreements with noteholders or
bondholders as may then exist, may, out of any money available therefor,
purchase its notes or bonds to retire and cancel them. The price must not
exceed:
(a) The redemption price then applicable plus accrued interest to
the next interest payment thereon if the notes or bonds are then
redeemable; or
(b) The redemption price applicable on the first date after the
purchase upon which the notes or bonds become subject to redemption plus
accrued interest to that date if the notes or bonds are not redeemable.
2. The Division may, in connection with any remarketing or
refunding of its notes or bonds or for any of its purposes, acquire, or
cause to be acquired, its notes or bonds without retiring and cancelling
them.
(Added to NRS by 1975, 633; A 1987, 1354)
1. The Division may, in addition to the notes and bonds authorized
by NRS 319.270 , issue from time to time
its collateralized mortgage obligations or other negotiable notes, bonds
or obligations which may be secured by collateral consisting of,
otherwise secured in whole or in part by, or which may evidence loans or
participations or other interests in loans or participations. Any money
acquired from such an issuance must be applied by the Division to carry
out its purposes.
2. Any such collateralized mortgage obligations or other notes,
bonds or obligations are subject to the limitations of subsection 5 of
NRS 319.270 to the extent they
constitute a debt under generally accepted accounting principles.
3. Using the proceeds of collateralized mortgage obligations or
other available money, the Division may purchase or otherwise acquire the
loans or participations or other interests in loans or participations
which are collateral for, secure or evidence or are evidenced by
collateralized mortgage obligations or other notes, bonds or obligations
issued by the Division pursuant to this section. Such loans may be
secured by mortgages on real property outside of this state.
4. Before the issuance of any collateralized mortgage obligations
or other bonds, notes or obligations pursuant to this section, the
Administrator shall submit to the State Board of Finance a copy of his
findings that:
(a) The issuance of the obligation is in furtherance of the
purposes of the Division; and
(b) The estimate of the revenues and other amounts to be derived
from such financing is sufficient to pay the amount estimated to be
necessary for debt service on the collateralized mortgage obligations or
other notes, bonds or obligations issued pursuant to this section.
Ê If that Board approves, the Division may proceed to issue such
collateralized mortgage obligations or other notes, bonds or obligations
in the amount approved.
(Added to NRS by 1987, 1351)
The
Division may:
1. Provide that any bonds or notes issued by the Division be
insured or be secured by surety bonds, letters of credit not issued by
the Division, guaranties or other means of assuring repayment of such
bonds or notes.
2. Require that any loans, including a mortgage loan, made or
purchased by the Division be insured or be secured by surety bonds,
letters of credit not issued by the Division, guaranties or other means
of assuring repayment of such loans.
3. Pay the fees, charges, premiums and any other costs associated
with obtaining and maintaining insurance, or other means of assuring
repayment, from any available money of the Division including premiums,
fees and charges assessed against sponsors, lending institutions or other
participants or beneficiaries of the programs of the Division.
(Added to NRS by 1987, 1351; A 1991, 215)
The Division may:
1. Waive, by such means as the Division deems appropriate, any
exemption from federal income taxation of interest on the division’s
bonds, notes or other obligations provided by 26 U.S.C. §§ 103 and 141 to
149, inclusive, and related portions of the Internal Revenue Code or any
succeeding code or other federal statute providing a similar exemption; or
2. Issue notes, bonds or other obligations, the interest on which
is not exempt from federal income taxation or excluded from gross revenue
for the purpose of federal income taxation, if necessary to carry out the
purposes of this chapter.
(Added to NRS by 1987, 1352)
1. The Division may issue refunding obligations to refund any
obligations then outstanding which have been issued under the provisions
of this chapter, including the payment of any redemption premium thereon
and any interest accrued or to accrue to the date of redemption of the
obligations and for any statutory purpose of the Division. The issuance
of the obligations, the maturities and other details thereof, the rights
of the holders thereof, and the rights, duties and obligations of the
Division in respect to them are governed by the provisions of this
chapter which relate to the issuance of original obligations insofar as
appropriate.
2. Refunding obligations issued as provided in this section may be
sold or exchanged for outstanding obligations issued under this chapter
and, if they are sold, the proceeds thereof may be applied, in addition
to any other authorized purposes, to the purchase, redemption or payment
of the outstanding obligations. Pending the application of the proceeds
of the refunding obligations, with any other available funds, to the
purpose for which they are issued, the proceeds may be invested in direct
obligations of, or obligations the principal of and the interest on which
are unconditionally guaranteed by, the United States of America, or
obligations of any agency or instrumentality of the United States, which
mature or which are subject to redemption by the holders thereof, at the
option of such holders, not later than the respective dates when the
proceeds, together with the interest accruing thereon, will be required
for the purposes intended.
(Added to NRS by 1975, 633; A 1979, 1189)
1. The Division may establish one or more bond reserve funds, and
shall pay into each such bond reserve fund:
(a) Any money appropriated by the Legislature for the purpose of
the fund;
(b) Any proceeds of sale of notes or bonds to the extent provided
in connection with the issuance thereof; and
(c) Any other money which may be available to the Division for the
purpose of the fund from any other source or sources.
Ê All money held in any bond reserve fund, except as otherwise expressly
provided in this chapter, must be used, as required, solely for the
payment of the principal of bonds secured in whole or in part by the fund
or of the sinking fund payments with respect to such bonds, the purchase
or redemption of such bonds, the payment of interest on such bonds or the
payment of any redemption premium required to be paid when the bonds are
redeemed before maturity.
2. Money in such a fund must not be withdrawn from the fund at any
time in an amount that would reduce the amount of the fund below the
requirement established for that fund, except to pay when due, with
respect to bonds secured in whole or in part by that fund, principal,
interest, redemption premiums and sinking fund payments for the payment
of which other money of the Division is not available. Any income or
interest earned by or incremental to any bond reserve fund resulting from
the investment thereof may be transferred by the Division to other funds
or accounts of the Division and to the Account for Low-Income Housing
created pursuant to NRS 319.500 , to the
extent that the amount of that bond reserve fund is not reduced below the
requirement for the fund.
(Added to NRS by 1975, 634; A 1991, 215; 1993, 640)
The Division shall
not at any time issue bonds, secured in whole or in part by a bond
reserve fund, if upon the issuance of those bonds, the amount in that
bond reserve fund will be less than the bond reserve fund requirement for
that fund, unless the Division at the time of issuance of those bonds
deposits in that fund from the proceeds of the bonds issued, or from
other sources, an amount which, together with the amount then in that
fund, will not be less than the bond reserve fund requirement for that
fund. The bond reserve fund requirement, as of any particular date of
computation, is an amount of money, specified in the proceedings of the
Division authorizing the bonds with respect to which the fund is
established, necessary to provide adequate reserves for debt service on
the bonds.
(Added to NRS by 1975, 634; A 1979, 1190)
The
provision of bond reserve fund requirements is designed to assure the
continued operation and solvency of the Division for the carrying out of
its statutory purposes. The Administrator shall, on or before the date of
convening of any regular session of the Nevada Legislature, make and
deliver to the Governor, the President of the Senate and the Speaker of
the Assembly his report giving the status of this fund.
(Added to NRS by 1975, 635)
1. If the Division defaults in the payment of principal of or
interest on any bonds or notes issued under this chapter after it is due,
whether at maturity or upon call for redemption, and such default
continues for a period of 30 days, or if the Division fails or refuses to
comply with the provisions of this chapter or defaults in any agreement
made with the holders of an issue of its bonds or notes, the holders of
25 percent in aggregate principal amount of the bonds or notes of such
issue then outstanding, by instrument or instruments filed in the Office
of the Secretary of State and proved or acknowledged in the same manner
as a deed to be recorded, may appoint a trustee to represent the holders
of such bonds or notes for the purposes provided in this section.
2. The trustee may, and upon written request of the holders of 25
percent in principal amount of such bonds or notes then outstanding
shall, in his or its own name:
(a) Enforce the right of the bondholders or noteholders to require
the Division to collect interest and amortization payments on the
mortgages held by it adequate to carry out any agreement as to, or pledge
of, such interest and amortization payments, and to require the Division
to carry out any other agreements with the holders of such bonds or notes
and to perform its duties under this act.
(b) Enforce the right of the bondholders or noteholders to collect
and enforce the payment of principal of and interest due or becoming due
on loans to lending institutions and collect and enforce any rights in
respect to collateral securing such loans or sell such collateral, so as
to carry out any contract as to, or pledge of revenues, and to require
the Division to carry out any contract as to, or pledge of revenues, and
to require the Division to perform its duties under this chapter.
(c) Bring suit upon all or any part of such bonds or notes.
(d) By civil action, require the agency to account as if it were
the trustee of an express trust for the holders of such bonds or notes.
(e) By civil action, enjoin any acts or things which may be
unlawful or in violation of the rights of the holders of such bonds or
notes.
(f) Declare all such bonds or notes due and payable, and if all
defaults are made good then with the consent of the holders of 25 percent
of the principal amount of such bonds or notes then outstanding, to annul
such declaration and its consequences.
(g) Enforce any other right of the bondholders or noteholders
conferred by law or by the proceedings of the Division authorizing the
issuance of the bonds or notes.
3. The trustee shall, in addition to the powers listed in
subsection 2, have all the powers necessary or appropriate for the
exercise of any functions specifically set forth in this section or
incident to the general representation of bondholders or noteholders in
the enforcement and protection of their rights.
4. Before declaring the principal of bonds or notes due and
payable, the trustee shall give 30 days’ notice in writing to the
Governor, to the Administrator and to the Attorney General of this state.
5. The District Court of the First Judicial District has
jurisdiction of any suit, action or proceeding by the trustee on behalf
of bondholders or noteholders.
(Added to NRS by 1975, 635)
1. The State of Nevada hereby pledges to and agrees with the
holders of any notes or bonds issued under this chapter that the State
will not limit or alter the rights vested in the Division by this chapter
to fulfill the terms of any agreements made with such holders or in any
way impair the rights and remedies of such holders until such notes and
bonds, together with the interest thereon, with interest on any unpaid
installments of interest, and all costs and expenses in connection with
any action or proceeding by or on behalf of such holders, are fully met
and discharged. The Division may include this pledge and agreement of the
State in any agreement with the holders of such notes or bonds.
2. Obligations issued under the provisions of this chapter,
including letters of credit issued by the Division, do not constitute a
debt, liability or obligation of this state or of any political
subdivision thereof, or a pledge of the faith and credit of this state or
of any political subdivision thereof, but are payable solely from the
revenues or assets of the Division. Each obligation, including a letter
of credit, issued under this chapter must contain on the face thereof a
statement to the effect that the Division is not obligated to pay the
obligation or the interest thereon except from the revenues or assets
pledged therefor and that neither the faith and credit nor the taxing
power of this state or of any political subdivision thereof is pledged to
the payment of the principal of or the interest on the obligation.
(Added to NRS by 1975, 636; A 1991, 215)
1. The notes and bonds of the Division are legal investments in
which all public officers and public bodies of the State, its political
subdivisions, all municipalities and municipal subdivisions, all
insurance companies and associations and other persons carrying on an
insurance business, all banks, savings and loan associations and trust
companies, all administrators, guardians, executors, trustees and other
fiduciaries, and all other persons who are authorized on or after July 1,
1975, to invest in bonds or in other obligations of this state, may
properly and legally invest funds, including capital, in their control or
belonging to them. The notes and bonds are securities which may properly
and legally be deposited with and received by all public officers and
public bodies of the State or any agency or political subdivision of the
State and all municipalities and public corporations for any purpose for
which the deposit of bonds or other obligations of this state is
authorized by law on and after July 1, 1975, and may be used as
collateral to secure any deposit of public moneys.
2. The notes and bonds of the Division are securities within the
meaning of the Uniform Commercial Code—Investment Securities.
(Added to NRS by 1975, 636)
ACCOUNT FOR LOW-INCOME HOUSING
1. There is hereby created in the State General Fund the Account
for Low-Income Housing, to be administered by the Division. All money
that is collected for the use of the Account from any source, including
pursuant to a specific statute, tax, legislative appropriation, gift or
grant, or from interest earned on specified public or private accounts,
must be deposited in the Account.
2. The money in the Account must be invested as provided in
chapters 355 and 356 of NRS. The interest and income earned on the money in the Account,
after deducting any applicable charges, must be credited to the Account.
All claims against the Account must be paid as other claims against the
State are paid.
(Added to NRS by 1989, 1211; A 1993, 641)
1. Money deposited in the Account for Low-Income Housing must be
used:
(a) For the acquisition, construction or rehabilitation of housing
for eligible families by public or private nonprofit charitable
organizations, housing authorities or local governments through loans,
grants or subsidies;
(b) To provide technical and financial assistance to public or
private nonprofit charitable organizations, housing authorities and local
governments for the acquisition, construction or rehabilitation of
housing for eligible families;
(c) To provide funding for projects of public or private nonprofit
charitable organizations, housing authorities or local governments that
provide assistance to or guarantee the payment of rent or deposits as
security for rent for eligible families, including homeless persons;
(d) To reimburse the Division for the costs of administering the
Account; and
(e) In any other manner consistent with this section to assist
eligible families in obtaining or keeping housing, including use as the
State’s contribution to facilitate the receipt of related federal money.
2. Except as otherwise provided in this subsection, the Division
may expend money from the Account as reimbursement for the necessary
costs of efficiently administering the Account and any money received
pursuant to 42 U.S.C. §§ 12701 et seq. In no case may the Division expend
more than $40,000 per year or an amount equal to 6 percent of any money
made available to the State pursuant to 42 U.S.C. §§ 12701 et seq.,
whichever is greater. Of the remaining money allocated from the Account:
(a) Except as otherwise provided in subsection 3, 15 percent must
be distributed to the Division of Welfare and Supportive Services of the
Department of Health and Human Services for use in its program developed
pursuant to 45 C.F.R. § 233.120 to provide emergency assistance to needy
families with children, subject to the following:
(1) The Division of Welfare and Supportive Services shall
adopt regulations governing the use of the money that are consistent with
the provisions of this section.
(2) The money must be used solely for activities relating to
low-income housing that are consistent with the provisions of this
section.
(3) The money must be made available to families that have
children and whose income is at or below the federally designated level
signifying poverty.
(4) All money provided by the Federal Government to match
the money distributed to the Division of Welfare and Supportive Services
pursuant to this section must be expended for activities consistent with
the provisions of this section.
(b) Eighty-five percent must be distributed to public or private
nonprofit charitable organizations, housing authorities and local
governments for the acquisition, construction and rehabilitation of
housing for eligible families, subject to the following:
(1) Priority must be given to those projects that qualify
for the federal tax credit relating to low-income housing.
(2) Priority must be given to those projects that anticipate
receiving federal money to match the state money distributed to them.
(3) Priority must be given to those projects that have the
commitment of a local government to provide assistance to them.
(4) All money must be used to benefit families whose income
does not exceed 60 percent of the median income for families residing in
the same county, as defined by the United States Department of Housing
and Urban Development.
(5) Not less than 15 percent of the units acquired,
constructed or rehabilitated must be affordable to persons whose income
is at or below the federally designated level signifying poverty. For the
purposes of this subparagraph, a unit is affordable if a family does not
have to pay more than 30 percent of its gross income for housing costs,
including both utility and mortgage or rental costs.
(6) To be eligible to receive money pursuant to this
paragraph, a project must be sponsored by a local government.
3. The Division may, pursuant to contract and in lieu of
distributing money to the Division of Welfare and Supportive Services
pursuant to paragraph (a) of subsection 2, distribute any amount of that
money to private or public nonprofit entities for use consistent with the
provisions of this section.
(Added to NRS by 1989, 1211; A 1991, 1639; 1993, 641)
1. The Administrator shall consult with representatives of housing
authorities, organizations of persons with low income, providers of
housing, financial institutions and other persons interested in the
provision of low-income housing, and adopt regulations establishing:
(a) Criteria for the distribution and use of money from the Account
for Low-Income Housing; and
(b) Procedures for the Division and the local governments that
receive money pursuant to NRS 319.510
to monitor the use of money from the Account and to enforce the
provisions of this section and NRS 319.500 and 319.510 .
Ê The regulations must be designed to maximize the efficient use of money
in the Account and to promote the participation and assistance of local
governments.
2. A recipient of money from the Account shall comply with the
regulations of the Administrator and provide such reports to the Division
and the local governments that receive money pursuant to NRS 319.510
upon the use of the money as the
Administrator requires.
(Added to NRS by 1989, 1213; A 1993, 642)
UNLAWFUL ACTS
Any person who knowingly
makes or causes to be made, either directly or indirectly, or through any
agency whatsoever, any false statement in writing concerning an
applicant’s income, employment, financial position, the size of his
family, his intent to occupy premises as his primary residence or the
cost of the residence, with intent that the statement be relied upon for
the purpose of obtaining financial assistance from the Division is guilty
of a gross misdemeanor.
(Added to NRS by 1981, 877; A 1989, 1215)—(Substituted in revision
for NRS 319.400)
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